Retail brands must go further to impress on social media as likes and followers will become more valuable post Covid-19, GlobalData says

• As consumers spend greater time on social media during the pandemic, likes and followers will become more valuable to retailers, GlobalData finds. 
• Brands will have to enhance their online identity and impress new customers in order to outperform in an environment of strong competitors.
• Compared to traditional forms of TV ads and billboards, "social media is a far cheaper method, especially if brands can leverage user-generated content and rely less on sponsored posts and collaborations," a retail analyst at GlobalData said.
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As many people across the world have stayed home during the COVID-19 pandemic, their time spent on-screen and engaging with social media has gone up, creating an opportunity for enterprising online retailers

According to a recent study by analytics firm GlobalData, 49.3% of consumers surveyed in the retail space said they are investing more time on social media.

The study was conducted between May 12-17 from a sample of 500 respondents living in 11 countries.

To maximize the benefits of an increased online consumer presence, retail brands need to enhance their social media activity to promote online shopping. This will help them build a loyal customer base to offset the weak demand for non-essential products, GlobalData said.

With TV and billboards ads now defunct, social media identity will increasingly have a crucial role to play in strengthening a brand as retailers slash marketing costs across the board, according to Emily Salter, a retail analyst at GlobalData.

As social media a more economical option than traditional advertising, Salter said it was an opportunity for a brand to tap into user-generated content rather than on sponsored posts and collaborations.

Some examples of user-generated content:

A Coca-Cola post on Instagram:

Friends and family. Hugs and happiness. What are your favorite gifts? 🎁

A post shared by Coca-Cola (@cocacola) on Dec 20, 2019 at 9:00am PST on Dec 20, 2019 at 9:00am PST

A Starbucks post on Instagram:

For all you do every day, and for keeping the light of education shining on our students these past weeks, we say thank you. #TeacherAppreciationWeek

A post shared by Starbucks Coffee ☕ (@starbucks) on May 7, 2020 at 6:02am PDT on May 7, 2020 at 6:02am PDT

 

As many followers might not feel financially fit to purchase non-essential items — especially during a highly uncertain time for employment — retail brands will have to display sensitivity and strike a fine balance between the number of posts and content, GlobalData said.

If posts seem highly positioned towards purchase-focused messaging, this could backfire for the brand.

Instead, using elements like brand resonance, positive actions taken during the COVID-19 crisis, and shaping online community engagement could be beneficial for retailers, although it may be better suited for smaller independent brands, according to Salter.

Those aspects will influence a consumer on whether to go ahead with a purchase and also help establish long-term brand loyalty, she said.

SEE ALSO: 85% of independent restaurants may go out of business by the end of 2020, according to the Independent Restaurant Coalition

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