Social commerce "Social commerce is a kind of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services".
Why Social Commerce????? Three-fourths of men ages 18 to 34 say they spend most of their time in front of a computer screen, according to a survey of 50,000 by AskMen.com, a lifestyle website. 53% of 300 marketers planned to increase social-media marketing spending this year, according to a Forrester presentation in April. Nine in 10 consumers trust their peers more than marketers, according to a recent survey of 25,000 by Nielsen.
Why Social Commerce?? Facebook is up to 250 million members, 50 million of whom joined in the past three months, says Nielsen NetView. Twitter users spent nearly 300 million minutes on the site in April, 3,712% more than in April 2008, Nielsen says. More than 10,000 websites use Facebook Connect, a service that lets Facebook users log in to affiliated sites using their Facebook account.
Why Social Commerce?????Facebook catching up to Google
Major contributors:- Mydala.com Snapdeal.com Bindaasbargain.com SOCIAL COMMERCE IN INDIA
DELL---Dell’s Twitter deal feed nets $7m in sales. Sometimes the simplest ideas are the best. Realtime deals for the Realtime web. SONY VAIO --Sony has netted over a £1M Vaio sales in a proof-of-concept test of using social media as a direct sales channel Toy manufacturer Mattel starts selling direct with DecisionStep’s ShopTogether social shopping toolbar at http://shop.mattel.com. Tuangou, Social commerce trend from china 1-800-Flowers Claims First Retail Transaction Inside Facebook EasyJet Wants to Sell Flights on Facebook Successful stories In Social Commerce
Successful stories In Social Commerce Online shoe retailer Zappos social media strategy and judged no. 1 in 2009 to utilize social media marketing tools. Ford social media story.
Dell twitter strategy Segment your audience - Dell has multiple account to showpresence among subscribers. Provide timely information - Dell alerted users of deals when they happened. When something’s new, people want to check it out. Make something people want to share - Dell created relevant content that wasn’t just about pumping up their own brand. They gave useful advice and participated in the conversation. Dell IdeaStorm; where they ask users to “post a new idea, promote interesting ideas, discuss with Dell and other users, and see what they are planning to develop.” OUTCOMES : Dell’s Twitter deal feednets $7m in sales.
Tuangou( Group buying) social media strategy HOW DOES IT WORK?1. User A sets up a group buy and the terms of the buy2. User B-Z joins the team3. Twangu makes the team official and sends it out to vendors.4. Thousands of vendors freak out and bid on the business.5.who will offer lesser price, he will win.The bigger the shopping teams, the bigger the savings!
Sony vaio Twitter strategy Sony’s social media strategy is “relationship-driven” not “campaign driven” – i.e. it’s more about customer relationship management and customer service than sales. Social Media Engagement- An effective social media strategy- servicing, informing and building dialogue with customers. ‘Social Media Amplification‘ – amplifying marketing messages with social media is another core objective of Sony social media strategy OUTCOMES: Sony has netted over a £1M Vaio sales in a proof-of-concept test of using social media as a direct sales channel
1-800-FlowersFacebookstrategy OUTCOME: 1-800-Flowers Claims First Retail Transaction Inside Facebook– at 11:50 am EST on July 8, 2009 1-800 Flowers.
Easyjet Facebook strategy
Zappos (online shoe store) social media strategy Zappos was at No. 1 spot in 2009 to utilize social media marketing tools at the best possible extent. Zappos having hundredsof bloggers lots of video blogging The companies 400 employees all have Twitter accounts Most of their social media initiatives are about exposing the people at Zappos, who through their actions reinforce the companys competitive advantage. The CEO leads by example he communicates about his passions.. he is personally invested in Social Media.
Fords social media strategy Trust builder:-People trust corporations less so with the rise of social media you need to allow other people throughoral communicationcreate trust for you through Social Media Reached out to those who are listening and let them do the talking for you and to connect with people like themselves Let them know that you are real people just like them and are passionate about what they do and the Ford Brand Run a competition: involving Social Media eg.. To be selected to drive a Ford Fiesta for six months – select 100 of those who are “socially vibrant! Implementationmultiple Social Media channels such as Facebook, Twitter and YouTube to create digital buzz 11 million Social Networking impressions 11,000 videos posted 15,000 tweets.. not including retweets 13,000 photos 50,000 hand raisers who have seen the product in person or on a video who said that they want to know more about it when it comes out and 97% of those don’t currently drive a Ford vehicle 38% awareness by Gen Y about the product, without spending a dollar on traditional advertising Mantra for success Results
Social commerce in real world-15 top companies How brands are deploying social commerce (and other innovative e-commerce solutions) in the real world. American Eagle, Anthropologie, Charlotte Russe, Gap, Net-a-Porter, Zappos, Apple, Amazon, Macy’s, Nordstrom, JCPenney, Sears, Walmart, Sephora, and Wisteria.
Technology used in Social Commerce Facebook connect Facebook apps Social networking invitations with various incentives Group gifting platform e-gift cards Branded iGoogle portals and RSS widgets real-time co-shopping platforms and social shopping site sponsorships
Where to start with social commerce:LEADstrategy Listen: start with observing conversations and competitors – how are competitors using social commerce? Experiment – Start with small scale experiments using the toolset to identify what works for you. Test and learn to explore ROI potential Apply – Apply learning and build on tools that work for you, integrating social commerce into your overall digital strategy Develop – Constantly evolve and try to beat user expectations – deliver with new insights and technology
Mantra of success in social commerce First: Define your audience – get very clear on who you are communicating to (eg Is it Gen Y, Gen X or Baby Boomers?) Second: Set the goals ( they don’t necessarily need to be all financial in nature) – Leads,brand awareness, quality of leads, increase in dollar value of the sale and number of sales Third: Develop your social media marketing strategy Fourth:SELECTION:Then the tactical level of selecting the different social media platforms that are appropriate for your audience .. Facebook, YouTube or other channels? Fifth:optimize and integrate your social media channels such as Facebook, YouTube, Twitter and LinkedIn as well as Optimizing your website and blog for search and don’t forget the PR.