Matt Anderson

Joe Sims
Jerell Price
Jennifer Brusa
Perspective
Turning “Like” to “Buy”
Social Media Emerges
as a Commerce Channel
Contact Information
Berlin
Dr. Florian Gröne
Senior Associate
+49-30-88705-844
1or|an.qroene(booz.com
Chicago
Jennifer Brusa
Associate
+1-312-578-4550
jenn|íer.brusa(booz.com
Dallas
Joe Sims
Partner
+1-214-712-6636
joe.s|ms(booz.com
Dubai
Karim Sabbagh
Partner
+971-4-390-0260
kar|m.sabbaqh(booz.com
Düsseldorf
Roman Friedrich
Partner
+49-211-3890-165
roman.ír|edr|ch(booz.com
Frankfurt
Olaf Acker
Partner
+49-69-97167-453
o|aí.acker(booz.com
Hong Kong
Edward Tse
Senior Partner
+852-3650-6100
edward.tse(booz.com
Houston
Matt Anderson
Partner
+1-713-650-4142
matt.anderson(booz.com
New York
Fabian Seelbach
Senior Associate
+1-212-551-6073
íab|an.see|bach(booz.com
San Francisco
Jerell Price
Principal
+1-415-263-3764
jere||.pr|ce(booz.com
São Paulo
Fernando Fernandes
Partner
+55-11-5501-6222
íernando.íernandes(booz.com
Vienna
Klaus Hölbling
Partner
+43-1-518-22-907
k|aus.hoe|b||nq(booz.com
Booz & Oompany
1 Booz & Oompany
EXECUTIVE
SUMMARY
Bur comµany inluence rliougl social
giouµs anu riauirional maikering
mouels is sroµµing vell sloir oí rle
emeiging oµµoiruniry. Ioi many
cusromei segmenrs. sloµµing in
rle µlysical voilu las alvays Leen
social: I can go ro rle sroie virl
you anu µur an irem in youi sloµ-
µing Lasker. saying ¨1lis is µeiíecr
íoi you.¨ Þov. some comµanies aie
using social meuia in a similai vay: as
a µlace vleie rley can riansacr Lusi-
ness virl rleii cusromeis anu vleie
cusromeis can sloµ virl eacl orlei.
L-commeice is coming oí age. 1lese
rienuserring comµanies aie íocuseu
on µiouucrs anu seivices rlar Lenehr
íiom rle unique claiacreiisrics oí
social meuia. incluuing rle oµµoi-
runiry ro ger quick íeeuLack íiom
mulriµle íiienus anu íamily memLeis.
1le maiker íoi social commeice las
Leen emLiyonic ro uare. Lur rlar vill
clange ovei rle nexr hve yeais as
comµanies iace ro esraLlisl sroies.
µusling uµ social commeice ievenues
sixíolu. ro US$30 Lillion gloLally.
As rlis giovrl suige laµµens. social
commeice vill rake irs µlace alongsiue
sroies. relesales. anu rle moie riaui-
rional WeL ro emeige as a signihcanr
sales clannel in irs ovn iiglr.
As consumers around the globe spend more time on social
media of all kinds, it is inevitable that some of their posts and
comments relate to what they are going to do at the mall and
what products they like. Many consumer-oriented companies
have already responded to this shift by setting up Facebook
fan pages or Twitter feeds. These can be great ways of engag-
ing uitl anJ inþuencing custchers, esjeciallx since tle
individuals on a social networking site are usually connected
to other individuals whom they trust and respect. So, in the
best case, a company that has something appealing to sell can,
through an initiative involving social media, provide an impe-
tus far superior to traditional advertising—recommendations
frch tle hcst inþuential jecjle cf all, tle jrcsjectiie luxer´s
friends and family.
2 Booz & Oompany
Social meuia las ievolurionizeu
rle vay µeoµle communicare anu
mainrain ielarionsliµs. GloLally.
Inreiner useis nov sµenu moie rlan
íoui anu a lalí louis µei veek on
social nervoiking sires. moie rime
rlan rley sµenu on e-mail.
