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Tag: VOSMOS

  • The role of social media in building brand loyalty for virtual retailers

    The role of social media in building brand loyalty for virtual retailers

    Mumbai: Virtual retailers are exploring the power of social media to build brand loyalty. Social commerce, which allows brands to sell directly through social networks, has transformed online shopping. It is anticipated to touch $1.698 trillion in sales by the end of 2024, as per Statista.  For virtual retailers, social media is building brand loyalty and offering long-term benefits:

    Connecting with Customers Where They Are

    One of the key advantages of social media for virtual retailers is the ability to meet customers in their preferred digital spaces. With over 80% of online users in countries like Thailand, India, and China actively engaging in social shopping, retailers have a unique opportunity to interact with their target audience directly. By establishing a strong presence on platforms like Facebook, Instagram, and TikTok, virtual retailers can create seamless shopping experiences that align with consumers’ daily social media habits.

    Creating Immersive Brand Experiences

    Social media platforms offer virtual retailers innovative ways to showcase their products and create immersive brand experiences. For instance, augmented reality (AR) features allow customers to virtually try on products or visualize items in their homes before making a purchase. This technology not only enhances the shopping experience but also builds confidence in online purchases, fostering trust and loyalty towards the brand.

    Building Brand Loyalty

    User-generated content (UGC) is a powerful tool for building brand loyalty on social media. By encouraging customers to share their experiences, reviews, and photos of products, virtual retailers can create a sense of community around their brand. This authentic content serves as social proof, influencing purchasing decisions and strengthening the connection between the brand and its customers. The trending hashtag #TikTokMadeMeBuyIt is a prime example of how UGC can drive sales and brand engagement.

    Personalization and Targeted Marketing

    Social media platforms provide virtual retailers with rich data about their customers’ preferences and behaviours. This information enables retailers to create highly personalised marketing campaigns and product recommendations. By delivering relevant content and offers to individual users, retailers can enhance the customer experience and increase the likelihood of repeat purchases, ultimately building long-term loyalty.

    Facilitating Direct Communication

    Social media channels offer virtual retailers direct lines of communication with their customers. Prompt responses to inquiries, addressing concerns, and engaging in conversations help build trust and show that the brand values its customers. This open dialogue can turn potential issues into opportunities to demonstrate excellent customer service, further solidifying brand loyalty.

    Influencer Partnerships

    Collaborating with influencers and creators can significantly boost brand loyalty for virtual retailers. These partnerships allow brands to tap into established communities and benefit from the trust influencers have built with their followers. According to a Forrester survey, 46% of consumers who participated in back-to-school shopping in 2023 bought directly from social media ads, highlighting the potential impact of influencer marketing on purchase decisions.

    Hosting Live Shopping Events

    Live shopping events on platforms like Facebook, Instagram, and TikTok offer virtual retailers an exciting way to engage with customers in real-time. These events combine entertainment, product demonstrations, and instant purchasing capabilities, creating a sense of excitement and exclusivity that can drive sales and foster brand loyalty.

    Rewarding Customers with Loyalty Programs

    Virtual retailers can use social media to create and promote loyalty programs that reward customers for their engagement and purchases. These programs can include exclusive discounts, early access to new products, or special content for followers. By integrating these loyalty initiatives with social media platforms, retailers can increase customer retention and encourage repeat business.

    Creating Educational Content

    Virtual retailers can use social media to share educational content about their products, industry trends, and relevant topics. This approach positions the brand as an authority in its field and provides value to customers beyond just selling products. By consistently offering helpful information, retailers can build trust and keep their brand top-of-mind for future purchases.

    Using Data

    Social media platforms provide virtual retailers with valuable insights into customer behaviour and preferences. By closely monitoring engagement metrics, sales data, and customer feedback, retailers can continuously refine their strategies to better meet customer needs and expectations. This data-driven approach allows for agile decision-making and helps maintain relevance in a competitive market.

    Social media is changing the game for virtual retailers. It is not just about selling anymore – it is about building real connections with customers.

  • Virtual shopping spree: How augmented reality on social media enhances the retail experience

    Virtual shopping spree: How augmented reality on social media enhances the retail experience

    Mumbai: Nowadays, convenience is paramount when it comes to shopping. Consumers want an easy way to try on clothes, visualize how furniture will look in their homes, and generally “try before they buy.” Thanks to augmented reality (AR) technology, these immersive experiences are increasingly prevalent across the retail space.

    AR allows brands and retailers to introduce engaging new shopping experiences like virtual fitting rooms, digital try-ons, and color-matching for everything from paint to makeup to hair dye. By implementing AR, customers no longer need to physically try on items or second-guess how a purchase will look in their space. It eliminates the uncertainty of shopping.

    Ultimately, AR reduces product returns, increases customer engagement, and fosters long-term brand loyalty. According to research by G2, 61% of consumers prefer retailers offering AR experiences. It is no surprise retail accounted for 5% of global AR usage in 2022, with that number continuing to grow each year. Snapchat even predicts nearly 75% of the global population will frequently use AR for shopping by 2025.  

    Brands worldwide are using AR to create targeted marketing campaigns, boost engagement, and deliver personalized shopping journeys. For example, Nike’s AR app Nike Fit lets users measure their feet to find the perfect shoe size and visualize how different sneaker styles and colors look on their feet. The app improves sizing accuracy by 60% and reduces returns by 50%.

