Social Commerce:Fact or Fiction?Eric Boggs@ericboggsFounder, CEOArgyle Social
Social Commerce Nirvana…
Welcome to Farmville #SocialFresh @ArgyleSocial
If Zynga can build a $9B business selling virtual livestock, then onlineretailers must be KILLING it, right?
“The number of transactions we seefrom our Facebook commerce tabs is not insigni cant, but the tabs are more for communicating new products to our customers.” IR500 Retailer
“Our Facebook store has had very little impact on our business. We don’t promote it to our customers because our site provides a much better shopping experience.” IR500 Retailer
“Facebook has not made a strong impact on sales, at least according toour data in GA. Most of our social sales come from from fans clicking on thelinks we post, not from transactions on our Facebook storefront.” IR500 Retailer
So what gives?
Let’s get data driven…• Argyle aggregated social data from the IR 500.• We analyzed 28 publicly available data points for each retailer, ranging from audience size to marketing practices.• The data set includes: – Massive retail brands like Starbucks, Levis, & NASCAR. – Niche sites like Golfballs.com. – Really niche sites like PressureWashersDirect.com.• This is work-in-progress research. #SocialFresh @ArgyleSocial
Context: Audience Size 200 180 160 Mega-brands are the exception, 140Number of Retailers 120 not the rule. Plan accordingly. 100 80 60 40 20 0 <10k 10k - 100k 100k - .5M .5M - 1M 1M - 2M 2M - 5M 5M - 10M >10M Audience Size #SocialFresh @ArgyleSocial
FB Integrated Commerce 4% 13% Facebook Check Out On Site Check Out No FB Commerce 84% #SocialFresh @ArgyleSocial
FB Integrated Commerce 4% Most retailers haven’t made 13% signi cant social commerce Out Facebook Check investments. On FB Commerce No Site Check Out 84% #SocialFresh @ArgyleSocial
SMM Tools Enterprise – 3% Free/Cheap:Mid-tier – 7% Tweetdeck, HootSuite, et al Mid: Argyle, Awareness, et al Enterprise: Buddy Media, Vitrue, et al Free/cheap – 91% #SocialFresh @ArgyleSocial
SMM Tools Enterprise – 3% Free/Cheap:Mid-tier – 7% Tweetdeck, HootSuite, et al Sophisticated retailers are Mid: running social with the Awareness, et al Argyle, same tools as Mom & Enterprise: Pop. Buddy Media, Vitrue, et al Free/cheap – 91% #SocialFresh @ArgyleSocial
Asking For the Sale How frequently do retailers use CTAs on social properties? Facebook Twitter Always 1% Frequently Frequently 29% 26% Never Never 44% 49% Rarely Rarely 24% 27% #SocialFresh @ArgyleSocial
Asking For the Sale How frequently are calls to action used on social properties? Facebook Twitter Your fans can’t read your mind. Always 1% Use calls to action to direct Frequently Frequently Never consumer behavior. 29% Never 26% 44% 49% Rarely Rarely 24% 27% #SocialFresh @ArgyleSocial
Few special oﬀers… Do posts include special oﬀers? Facebook Twitter Yes Yes 23% 29% No No 71% 77% #SocialFresh @ArgyleSocial
No special oﬀers… Do posts include special oﬀers? Facebook Twitter Exclusive content and incentives Yes drive community. 23% Yes 29% No No 71% 77% #SocialFresh @ArgyleSocial
Key insight: Retail is a case studyfor all social media marketers.
Still WIP…But With Obvious Applications• Find your peer group.• Make strategic technology investments.• Ask for the sale.• More insights later this month… – Feb 23 webcast with #SocialFresh @ArgyleSocial