1
1leie is
a µuLlic qualiry ro lov communica-
rion laµµens on social nervoiks÷
µeoµle aie. ro use rle IaceLook
analogy. slaiing rleii rlouglrs on
¨a vall¨ íoi orleis ro see. As moie
anu moie oí vlar µeoµle rlink anu
uo enus uµ gerring communicareu on
rlese nev-age Lullerin Loaius. ir is
ineviraLle rlar social nervoiks vill
srair ro aííecr vlar consumeis Luy
anu lov rley sloµ. In a vay rlar las
nevei Leíoie Leen riue. consumeis
aie uereimining vlicl µiouucrs anu
seivices succeeu anu aie slaµing rle
messaging. Unueilining rlis µoinr.
Alrimerei Giouµ says rleie is nov
a hírl ¨P¨÷µeoµle÷ro auu ro rle
riauirional íoui ¨Ps¨ oí maiker-
ing (µiouucr. µiice. µlacemenr. anu
µiomorion).
2
Ií rle nev meuium oí social
nervoiks is ciearing clallenges íoi
comµanies. ir is also lanuing rlem
an oµµoiruniry. Rerail. consumei
elecrionics. anu meuia comµanies
aie among rle many ryµes oí
oiganizarions rlar lave íolloveu
consumeis inro rle social aiena.
ciearing IaceLook ían µages. senuing
micioLlog messages. anu Luiluing
communiries. A 2010 µiesenrarion
Ly Sloµ.oig saiu rlar 6S µeicenr
oí Þoirl Ameiican Lusiness-ro-
consumei (B2C) comµanies lave
acquiieu ar leasr some cusromeis
rliougl IaceLook.
3
Leau geneiarion÷rle uLiquirous
¨likes¨ oí IaceLook÷vill nor Le rle
mosr imµoiranr acriviry íoi long.
lovevei. 1le nexr µlase vill go
Leyonu meie communicarion anu
inluencing. Consumeis vill riansacr
commeice insiue social nervoiks÷
selecring µiouucrs. auuing rleii
selecrions ro sloµµing cairs. anu
comµlering µuiclases rliougl µay-
menr virl cieuir caius anu µoinrs.
As rley uo so. rle eia oí social com-
meice vill commence in eainesr.
THE IMPACT OF
SOCIAL MEDIA
ON CONSUMER
BEHAVIOR
Consumers will transact commerce—
from selecting products to completing
purchases through payment with
credit cards and points—inside social
networks.
3 Booz & Oompany
Comµanies rlar aie µuisuing social
commeice iegaiu ir as a uisrincr
clannel unueiµinneu Ly a signihcanr
nev asµecr oí consumei Lelavioi.
1lis nev clannel ieµiesenrs rle
meigei oí e-commeice anu social
meuia. as riansacrions aie acrually
µeiíoimeu virlin rle µlaríoim iarlei
rlan ar rle ierailei`s e-commeice
sire. Wlile social commeice is srill
nascenr. rleie aie some noraLle
examµles oí comµanies rlar aie
innovaring in rlis aiea.
Ioi insrance. 1-S00-Iloveis. a loial
ierailei rlar las iiuuen a lisroiy oí
clannel innovarion ro a narional
µiesence virl moie rlan $¯00
million in ievenue. nov las a íully
íuncrioning IaceLook sroie. Ir las
emLeuueu irs e-commeice µlaríoim
uiiecrly inro irs IaceLook ían µage.
alloving consumeis ro make quick
µuiclases virlour laving ro leave
IaceLook. 1le comµany las also
useu IaceLook as a comµonenr oí
irs ^orlei`s Day camµaign anu
las µlans ro inregiare virl orlei
IaceLook íearuies sucl as Liirluay
calenuais anu giouµ giíring. Ir isn`r
laiu ro imagine a comµany like
1-S00-Iloveis raking auvanrage oí
orlei social nervoiking íearuies.
sucl as a µeison`s likes anu uislikes
aLour colois. ro lelµ giír giveis
ueciue vlicl Louquers ro senu.
