Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

f commerce whitepaper by Syzygy


Published on

f commerce whitepaper by Syzygy

Published in: Business, Technology
  • Be the first to comment

f commerce whitepaper by Syzygy

  1. 1. F-CommerceSelling on FacebookThe Opportunity for Consumer BrandsDr. Paul Marsden, SYZYGY Group
  3. 3. EXECUTIVE SUMMARYEXECUTIVE SUMMARYWhat do Lady Gaga, Coca-Cola, Batman and PampersDiapers all have in common? They all sell on Facebook –offering friends, fans, and followers a privileged andpersonal point of purchase on the world’s largestsocial network.Something else that all four have in common A BO UT T H E AUT H O Ris that they’re all consumer brands; they havetraditionally outsourced the business of gettingproducts into the hands of consumers toretailers. So what’s changed? Why are brands– including top three brands on Facebook –increasingly selling direct to consumers onFacebook?Based on an 18-month study tracking theemerging trend of ‘f-commerce’ – selling withFacebook, this report provides a criticaloverview of f-commerce specifically for con- DR. PAUL MARSDENsumer brands. It identifies the key risks and is a social media strategistopportunities for brands in setting up shop on for Syzygy and editor of SocialFacebook – and concludes that emulating the Commerce Today. A socialcurrent trend among leading retailers to open psychologist with a PhD in theup large e-commerce stores on Facebook would spread of influence throughbe a mistake for many consumer brands. social networks, Paul has 12 years experience in digitalInstead, this report advocates an alternative marketing and is author off-commerce solution for brand pages on Connected Marketing.Facebook; fan-stores selling fan-first andfan-only exclusives designed to activate brand socialcommercetoday.comadvocacy. Five key brand-building benefitsare identified, and a blueprint for setting up aFacebook fan-store designed to activate fanadvocacy is outlined using an evidence-basedthree-point ‘advocacy activation’ formuladerived from academic research. The reportconcludes by outlining emerging trends and newopportunities for consumer brands and theiragencies in the f-commerce space. 1
  4. 4. INTRODUCING THE F-COMMERCE ECOSYSTEMIn 2009, a single lonely business – US florist 1-800 Flowers– set up shop on Facebook, making the social network itsretail home. They built a store where they thought it wasthe best, on the conversational shores of a commercialwilderness. Others soon followed; first came the musi-cians, film and TV shows. Then came the celebrities, andthen came the retailers, and then came brands. And soonthe conversational network had become a commercialroad that was so deep, so wide, like a rolling river…And in that time – since the first secure retail / Facebook Deals – Facebook’s deal platformtransaction on a Facebook page for a $34 that enables vendors to get new customersbouquet of flowers at 11.50AM on July 8, 2009 to pay upfront for vouchers that can be re-– Facebook commerce has evolved. Facebook deemed in-store or online. For example, thecommerce, or ‘f-commerce’ as it is increasingly American Swim Association offers voucherdubbed, has evolved from simply selling on deals for pre-paid swimming lessons.Facebook pages to a full ecosystem of solutionsfor selling with Facebook. / Facebook Credits – Facebook’s own currency, used for purchases made withinT H E F- COMME RCE ECOSYST E M: Facebook for virtual goods, digital products,S E L L I N G O N FACE BOO K and Facebook deals. For example, Warner Bros. allows users to pay with Facebook/ Facebook Stores – third-party e-commerce Credits for its movie rental streaming applications installed on Facebook business service from Facebook movie pages (e.g. pages that enable users to shop and Harry Potter, Batman, Inception). complete purchase transactions without leaving the network. For example, ASOS, JC Penney, GNC, HMV and Express allow people to browse, share and buy from an e-commerce app on their Facebook page.2
  5. 5. F - CO M M E R C ET H E F- COMME RCE ECOSYST E M: products ‘Liked’ by friends, products popularS E L L I N G WIT H FACE BOO K with friends). In-store, fashion brand Diesel( FACE BOO K A SS I ST E D COMME RCE ) is using Facebook Developer Tools with QR codes (quick response matrix barcodes) on/ Facebook Apps – third-party Facebook product tags to allow shoppers to ‘Like’ applications for Facebook pages, typically products on Facebook as they browse. Along product catalogue apps, designed to drive with department store chain Macy’s, Diesel traffic to external e-commerce sites. For is also trialling Facebook fitting-rooms, example, Apple’s iTunes Facebook page kitted out with webcams connected up to includes a browsable catalogue of featured Facebook for sharing try-outs. track previews linking through to product pages on its main e-commerce site, where / Facebook Check-in Deals – a mobile local purchases may be made. Retail giant advertising service from Facebook, allowing Walmart uses a similar app to drive footfall businesses to drive retail store footfall with to stores featuring latest offers that only go deals advertised on the Facebook mobile live when enough people have ‘Liked’ them app. Part of the ‘SoLoMo’ trend (social-local- on Facebook. mobile), HM and Macy’s offer 20% discount to people checking-in on their mobile/ Facebook Developer Tools – a set of Facebook app to their stores. Facebook tools that allow businesses to simplify, personalise and socialise both / Facebook Advertising – display advertise- the in-store and e-commerce site retail ments on Facebook pages designed to drive experience by adding Facebook features. traffic to e-commerce sites, or footfall to These tools include Facebook Social Plugins, stores – often via downloadable coupons. Facebook Authentication, the Facebook API For example, online florist 1-800 Flowers and the Open Graph Protocol. For example, has used Facebook’s customer testimonial e-commerce sites such as Amazon, Levi’s ads (‘Sponsored Stories’) and offered a 15% and Estée Lauder use Facebook Developer discount and free Facebook Credits to drive Tools to allow visitors to login with their traffic and sales on its e-commerce site. Facebook accounts and see a personalised More broadly, businesses are using their store optimized with data from their Facebook wall as an advertising medium to Facebook account (friends birthdays, advertise retail events and products. 3
  6. 6. F-Commerce – Selling on FacebookFacebook Stores Facebook Deals Facebook CreditsAllow customers to buy and Get new customers who pay up front Reduce e-commerce friction by allow-pay directly from your Facebook on Facebook with FB Credits, PayPal ing customers to pay with Facebookpage and newsfeed. or card. Credits.Facebook Assisted Commerce – Selling with FacebookFacebook Apps Facebook Authentication Open Graph ProtocolDrive e-commerce traffic with apps Improve site/app experience by Drive sharing by integrating website(e.g. product catalogues) installed on allowing customers to sign on with pages into the Facebook graph asyour Facebook page. Facebook details. graph objects.Facebook Graph API Facebook Ads Facebook MarketingCreate shopping apps and sites that Drive e-commerce traffic or footfall Drive sales and loyalty with newsintegrate with (read and write to) with standard or testimonial display and promotions posted to yourFacebook. ad units. Facebook page.Facebook Check-in Deals Facebook Social PluginsDrive store footfall and loyalty Improve e-commerce site experiencewith mobile coupons for customers by adding Facebook social features.close by.4
