How to really run a Facebook commerce store

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How to run a Facebook store. Venda is the world's largest on-demand ecommerce provider. Processing over $1Bn of transactions annually, its highly flexible convergent cross-channel platform offers …

How to run a Facebook store. Venda is the world's largest on-demand ecommerce provider. Processing over $1Bn of transactions annually, its highly flexible convergent cross-channel platform offers retailers the scalability, stability and security for deploying world-class ecommerce sites. With over ten years' experience and a presence in the UK, US and France, Venda helps global retailers increase revenues and deliver a return on investment faster than traditional 'buy and build' methods. Its expertise in multi-channel commerce and knowledge of payment regulations in different countries allows retailers to expand quickly into new markets.
As of March 2012, over 100 brands of all sizes use Venda's platform to handle millions of transactions each month. These include Accessorize, Anthropologie, Emma Bridgewater, Jimmy Choo, Paperchase, Royal Doulton, and Clothing at Tesco, BBC and Orange. For further information please visit http://www.venda.com or join the discussion at www.twitter.com/vendauk

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  • This statement was made by Mark Ritson in his column in Marketing Week and it’s based on a item in the TLS Digital Life report from Nov 2011. What the report said, and what Professor Ritson focused on was that 61% of users on social networks did not see their social network as a place where they wanted to interact with brands.To draw the conclusion that Professor Ritson drew means ignoring the fact that 49% of the 800m on FB and 300m on Twitter are interested in some form of brand engagement. So while this statement may be accurate for those companies who try to use social commerce in the same way that they use eCommerce , we should bear in mind that there is still a significant opportunity for those retailers who do it right. Let’s remember that more than 40% is a large proportion of the market and if you were a high-street retailer achieving 40% footfall from passing traffic you would be over the moon! So, social networks are definitely worth engaging with.
  • Social commerce itself is not actually new – its an extension of how retailers have retailed for some time.Commerce has always been social – only recently when we got clever and invented eCommerce did it became less social.People have always enjoyed shopping trips with friends, making recommendations, offering advice commenting on purchases.Introducing elements of the social experience back into eCommerce has produced real significant increases in conversion rates and shopper engagement.The eRetailing Group survey from 2011 said that 61% of shoppers always or mostly read reviews before making a purchase and an eConsultancyreport from 2009 said that 90% of people said they trust reviews made by friends and family.So, a place like Facebook, where people share endorsements, finds and discoveries with their social network is one of the best places to use ratings and reviews - and in fact we have seen that where brands facilitate the use of social media on their sites they significantly increase traffic
  • Facebook is the fastest growing referrer of traffic of all sites on the Venda platform – not as big as Google but growing fasterThis is latent demand that presents a considerable opportunity to convert the interaction shoppers have with each other on Facebook into sales.Jimmy Choo have seen that conversion rates from Facebook referrals are higher than from other referral sources; so the opportunity applies to high value products as well as to potentially smaller basket sizes
  • It is important to remember that these are not shopping malls, these are social places. You do need to respect that customers are in conversations in their own social environment, so interruption-type marketing is not going to work (and may even alienate).However we have found that discreet product advertisements that are offer-based and relevant do work and are helpful in helping shoppers to find products that they want. Always bear in mind that you must respect that fact that selling to shoppers is not the primary aim of social networks like Facebook but managed well it can be seen by your customers as a strong ancillary benefit of the social space.
  • We think it is most important to optimise the experience for shopper. To make it easy for them to follow links, reviews and recommendations. A recent TechCrunch review highlighted the pervasiveness of social networks so removing obstacles such as registration and login, not repeatedly asking returning customers to re-enter details, using the Facebook API to obtain login credentials are essentials. These are not difficult things to achieve and are already available on the Venda platform.
  • Remember that Facebook is the worst place in the word to mess up. Reactions will be visceral and your unhappy customers have all the tools they need at hand to make them instant. Don’t make basic mistakes such as non-existent offers, underestimating demand or server load or exposing customers to security risks. Remember that it can instantly backfire. So secure payment flows to PCI standards and explain clearly to customers how you will handle, protect and use their data.
  • Facebook represents a tremendous opportunity to reward and influence even further your key influencers. There is real benefit to implementing loyalty via sCommerce channels. For example Ticketmaster say that they generate £4 of sales for every event shared or liked or each ticket purchase shared. This makes Facebook a very cost effective marketing channel. We suggest that you should go further and integrate social networks with your CRM systems and look to incorporate loyalty points, referral awards, like gating and preview or exclusive sales.
  • Beyond that, removing login and registration hurdles between channels and integrating your CRM will allow you to deliver truly personalised offers and shopping experiences based on data shared between shopping channels. You’ll also be able to leverage the richer data shared on social networks and get beyond the raw numerical statistics you get from traditional research or surveying.
  • We are conducting a series of experiments to generate use cases to guide best practice. These are designed to generate hard data around registration, conversion and sales volumes and values. They’ll also allow us to calculate the value associated with increasing levels of engagement, to quantify if purchased endorsements have value and look at the potential for incentives and rewards such as Facebook specific promotions and products. We’ll also look at pricing levels to determine optimum offerings and compare frictionless on page PCI checkout versus sending the basket out to an eCommerce site.
  • The data from this experiment will be shared. Meanwhile please download our whitepaper and enage with us to get past the hyperbole and puff and into real-world sCommerce.

