Like button being added to 10,000 sites EACH DAY… Turning Like to Buy I believe one of the main reasons ShopTab has done so well is we leveraged Facebook core features such as Sharing. Sharing on Facebook is one of the core features that gives Facebook access to amazing marketing data on their members. Clicking the Like button on millions of sites is so easy.
When I first saw this experience happen personally I was amazed. I was on IMDB website and liked the Mad Men TV Show
Back on Facebook my profile was updated with that new Interest for all those I am connected with to see
Since Amazon is one of the 2.5 million sites integrated with Facebook they are able to pull in all my likes and interests. As you can see in this example, Amazon can now present items they know I will like.
Before today, how many people have heard of Facebook Credits before? Well for those not familiar with Facebook Credits, it is the currency used on Facebook today to buy virtual goods in over 350 social games on Facebook. Many predict that Facebook could be on their way to 1 billion users by end of this year growing at over 700,000 users each day. One feature of Facebook, to my surprise, that hardly gets talked about is Facebook Credits. Today I want to share with you that In my opinion Facebook Credits will completely change how we think about generating revenue in the retail world both ON and OFF Facebook.
Again, today one of the main uses for Facebook Credits is to buy virtual goods and last year $1.6 billion in revenue was generated with virtual goods expected to grow 40% this year to over $2 billion dollar market.
That growth is so large because over 300 million people are playing social games on Facebook. Where this will get interesting is on July 1 st Facebook Credits are soon to be mandatory for all social games on Facebook as the only in-game currency games will accept.
To put that into perspective, there are less than a million Americans who are farmers.
One of the most popular social games on Facebook is Farmville from game developer Zynga and over 50 million were harvesting their virtual crops last month. The most popular game today, also from Zynga had almost 95 million users last month play it.
When social games come up with my clients paint a picture resembling our young Mr. Gate
However, the average player of these online social games is a 43-year-old woman.
But where Facebook is missing an important piece of the puzzle is transactional data. If Facebook can come up with a way to learn financial information they would be the ultimate marketing Source. And I believe that Facebook Credits is how they are going to do it. And when I saw in my supermaket, Target, Walmart, and other stores that you can buy Facebook Credits my confidence in this prediction grew stronger.
Virtual Goods and Facebook Credits are definitely getting more popular. Even American Express is getting into offering up social game virtual goods in my American Express rewards account.
eCommerce companies such as 1-800 Flowers are leveraging Facebook Credits to increase sales through a partnership with ifeelgoods who is implementing this program today.
Companies are now leveraging Facebook Credits to even allow users to watch movies on Facebook with Facebook Credits
Everything shared earlier can be done today – Where is the future headed….
Facebook has the potential to become the loyalty and rewards program of the future…
With that 1-800 Flowers example consumers received benefit with Facebook Credits. I believe that very soon eCommerce companies are going to soon add Facebook Credits as a payment option buying real goods. Imagine the idea of being able to go into a supermarket and instead of using your Visa or American Express you would swipe yuur Facebook Credit Card to buy a real rack of lamb.
Sure there is a ton that would need to be worked out to make this a reality but if Facebook creates an easy way to gain access to transactional data as they did with the Like button and your likes and interests they will be the ultimate marketing Source. Talking that one step further this could turn into the next evolution of Rewards and Loyalty programs where retail customers can earn points for making purchases, liking a page, commenting on our articles, sharing with friends, etc
1 – best way to learn is to experience. Great excuse to take a break from hectic day 2 – 4 sites I recommend you monitor that reveals great information about Facebook for businesses 3 – Our team invests a ton of time into our Facebook fan page and are posting links to interesting topics. Like our page to get updates
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BITB -- Social Commerce and Facebook Credits
Social Commerce + Facebook Jay Feitlinger Back in the Black: April 28 – 29, 2011