  7. 7. F - CO M M E R C EF-COMMERCE –THE SIZZLE IN THE SOCIAL COMMERCE STEAK“It’s a matter of time – of consumer spending in developed countries may go through Facebook and other socialwithin the next five or so media sites1. Consultants Booz Co forecastyears – before more that the social commerce market – largely driven by f-commerce and group-buy will bebusiness will be done on driving $30bn in annual sales in five years time;Facebook than Amazon.” $14bn in the US and $16bn in the rest of the world (see chart)2. Many brands concur withSumeet Jain, Principal, CMEA Capital this bullish assessment: Dell Computers, for example, which is a respected pioneer in both e-commerce and social media believes that f-commerce and more generally ‘transactionalIn the two years since inception, f-commerce social media’ will be the next logical step inhas become, along with group-buy, a poster social media: “Social media may not have drivenchild for ‘social commerce’, the umbrella term sales in an obvious way so far, but the nextfor the use of social media to support the logical step will be transactional social media.buying and selling of products and services. When you can buy products through Facebook, rather than just liking them, we’ll start to see aIn the US, investment money is following shift in the role of social media in the business.”f-commerce innovation. Not only are brands (Manish Mehta, head of social media, Dell3).increasing their investment in Facebook, butnew f-commerce services and ventures are alsoreceiving funding. In the first few months of 2011,over $2bn investment was poured into socialcommerce ventures. Why? Because analysts seesocial commerce in general, and f-commerce in “In three to five years,particular, as the first real business model for 10 percent to 15 percent ofsocial media. Some are predicting that withinfive years more business may be done on total consumer spendingFacebook than on Amazon, and that 10-15% in developed countries may go through sites such as Facebook.” Mike Fauscette, Analyst, IDC Consulting1 – – – 5
  8. 8. BOOZ COMPA NY E ST I MAT E O F SOCIA L COMME RCE MA R K E T S IZ E(2010 -2015) I N US$ B I L L I O N S 16 12 8 6 4 1 3 5 9 142011 2012 2013 2014 2015 ANNUAL GROWTH 56% REST OF THE WORLDBooz Co 2011: Turning Like to Buy: Social Media Emerges as a Commerce Channel US6
  9. 9. F - CO M M E R C EBUT DOES F-COMMERCE WORK?Despite the business buzz around f-commerce And there is another precedent to support thebuzz, doubts persist; the industry is two years bearish reaction to f-commerce; Facebook hasold and has yet to produce a single high profile been singularly unsuccessful as a marketingand compelling success story. Critics suggest tool. Businesses place Facebook marketing athat selling on Facebook is no different to selling poor fourth behind email marketing, searchon Second Life, the briefly popular virtual world. marketing and affiliate marketing, 2/3 see noIn other words, f-commerce is a futile and clear value from their social media investmentfar-fetched fad – best left well alone. Just as at all, and 68% believe that if Facebook disap-business and brands – from American Apparel peared tomorrow, it would have absolutelyto Vodafone4 – poured money into setting up no effect on their business (US figures).5 So ifshop in Second Life back in 2006, only to find Facebook advertising and marketing don’t pay,that nobody wanted to shop there, they are then why should retailers start selling withmaking the same mistake again: People didn’t Facebook?go to Second Life to shop, so they didn’t. Peopledon’t go to Facebook to shop, so they won’t.I F FACE BOO K I S BAD FO R E- COMME RCE T RA F F I C, WHY WI L L IT B E ANY B E T T E R FO R E- COMME RCE? AVERAGE FACEBOOK METRICS AVERAGE EMAIL METRICSCL I CK T H RO U G H RAT E 1% 11%CONVERSION RATE 2% 4% AV E RAG E F R I E N DS/ACCO U NT 132 N/A AVERAGE IMPRESSIONS PER POST  50 N/A Source: PowerReviews The Case For (and Against) Facebook Commerce May 2011 (Archived at – – The State of Retailing Online 2011, a study conducted by Forrester Research – summary archived at 7
  10. 10. In addition to the lack of high profile f-commerce 40x: Increase in referral traffic fromsuccess stories and the debatable track record Facebook for Levi’s e-commerce site afterof Facebook as a marketing tool, detractors implementing the ‘Like-button in April 2010.point to further uncertainties surroundingf-commerce; can it offer a best practice 50%: More likely to make repeat purchasese-commerce experience, what of privacy, on for those people logging indata-ownership and security concerns, how is to the site with Facebook account.payment best handled – especially considering30% commission rates on Facebook Credits 57%: Above average increase in ordertransactions, and how does the enigmatic value from Facebook traffic for retailer Ameri-Facebook EdgeRank algorithm work that decides can Eagle after adding the ‘Like’-button.whether shared content on Facebook actuallygets shared? 2x: Increase in conversion rate from Face- book traffic to online technology store Incipio.On the other hand, f-commerce advocates point Facebook traffic is 3x more likely to add productto a small but growing body of evidence that to a shopping cart, and Facebook is the store’spoints to a promising future for f-commerce : 6 #2 source of traffic. 100%: Increase in revenue from Facebook traffic within two weeks of adding the ‘Like’- button for sports retailer Giantnerd. 10x: Revenue increase for children’s clothing retailer Tea Collection after adding the ‘Like’- button to sale merchandise.6 –
  11. 11. F - CO M M E R C E1000: Diapers sold by consumer products Overall, it is still too early to tell whethergiant Procter Gamble in under an hour on its f-commerce will ever be any more than aFacebook store. small wrinkle in the e-commerce landscape. This means that brands and businesses are3rd: Third highest sales day for online left with two options; either run a pilot to findfashion retailer Rachel Roy the day it opened out first-hand whether f-commerce works ora temporary ‘pop-up’ Facebook fan-store. adopt a wait and see approach, hoping that competitors will share their experiences. For7-10%: Uplift in average order value in businesses already selling direct to customersthe Facebook store vs. web-store for student (DTC), f-commerce pilots will involve assessinge-tailer Kembrel: Up to 20% of e-commerce whether Facebook can further their retail goals;sales transactions are now completed on the driving traffic or footfall, increasing conversionretailer’s Facebook store. and order value, and ultimately increasing customer lifetime value (CLV) – today’s value$2.53: The value of a post-purchase of the sum of all purchases that have and willFacebook ‘Share’ (RPS – revenue per share) for be made by an average customer.event ticketing site Eventbrite in incrementalrevenue. It is this last goal, moving beyond transactions to drive CLV by boosting purchase frequency,$1.34: The value of a pre-purchase Face- share-of-wallet and customer tenure thatbook ‘Like’ (RPL – revenue per ‘Like’) for event some of the most interesting innovations inticketing site Eventbrite in additional sales. f-commerce are happening. For example, UK mobile operator 02 and coffee chain Starbucks$5.30: The value (RPS) of a post-purchase are piloting f-commerce as a prototypical CRMFacebook ‘Share’ for ticketing site Ticketmaster. (customer relationship management) platform, allowing customers to top up pre-pay accounts$3.25: The value (RPS) of a post-purchase on Facebook pages, rewarding them for doingFacebook ‘Share’ for ticketing site Ticketfly. so, whilst using Facebook as highly targeted and cost-effective couponing media.$14: RPS for businesses using local dealssoftware Chompon (RPL = $8).$15.72: Incremental revenue generatedfor businesses using PowerReviews reviewsoftware every time a review is shared toFacebook: For every 12 shared reviews, anadditional sale is generated.$2.10: The value (RPS) for businesses usingSpinBack, a word of mouth plugin for onlineretailers that calculates the sales value ofFacebook shares. 9