Transcript

  • 1. Ivor Morgan – Head of EMEA MarketingHow to really run a Facebook Commerce store
  • 2. For all those who ‘drankthe Kool-Aid’ and spentall their money andattention on social media,there’s a disappointingdenouement ahead.Mark Ritson, Marketing Week, 24 Nov 11
  • 3. sCommerce is consumer-ledThe key element for successful sCommerce istrust “Recommendations from friends• Reviews or family are the single most important factor in the choice of• Ratings website to buy from, with 71% giving this reason. Availability of• Friends and family product ratings (59%), and user- generated review (57%) were also• Recommendations highly regarded. eConsultancy, “How we Shop 2010”How shoppers social space connects with the online store 1/12/11 Classification: Public
  • 4. Latent & growing demand for sCommerce Buying within the social space is not here yet but … “Facebook is now the• Considerable untapped second biggest driver of demand traffic to Jimmy Choo’s e- commerce site, after• Social is driving eCommerce Google. People who have transactions clicked through from Facebook to the Jimmy• Visitors referred from the Choo site have higher conversion rates, high social space are more likely to basket values and higher convert site visit value [than visitors via other routes]” http://np.netpublicator.com/?id= n36752466How shoppers social space connects with the online store 1/12/11 Classification: Public
  • 5. Don’t invade the spaceYou don’t want to abuse shoppers interactions• Allow shoppers to convert when they are ready• Allow their social space to becoming a shopping space at their request• Make it easy for them to convertHow shoppers social space connects with the online store 1/12/11 Classification: Public
  • 6. Make it easy for shoppers to convertImplement basic good practises scommerce@venda.com• Integrate channels so When visiting an shopper can buy how they eCommerce site … want 60% of college age shoppers• Implement single-sign on 40% of middle-aged using social credentials shoppers• Take advantage of prevalence are already logged of social media in to FacebookHow shoppers social space connects with the online store 1/12/11 Classification: Public
  • 7. Do it professionallyYou don’t want to foul-up in your fan space • This is not a marketing or “People who like us are advertising play four times more likely to buy our products” • Treat it as seriously as your James Young, Sony Ericsson, eCommerce channel Nov 2011 • 100% PCI compliance through whole sCommerce experienceHow shoppers social space connects with the online store 1/12/11 Classification: Public
  • 8. Use social media as a loyalty channelIdentifying and co-opting key influencers has longbeen a marketers dream• Reward social sharing Post-purchase• Focus on key influencers sharing can increase• Integrate social into your CRM conversion by 2-3x• Assign value to individuals and Facebook their networks• Potential for multiple neo-viralsHow shoppers social space connects with the online store 1/12/11 Classification: Public
  • 9. Social space is personal space Create a persuasive personal experience• Use cross-channel CRM data• Ensure consistency regardless of channel• Create personalised offers, promotions and incentives• Reward behaviour as well as purchases• Secure the shopperHow shoppers social space connects with the online store 1/12/11 Classification: Public
  • 10. Venda’s Facebook experimentVenda will be working with key retailers to evaluatethe potential of fCommerce• Increase user sign-up by offering “Connect with Facebook” account registration• Calculate the value of users liking your brand or products• Track the value of celebrity endorsements of your brand• Incentivise and Reward users who encourage others to like your brand• Increase likes of your brand through exclusive offers and promotions• Enable friction-less purchasing through branded, fully PCI-compliant, Facebook stores How shoppers social space connects with the online store 1/12/11 Classification: Public
  • 11. More InformationTo register for information and updates about Venda’sFacebook experiment register at www. venda.com/likeme or scan this QR code (bonus free whitepaper)How shoppers social space connects with the online store 1/12/11 Classification: Public