IaceLook isn`r rle only social
nervoik on vlicl commeice is
laµµening. ^any comµanies. íoi
insrance. lave useu 1virrei ro sell
rleii µiouucrs. As oí lare 2009. Dell
Ourler lau alieauy solu $6.5 million
in µiouucrs rliougl irs 1virrei íeeu:
4

aiilines sucl as Aii1ian Aiivays
lave also useu 1virrei ro sell
uiscounreu rickers. Since ÞovemLei
2010. useis oí Aµµle`s Ping
iecommenuei lave Leen using rveers
(1virrei`s 140-claiacrei µosrs)
ro senu song µievievs anu i1unes
µuiclase links ro rleii íolloveis.
5
1le innovarions in social commeice
aie laµµening gloLally. Hyves. rle
mosr µoµulai social nervoiking sire
in rle Þerleilanus. las ueveloµeu a
µaymenr sysrem rlar allovs useis ro
riansíei as mucl as v150 (US$201)
ro orlei useis ro µay íoi goous
availaLle virlin rle Hyves µaymenr
sysrem. 1le Hyves sire. vlicl las
moie rlan 10 million accounrs.
las also cieareu a consumei-ro-
consumei maikerµlace calleu Suµµly
ö Demanu rlar is analogous ro
Ciaigslisr. alloving memLeis ro µosr
irems íoi sale.
Hov ieauy aie consumeis ro Luy
µiouucrs rliougl social meuia. A
2010 suivey Ly Booz ö Comµany
oí consumeis vlo sµenu ar leasr one
loui a monrl on social nervoiking
sires anu vlo lave Louglr ar leasr
one µiouucr online in rle lasr yeai
µioviues some insiglr. 1venry-
seven µeicenr oí iesµonuenrs saiu
rley voulu Le villing ro µuiclase
µlysical goous rliougl social
nervoiking sires. ^oieovei. 10
µeicenr saiu rleii Luying rliougl
social nervoiking sires vill Le
inciemenral ro orlei Luying rley
uo÷rlar is. rley vill enu uµ Luying
EARLY
DEVELOPMENTS
IN SOCIAL
COMMERCE
4 Booz & Oompany
moie µlysical goous oveiall. (1le
¯3 µeicenr vlo saiu rley voulu
nor µuiclase goous rliougl social
nervoiking sires laigely cireu
conceins ielareu ro secuiiry anu
µiivacy. rvo aieas rlar many Lig
social nervoiking sires aie alieauy
voiking ro imµiove.)
1lese emeiging arriruues make ir
unlikely rlar social commeice÷a
cousin. aírei all. oí rle moie
íamiliai e-commeice÷vill íace
luiules ielareu ro irs nevness. Anu
as comµanies hnu vays ro emLeu
rleii e-commeice engines virlin
social meuia. rle maiker íoi social
commeice vill skyiocker. lelµeu
in µair Ly nev mouels íoi Luying
anu Ly rle availaLiliry oí µiouucrs
ueveloµeu sµecihcally íoi social
nervoiking sires.
By 2015. rle uollai volume oí
goous solu rliougl social meuia
sloulu iise sixíolu. ro $30 Lillion
íiom $5 Lillion rlis yeai. accoiuing
ro Booz ö Comµany esrimares
(see Exhibit 1). 1lis esrimare is
only íoi laiu goous÷elecrionics.
aµµaiel. movie rickers. anu rle like.
Seivices aie equally µiomising íoi
social commeice÷rle online sroiage
comµany seeking nev cusromeis.
rle viieless comµany oííeiing
an uµgiaue. rle caLle relevision
comµany µioviuing uovnloaus oi
srieameu veisions oí olu eµisoues.
Comµanies like rlese vill lave
mulriLillion-uollai oµµoiruniries roo.
Note: Numbers m|qht not add up because oí round|nq.
