Social Commerce: Where is it heading?

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

  •  62% of online shoppers have read product-related comments from their friends on Facebook
  • 75% of shoppers who read social sharing comments have clicked on the product link in their friends’ Facebook posts, taking them to the product page on a retailer’s website
  • 81% of consumers who purchase products they learn about through social sharing are valuable social sharers themselves, thus creating a cycle of sharing and buying.
  • 32% of visitors are more likely to stay and shop on a site that shows activities of shoppers who have purchased there.

Read Social Impact Study 2012: Social Sharing as Helpful as Google Search in Shopping

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

Source: Net Promoter Economics: The Impact of Word of Mouth

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

  • Consider buying
  • Purchase (79% vs 41%)
  • Recommend (74% vs 38%)”

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:

  1. The power of the Like button is not that it creates fans, it IDENTIFIES them.
  2. Your Facebook page is like a honey-laden flower that  ATTRACTS your most valuable customer and lets you target them.

Instead, reward your fans. Use your page to drive up engagement.

Advertisements

Want to ‘Social’ise your Startup? Heres How

Image representing Facebook as depicted in Cru...
Image via CrunchBase
  1. Build a company that’s social from the beginning. Create your social media accounts as you grow to develop an early fan base. Whether it’s limited to only a twitter account or you want to indulge various mediums depends on the nature of your product, but the important thing to remember is that you should use your account for more than just marketing. Get the word out, engage your prospective customers, find employees, and you could even solicit potential partners.
  2. Maintain a Blog. Everyone loves a success story. People love to read stories of people who start off from the bottom and work their way up. Tell your story. Connect. Create lasting relationships. All this while keeping your stakeholders informed about the developments within the company and a sneak peek into things to come.
  3. Focus on the platform that’s most important to you. Analyse the strength of your product and choose a platform which complements it. Pinterest might not work for some, as could be the case with Youtube. Keep in mind that content is very important and stretching over too many platforms might dilute your message.
  4. Consistency creates recall. Ensure you product has similar handles across multiple platforms. This breeds recall, which over time can create brand value.
  5. Identify key influencers and treat them like they mean the world to you. Every product has early adaptors, treat them with love, and incorporate their suggestions. Remember, they are not getting paid to do this; they are doing this because they love your product.
  6. Most Important: Drive traffic back to your website. Creating a community on Facebook that never visits your website might not be the best idea. In most of your posts, ensure you link back to your website. Give people a reason to come to your website, find ways to engage them there, and help them get into a habit of coming there. Goes without saying that you should ensure you have social plugins to enable users to bring their friends onto your site.

Breaking News: Facebook just agreed to acquire Instagram for $1Billion

Image representing Facebook as depicted in Cru...
Image via CrunchBase

Posted by Nameet Potnis

15 minutes ago Facebook has agreed to acquire Instagram. Mark Zuckerberg just shared the following update on his Facebook Timeline.

I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.

For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now, we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests.

We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.

That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.

We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.

These and many other features are important parts of the Instagram experience and we understand that. We will try to learn from Instagram’s experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure.

This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.

We’re looking forward to working with the Instagram team and to all of the great new experiences we’re going to be able to build together.