Friday Nov 29, 2013

Social Commerce: ‘Tis the Season to See Revenue from Social

Shopping CartAh the holidays, the finest marketing, selling and revenue-generating time of the year.  It’s when the public is more willing to spend than ever. All brands have to do is make the process of discovering, researching and purchasing their product as fun and frictionless as possible. In 2013, social commerce has a distinct role to play in that.


What does social commerce, or “sCommerce” even mean these days? It used to primarily refer to the ability to buy products within the Facebook environment. And certainly social management platforms worth their salt offer integrated commerce modules to power such things.


But the truth is, social’s role in holiday shopping resides much closer to the beginning of the purchase journey than to the end. The average consumer today checks 10.4 info sources before buying. Gartner tells us 74% of consumers use social to help them decide what to buy. And that’s taking many forms, from social friend referrals to suggestions based on what you’ve bought before to user-generated shopping pages to a variety of virtual “shopping with friends” environments. Basically, if you want to win a customer, win their friends first.


Friends = trust, where so few other things do. Marketing messages from brands are tainted. Of course you think we should buy what you’re selling. Info from a brand rep is tainted. No presumption of objectivity exists. 92% of shoppers have more confidence in online info vs. anything from a sales clerk or other source. But opinions on social from friends or even strangers who may or may not know what they’re talking about…those are taken to the bank.


And that happens on social. 60% of social shopping starts on Facebook and 15% on Pinterest. RichRelevance says Facebook has the highest conversion rate of the biggest players. And the average order value for Pinterest is $200, while Facebook’s is just over $90 and Polyvore whoops them all at $383.


So if we know the influence on social leads to sales, what should we be doing about it? Let me throw the 2 “F” words at you again…fun and frictionless. The desperate, hard sell is not fun. The most affective social commerce is a non-obnoxious drip that coaxes and reminds shoppers of things they might be interested in.


To be frictionless, your social tech should be as integrated into CRM and other enterprise functions as possible so the customer experience is fast and seamless. Social shoppers are ready to buy, but their expectations are higher. 83% abandoned a purchase after encountering a bad CX.


Make it fun, make it social, make it frictionless, have their friends as existing advocates, and you not only have customers, you have volunteer marketers. Even shoppers 19-24 who buy something in-store are more likely to go post feedback online afterward than others. That’s great if you’re good but horrible for you if you’re on the naughty list. And don’t expect them to complain to your customer service instead of their pals. 73% of Millennials think other consumers care much more about their opinions than the companies themselves do. That’s really sad, but we must have given them that impression somewhere down the line.


So get festive. Make shopping for your product a great time, make it easy to share, give incentives to do so, be there instantly to answer questions, offer them a special deal, offer multiple ways to purchase, thank them, and be there after the purchase. Give them storybook brand experiences they can’t wait to share.


@mikestiles
Photo: freedigitalphotos.net


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