Source: Forrester Pesearch, GP Bu||hound, Euromon|tor, Booz & Oompany ana|ys|s
Exhibit 1
Booz & Company Estimate of Social Commerce Market Size (2010-2015; in US$ Billions)
+56%
2015
$30
$16
$14
2014
$20
$12
$9
2013
$14
$8
$5
2012
$9
$6
$3
2011
$5
$4
$1
2010
Rest of
the World
U.S.
5 Booz & Oompany
Comµanies see oµµoiruniries ro use
social commeice ar eveiy momenr
along rle µarl ro µuiclase÷avaie-
ness. consiueiarion. conveision. anu
loyalry anu seivice÷anu also ro mea-
suie rle success oí rleii eííoirs.
Awareness
1o uare. mosr comµanies` social
commeice acriviries lave íocuseu on
Lianuing anu usei-geneiareu conrenr
in suµµoir oí exisring maikering
iniriarives. 1lis is rle roµmosr µair
oí rle maikering íunnel÷rle level oí
simµle avaieness÷anu ir voulu Le
laiu ro hnu a sizaLle B2C comµany
anyvleie in rle voilu rlar isn`r
uoing anyrling ar all in rlis aiea (see
Exhibit 2). ^any comµanies in Clina
aie in some vay using oi µlanning
ro use 1encenr QQ (IaceLook is srill
µioliLireu Ly goveinmenr aurloii-
ries) ro cieare avaieness oí rleii
µiouucrs: mosr Biazilian comµanies
aie looking íoi vays ro use Oikur. a
social nervoiking seivice oµeiareu Ly
Google. In rle U.S.. many comµa-
nies aie µasr rle looking srage: as oí
rle enu oí 2009. aµµioximarely 69
µeicenr oí U.S. ieraileis lau social
nervoik µages. 54 µeicenr useu
micioLlogging sires sucl as 1virrei.
anu 5S µeicenr µuLlisleu cusromei
iarings anu ievievs.
6
^osr oí rlis
WHERE SOCIAL
COMMERCE CAN
HAVE AN IMPACT
Source: Booz & Oompany
Exhibit 2
Typical Social Activities in Each Stage of Marketing Funnel
TYPICAL ACTIVITIES WHAT SOCIAL MEDIA ENABLES MARKETING FUNNEL
- Additional ways to drive traffic to own site or social network presence
- Additional e-commerce channel
- Unique buying propositions
- Purchases as syndicated social content
- Deeper connection with customers after sale
- Activation of brand loyalists to market/sell on your behalf
Traffic Generation
Lead Generation
Purchase Decision
Loyalty/Advocacy
Measurement
After-Sale Service
- Rich sociographic data set for effective real-time social targeting
- New mechanisms for targeting and incentivizing potential customers
- Additional mechanism for community-based support
- New microsites/widgets/apps to engage potential customers Engagement
- New environment for promoting broader brand Branding
Content Creation - Forum for new social/viral content (often user-generated)
C
o
m
m
o
n

C
u
s
t
o
m
e
r

E
x
p
e
r
i
e
n
c
e
- Proactive customer engagement in product/service innovation Innovation/Ideation
Loyalty/Service
Awareness
Consideration
Conversion
6 Booz & Oompany
eaily acriviry. lovevei. las Leen
uecenrializeu anu uncooiuinareu.
making ir imµossiLle íoi comµanies
ro accuiarely assess rleii ROI íiom
rlese eííoirs.
Ar leasr íoi rle momenr. avaieness
seems ro lave limireu value in acru-
ally sµuiiing social commeice. In
Booz ö Comµany`s 2010 suivey. ¯1
µeicenr oí social nervoiking useis
saiu rleii ¨liking¨ a comµany on
IaceLook voulu lave no imµacr on
rleii µioµensiry ro Luy íiom rlar
comµany.
Social commeice vill almosr ceirainly
lave rle Liggesr imµacr ar rle lovei
enu oí rle íunnel. in rle consiu-
eiarion. conveision. anu loyalry
anu seivice srages. 1lese aie aieas
vleie ir is µossiLle ro esraLlisl cleai
meriics÷incluuing conveision iares.
inciemenral ievenue. anu ieµear
Lusiness÷anu rlus moie accuiarely
measuie ROI. 1le key íoi comµanies
vill Le unueisranuing lov ro use
social meuia in eacl oí rlese srages.