  12. 12. F-COMMERCE FOR BRANDS – FIVE REASONSF IV E R E A SO N S FO R CO N S UME R B RAN DS TO S E L L O N FACE BOO KFor brands already selling direct to consumers, / Coca-Cola has set up shop on Facebook,f-commerce is ultimately uncontroversial; the selling fan merchandise to brand fans –only controversy is over whether it works or apparel, collectibles, posters, and evendoesn’t. But what of consumer brands with no furniture from recycled Coke bottles.or limited DTC experience? What use, if any,is f-commerce to them? / Unilever has set up shop on Facebook, giving Dove fans early access to new Dove product/ Procter Gamble has set up shop on lines7. Facebook to sell new Pantene and Max Factor lines to Facebook fans before Interestingly, the principal utility of f-commerce they’re available in store. for these consumer brands appears not to be sales; they do not sell, looking to establish/ Procter Gamble has also set up shop on a new retail channel to challenge or replace Facebook to sell campaign merchandise traditional and partner retail channels. Instead, for successful advertising campaigns such they would seem to be focusing on one or more as the Old Spice “The Man Your Man Could of five distinct non-sales benefits that can be Smell Like” campaign. derived from selling on Facebook./ Procter Gamble has also established a broader e-commerce presence within Facebook, adding stores to the Facebook brand pages of Tide, Gillette, Olay, Gain, CoverGirl, Luvs and Febreze.7 –
  13. 13. F - CO M M E R C ER E A SO N #1: R E A SO N #2:Facebook ROI – Consumer brands are coming Brand Experience – Delivering a compellingunder increasing pressure to justify the time, brand experience on Facebook requires,energy and money they are spending on minimally and essentially, meeting the desiresFacebook. Loose talk of ‘engagement’ – with and expectations of a brand’s Facebook official definition of “turning on a prospect What are these desires and expectations?to a brand idea enhanced by the surrounding Increasingly, when asked why they connect withcontext” – is increasingly seen as unaccount- brands on Facebook, consumers say it’s to shopable fudge, signalling brand-babble without and for deals (see chart). By adding a storea business case8. to their Facebook page, a brand improves the experience it delivers at this touch point.On the other hand, Facebook stores can helpbrands make the business case for Facebook Ironically, as a recent report by IBM concluded,investment by answering the thorny question legacy thinking among some consumer brandsof Facebook ROI: What’s the return on invest- has created something of a perception gapment in collecting ‘likes’, servicing customers between why brands think, or rather hope,and messaging followers on Facebook? As the people connect with them on Facebook, and whycentral component of any business case, ROI is they actually do. Brands want to believe thata financial measure – money out minus money people least connect with them for shoppingin – which means that the only way to measure and deals (because that’s not what they do),Facebook ROI is to link Facebook investment to whereas people most connect with them forsales. E-commerce-enabled Facebook brand shopping and deals.pages make Facebook ROI possible. From a branding and brand experience perspective, perception gaps such as this may be damaging, creating a ‘disconnect’ between a brand and its market. A Facebook store on a brand’s Facebook page may go someway to re- moving the disconnect whilst protecting brands from irrelevance or, worse, inauthenticity, when they pretend to appear non-commercial.8 – For the official definition of brand engagement, and a useful discussion see 11
  14. 14. M I N D T H E GA P – T H E SOCIA L ME D IA PE RCE PT I O N GA P CO N S UME R RAN K I N G B RAN D RAN K I N G Why they connect Why they think consumers with brands connect with them in social media. in social media. (61%) Discount (73%) Learn about new products (55%) Purchase (71%) General Information (53%) Product Reviews/Rankings (69%) Submit opinion on current prod./serv. (53%) General Information (68%) Exclusive Information (52%) Exclusive Information (67%) Product Reviews/Rankings (51%) Learn about new products (64%) Feel connected(49%) Submit opinion on current prod./ser. (63%) Customer service (37%) Customer service (63%) Submit ideas for new prod./serv. (34%) Event participation (61%) Be part of a community (33%) Feel connected (61%) Event participation (30%) Submit ideas for new prod./serv. (60%) Purchase (22%) Be part of a community (60%) DiscountIBM From social media to Social CRM (Adapted from IBM Institute of Business Value analysis CRM Study 2011)Consumer (US) n = 1056, Business (US) = 333; E A SO N #3:Brand Insight – Ask consumer brands sellingon Facebook why they’re doing it – and theanswer is more likely to be insight than sales.For example, the Facebook stores on the brandpages of Procter Gamble are used as a “LiveLearning Lab” to help the business understandhow consumers interact with their brandsand technology – in real life, as opposed tovia artificial surveys and sterile focus groups.Combining conversations with commerce, andusing rich Facebook user data, brands havethe opportunity to harness Facebook stores tobetter segment their markets, optimise pricing,packaging and promotions – and even testlaunch new products.12
  15. 15. F - CO M M E R C EThe insight value of f-commerce benefits not R E A SO N #5:only brands themselves, but also their retail and Brand Advocacy – Brands are using f-commercechannel partners, ensuring what is produced to drive brand advocacy: using Facebook storesfor stores, flies out of stores. Far from posing to get products into the hands of the peopleany kind of threat to retail partners, Facebook most likely to recommend them, their fans.stores from consumer brands may reduce risk By offering new products on a fan-first basis,for these partners, ensuring that their shelves and offering fans exclusive fan merchandiseare stocked with the right products with the designed to create conversations, brands canright packaging, at the right price and with the turn fans into active advocates. For example,right promotions. Heinz sells new ketchup lines from its Facebook page, just before they hit the store, givingR E A SO N #4: Facebook fans exclusive ‘get-it-first’ access,Brand Loyalty – Brands are using f-commerce and thus something to talk about. They areto drive brand loyalty, increasing propensity cleverly instigating digital word of repurchase – relative to competitors, byoffering loyal brand fans a privileged point ofpurchase. For example, Warner Bros. sells ‘fan-only’ special editions of DVD box set movies,including those from Harry Potter, direct fromFacebook movie pages. By boosting brandloyalty, brands can increase the effectiveness ofadvertising and marketing, amortising the costof user acquisition over a longer period. 13
