Last year, Udemy and Wildfire held the first Growth Hackers Conference. At the conference, Chamath Palihapitiya, spoke about growth hacking. Below is a video of the talk followed by the accompanying slides.
Note: This article originally appeared on Lighthouseinsights.in as Facebook Gifts, Will It Impact Indian Social Gifting Startups?
Last month Facebook made a quiet re-entry into its previously mildly successful segment ‘Gifts’. Back in 2007, Facebook had introduced virtual gifts which could be sent to a friend for any occasion, these gifts cost anywhere between $1-3. In 2008, Jeremy Liew of Lightspeed Venture Partners had quoted, “Since there were 322 gifts available for sale when we completed our last survey (Jan 8th, 2008), that implies that Facebook is selling just over 270k digital gifts per week. At $1 per gift, that implies an annual run rate of just under $15m.”
This time around, in 2012, Facebook has managed to take the gifting business one step further and facilitate offline gifts. How exactly did Facebook manage this? Besides its vast resources, Facebook has managed to scale Facebook Gifts across its platform by building on the expertise it acquired through its acquisition of Lee Linden and Ben Lewis’ Karma app.
To begin with, Facebook has decided to limit the value of Gifts on its platform to below $50. “Fifty Dollar deals sound like a small portion of the eCommerce market”, says Yariv Dror, StoreYa.com (Facebook store platform provider) CEO, “but our numbers show, that 57% of the millions of products that have been imported to Facebook using our platform match this figure of $50 and below.
In September, I did a post on Social Commerce and where it was likely to be heading.
Facebook Gifts and India
By entering the physical good space, Facebook will not only be competing with retail giants such as Flipkart, eBay and the hoards of other ecommerce companies in India but against a multitude of startups like Badhai, 99presents, Giveter and so on. Badhai allows users to send gifts vouchers to their friends; they have recently added group and social gifting. 99presents helps you find products your friends from across different eCommerce sites like Amazon, Flipkart, Etsy, ThinkGeek, etc. While Giveter recommends gifts based on its own secret sauce and the recipients’ Facebook likes.
For those who want to ride the Facebook Gifts wave here in India, as of now there is no news on when the feature might launch in India but Facebook is accepting proposals from Vendors who might want to sign up to offer products as a part of Facebook Gifts. If you want to sign up as a vendor, you can do so here.
India has a substantial number of Facebook users and the model that Facebook Gifts follows might make it relatively easy for them to penetrate the market rather quickly. Facebook does not have the delivery logistics that Flipkart does. Hypothetically, this could be a possible hindrance for Facebook Gifts to grow. How do they overcome it? They ask vendors to sign up, these vendors already use their own logistics providers, and Facebook only brands the gifts for e.g.
[Image credit: Techcrunch]
Facebook gifts hasn’t launched in India, yet. And when it does, instead of looking at its impact on companies in social gifting space in India, I believe it could have a significant impact on all ecommerce segments in India.
Further to its commerce ambitions, Facebook has also launched a new feature called Collections which is currently being tested with certain select brands like Pottery Barn, Wayfair, Victoria’s Secret, Michael Kors, Neiman Marcus, Smith Optics, and Fab.com All Facebook reports that Collections enables Facebook users to not only like, but collect, want, or buy products that brands share through images on the social network.
Would love to know your thoughts about the new features Facebook has recently added.
Social commerce has a simple value proposition, i.e. it makes it possible to measure and manage word of mouth.
Multiple studies into this subject have thrown up some interesting findings
What this study shows is that social commerce is that social media content can generate strong word of mouth which can be manoeuvred to generate sales.
The power social commerce can be understood using referral economics of word of mouth. Let us take an example of Apple Computers to understand this better
Facebook and social commerce
Forrester Research’s Gina Sverdlov has done an extensive study on THE FACEBOOK FACTOR – Quantifying The Impact Of A Facebook Fan On Brand Interactions. According to her, “Using regression techniques, the study provided evidence to support the insight that your Facebook fans are more your most valuable customers.”
(customer value = purchase value + referral value)
“Specifically, the study found that fans of a range of brands (the study focused on Coca-Cola, Blackberry, Best Buy, Walmart) are significantly more likely than non-fans to
What is equally important to understand here is that boosting the number of fans on a Facebook page (Hilariously chronicled here: Arre Sir, We Will Get You 2250 Fans. That’s Our Headache!) isn’t the solution to exploring the commercial aspect of your page.
While dealing with Facebook fans always remember:
Instead, reward your fans. Use your page to drive up engagement.
India’s most famous E-commerce company Flipkart (they aren’t the biggest, that would be mjunction) has been around since 2007. Over the last 5 years, they have emerged as a clear favourite among customers owing to their almost delightful customer service.
Indiamart introduced Cash-on-delivery back in 2001 and then discontinued it in 2003. Flipkart reintroduced Cash-on-Delivery and this feature has now become one of the most crucial payment methods for Indians shopping online.
The point here is, back in 2007, Flipkart started with selling books online. Five years later it has steadily scaled its business by foraying into categories like computers & peripherals, CDs & DVDs, games, home and kitchen appliances, mobile & accessories, personal and healthcare equipments ( I am sure there they have added more recently, the latest being baby products).