Consideration
^any comµanies lave alieauy sraireu
eííoirs in rle aiea oí consiueiarion.
mainly in rle íoim oí aµµlicarions
rlar enrice cusromeis ro leave rle
social nervoik sire anu move ro rle
comµanies` ovn veLsires. Comµanies
can anu sloulu uo moie in rle con-
siueiarion srage. µiinciµally in rvo
aieas: geneiaring leaus anu geneiar-
ing nev iueas.
Leaus can Le enlanceu signihcanrly
Ly ueveloµing nev meclanisms
íoi raigering. uara garleiing. anu
morivaring µorenrial cusromeis. Ioi
insrance. SraiLucks useu a Clinese
social nervoik calleu iPairmenr ro
µiomore rle oµening oí a nev ierail
locarion in Slanglai. 1liougl rle
µiomorion. rle sire`s useis. mosrly
aíluenr Clinese vomen ciearing
viirual aµairmenrs. enreieu conresrs
anu senr couµons íoi íiee SraiLucks
µiouucrs ro rleii connecrions.
Savings.com also µur a social sµin on
rle age-olu couµon conceµr. 1le cou-
µons ir µosrs ro irs sire aie voreu uµ.
commenreu on. oi slaieu via 1virrei.
IaceLook. Digg. Reuuir. Delicious. oi
µlain olu e-mail.
Geneiarion oí nev iueas can Le
enlanceu rliougl rle use oí com-
muniries. Dell`s IueaSroim las Leen
µairiculaily eííecrive ar eliciring iueas
íiom useis÷vlar miglr. in rlis
conrexr. Le calleu social iuearion.
1lousanus oí iueas lave Leen suL-
Social commerce will have the
biggest impact in the consideration,
conversion, and loyalty and service
stages of the client relationship.
7 Booz & Oompany
mirreu rliougl rle sire. anu seveial
lunuieu lave Leen imµlemenreu. 1le
vell oí iueas is moie ieliaLle Lecause
ir oiiginares virl cusromeis.
Conversion
1lis is vleie social commeice vill
lave irs Liggesr imµacr÷µioviuing
unique Luying µioµosirions íoi
cusromeis anu nev roucl µoinrs íoi
comµanies.
Group buying anu group gifting
aie goou examµles oí nev Luying
µioµosirions. Social µlaríoims can
convenienrly Liing rogerlei íamily
anu íiienus ro conriiLure ro a giír íoi
a sµeciheu ieciµienr. IaceLook aµµli-
carions sucl as 1leBigGiír.ner anu
veLsires sucl as eDivvy.com µioviue
a simµle µlaríoim íoi useis ro ser uµ
giouµ giíring anu lanule rle logisrics
oí collecring money. senuing ieminu-
eis. anu senuing rle giír.
Social shopping is anorlei examµle
oí a unique Luying µioµosirion anu
is µairiculaily ielevanr íoi íaslion-
ielareu µiouucrs. A sruuy µuLlisleu
Ly e^aikerei.com sloveu rlar S1
µeicenr oí reenage giils use rleii
íiienus anu µeeis as a souice oí rienu
iníoimarion anu 45 µeicenr seek rle
oµinions oí rlose same giouµs vlen
µuiclasing clorling oi íoorveai.
¯
Wer Seal. a µoµulai ierailei seiving
reen giils. las ueveloµeu a viirual
iunvay vleie sire visirois can µur
rogerlei ourhrs ro slaie virl rleii
íiienus oi ro µiesenr ro rle com-
muniry ro Le voreu on. A µaii oí
íiienus sloµµing ar Wer Seal can use
a seivice µoveieu Ly Sesl.com ro
viev rle same µiouucr µages. clar in
ieal rime. anu use a uiaving rool ro
norare oi liglliglr µiouucrs rley aie
consiueiing.
Social commeice is also iueal íoi
íaciliraring conveision in orlei aieas.