  16. 16. 5 K E Y B RA N D ME T R I CS FO R F- COMME RCE S UCCE SS/ Does our f-commerce initiative improve Facebook ROI? Does our f-commerce initiative improve visitor experience/ on Facebook? Does our f-commerce initiative generate insight that can/ usefully inform strategic and operational brand decisions? Does our f-commerce initiative improve propensity to/ recommend among our Facebook followers? Does our f-commerce initiative improve propensity to/ re-purchase among our Facebook followers?Just as f-commerce promises retailers As is the case for retailers, f-commerce forenhanced traffic, conversion and order value, brand-building is too new and experimentalthe f-commerce promise to brands includes for definitive answers to these questions.enhanced experience, insight, loyalty, advocacy Furthermore, success is likely to depend on howand Facebook ROI. And to the degree that individual f-commerce solutions are deployed.f-commerce will succeed or fail for retailers But by understanding these five key questionsbased on how it delivers on its e-commerce to which f-commerce may be the solution,promises, so too will the success or failure of consumer brands can establish pilots to testf-commerce depend on delivering on brand- their efficacy.building promises.14
  17. 17. F - CO M M E R C EBRAND BUILDING WITH THE ‘SOLOMO’ CONSUMERCautious and conservative retailers may choose Whilst many brands today are focusing on theto sit out f-commerce experimentation until rise of the new ‘social consumer’ – consumersmore proof-points emerge on the effectiveness who shop with their social intelligence, usingand efficiency of f-commerce in furthering social technology – ratings, reviews and theire-commerce goals. In the same way brand social graph – to form smarter opinions andmanagers may choose to sit out f-commerce make smarter decisions, social is only oneuntil more evidence emerges that f-commerce aspect of how technology is changing howcan in fact, rather than in principle, deliver on consumers connect with each other and withbrand-building goals of experience, insight, brands. The other two in ‘The Big 3’ – mobileloyalty, and advocacy as well as Facebook ROI. technology and location-aware technology – are equally as important, and in this sense, it mayBut there is a compelling reason not to make more sense to focus on the ‘SoLoMowait – and that is to learn more about how consumer’ – consumers who experience brandsconsumers are using technology – specifically through social, location-aware, and mobilesocial, location-aware and mobile technology technology. With 250m people using Facebook’sto connect and share with each other, form location-aware mobile app to connect and shareopinions and make decisions. with each other, Facebook and f-commerce make an ideal platform for learning about the SoLoMo consumer. WH O I S T H E SOCIA L CO N S UME R? / Learns about breaking news through sites like Twitter and Facebook. / Learns about new products through social channels and networks. / wise to unsolicited promotions and trusts Is only relevant information. / Desires a conversation with the brand rather than one-way ad messages. / Expects brands to be active in the same social media sites he/she hangs out in. / Wants brands to listen, engage and respond quickly. 15
  18. 18. SOCIA L LOCA L23%: Online time consumers spend with 300%: Growth of location-based servicesocial media – social networking is now the #1 users in 2010 – services that have evolved fromonline activity. games to include reviews, recommendations and deals.86%: Consumers consult online reviewsbefore buying; 90% trust the reviews they read. 95%: Mobile users using their handsets to find local information; 88% take action based on42%: US online adults follow a retailer via that information.Facebook, Twitter or blog. 70%: Online mobile users who use hand-6: The average number of brands consumers sets to help shopping in-store.follow in social media. 47%: Consumers who access customer56%: Facebook users have clicked through reviews in-store via mobile a retailer website from a Facebook post. 86%: Consumers using the Web to find local28%: Facebook users have purchased businesses: 20%+ of all Google searches havesomething online via a link on Facebook. a local intent.35%: Consumers would buy products on 78%: Mobile connected consumers haveFacebook; 32% would do so from Twitter if purchased from a local deals site.possible. 76%: Smart phone users have made an in-25%: Google searches done on YouTube store purchase based on information accessedvideo sharing site; YouTube is the world’s 2nd from their handset.largest search engine. 49%: Smart phone owners use their52%: Consumers share deals from local handsets to get local promotions and sites such as Groupon and LivingSocial. 45%: Online European consumers have50%+: Consumers more likely to buy researched a product online and then boughtfrom businesses they follow in social media. it in a shop.53%: People on Twitter recommend $61bn: Projected value of the online localcompanies and/or products in their Tweets. deals market in 2015; 2011 value to grow 138%.12x: Degree of trust consumers have inshared consumers’ reviews compared tobrand-communicated information.90%: Online consumers trusting recom-mendations from people they know; 70%trust opinions of unknown users.16
  19. 19. F - CO M M E R C EMO B I L E The implication is that SoLoMo technology and the SoLoMo consumer are changing how7.5%: Proportion of total media consump- consumers connect and engage with brands;tion that occurs via a mobile device. real-time, on-demand and on-the-go. In a recent influential report in the Harvard Business16%: Google searches made on a mobile Review 9, McKinsey consultants found thatdevice, up 400% in last 12 months. the old funnel metaphor for branding from- awareness-to-consideration-to-preference-63%: Smart phone users using their to-purchase has been made largely obsoletehandset to access a social network, at least by SoLoMo technology. Rather than a linearonce a week. process of pushing consumers down a funnel with brand communications, the process is now79%: Smart phone users using their consumer-driven, non-linear and built aroundhandsets to help with shopping. real-time contextual needs.35%: Smart phone owners have made For example, whereas consumers used toa purchase on their handsets. keep just one or two favourite brands in mind for each category, they now manage larger34%: Facebook users accessing Facebook ‘consideration sets’, dynamically adding andfrom mobile devices at least once a day (32% removing options right up to, and beyond theview YouTube videos on a daily basis from point of purchase. Just as we no longer needa handset). to remember telephone numbers, our handsets do it for us, we no longer need to create static32%: Consumers using mobile handsets consideration sets – SoLoMo technology can doto browse or research products or services it dynamically for us – on-demand. Via mobileat least once a month. devices we have access to trusted information networks made up of independent experts,2015: The year mobile web access will fellow consumers, friends and family. Whateverovertake desktop access. happens in this Brave New SoLoMo World, people will rely less on marketing messages to15%: Consumers completing transactions build opinions and inform decisions, and morewith their mobile devices at least once a on each other.month. 9 – Harvard Business Review – Social Media and the New Rules of Branding 17
