Announced yesterday: Checkout for Instagram. Facebook’s big ‘push’ to get Instagram into e-commerce. With over a billion active users and a huge impact on popular culture, Checkout for Instagram will have a huge impact on e-commerce & how we build online stores.
Young people in particular spend a large part of their online time on social media. Fashion culture, teen culture, sneaker culture are formed by what young people see and do on Instagram and other social media. They follow brands and influencers and determine their choices for brands and products on what they see there.
Checkout for Instagram can radically change e-commerce. These are the eight reasons why:
Your timeline/follower base becomes your loyalty program
The advantage of having an e-commerce platform is that you can build a relationship with customers and have the possibility to do resell, crossell and upsell. The possibilities for Instagram Checkout will initially not be as extensive, but Checkout does give a totally new relevance to your follower and timeline content. The people who are already fans of you can now easily present new products, with a seamless checkout. This is guaranteed to deliver good conversions, making the ROI of timeline content clearer. With Checkout it suddenly pays off to build a follower base and post it regularly, because of direct conversion from Instagram.
Exclusives for followers
Real fans are easier to reward with exclusives. A certain ‘drop’ or earlier release especially for fans? Checkout for Instagram will make it a piece of cake to get such exclusives with your followers.
The real value of influencers
Imagine Checkout for Instagram being linked to your influencer programs. As a well-known brand you run an influencer program, with which they can promote products and the checkout also goes directly through your brand. Normally this results in an enormous additional reach. Now it will probably also result in a much higher conversion, because followers of influencers are more likely to buy from influencers.
An additional advantage is that the ROI of influencer programs can also be counted on hard sales in this way.
Interest based e-commerce
The distinguishing feature of Facebook has always been its interest-based targeting. But until now, conversion has always been done on own platforms. Instagram Checkout changes that. And for brands this also changes the rules of the game.
Take a Foot Locker for example. An effective way of social marketing is to become part of the sneaker culture that already exists on Instagram. They create it on their own timeline, but ‘Sneaker Culture’ on Instagram goes beyond their own timeline. There are influencers in the scene, certain customs and hashtags that are used. Instagram Checkout (in the long run) gives brands like Foot Locker the possibility to use interest targeting, influencer targeting and hashtag targeting to offer their sneaker offerings in that sneaker culture.
A relevant offer, directly in a very involved sub culture, with instant Checkout this is a guaranteed success in my eyes.
Nike is now known for taking e-commerce to a completely different level. With e-commerce innovations in Facebook Messenger and AR, for example, they make e-commerce a real experience. The combination of AR and exclusive drops for example, resulted in Pokemon-like scenes in the past.
Facebook’s developments in the field of AR combined with Instagram Checkout will only facilitate this even more, so that experience commerce will, in my opinion, also take off in the coming period.
First party e-commerce
Custom audiences has always been a showpiece of Facebook advertising, allowing you to (re)target people based on first party data. Here too, Instagram Checkout will soon make it very easy to reach people you don’t know how to approach through traditional channels with very relevant messages.
Probably future music but it is also very interesting to philosophize what happens when Instagram Checkout transforms into a Marketplace model. What if Bol.com – which is already a marketplace – also allows its affiliated webshops to advertise and sell via Checkout for Instagram?
Although overkill is lurking here, it certainly brings a new market for marketplaces and potentially new revenue model for existing marketplaces. And can Instagram Checkout also compete with Amazon with this?
A new revenue model for Facebook
Talk about new business models: Instagram Checkout can also become a very lucrative revenue model for Facebook itself. Still unclear, but what if Facebook means ten percent of every conversion via Instagram Checkout? Or as is customary in app stores: thirty percent? You hardly have to think about what kind of turnover potential such a thing brings to Facebook itself…