Indians can be frugal by nature, and getting deep discounts with the added benefit of free home delivery drove Indians to shop online. Along the way, Flipkart managed to delight its customers with fast deliveries.
Now in the 3rd quarter of 2012, things look different. Flipkart now wants its customers to shop for a minimum of Rs 300/- to avail of free delivery (Flipkart website – How much are the delivery charges? Flipkart provides free delivery on all items if your total order amount is Rs. 300/- or more. Otherwise Rs. 30/- is charged as delivery charges.)
Flipkart is also no longer the cheapest options available online. Below are some screenshots of randomly selected products from Flipkart’s top selling categories:
This brings us to an important junction, if people came to shop on Flipkart for price concessions and delivery convenience, why are they still here. The answer to that could very well be Flipkart’s most important product category yet, “Trust”. Flipkart has managed to build a Reputation (dependable and quick), which has created Brand value (reliable and delightful), which over time has built consumer Trust in the brand.
It is this trust in the brand that is being subliminally reinforced by their newest Advertising campaign “Don’t shop it, Flipkart it” (the complete Flipkart Advertising Campaign, August 2012)
Another perspective by Alok Kejriwal – Flipkart ads on TV – are they building the online category at their own cost?
Do share your thoughts.
Last week a customer from Toronto named Isabel M. got onto a website created by McDonald’s Canada, which allows customers to ask any question they want. Her question was, “Why does your food look different in the advertising than what is in the store?” Looking at this as an opportunity to get some good public opinion going in favour of McDonalds, Director of marketing for McDonald’s Canada, Hope Bagozzi, addressed the question herself.
Bagozzi enters a typical McDonalds and orders a quarter pounder and takes it along with her to the Watt International,the advertising agency, to get it shot. McDonald’s claim is that the only doctoring they do is to make the ingredients visible so the consumer. Towards the end, Bagozzi also adds that the photoshop they use on the final images is only to “enhance the color and any accidents that might happen during preparation, which obviously doesn’t show the product in its best light.”
I am impressed with courage to take the customer behind the scenes. What do you think? Are revealing videos like this a good marketing strategy for McDonald’s? Or is the risk of potentially negative PR too great to consider something like this for your own company?
Apple just announced that they will no longer be using Google maps and will instead be using their own Maps on all iOS devices. Back in 2010 when SAAB filed for bankruptcy, an unknown company bought their missile guiding system. This unknown company was later identified to be Apple Inc. This missile guiding technology now forms the backbone of their new Mapping system.
How does this technology work
The video above shows a corporate version of the process, which, as described by an article in MIT Technology Review, works in the following manner:“C3’s models are generated with little human intervention. First, a plane equipped with a custom-designed package of professional-grade digital single-lens reflex cameras takes aerial photos. Four cameras look out along the main compass points, at oblique angles to the ground, to image buildings from the side as well as above. Additional cameras (the exact number is secret) capture overlapping images from their own carefully determined angles, producing a final set that contains all the information needed for a full 3-D rendering of a city’s buildings. Machine-vision software developed by C3 compares pairs of overlapping images to gauge depth, just as our brains use stereo vision, to produce a richly detailed 3-D model.”
Fascinating technology? Let me know your thoughts.
What are the reasons that some startup succeed while some fail? Why do products instantly attract a multitude of users while other still lag at user acquisition, even after considerable marketing expenses?
The answer to this can be a variety of reasons such as user interface, design, customer service, utility value and sometimes even price. But very often one feature that gets left out is the impact and support of the community around.
A vibrant community can be a magical marketing and sales tool for a startup. While it is imperative for a startup to have a great product/service, an enthusiastic community around it can aid the company in garnering more attention, providing insights and gaining critical early feedback
While in India, our ecosystem surrounding Startups is still in the nascent stage, there are communities developing in Bangalore and around the Delhi/NCR region. One of the biggest problems facing tech entrepreneurs in India is the relatively small number of early adopters. In an excellent article about the “two speed” state of Indian market adoption, Mukund Mohan writes, “The Innovators (less than 1 % of the population or 12 Million individuals) in India (entrepreneurs mostly) who conceive and develop products for the Indian market and the early adopters (less than 5% of population or approx 60 Million individuals) together make up the entire “early adopter” category. Unfortunately less than 30% of them have both the interest, and the desire to be early adopters of technology.”
If you are a technology company, how do you build a community around your company?
1.Start early; make the community an integral part of your system: Start a blog before you actually launch and let people know what you are doing. Building a community takes time. Be patient.
2.Value your initial customers: Those first few people who sign up for your product are there out of choice, they have found your product and they are sticking by it because they love it. Treat them well. Value their feedback.
3. Let your customers know they are special: Marketing dollars might get you signups but word of mouth will get you user engagement. Don’t just value customer feedback; let your customers know that you are ‘listening’ and that you value their feedback.
4.Establish a mutual relationship: Once your community starts growing, as difficult as it might be, acknowledge contributions and hold events where your customers can interact with you or your team. This can act as a cohesive force and take people beyond just a bunch of people using your product
In a day and age when online customer loyalty isn’t really high, a community around your product can not only be your loyal user-base but also your very own cheering squad.
Do share your thoughts.