1ake rle examµle oí music conceirs.
vlicl íoi many uiLan consumeis aie
a µoµulai vay ro sµenu rime. ^any
íans voulu Le moie likely ro arrenu
an evenr ií rley knev rleii íiienus
voulu accomµany rlem. anu ií rle
µiocess oí inviring íiienus anu Luying
rickers ioinrly veie moie seamless. A
sire calleu LvenrLiire allovs íoi iusr
rlar soir oí giouµ µlanning rliougl
1virrei anu IaceLook. LvenrLiire
uoes nor yer allov íoi sales uiiecrly
rliougl social meuia sires. Lur rlar
may clange.
Develoµmenrs like giouµ giíring.
social sloµµing. anu ricker Luying
µioviue a small glimµse oí vlar is
in sroie. 1ley aie rle equivalenr oí
Amazon selling irs hisr Look anu
eBay irs hisr collecriLle in 1995.
^ucl moie is coming.
Loyalty and Service
Aírei a sale. comµanies vanr ro Luilu
loyalry anu give cusromeis a clance
ro auvocare on Lelalí oí rle Lianu.
Social commeice inriouuces rle µos-
siLiliry oí mulriµle nev roucl µoinrs
aírei a µuiclase. 1lese roucl µoinrs
can lave many Lenehrs. incluuing
ieuucing cluin.
Ioi examµle. vlen a usei ¨Likes¨
a Lianu on IaceLook. le oi sle can
Lecome µair oí a communiry rlar
ieceives sµecial incenrives. µiomo-
rions. oi eaily access ro nev µiou-
ucrs. Anu in rle íuruie. rle ¨Like¨
Lurron (norvirlsranuing irs casual
use rouay) coulu Lecome rle one-
click vay ro ioin a loyalry caiu
sysrem. Social loyalry µlaríoims
vill lave rle auvanrage oí alloving
cusromeis ro exclange µoinrs in a
socially Laseu maikerµlace.
Measurement
Wlile ongoing measuiemenr is nor
acrually µair oí rle maikering íunnel.
ir is a ciirical vay íoi comµanies ro
gauge rle success oí rleii iniriarives.
Social commeice vill maiiy mulriµle
ryµes oí uara÷µuiclase. Lelavioial.
anu uemogiaµlic÷ro íoim socio-
giaµlic uara rlar riacks nor only
vlar inuiviuuals Luy Lur vlar rleii
íiienus Luy. Sociogiaµlic uara is
collecreu in ieal rime as cusromeis
Liovse. iecommenu. Luy. anu iare
µiouucrs. 1lis gives comµanies rle
clance ro inluence Lelavioi along
rle enriie µuiclase µarl.
8 Booz & Oompany 8 Booz & Oompany
Ioi mosr comµanies. social com-
meice ieµiesenrs a nev clannel. virl
mucl ro leain anu masrei. 1leie aie
íoui imµeiarives rlar eveiy comµany
sloulu keeµ in minu.
Imperative 1: Jump in soon and
learn by doing. Ir is usually a goou
iuea ro sruuy a nev oµµoiruniry
closely. Lur given rle íasr µace ar
vlicl social commeice is evolving.
comµanies musr Le villing ro leain
vlile uoing. 1ley sloulu µlace some
raigereu Lers. µairiculaily in rle
aieas oí consiueiarion. conveision.
anu loyalry anu seivice. 1le ones
rlar can uo so sloulu srair an acrual
sroie in a social nervoiking seivice
vleie rley`ie uoing riansacrions.
1le ones rlar can`r go rlar íai sloulu
íunu an innovarion giouµ íocusing
on social meuia. ^any comµanies
uon`r lave rle exµeirise rley neeu ro
uesign. resr. anu iun social commeice
µioiecrs anu vill neeu ro auu nev
caµaLiliries.
Imperative 2: Develop a strategy
for getting the data you need. Wlar
voulu a comµany mosr like ro knov
aLour social meuia. Is ir vlar rle
maiker is saying aLour rle comµany
irselí anu irs comµerirois` Lianus
anu µiacrices. oi is ir rlar a cus-
romei µiosµecr is in rle maiker anu
likely ro Luy in rle nexr 24 louis.
