A new study finds that retailers are increasing their investments in social media marketing to attract more customers and increase customer loyalty.
A survey of 500 UK retailers commissioned by American Express said retaining and attracting customers was one of their top three challenges for next year, alongside dealing with rising costs and mitigating the impact of the cost-of-living crisis.
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Around 33% of retailers surveyed expressed a desire to maximize the efficiency of their social media channels to build customer communities and increase brand loyalty.
As a result, marketing and branding were identified as key areas of investment.
According to the survey, more than half (53%) of the companies planning to invest in this area also intend to allocate funds to strengthening their social media activities.
The survey also found that small retailers are three times less likely to join TikTok (43%) than larger retailers (14%).
Meanwhile, 29% of small and medium-sized enterprise (SME) retailers also revealed plans to join TikTok this year.
Dan Edelman, general manager, UK merchant services, American Express, said: “Social media is a key channel for retailers of all sizes, allowing them to reach new customers and build a community around their brand.
“That's why, as part of our commitment to supporting retailers, we're leveraging the power of social to help them connect with more customers.”
