Social commerce growth requires balancing AI and trust

forbes.com

Social commerce is rapidly growing, with platforms like TikTok Shop and Instagram Checkout changing how people find and buy products. However, brands are challenged to use AI for personalization without losing consumer trust. While many customers want personalized shopping experiences, they are also worried about data security. A recent report found that 64% of consumers prefer tailored experiences, but between 70% and 76% are concerned about how their personal data is handled. Brands must focus on secure data practices to maintain trust. Younger shoppers are particularly skeptical about how AI manages their information, which complicates the push for personalization. AI's role in social commerce is crucial, but many companies face issues due to managing multiple technologies. Having a clear strategy can help streamline marketing tools and improve customer experiences. Effective use of AI can enhance inventory management and improve operational efficiency, but should not replace human interaction. Customer service is essential to building trust in social commerce. A lack of delivery transparency is a key frustration among consumers. Balancing automation and human support can ensure customers feel valued. Overall, AI should be viewed as a useful tool, not a complete strategy. Companies need to prioritize consumer trust, ensure transparency and control over data, and maintain a personal touch in customer interactions. The brands that successfully navigate this balancing act will likely achieve long-term loyalty and success in the evolving market.


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