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Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
Tik, Tok, shop. After getting its start on Chinese social media, livestream shopping is growing in the US, with one research firm predicting that the country’s sales could reach $50 billion by the end of the year. To capture growing demand, several e-commerce and social media companies are developing platforms that enable live product demonstrations and real-time purchases. One influencer and live-shopping show host said that consumers will sometimes buy up to 3,000 products in a single show. [CNBC]
Influencing by another name? A new group of online trendsetters called “deinfluencers” are telling their followers what not to buy. Typically, they try to dissuade users from purchasing overpriced products and participating in what they perceive as wasteful trends. While deinfluencers can keep brands honest, they’re still part of the overall social media hype cycle—and might even be paid by rival brands, a social media analyst shares. [CNN]
Waiting to hear back. McKinsey has identified social media’s four primary functions for businesses, including using social channels to respond to consumer requests. While companies face growing pressure to be present and responsive online, only about half are meeting expectations for response time on social media, per a recent study. Addressing online complaints quickly could increase shoppers’ positive feelings about a brand while delivering a great customer experience, McKinsey senior partner Renny Thomas and colleagues explain.
Bye-bye, brand loyalty. Three-quarters of customers changed the way they shopped, the products they bought, or tried a new store during the COVID-19 pandemic, senior partner Kelsey Robinson and coauthors find. In a time of decreasing consumer loyalty, companies that personalize their social media channels may improve performance. Tailoring messages to individuals can lower customer acquisition costs, increase revenue, and drive conversions, studies show. For more on social commerce, the latest social media strategies and trends, and key business risks, explore our McKinsey Explainer on social media.
— Edited by Joy Merten, editor, Chicago
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