Comµanies sloulu ueveloµ a ¨visl
lisr¨ oí iníoimarion anu rlen seg-
menr ir Ly lov laiu ir is ro ger. Ar
rlar µoinr. rley can iuenriíy µairneis
oi venuois rlar can µioviue ir. 1le
key is ro lave an easy-ro-use. lexiLle
µlaríoim íoi collecring anu using
uara. Aírei all. rle ryµes anu souices
oí uara rlar comµanies neeu aie
likely ro clange quickly.
Ihjeratiie 3: Deþne ulat tle
customer experience should be.
Comµanies sloulu use resrs. µilor
µioiecrs. anu sociogiaµlic uara ro
maµ our uiííeienr social commeice
sriaregies ro ger a sense oí vlar rleii
cusromeis vill see. lov rley vill
iesµonu. anu vlar rley like Lesr.
Suiveys anu orlei íoims oí µiimaiy
cusromei ieseaicl can Le insriumen-
ral in iuenriíying neeus anu assessing
lov a comµany is vieveu vis-a-vis irs
comµerirois. 1ogerlei. rlis iníoima-
rion can lelµ uereimine vlar rle cus-
romei Lase vanrs anu lov a social
commeice sriaregy sloulu evolve ro
uelivei ir.
Imperative 4: Integrate social
commerce into an overall multi-
channel strategy. As social commeice
Lecomes a Liggei µair oí rle oveiall
sales mix. ir is imµoiranr ro unuei-
sranu irs µosirion in rle comµany`s
Lioauei mulri-clannel sriaregy. anu
in µairiculai ro uereimine rle imµacr
social commeice vill lave on orlei
clannels. Ir is esµecially imµoiranr
rlar rle social clannel nor Le rieareu
as a one-oíí µiogiam. Lur iarlei Le
suµµoireu anu inregiareu íiom Lorl
a iesouice anu an oiganizarional
µeisµecrive.
GETTING
STARTED: FOUR
IMPERATIVES
9 Booz & Oompany
Þov rlar social nervoiking las
Lecome emLeuueu in rle íaLiic oí
eveiyuay liíe íoi millions oí consum-
eis gloLally. comµanies aie keen ro
hnu vays ro leveiage rlese online
ielarionsliµs íoi commeicial gain.
Social nervoik sires µiomise ro Le
rle nexr geneiarion oí e-commeice
engines anu aie moving iaµiuly
in rlar uiiecrion. ^aikereis anu
sriaregisrs aie smair ro íeel a sense
oí uigency in unueisranuing anu
exµeiimenring virl uiiecr commeice
virlin rlese µlaríoims: eaily moveis
vill lave a soliu íounuarion on
vlicl ro Luilu rleii social commeice
caµaLiliries as rle µlaríoim evolves.
As alvays. leaining vlar uoesn`r
voik vill Le as imµoiranr as leain-
ing vlar uoes.
Lacl sreµ along rle µarl ro µui-
clase÷geneiaring avaieness. enric-
ing cusromeis ro Luy. anu culrivaring
rleii loyalry÷µiesenrs irs ovn
oµµoiruniries. Comµanies sloulu Le
consiueiing raigereu eííoirs all along
rlis µarl. vlile inregiaring social
commeice as µair oí an oveiaicling
mulri-clannel sriaregy. Develoµing
an inregiareu anu comµielensive
sriaregy íoi garleiing cusromei uara
anu mining ir íoi insiglrs. imagining
nev merlous íoi cusromeis ro ueciue
anu Luy rogerlei. anu Luiluing a
comµelling cusromei exµeiience vill
Le essenrial ro succeeu in rlis nev
eia oí socially µoveieu commeice.
CONCLUSION
About the Authors
Matt Anderson |s a partner w|th
Booz & Oompany based |n Houston.
