Retailers are increasingly investing in social media marketing in a bid to attract more customers and boost loyalty, new research has revealed.

In a survey of 500 UK retailers commissioned by American Express, customer retention and attraction came out as one one of the top three challenges for the coming year, alongside managing rising costs and mitigating the impact of the cost-of-living crisis.

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Some 33% of the surveyed retailers expressed a desire to maximise the efficiency of their social media channels to build a customer community and drive brand loyalty.

As a result, marketing and branding have been identified as key investment areas.

Over half (53%) of those planning to invest in this area are also intending to allocate funds to ramp up their social media activities, the research revealed.

The study also highlighted smaller retailers are three times less likely (43%) to have a presence on TikTok compared to their larger counterparts (14%).

Meanwhile, 29% of small and medium-sized enterprise (SME) retailers also revealed  plans to establish a TikTok presence this year.

American Express, General Manager, UK Merchant Services Dan Edelman said: “Social media is a key channel for retailers of all sizes, enabling them to reach new customers and build a community around their brand.

“That’s why, as part of our commitment to backing merchants, we’re helping them connect with more customers by tapping into the power of social.”