  20. 20. T H E SO LOMO CO N S UME R D ECI S I O N JO U R N E Y Problem Recognition Dynamic Decision Loop Alternative Evaluation Consideration Information Search Problem Recognition SetConsumers tap information and social networks up to point of purchase Purchase Loyality Loop Post-Purchase EvaluationAdapted from Harvard Business Review – Social Media and the New Rules of Branding sum, McKinsey’s global research, along with evaluation and advocacy may be influencedan increasing body of findings from supporting as much by other brand users as by the brandresearch10, concludes that branding today has itself. For example, by supporting each other vialess to do with what a brand says about itself, digital technology, consumers create their ownand more about what other people – especially loyalty loop with the brand that may promoteother brand users – say about it. Brand repurchase. The opportunity for brands is toperceptions are influenced by consumer brand upgrade their understanding of brand buildingadvocates and brand detractors throughout away from messaging and towards activatingthe decision journey. Pre-purchase, brand brand advocacy.advocacy and brand detraction influenceproblem recognition, solution search, and And it is here that f-commerce can help.alternative-evaluation phases of the decisionprocess. And post-purchase, brand experience,10 – See for example Carat and Microsoft ‘The New Shopper’ and OglivyOne ‘The Future of Social Selling’
  21. 21. F - CO M M E R C E F-COMMERCE – TURNING FANS INTO ADVOCATESIf a central role of marketing to the new SoLoMo consumeris to populate information networks with positive brandadvocacy, then activating brand advocacy becomes akey task.F-Commerce can assist in building brand This technique of activating brand advocacyadvocacy by helping brands get new products among brand fans by offering exclusive fan-firstthat are worth talking about into the hands new product experiences is a trialled, testedand onto the lips of the people most likely to and proven method, and builds on five decadesrecommend them; brand fans. of research into brand advocacy./ Chanel sells new cosmetic products from its This research has confirmed, over and over, Facebook fan-store before they reach the that brand advocacy is a critical component of store – giving brand fans exclusive ‘fan-first’ brand health; brand advocacy is known to drive access and thus something to talk about to sales – particularly at product launch; advocacy their friends. can contribute up to 40% of the life-time value of a brand user; it can increase advertising/ noted above, Heinz offers brand fans As effectiveness; it can change brand attitudes ‘get-it-first’ access to new ketchup lines and is nine times more powerful at doing so from its Facebook fan-store – creating an than advertising; it can boost brand purchase exclusive experience that gets talked about. intention; and it can stimulate brand loyalty by reducing post-purchase cognitive dissonance11./ The Sony PlayStation fan-store on Facebook Over the decades, research into brand advocacy sells new products as they hit the shelves has also usefully identified three key ‘advocacy – and fans get bonus items; checkout and activators’ that are available to marketers: logistics are handled by retail partners./ Retail brands NineWest and Rachel Roy also use Facebook fan-stores to activate fan advocacy by offering ‘fan-first’ exclusives for new product launches.11 – For more evidence on the commercial benefits of brand advocacy see; Bughin et al 2010, Charlett Garland 1995, Day 1971,Festinger 1957, Hogan et al 2004, Kumar et al 2007, Nowinski 2008, Reichheld 2003, 2006, 2011, Reynolds Darden, 1971 Wangenheim Bayón 2007 19
  22. 22. ExperienceInvolvementIncentivesA DVOCACY ACT IVATO R 1:Experience – Advocacy is primarily driven by Whilst experiential advocacy cannot be manu-salient memories of personal experiences factured (advocacy only happens when you have(and to a lesser degree, anticipation of future something worth advocating), it can be amplifiedpersonal experiences). It is the experience, not by making a product experience exclusive. Forthe product (or the ad) that drives advocacy. example, by offering a select group of consum-Experiences that trigger advocacy tend to be ers limited and exclusive early access to newnew, original, exclusive, surprising (expecta- products, and providing them with exclusivetion-beating), exciting, symbolic and satisfying. information and samples to share, brands canFrom a motivational perspective, advocacy is substantially boost active advocacy. In one test,an emotional response to surprise and delight, a pre-launch sampling of an otherwise unre-typically – in the context of products and markable new coffee resulted in active advocacyservice advocacy – around product perform- from over a third of participants13.ance, perceived value and customer service . 1212 – For more on the role of experience on driving advocacy see; Cova Pace 2006, Derbaix Vanhamme 2003, Dichter 1966, Gremleret al 2001, Gummesson 2006, Kuokkanen 1997, Liu 2006, McConnell Huba, 2003, Oliver 1980, Oliver et al 1997, Schlossberg 1990, Scoble Israel 2006, Sifry 2006, Swan and Oliver 1989, Sundaram, Mitra Webster 1998, and Westbrook 198713 – For evidence of the power of product seeding see; Holmes Lett 1977, Marsden 2006, Thomas 200420
  23. 23. F - CO M M E R C EA DVOCACY ACT IVATO R 2:Involvement – Advocacy is driven by the degree Brands can boost involvement-driven advocacyto which we care about something, something through ‘empowered involvement’ – givingwe find personally important and relevant, consumers a say in the brand, its future and howthat is, products and subjects with which we it is marketed. For example, in one classic test,have high involvement at the time of advocacy students were recruited to join a select panel(involvement may be ‘enduring’ or ‘situational’). to evaluate new music bands. This generatedIn this context, brands that get advocated tend psychological involvement that triggeredto have 1) high functional value, 2) high symbolic advocacy, sending the bands in question to thevalue (we use them to signal our tastes), 3) high top ten charts in the cities (and only in the cities)hedonic value (emotional appeal) and 4) high where the sub-$5K campaign took place. This, ofrisk associated with their purchase. Motivation- course, is the principle that underpins the Idolally, involvement-driven advocacy is an emo- talent contest TV franchise 15.tional response to interest and excitement . 14A DVOCACY ACT IVATO R 3:Incentives – Advocacy is also driven by incen- Brands can boost incentive-driven advocacytives that motivate consumers to advocate. through material and non-material rewards forIncentive-driven advocacy can be achieved advocacy. ‘Word of mouth marketing panels’either through referral rewards programs – such as Bzzagent, TRND and Vocalpoint offera highly cost-effective ‘pay-for-performance’ consumers free samples in return for feedbackcustomer acquisition strategy, or through – if they like it they tell others, if they don’tadvocacy programs that offer consumers free they feed back privately to the brand. Overall,or discounted samples in return for positive incentivising happy customers to advocate withreviews and recommendations. Research also samples, rewards and discounts has proven toshows that one simple non-material incentive be an effective alternative to margin-erodingis often overlooked by marketers; a simple and price promotions17.polite please – a simple request from a brand tospread the word can increase advocacy 12 fold16.14 – For more on the role of involvement on advocacy; see especially Oetting 2009, and also Chung Darke 2006, Dichter 1966, Feick Price 1987, Houston Rothschild 1980, Kapferer Laurent 1985, Mancuso 1969, Richins Root-Shaffer 1988, Sundaram, Mitra Webster1998, Venkatraman 1990, and Zaichkowsky 198515 – For more on how marketers can boost involvement-driven advocacy see; Mancuso 1969, Marsden Oetting 2005, Marsden 2006,Oetting 2009, Marsden 200916 – For more on the role of incentives on brand advocacy see; Biyalogorsky et al 2001, File, Judd, Prince 1992, Kumar et al 2007,Ryu Feick 2007, Wirtz Chew 200217 – For more on how word-of-mouth panels can boost incentive-driven advocacy see; Marsden 2005, 2006, Oetting 2009 21