He spec|a||zes |n d|q|ta| |nnovat|on
and va|ue cha|n d|srupt|on. Web 2.0.
soc|a| network|nq. app||cat|ons and
e-commerce. qrowth strateq|es. and
mu|t|-channe| market|nq íor c||ents |n
consumer e|ectron|cs and h|qh-tech
|ndustr|es.
Joe Sims |s a Booz & Oompany
partner based |n Da||as. He |s an
|ndustry-recoqn|zed |eader |n d|q|ta|
converqence. |nc|ud|nq te|ecommun|-
cat|ons strateqy. w|re|ess broadband
and lnternet serv|ces. and next qen-
erat|on app||cat|ons and c|oud-based
serv|ces. Joe has served numerous
enterpr|se c||ents |n hea|thcare. fnan-
c|a| serv|ces. transportat|on. manu-
íactur|nq. enerqy exp|orat|on and
product|on. h|qher educat|on. and
íedera|. state and |oca| qovernment.
Jerell Price |s a pr|nc|pa| w|th
Booz & Oompany based |n San
Franc|sco. He spec|a||zes |n qrowth
strateq|es. qo-to-market strateq|es.
and sa|es/market|nq eííect|veness
íor compan|es |n the h|qh-tech. reta||.
and consumer products |ndustr|es.
Jennifer Brusa |s an assoc|ate w|th
Booz & Oompany based |n Oh|caqo.
She concentrates on strateq|c qrowth
|n|t|at|ves and techno|oq|ca| enab|e-
ment of commerce for consumer and
h|qh-tech c||ents.
1
"More T|me Spent on Soc|a| Med|a Than E-Ma|| Wor|dw|de."
eMarketer.com. November 4. 2010. www.emarketer.com/Art|c|e.
aspx?P~1008025
2
Lora Oecere. A|t|meter Group. "P|oneers on the Move: P|se
oí Soc|a| Oommerce." November 1. 2010. www.a|t|meterqroup.
com/2010/11/p|oneers-on-the-move-r|se-oí-soc|a|-commerce.
htm|
3
"The Future oí Shopp|nq." Pesource lnteract|ve. 2010 Shop.orq
Annua| Summ|t. www.resource|nteract|ve.com/÷2
4
Adam Ostrow. "De|| P|des Tw|tter to $6.5 M||||on |n Sa|es."
Mashab|e.com. December 8. 2009. www.mashab|e.
com/2009/12/08/dell-twitter-sales/

5
"Tw|tter L|nks Üsers to App|e Mus|c Soc|a| Network."
Peuters. November 11. 2010. www.reuters.com/art|c|e/
|dÜSTPE6AA46P20101111
6
Suchar|ta Mu|puru. Forrester Pesearch. "TechPadar íor
eBus|ness and Ohanne| Strateqy Proíess|ona|s: Soc|a|
Oommerce. Q1 2010." February 25. 2010. www.íorrester.com/
rb/Pesearch/techradar%26trade%3Bíorebus|nessand
channe|strateqyproíess|ona|s/q/|d/56069/t/2
7
"How to ln1uence Teen G|r|s On||ne." eMarketer.
com. November 17. 2010. www.emarketer.com/Art|c|e.
aspx?P~1008048
Endnotes
Booz & Company is a leading global management
consulting hrm, hclping thc world`s top busincsscs,
govcrnmcnts, and organizations. Our Ioundcr,
Ldwin Booz, dchncd thc proIcssion whcn hc cstab-
lishcd thc hrst managcmcnt consulting hrm in 1914.
Joday, with morc than 3,300 pcoplc in 61 oIhccs
around thc world, wc bring Iorcsight and knowlcdgc,
dccp Iunctional cxpcrtisc, and a practical approach
to building capabilitics and dclivcring rcal impact.
Wc work closcly with our clicnts to crcatc and dclivcr
csscntial advantagc. Jhc indcpcndcnt Whitc Spacc
rcport rankcd Booz ö Company #1 among consult-
ing hrms Ior ¨thc bcst thought lcadcrship" in 2010.
For our management magazine strategy+business,
visit stratcgy-busincss.com.

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