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Social Commerce

Social Commerce

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Published by ShopVisible

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Published by: ShopVisible on Jun 01, 2012
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12/15/2013

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Five Misconceptions & RealitiesAbout Social Commerce
In this paper you will learn:
WHITE PAPER | SHOPVISIBLE.COM
• How to define social commerce• The difference between e-commerceand f-commerce• How social commerce providestangible ROI• Best practices for social commerce
In recent months, social commerce has become a hot topic in themarketing world, with marketers adding implementing some formof social commerce within Facebook to their “to-do” lists. In 2011it became clear that fan pages represented a major avenue forreaching a wide and involved consumer base, now is the time fora customized Facebook selling experience. A recent comScoresurvey of 1,787 adults discovered that 28% of Facebook users havepurchased something online via a Facebook link, and that 35% ofconsumers “would” buy products on Facebook directly. Facebookstores represent the next frontier of online shopping.While many companies have already taken action, there aremany pieces and parts out there. A myriad of platform providershave introduced social “extensions” to their traditional ecommerceofferings, ranging from simple fan page tabs featuring externalproduct links, to full-fledged customized and all-encompassingstorefront interfaces. Given the wide array of features existingon Facebook shop pages, we ask:
How does one defineSocial Commerce?
In this whitepaper, we will examine severalmisconceptions and definitions around social commerce within theecommerce landscape.
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Five Misconceptions and Realities About Social Commerce
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Executive Summary
ocial commerce is a new form of online retail thatcreates valuable interactions between marketersand consumers, integrating social networks,viral media, and promotions within the context of socialplatforms enabling true commerce capability. Whilemany retailers are eager to explore the possibilities ofimplementing Facebook storefronts, others are skepticalof its place in the marketing mix and more importantly theultimate ROI on these activities. In the following discussion,we present five common misconceptions around socialcommerce, and offer some defining characteristics of thisnew, evolving space.Facebook stores do offer promising ROI, particularly givensome of the early data around the higher conversion ratesexhibited by consumers who are “fans” of a brand. However,comprehensive integrated commerce within Facebook is just in its infancy, and consumer behavior is now beingestablished. Group buying sites like Groupon, demonstrateconsumers’ interest and enthusiasm for taking deals andpromotions viral via social media. But discounts should notbe the only element of a marketers program. Deal sites andgroup buying should be a piece, rather than the whole pie, ofa company’s overall social commerce strategy. Additionally,Facebook stores should not completely replace or reproducean ecommerce site, but function as a unique experience thatleverages the qualities and activities that engage consumersfor the very reasons they are there. What we are discussingare true examples of commerce enabled Facebook storesand experiences that engage customers within Facebook,enable them to collaborate and share without ever beingtaken out of that environment. Facebook fan pages thatappear to have shopping capability but ultimately link out ofFacebook are a good start, but are ultimately disruptive ofthe conversation inherent to social networks. The data fromour own client research revealed several additional qualifiersof social commerce and give examples of best practices tofollow when building one’s own Facebook store.
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Table ofContents
Executive SummaryFive Misconceptions Regarding Social Commerce
Misconception #1 Social Commerce Does Not Provide Measurable ROIMisconception #2 Social Commerce Equals Group BuyingMisconception #3 Social Commerce is Just Adding a Payment Button to my FanPage or a Copy of My Ecommerce Site Within FacebookMisconception #4 Putting a Promotion Code for a Discount on Facebook is SocialCommerceMisconception #5 Simply Linking from Facebook to your Website is SocialCommerce
What is Social Commerce?The Reality of Social Commerce Today
Research Methodology and FindingsBest Practices for Social Commerce
ConclusionContact23334455567
COPYRIGHT SHOPVISIBLE LLC | WWW.SHOPVISIBLE.COM | 866 493 7037
 
 Misconception #1: Social Commerce does no provide measurable RO
Social media has for some time been relegated to theareas of research, development and experimentation.Until recently, efforts have primarily been aimed ataccumulating fans. But now, marketers should beasking: what is the value of a fan? Social commerce isthe natural next step in the evolution of commerce andwhile it is in its infancy, the early data is promising.Social commerce does have detractors who arguethat Facebook commerce investments have unclearreturns thus far. However, this is not an indicator thatit will not work – but rather, this is the time in whichconsumer behavior is being formed. Technology isno longer the limiting factor; marketers are now ableto access the tools that enable more compellingprograms and experiences within Facebook.Early evidence for social commerce is positive.We have seen conversion rates for Facebookstorefronts that double those of the company’sprimary ecommerce site. Research also indicates thata consumer is 51% more likely to purchase from aretailer after “liking” their Facebook fan page and 28%of Facebook users already bought a product onlinevia a Facebook link. Lastly, fans spend 117% morethan non-fans, signaling that brand loyalty has clearrevenue effects within Facebook. In other words,social commerce storefronts are on track to becomekey vehicles to ROI generation for retailers.
 Misconception #2: Social Commerce equals group buying
Groupon, Living Social, and countless local emulatorshave enjoyed widespread adoption and success,which many have attributed to the social manner inwhich deals go viral. It is important to recognize thatanything that connects consumers, brands, productsand services with one another is part of what is thegrowing domain of social commerce. However, thegroup-buying phenomenon represents just a singleelement of whatcan embodysocial commerce.There is noquestionthat socialenvironments andpromotions area virally chargedpair. Large-scale retailers such as American Apparel and OldNavy have successfully leveraged Groupon to triggerflash-flood consumer response. Well- establishedbrands strategically display group deals on Facebookand Twitter to further promote their reach. Enlistingcustomers and providing incentives for them to share,congregate and act based on collective activities is just a small fraction of what social commerce can be.
 Misconception #3: Social Commerce is just adding a payment button to my fan page, or a copy of my  ecommerce site within Facebook 
Technology and social media empower today’sconsumers to be increasingly connected andretailers need to effectively move into these socialenvironments to keep up. Thus social commerceshould be regarded as a natural extension of anoverall commerce strategy. Adding a payment buttonto Facebook is a start, but should not be the endof social commerce activities. Additionally, simplyreplicating an ecommerce site – with the exact sameproduct catalog and user experience does not takeadvantage of the social medium and the reasons whypeople are there in the first place.Retailers who differentiate the Facebook stores fromthe traditional ecommerce websites are engagingin social commerce. Shopping is inherently socialand social commerce provides a unique experiencethat takes advantage of that characteristic. With therapid development of social commerce technology,marketers have the opportunity to create uniqueshopping experiences that are interwoven within the
Five Misconceptions and Realities About Social Commerce
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96% of retailersbelieve that socialmedia campaignsdrive sales.
Five MisconceptionsRegarding Social Commerce
COPYRIGHT SHOPVISIBLE LLC | WWW.SHOPVISIBLE.COM | 866 493 70372
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