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Impact of Social Media on E-Commerce
1. Social media is transforming e-commerce by connecting customers and companies in new ways and shifting retailers' focus towards social sharing. 2. Social networks like Twitter, Facebook, and email can drive significant assisted revenue per social media share, with Twitter driving the most at $26.12 per share. 3. Social commerce links social media and e-commerce by allowing people to discover, select, and refer products through activities like sharing purchases on social networks and generating increased sales, conversions, and referrals for e-commerce companies.
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Impact of Social Media on E-Commerce
- 1. S Impact of Social Mediaon E-Commerce
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- 15. Tweets analysis &comparison
- 16. Some trends… S Connectingcustomers and companies in new and exciting ways. eg.flipkart, myntra (segmented discounts), facebook likes. S Professionals in the e-commerce industry have seen a shift towards social sharing in the past few years S The more they click the more they buy S Online retail sales are anticipated to grow 10 percent a year for the next five years, accounting for 56 percent of all U.S retail sales by 2016.
- 17. How do socialmedia share the revenue…? Assisted Revenue Per Share, Example - “Someone tweets a product and then places an order” S Twitter - $26.12 S Facebook - $16.31 S Email - $13.58 S Want - $10.21 S Google Plus - $4.71 S Facebook “Like” - $4.56 S Stumble Upon - $4.30 S Kaboodle - $3.60
- 18. Other revenue sharing partners.. SharingRevenue By Browser S Google Chrome - 36.61% S Internet Explorer - 21.75% S Mozilla Firefox - 16.75% S Safari - 8.24% Sharing By Device S Tablet - 4.5% S Mobile - 3.21% S Desktop - 92.29%
- 19. What is SocialCommerce ???
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- 22. The conversation hasmoved. It’s now online.
- 24. S Ecommerce (Buying & Selling Online) SocialMedia (Online Media Supporting Social Interacion and User Generated Content) Social Commerce (Linking Social Media and Ecommerce)
- 25. Social Media: Fuelfor your sales engine 72% of retailers plan to spend more on marketing via social networks this year than in 2013
- 26. Transformation - Multiplysales through recommendation • Only awareness does not bring revenues • Repeat business and referrals generate business • Existing customers work as Marketing partners S Social Commerce : Transformation of eCommerce with Social Computing Product Discovery • Awareness • Index Product Selection • Decision Support Product Referral • Evangelism • Referrals
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- 29. 3. Share onTwitter 4. Share via Email 5. Algorithm 1. Share Your Purchase: Facebook 2. Post to Facebook Wall
- 30. S Your Ecommerce Site Visitors Share Products or Purchases Friends/ Followers:Click Links and Share more Increased Sales, Higher Conversions, More Referrals
- 31. Nike Instagram Photo-id campaign Here’show it works: o Instagram users go to Nike’s PHOTOiD site, and select an Instagram shot as the background for the Nike Air Max model of their choice o Users click a button, and Nike customizes the shoe color to match the colors in the photo o Users can share the shot over Instagram, Facebook, Twitter, and an online gallery with other Instagram/Nike customized photos oparticipants can also purchase the customized shoes
- 32. TweetAFlight S TweetAFlight isselling airline tickets, but you can be sure that if this system works, everything plus the kitchen sink will soon be for sale on Twitter. S Follow @TweetAFlight on Twitter S When you see a tweet for a flight you want, reply with the word “BUY”. S That reply message to “buy” gets processed by Chirpify
- 33. The business transformationin eCommerce space Traditional eCommerce Social eCommerce Implementation Dynamics Inventory Management & traditional supply chain Resource optimization with delayed integration Business Case Merchants develop online store with a channel to pay online Retailers provide online store with plug-ins for users to compare, buy & share experience Business Processes Branding, Marketing & Sales Create awareness, engage & retain Choice Of Products Comparison buying is not possible Comparison buying is possible Financial transactions Physical financial transaction with limited options & offers Multiple payment options with various loyalty programs, reqards & offers Cost Higher Lower Reliability Based on brand value Higher, references by known circle of people Flexibility Lower, resources available from only one inventory Higher, resources available from multiple marketplaces Frequency of Transactions Smaller frequency with higher value per transaction Mass market but lower value per transactionS Social Commerce : Transformation of eCommerce with Social Computing
- 34. Challenges on theway of transformation • Social Network is private space • Social space is not to be used primarily to ask for Buying • Push for ‘Buy’ sometimes treated as a negative signal • Stay simple during the changing trends & stiff competition **Forrester's research report says 36% people dont like to receive mails even from their most favorite retailer S Social Commerce : Transformation of eCommerce with Social Computing
- 35. References S http://commandpartners.com S www.topsy.com Swww.rapidmarketplace.com