Seizing Viral Moments: Impacts of Viral Moments on Demand Elasticity

In today's digital age, social media has become a catalyst for unexpected and unpredictable viral moments. These moments can range from a TikTok video that captures the world's attention to a tweet that sparks a cultural phenomenon. Remember the Stanley Cup that survived the fire which quickly went viral, captivating audiences worldwide? These viral moments can propel products, ideas, and trends into the spotlight, creating unparalleled opportunities for businesses.

The Impact of Viral Moments on Demand Elasticity

During these viral moments, demand elasticity can undergo a significant shift. As products gain widespread attention and popularity, customers' willingness to pay often increases, leading to a more inelastic demand curve. Consumers are willing to pay higher prices to obtain the sought-after product, driven by FOMO and the desire to be part of the trend. This change in demand elasticity presents a unique opportunity for businesses to maximize revenue and profitability.

The Growing Influence of Social Media on E-commerce

Social media channels like TikTok, Instagram, and Facebook have dramatically reshaped the traditional e-commerce funnel to start with discovery rather than awareness. This inverted funnel means consumers often encounter products through engaging content, leading to immediate consideration and purchase.

• 61% of users have made a purchase either directly on TikTok or online after seeing an ad on the platform [TikTok Marketing Science Global Shopping Ad Products Study 2022 conducted by Material February 2022 (n=17,937)]
• 130 million people tap to reveal product tags in Instagram shopping posts each month [Instagram.com Shopping Features]

The Power of Dynamic Pricing with Spresso

Social platforms are critical and can capture spontaneous purchasing decisions driven by viral content and influencer endorsements​ however reacting swiftly to these changes in demand can be challenging. Traditional pricing strategies may fall short in capturing the full value of the viral moment. This is where dynamic pricing tools like Spresso come into play. Spresso tracks real-time customer behavior, market trends, and competitor pricing to optimize prices dynamically.

During viral moments, Spresso can automatically update prices to capitalize on the demand elasticity change, ensuring that businesses capture the maximum value from the surge in popularity. Whether it's adjusting prices based on browsing patterns, purchase history, or social media mentions, Spresso's advanced algorithms ensure that businesses stay ahead of the curve.

Once the viral moment subsides and demand returns to normal levels, Spresso seamlessly transitions back to a pricing strategy aligned with typical demand elasticity. This flexibility allows businesses to benefit on the viral moment without risking customer satisfaction or brand reputation.

Don't let viral moments pass you by – leverage the power of dynamic pricing with Spresso.