In its continuous attempt sleep evolve, Facebook has revamped its retail coupon option, which was named Offers, for it to be able to reach mobile users, according to reports which were indicated by Internet Retailer.
The retail coupon options was first started back in 2012 as an ad platform, but it has now been specifically done to be a dedicated division where users and shoppers can visit directly. Retailers had the option to give out coupons to Facebook users, which the users could then redeem either online or in the shop itself.
The coupons could be posted by the retailer through a Facebook ad, or through an organic page post by the retailer itself. Both of these options were available on the dedicated Offers page. However with the new tool that the company is now deciding to push through, Facebook now moves into the retail industry and it could inspire some incremental spending for the participating retailers.
Facebook Offers is now going to likely push the spending habits of users and drive up the traffic for retailers, thanks in part due to the reliance that consumers have put on use of coupons both online and in-store. Coupons are regarded to be just as influential and vital with consumers just as brand loyalists are.
Obviously, some shoppers could be lured from their favorite brands to others so that they can make use of a promotion. In fact, a report from Valassis indicated that 85 percent of consumers could take advantage pf coupons, while 84 percent of brand loyalist shoppers would also look to make use of them.
There is evidently a strong influence which is exerted by the coupons on the shopper behavior. Therefore, Offers is likely to boost the in-store spending and the incremental spending also. Also included is the reach that a social media network like Facebook possesses, which means users could be more engaged and there is a higher turnover of coupon redemption.
Facebook’s Offers division would be a highly lucrative adventure for retailers because of the high engagement that is usually associated even with ads on Facebook. In the second quarter of 2016, e-merchants saw an increase by 75 percent on the average return on the ad spend. The growth seen on the ad spend can be attributed to the 200 percent increase on ad spend on Facebook in the same period.
The uprise in spending via ads is an indication of how retailers value the driving sales which may be seen through the social media platform. Online retailers have moved to invest even more on mobile ads than on desktop ads. The Facebook Offers feature will clearly work on this and capitalize on it thereby giving retailers a chance to reach even more shoppers.
Through Facebook’s efforts to provide numerous capabilities for retailers on its platforms, social commerce is being slowly brought to the mainstream. Approximately one percent of orders which were done in the first quarter of 2016 are said to have been made through referrals. This is lower than the percentage for the same period a year earlier indicating that users might be looking to make their purchases elsewhere.