Social media platforms are increasingly blurring the line between content and commerce. Facebook recently let brands add “Shop Now” buttons to page banners, a tool that more than doubled conversion rates in early test cases. More than half of brands in L2’s Digital IQ Index: Department Stores have added the “Shop Now” button since January, an indication that they are eager to take advantage of the new option. However, the study indicates that most department stores have been slow to leverage similar strategies.
While Pinterest’s rich pins let brands add details such as price and availability to their product posts, these are utilized by only 26% of Index brands. Similarly, Like2Buy aggregates a brand’s Instagram product posts on one page, making it easy for users to purchase items they discover in brand photos. However, only 22% of Index brands have implemented this workaround.
While most Department Store brands are slow to leverage the commercial potential of social media, a few have eagerly taken advantage of the new tools. For example, Nordstrom, Macy’s, and Neiman Marcus have implemented buyable Pinterest pins that allow users to purchase featured items via Apple Pay. Lyst, a new platform that blends features from Twitter and Pinterest, has also attracted attention from department stores. On Lyst, brands and individuals can follow others and create posts about fashion items that link directly to affiliated product pages. While one-third of Index brands have established an official presence on the platform, select leaders such as ASOS and Net-A-Porter have crossed the 100,000-follower milestone, highlighting their substantial investments in social commerce.
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