  24. 24. ADVOCACY ACTIVATION WITH FAN-STORESIn using Facebook fan-stores to offer fans exclusive‘get-it-first’ product experiences, consumer brandsare already using the experience of advocacy activatorin a very powerful and proven fashion. The opportunityfor brands is to harness the other two advocacyactivators – involvement and incentives – as well.How can they do this?We know that people advocate new products In the context of Facebook fan-stores, brandsand services when they’ve had an expectation- can use this same ‘empowered involvement’beating personal experience, especially when to activate fan advocacy by engaging fans asthe experience is perceived as personally product reviewers or advisers. For example,important and relevant, and when the access to the fan-store could be madeexperience is accompanied with an incentive to contingent on agreeing to post a video reviewadvocate. The opportunity for brands, therefore, to Facebook (in the spirit of ‘haul videos’ oris to transform Facebook fans into Facebook ‘unboxing videos’), or perhaps voting on someadvocates by adding ‘involvement’ and aspect of how the product will be marketed.‘incentives’ to the ‘get-it-first’ Facebook store Procter Gamble have used just such a ‘VIPexperience. Vote’ technique effectively in their online word-of-mouth marketing panels ‘Tremor’ andTo add ‘involvement’ into the advocacy mix, a ‘VocalPoint’, inviting consumers to vote onfan-store must somehow increase the personal options for product packaging, logos, campaignimportance and relevance of what is being sold. merchandise, print and TV campaigns. TheA simple and proven solution for doing this is to result is increased involvement, which activatesengage fans not as customers but as advisors. advocacy; a phenomenon that according to the3M famously did this back in the 1970s, when it consumer goods giant is the “the gold standardre-launched Post-it Notes after an initial failed in marketing” introduction. Rather than engage itscore target market – office staff – as users Brands also have the opportunity to harnessor customers, it invited them to act as product the ‘incentives’ advocacy activator in Facebookadvisors. Specifically, 3M asked early customers fan-stores. One option, favoured by Domino’sto advise them on how the brand should best pizza19 and others, is to offer financial incentivesbe marketed, and how they should advise other for advocacy, in the form of discounts andusers on how best to use the product. This rewards for Facebook ‘Shares’ and ‘Likes’,psychological involvement transformed a once especially those that result in new purchases –disinterested and uninvolved audience into in- just like the popular Amazon affiliates program.volved and active advocates. It also transformed A simpler alternative would be to offer fansthe fortunes of Post-it Notes – from failedproduct to top selling office supplies brand.18 – Jim Stengel, global marketing head for PG quoted in
  25. 25. F - CO M M E R C E‘social currency’ for their advocacy – something Consumer brands have yet to systematicallythat improves the fan’s social status among apply these insights from advocacy researchfamily and friends. For example, fans could be to their fan-stores, but one early illustration ofsent samples or discount vouchers along with how this might be done was a 2011 campaigntheir fan-store purchases to hand out to friends. by English indie rock band, The Kaiser Chiefs. InFans could even be offered information in the June 2011, the band launched their new album,form of ‘inside scoops’ – surprising and disrup- ‘The Future is Medieval’ and invited fans – via ative facts about the new product or product link on their Facebook page – to buy and down-category that make them look smart in the load the album. But instead of downloading aeyes of their peers. ‘cookie-cutter’ version of the album, fans were encouraged to compile the album themselves,In sum, if the goal of a Facebook fan-store is choosing 10 tracks from a selection of 20, andto activate brand advocacy by turning brand then adding their own cover-art. After purchase,fans into vocal brand champions, then research fans could then share their personalised versioninto brand advocacy points to a simple 3-point of the album, and if friends purchased it too,advocacy activation formula: they received a 13% commission on any sales./ Experience – Give fans a ‘get-it-first’ op- In this way, the Kaiser Chiefs fan-store used portunity to buy new products worth talking each of the three advocacy activators – en- about. gagement, involvement and incentives – to turn fans into advocates. As such, it could be a/ Involve – Make purchase contingent on proto-typical blueprint for fan-stores designed reviewing the product or voting on some to turn fans into active advocates. aspect of how it is marketed./ Incentivise – Reward consumers for spread- ing the word – financially and/or socially (discounts, samples or news to share).19 – 23
  26. 26. ACTIVATING – ADVOCACY WITH FAN MERCHANDISEIf the core purpose of a Facebook fan-store is to activatefan advocacy, then the primary solution for doing this isto offer fans ‘get-it-first’ new product experiences, ideallyusing involvement and incentives to amplify the resultingadvocacy.In addition to creating advocacy around new / Sports team brands such as Arsenal, FCproducts launches, fan-stores also have the Liverpool, FC Barcelona and Miami Heatopportunity to generate advocacy all year all sell fan merchandise direct from theirround. The simple solution for achieving this Facebook stores.may be to offer fans exclusive fan-merchandise.By allowing fans to wear a brand, sometimes / Music brands from Lady Gaga, Justin Bieber,quite literally, on their sleeves, fan merchandise Rihanna and Katy Perry to Bob Marley, theincreases the opportunity for brand conversa- Beatles and Bon Jovi all sell fan merchandisetions to take place, and thus brand advocacy. from their Facebook pages.It should therefore be unsurprising to learn thatthis is exactly what a number of leading brands Branded fan-merchandise can activate advocacyare doing with their Facebook stores – using by giving brand fans something to talk about,them to sell fan merchandise. In addition to the an excuse to advocate the brand to friends andexamples from Procter Gamble and Coke family in the absence of a new product to laud.noted above, other brands are using Facebook In this way, consumer brands have not one,to sell branded fan merchandise: but two key opportunities for igniting brand advocacy with Facebook fan-stores – offering/ Westin Hotels doesn’t sell hotel rooms from ‘get-it-first’ new product experiences, and its Facebook brand page, but it does sell offering fans exclusive fan merchandise. The branded fan merchandise – robes, candles, merchandising opportunity for brands is to towels, sheets, and spa products. design fan merchandise specifically to trigger advocacy with products that are new, original,/ Publishing brands including Penguin books exclusive, surprising (expectation-beating), sell fan merchandise from fan-stores such as exciting, symbolic, and satisfying. One specific the popular ‘Penguin canvas bag’. opportunity would be to create fan merchandise to accompany advertising campaigns in much/ show brands including Desperate TV the same the way that Procter Gamble has Housewives, Dexter, Grey’s Anatomy, Jersey done with its ‘Smell Like a Man’ Facebook Shore, Lost, and Supernatural all sell fan campaign store. Since we know that advertising merchandise direct from their Facebook effectiveness is significantly enhanced when pages. a campaign is accompanied with brand advo- cacy 20, campaign themed fan merchandise could significantly enhance advertising ROI.20 – See Hogan et al 200324