    Similarly, Converse’s Sampler app enables shoppers to virtually try on hundreds of shoe styles from multiple angles using their smartphone camera. This immersive experience has increased conversion rates by 30% and time spent in the app by 50%.

    So, what are the key benefits of AR in retail?

    Reduced Returns

    Allowing customers to virtually try before buying dramatically cuts down on product returns and related costs for retailers.

    Increased Engagement

    Shoppers can experiment with makeup shades, try on eyeglasses, and visualize outfits without lifting a finger, keeping them actively engaged with brands and products.  

    Enhanced Loyalty  

    Delivering seamless, personalized shopping experiences builds lasting customer loyalty and repeat business.

    Valuable Data

    Brands gain insights into customer sizes, preferences, and behaviors to inform inventory and marketing decisions.  

    Boosted Sales

    Customers are more likely to purchase items they can confidently preview in a realistic setting.

    Leading brands are finding innovative ways to integrate AR into the retail experience across channels:

    Color Matching

    AR helps match paint colors, cosmetics, and more to a customer’s surroundings or skin tone by overlaying the shade onto a photo for an accurate preview.

    Virtual Fitting Rooms

    Brands like Gucci use AR to let shoppers virtually try on clothing items to find the right size, fit, and style from the comfort of home.

    Interactive Displays

    In-store AR displays allow customers to browse extended product catalogs, personalize items, and ensure a great fit or shade match.

    Virtual Try-Ons

    Similar to fitting rooms, AR lets shoppers virtually try on accessories like eyeglasses or hats before purchasing. Warby Parker’s app uploads a selfie to preview frames.

    Space Visualization

    Customers can use AR to envision how large furniture pieces will look and fit in a room versus relying on guesswork.  

    Gamified Engagement

    Starbucks has used AR to engage customers by letting them scan cups to unlock animated scenes, encouraging brand interaction.

    As this technology continues evolving, augmented reality shopping experiences are set to become the standard. Several companies are already implementing AR throughout the customer journey to deepen connections and redefine what is possible in retail.

    The following article is attributed to Vosmos CEO Piyush Gupta. 

  • GUEST ARTICLE: How D2C brands are using metaverse and how it will transform virtual commerce

    GUEST ARTICLE: How D2C brands are using metaverse and how it will transform virtual commerce

    Mumbai: India’s direct-to-consumer (D2C) brands have grown tremendously during the pandemic and in the post-pandemic era, with a large cohort of consumers moving to digital in search of innovative products and more engaging and immersive experiences. The pandemic caused D2C brands to become super popular, which in turn forced large and established companies to jump on the D2C bandwagon. According to KPMG, there are over 800 D2C brands in India today, and the D2C sector, currently worth $44.6 billion, is expected to touch $302 billion by FY 2030.

    D2C brands target young consumers, millennials and Gen Z, delivering personalisation at scale and increasing innovation in the virtual world and tap into the growing global virtual-commerce market, estimated to be worth $190 billion by CB Insights.

    With technology becoming more affordable and sophisticated, D2C brands are at an advantage. In a controlled, immersive virtual environment, brands can offer customers the complete – albeit virtual – brand experience and deliver a lasting impact. For example, a virtual store in the metaverse is a brand experience in itself, with the brand mnemonics, signature sounds, layout, and colours. Consumers also get the option to interact directly with brand representatives. This enhanced brand experience goes a long way in building brand trust.

    The metaverse is also good at customising experiences. Great customer service builds brand loyalty and customer retention. By analysing vast amounts of data on a customer’s interactions in the metaverse, brands can predict which products, solutions, and experiences individual customers would prefer and like. D2C brands are in a better position to serve better without being intrusive, thereby building and elevating the overall brand experience.

    Popular homegrown D2C brands like Super Smelly, Argatin Keratin, Ochre Athletica, Indus People, and Zorin Furniture are looking to disrupt the market with their product positioning and personalised consumer experiences.

    They have also taken bold steps to connect with their consumers in the metaverse and are working on innovative ways to enhance the virtual brand experience. They are already offering products and experiences and enabling commerce in the virtual world.

    The metaverse is growing at a fast pace. In the first six months of 2022 alone, globally, over $120 billion has been invested in building metaverse infrastructure and technology. Moreover, the metaverse is steadily becoming an important component in the omnichannel sales strategy of companies.

    Marquee brands such as Gucci have debuted in the virtual world with the metaverse. Gucci created Gucci Garden, a digital replica of the real-world installation (called Gucci Garden Archetypes) in Florence, Italy. Similarly, Sotheby’s, the world’s largest broker of art and luxury goods, created a metaverse gallery showcasing curated virtual art houses.

    According to McKinsey, 79 per cent of consumers active in the metaverse have purchased products in the recent past.

    These numbers show the power of the metaverse as a selling platform. It’s important for D2C brands to identify the right platform to reach out to their target audience and have an interactive content strategy to engage them.

    Importantly, the privacy and safety of consumers have to be at the centre of every consumer-facing engagement that brands plan for consumers in the metaverse.

    The author of this article is VOSMOS co-founder & Kestone president Piyush Gupta.