How Social Buying Works                                  Six Principles of Social BuyingCoeus Solutions GmbHMunich | Berli...
Why Social Commerce Makes Sense?       Casual conversations regarding shopping happens all the time.       Consumers gener...
Principle # 1: Social Proof       We often look at what others are buying to resolve our own uncertainty.       In almost ...
Principle # 2: Authority         We often look at the authority before making a buying decision. This         authority ca...
Principle # 3: Scarcity       We often instinctively assign more value to the scarce resources. Resources       that are s...
Principle # 4: Liking       We naturally emulate the people we like or admire or find attractive.       Use of celebrity br...
Principle # 5: Consistency       When we aren’t sure about a decision, we generally do what we have been       doing based...
Principle # 6: Reciprocity       We generally like to repay favors whether they are asked for or not. Also       this make...
How To Convert This To Action?       Following roadmap can be used to develop a strong and measurable social       commerc...
About Us       Coeus Solutions GmbH is based in Munich, Berlin and Lahore.       Developing eCommerce and Internet applica...
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How Social Commerce Works

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Why and how social commerce works and how to use it in your eCommerce sites.

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How Social Commerce Works

  1. 1. How Social Buying Works Six Principles of Social BuyingCoeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  2. 2. Why Social Commerce Makes Sense? Casual conversations regarding shopping happens all the time. Consumers generally either want to ask their friends or experts about a shopping decision or want to share their new purchase with friends. Social commerce can result in measurable ROI, by measuring referral rates and repeat customers. Social media is one of the most effective ways of brand activation. Examples of social commerce: - recently P&G launched Pampers.com on Facebook in collaboration with Amazon. - according to Eventbrite, every Facebook share generates $2.53 in ticket sales.Coeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  3. 3. Principle # 1: Social Proof We often look at what others are buying to resolve our own uncertainty. In almost all eCommerce stores there are things like: - best selling items - recommended items - people who bought this also bought. How to implement this in your strategy: - wish-list sharing - best selling items, most liked among your friends etc. - your friends recommended items - most shared items - social media reviews - social recommendation systemsCoeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  4. 4. Principle # 2: Authority We often look at the authority before making a buying decision. This authority can be a “self-proclaimed” reviewer or a subject-matter expert (designer, hair-stylist etc.). Things like “Four out of five doctors recommend...”, reviews on leading blogging platforms. How to implement it in your strategy: - get reviews from leading bloggers. - make copy of content refer to subject matter experts. - get professional reviewers to review the product(s). - user forums.Coeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  5. 5. Principle # 3: Scarcity We often instinctively assign more value to the scarce resources. Resources that are scarce are usually considered more valuable. In classic marketing this is exploited as: - limited time offers - limited access - limited availability items - special editions. How to implement this in your strategy: - provide exclusive deals to select customers - provide limited time offers on certain categories - provide geographically restricted dealsCoeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  6. 6. Principle # 4: Liking We naturally emulate the people we like or admire or find attractive. Use of celebrity brand ambassadors uses this concept of liking and personality influence, similarly use of models for product advertisements uses same principle. How to implement this in your strategy: - social network store fronts - ask your network features in the shops - celebrity users of the store - affiliate programs.Coeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  7. 7. Principle # 5: Consistency When we aren’t sure about a decision, we generally do what we have been doing based on our past experience. General lifestyle ads that are consistent with viewers’ life styles, give free trials, free membership schemes etc. How to implement this in your strategy: - user forums - user galleries - social media reviews - buying history, so that people can buy same items againCoeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  8. 8. Principle # 6: Reciprocity We generally like to repay favors whether they are asked for or not. Also this makes us feel good and also because this is socially rewarded. In classic marketing CSR (corporate social responsibility) initiatives, sponsorships etc. are some of the examples where marketing invokes this principle. How to implement this in your strategy: - group buying - allowing users to share deals with their friends - virtual points that users can gift to each other (possibly a scheme part of virtual points that can ONLY be used with friends which gets their friends some discounts).Coeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  9. 9. How To Convert This To Action? Following roadmap can be used to develop a strong and measurable social commerce strategy: Step 1: define current status quo. Define and measure key performance indicators as follows: - viral coefficient of users: how many users recommend other users. - traffic coming from recommendations. - sales coming from recommendations. Step 2. define promotional schemes so that users recommend other users e.g. discounts at the check out time if purchase is shared with Facebook friends. Step 3: define affiliate programs and manage them closely. Step 4: measure results closely as any other marketing activity.Coeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de
  10. 10. About Us Coeus Solutions GmbH is based in Munich, Berlin and Lahore. Developing eCommerce and Internet applications on web, social and mobile. Provide consulting services in increasing sales and user retention. Work closely with clients to develop strategies for engaging customers closely.Coeus Solutions GmbHMunich | BerlinEmail: sales@coeus-solutions.deWeb: www.coeus-solutions.de

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