Report: Social platforms are becoming the new storefronts

NEW YORK — Social media has evolved far beyond a brand-awareness tool, becoming a critical channel for customer engagement, commerce, loyalty, and long-term retention, according to a new analysis by SAP Engagement Cloud.

In the report Social Media Marketing Trends Shaping Customer Engagement, SAP Services Consultant Mikkel Tophoj outlines how businesses are adapting to shifting consumer behavior as social platforms increasingly serve as destinations for product discovery, purchasing, and customer interaction.

The report identifies several structural shifts reshaping social marketing in 2026, including the continued rise of social commerce, increased use of AI-powered personalization, a stronger emphasis on community-led engagement, the rise of serialized short-form video content, and tighter integration of social data with customer relationship management (CRM) and loyalty platforms.

According to the analysis, consumers increasingly start product searches on platforms such as TikTok, Instagram, and YouTube rather than on traditional search engines, making discoverability within social channels a higher priority for marketers. At the same time, platform algorithms are placing greater emphasis on relevance and engagement rather than follower counts, rewarding brands that produce targeted, high-quality content.

The report also highlights social commerce as an increasingly important revenue channel, noting that consumers now expect to discover and purchase products without leaving social platforms. However, SAP argues that the greatest value comes when purchase and engagement data flows into broader business systems, enabling companies to personalize future marketing, customer service, and loyalty efforts.

Learn more about SAP Engagement Cloud’s omnichannel marketing platform.

Artificial intelligence is also playing a larger role in marketing operations. SAP cites its Global Engagement Index 2026, which found that 78% of businesses view AI as essential for customer retention and 77% plan to increase investment in AI-powered engagement tools this year. At the same time, more than half of social media users say they are concerned about brands publishing AI-generated content without disclosure, underscoring the continued importance of human oversight in creative content.

Community-building is another key focus, and the report encourages brands to foster user-generated content, two-way conversations, and customer participation rather than relying solely on traditional broadcast marketing. SAP notes that deeper customer engagement can strengthen long-term loyalty in an increasingly competitive marketplace.

The analysis also underscores the growing importance of integrating social engagement with enterprise customer data. While 76% of businesses report investing in omnichannel engagement technologies, SAP found that fewer than 30% currently share social engagement data with CRM platforms, limiting their ability to deliver personalized experiences across channels.

According to SAP, brands that integrate social interactions with customer profiles, loyalty programs, and service systems will be better positioned to convert online engagement into lasting customer relationships and business growth.