  27. 27. F - CO M M E R C EFUTURE TRENDSF-commerce for consumer brands is new and experimen-tal, and future trends will depend on how successful f-commerce turns out to be at achieving brand objectives.The future of f-commerce is not set; there is no fate butthat which brands make for themselves.Nevertheless, if one of the key brand-building / Analytics logistics – The use of fan-storesbenefits that f-commerce delivers is activating by consumer brands will spawn new entitiesadvocacy among brand fans, then a number of in the f-commerce ecosystem; specializedfuture trends are likely to emerge: fan-store analytics and metrics, and new specialist fan-store logistics companies of-/ Systematic ‘fan-seeding’ – Consumer fering fulfilment and drop-shipping services. brands will use Facebook fan-stores in a more systematic manner for seeding new / Digital and virtual goods – Growth in products with brand fans. fan-stores will be driven by high-involvement categories offering the instant gratification/ Viral fan-stores – To promote advocacy, of digital downloads: music, movies, TV, fan-stores will become increasingly viral; gaming, publishing and sports (premium appearing as shareable stores in newsfeeds Facebook streaming), ticketing, and digital and using viral mechanisms to promote merchandise. advocacy such as samples, vouchers and social currency (disruptive and surprising / Facebook Credits – As Facebook Credits news) to share. gain traction, fan-stores will increasingly allow frictionless fan payment with Credits/ Empowered involvement – Facebook for both digital and physical products (if the fan-stores will increasingly integrate the ‘beta’ commission rate on Credit purchases ‘involvement’ advocacy activator into the (30%) is reduced to market norms). fan-store experience – for example, by making fan-first access contingent on / Fan-store agencies – We will see the emer- video-reviewing a new product. gence of specialist agencies and agency competencies for managing Facebook/ ‘Pop-up’ fan-stores – Consumer brands will fan-stores for consumer brands, offering increasingly use temporary fan-stores to a turnkey brand-literate service. support not only new product introductions but also advertising campaigns, events and other brand activities. 25
  28. 28. / marketing – If ‘fan-first’ marketing on Fan Facebook proves successful, we may see the emergence of a new era of ‘fan marketing’ with marketing campaigns and special products designed specifically and uniquely for brand fans and made available via dedicated fan-stores. This trend may already be underway; Warner Brothers sells fan-only special editions from Facebook fan-stores, Simon Schuster offers fans, and only fans, special author-signed books, and Disney Studios offers fan-only VIP services to Facebook fans such as a group-buy facility to see new Disney movies./ Beyond the brand – If Facebook fan-stores prove to be successful, we will see the emergence of a new type of fan-store that, rather than being brand-centric, will be interest-centric; fan-stores for fans of sports, interests and activities selling curated bundles of gear from a range of different brands. The opportunity for brands will be to curate these fan-stores with non-competitive brands.26
  29. 29. F - CO M M E R C ECONCLUSION: START WITH THE SMILE AND LEADThe central recommendation of this report Ultimately, f-commerce for consumer brandsis simple: Consumer brands can build brand will not succeed or fail based on processes, butadvocacy with ‘fan-first’ marketing using on the ability to act on the insight that makingFacebook fan-stores to get new product lines your fans smile is smart for business. A smileand fan merchandise into the hands and onto converts to loyalty and advocacy, two of thethe lips of those most likely to recommend them most precious commodities for brands. Provid-– their Facebook fans. ing fans with a privileged point of purchase is simply walking the talk of making brand happi-There are no cookie cutter recipes for setting ness your business model; fan-stores for brandup successful Facebook stores for your brand fans are nothing more nor less than a ‘smilefans; f-commerce is too new and experimental delivery channel’, providing the people whofor that. The best that brands can do is adopt manage your brand in real life, the brand usersa strategic approach to f-commerce, adopt- who ultimately pay your salary, with an experi-ing something similar to the LEAD approach ence worthy of a smile. Facebook fan-stores areproposed by McKinsey that is designed to about growing smiles, not sales. So the bestde-risk innovation in social media21: advice for embarking on an f-commerce journey is to ask yourself how you can make your/ LISTEN – First listen to your Facebook fans: customers smile with a privileged and personal Do they want a privileged and personal point point of purchase on Facebook, and work back of purchase on Facebook, and if so, what from there. would they want to buy?/ EXPERIMENT – Limit initial investment to a small scale fan-store and experiment with how you can use it to drive advocacy./ ADAPT – Adapt your fan-store into an outcomes-driven solution based on fan feedback and on what drives advocacy in practice./ DEVELOP – Continuously develop your fan-store, improving the fan experience as new opportunities emerge.21 – 27
  30. 30. ABOUT SYZYGYSyzygy is a full-service agency for digital marketing and communi-cation. We create brand experiences through all relevant channels.And we get inspired by digital technologies. No matter if it’s website,multi-touch device, social media or smartphone app – it’s gonnabe spectacular.
Syzygy has been involved with f-commerce since its inception –opening the first agency B2B store on Facebook and coining the term‘f-commerce’ itself. Together with Dr. Paul Marsden, social mediastrategist of Syzygy Group, we run ‘Social Commerce Today’ –the Web’s premier resource for news, analysis and comment onthe use of social media in the context of commerce.

Syzygy is part of Syzygy Group, a group of specialist talent ininteractive marketing with 280 employees, and offices in London,Frankfurt, Hamburg, Warsaw and New York..socialcommercetoday.com28
  31. 31. A B O U T SY Z YGYCONTACT US SY Z YGY D EUT SCH L AN D GMB HIm Atzelnest 361352 Bad Homburg ANNE KOCHMANAGER BUSINESS DEVELOPMENT t +49 (0)6172 9488-163e a.koch@syzygy.dei syzygy.def   SY Z YGY LO N DO NThe Johnson Building77 Hatton GardenLondon EC1N 8JS MARK ELLISMANAGING DIRECTOR t +44 (0)20 3206 4000e more information please do not hesitate to give us a call. 29
  32. 32. RESOURCES AND BIBLIOGRAPHYBiyalagorsky E, Gerstner E, and Libai B. (2001). “Customer Referral Management: Optimal Reward Programs”Marketing Science, 20(1), 82-95.Bughin J, Doogan J, and Vetvik, OJ (2009) “A new way to measure word-of- mouth marketing”McKinsey Quarterly, June.Charlett, D. Garland. R. (1995) “How Damaging is Negative Word of Mouth?” Marketing Bulletin, Vol. 6, pgs 1-9.Chung, CMY, Darke, PR (2006), “The consumer as advocate: self-relevance, culture and word-of-mouth”,Marketing Letters, Vol. 17 pp.269-79.Cova B., and Pace S. (2006), “Brand Community of Convenience Products: New Forms of Customer Empowerment –the Case “my Nutella The Community”,” European Journal of Marketing, 40 (9/10), 1087-105.Day, G. (1971), “Attitude Change, Media and Word of Mouth,” Journal of Advertising Research, 11 (6), 31-40.Derbaix, C. and Vanhamme, J. (2003), “Inducing Word-of-Mouth by Eliciting Surprise – A Pilot Investigation,”Journal of Economic Psychology, 24 (1), 99-116.Dichter, E.,(1966), “How Word-of-Mouth Advertising Works,” Harvard Business Review, 44 (6), 147-66.Feick, L. and Price, L. (1987), “The Market Maven: A Diffuser of Marketplace Information,” Journal of Marketing,51 (January), 83-97.Festinger, L. (1957), A Theory of Cognitive Dissonance. Stanford, CA: Stanford University Press.File, K., Judd, B., and Prince, R. (1992), “Interactive Marketing: The Influence of Participation on Positive Word-of-Mouthand Referrals,” Journal of Services Marketing, 6 (4), 5-14.Gremler, D., Gwinner, K., and Brown, S., (2001), “Generating Positive Word-of-Mouth Communication ThroughCustomer-Employee Relationships,” International Journal of Service Industry Management, 12 (1), 44-59.Gummesson, E. (2006), “Many-to-Many Marketing As Grand Theory: A Nordic School Contribution,” in The Service-Dominant Logic of Marketing, Robert F. Lusch and Stephen L. Vargo, Eds. New York, NY.Hogan, J., Lemon, K., and Libai, B., (2004), “Quantifying the Ripple: Word- of-Mouth and Advertising Effectiveness,”Journal Of Advertising Research, 44 (September), 271-80.Holmes, J., Lett, J., (1977), “Product Sampling and Word of Mouth,” Journal Of Advertising Research, 17 (5), 35-40.Houston, M., and Rothschild, M. (1978), “Conceptual and Methodological Perspectives on Involvement,” in ResearchFrontiers in Marketing: Dialogues and Directions, Subhash C. Jain, Ed. Vol. 184-187. Chicago: American MarketingAssociation.Kapferer, J., and Laurent, G. (1985), “Consumer Involvement Profiles: A New Practical Approach to ConsumerInvolvement,” Journal of Advertising Research, 25 (6), 48- 56.Kumar, V., Andrew J. Petersen, Robert P. Leone (2007), “How Valuable Is Word of Mouth?,” Harvard Business Review,85(10), pp. 139 – 146.Kuokkanen, J.(1997), A Link Between Consumer Dis/Satisfaction and Postpurchase Word-of-Mouth Intentions:An Experimental Study. Turku: Turku School of Economics and Business Administration.Liu, Y., (2006), “Word of Mouth for Movies: Its Dynamics and Impact on Box Office Revenue,” Journal of Marketing,70 (July), 74-89.Mancuso, J., (1969), “Why Not Create Opinion Leaders for New Product Introductions?,” Journal of Marketing, 33 (July),20-25Marsden, P. and Oetting, M. (2005), “Consumer Empowerment Reloaded: Why Your Customers Should Drive YourMarketing,” in MarketingProfs (November 29). Archived at:, P. (2005) ‘Seed to Spread’ in Kirby, J. and Marsden, P. (2005) Connected Marketing: The Viral, Buzz andWord of Mouth Revolution . London: Butterworth-Heinemann.Marsden, P., (2006) “Customer Advisory Boards – The Next Big Thing in Word of Mouth Marketing, Market Leader,Summer.30
  33. 33. RESOURCESMarsden, P., (2009) Idea Platforms: Diamond in the Web 2.0 Rough, Syzygy White Paper.Archived at, B., and Huba, J., (2003), Creating Customer Evangelists: How Loyal Customers Become a VolunteerSales Force. Chicago: Dearborn Trade Publishing.Nowinski, V. (2008) “Net Promoter Economics: The Impact of Word of Mouth” Satmetrix White Paper.Oetting, M. (2009). Ripple effect. How empowered involvement drives word of mouth. Wiesbaden: Gabler.Oliver, R., (1980), “A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions,”Journal of Marketing Research, 17 (November), 460-69.Oliver, R. L., Rust, R. T., Varki, S. (1997). Customer delight: Foundations, findings, and managerial insight.Journal of Retailing, 73(3), 311-336.Reicheld, F., (2011), The Ultimate Question 2.0 Boston, MA: Harvard Business School Publishing Corporation.Reichheld, F., (2006), The Ultimate Question: Driving Good Profits and True Growth. Boston, MA: Harvard BusinessSchool Publishing Corporation.Reichheld, F., (2003), “The One Number You Need To Grow,” Harvard Business Review, 81 (December), 46-54.Reynolds, F., and Darden, W. (1971), “Mutually Adaptive Effects of Interpersonal Communication,”Journal of Marketing Research, 8 (November), 449-54.Richins, M., and Root-Shaffer, T., (1988), “The Role of Involvement and Opinion Leadership in CustomerWord-of-Mouth: An Implicit Model Made Explicit,” Advances in Consumer Research, 15 (1), 32-36.Ryu, G., and Feick, L., (2007), “A Penny for Your Thoughts: Referral Reward Programs and Referral Likelihood,”Journal of Marketing, 71 (1), 84-94.Schlossberg, H (1990) Satisfying customers is a minimum, you have to ‘delight’ them Marketing News24 (May 28) 10-11.Scoble, R., and Israel, S., (2006), Naked Conversations: How Blogs Are Changing the Way Businesses Talk withCustomers. Hoboken, NJ: John Wiley Sons, Inc.Sifry, David (2006), “State of the Blogosphere, October, 2006,” in Technorati Blog, November 6.Archived at:, access date: February 2, 2008.Sundaram, D., Mitra, K., and Webster, C., (1998), “Word-of-Mouth Communications: A Motivational Analysis,” Advances in Consumer Research, 25 (1), 527-31.Swan, J. and Oliver, R., (1989), “Postpurchase Communications by Consumers,” Journal of Retailing, 65 (4), 516-33.Thomas, G. (2004), “Building the Buzz in the Hive Mind,” Journal of Consumer Behaviour, 4 (1), 64-72.Venkatraman, M. (1990), “Opinion Leadership, Enduring Involvement and Characteristics of Opinion Leaders:A Moderating or Mediating Relationship,” Advances in Consumer Research, 17 (1), 60-67.Wangenheim, F., and Bayón, T. (2007), “The Chain from Customer Satisfaction via Word-of-Mouth Referralsto New Customer Acquisition,” Journal of the Academy of Marketing Science, 35 (2), 233-49.Westbrook, R., (1987), “Product/Consumption-Based Affective Responses and Postpurchase Processes,”Journal of Marketing Research, 24 (August), 258-70.Wirtz, J., and Chew, P., (2002), “The Effects of Incentives, Deal Proneness, Satisfaction and Tie Strengthon Word-of-Mouth Behaviour,” International Journal of Service Industry Management, 13 (2), 141-62.Zaichkowsky, J. (1985), “Measuring the Involvement Construct,” Journal Of Consumer Research, 12 (3), 341-52.Zeithaml, V. (1988) “Consumer Perceptions of Price, Quality, and Value: A Conceptual Model and Synthesisof Research,” Journal of Marketing, Volume 52, July 1988, pp. 2-22. 31
  34. 34. F- COMME RCE SO F T WA R E V E N DO R L I ST3dCart / 3dcart.com8thBridge / 8thbridge.comAdgregate Markets / adgregate.comBigCommerce / bigcommerce.comBoosket / / commercesocial.comecwid / ecwid.comFluid / fluid.comGloople / / highwire.comInfused / infusedcommerce.comMilyoni / milyoni.comMoontoast / moontoast.comPayvment / payvment.comResource Interactive / resource.comShopIgniter / shopigniter.comShopShareShopTab / shopshare.euShopVisible / shopvisible.comShoutlet / shoutlet.comSocialAmp / socialamp.comSortPrice / Social / http://storefrontsocial.comUsablenet / usablenet.comVendorShop / vendorshopsocial.comVoiyk / voiyk.comVolusion / volusion.comWishpot / wishpot.comZeever / zeever.comF- COMME RCE CO N S U LT I N GSyzygy (UK) / (DE) / syzygy.deFACE BOO K A DV E RT I S I N GUnique (UK) / (Germany) / uniquedigital.de32
  35. 35. PUBLISHERSY Z YGY D EUT SCH L AN D GMB HIm Atzelnest 361352 Bad Homburg, Germanyt +49 (0)61 72 94 88-100f +49 (0)61 72 94 88-270e socialcommerce@syzygy.deSY Z YGY U K LT DThe Johnson Building77 Hatton GardenLondon EC1N 8JSt +44 (0)20 32 06 40 00f +44 (0)20 32 06 40 01e
  36. 36.