Social Commerce

The Social Path to Purchase… ~via @CollectiveBias

The Collective Bias influencer community creates shopper content By Stuart Feil

Septemer 10, 2012 ADWEEK

Shopping is, by its very nature, a social activity—people always want to know what other people are buying or discuss what they’ve bought themselves with friends and other shoppers. Nowhere is this more evident than in the blogosphere, where brand ambassadors (such as the ubiquitous Mom-blogger) share information and advice about what they buy and use. There’s power in this user-generated content, and brands and retailers want to take advantage of these influencers to drive excitement for—and sales of—their products.

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Social Commerce is Relationship Commerce

We’re hearing more and more about “Social Commerce” these days – but how many of us actually understand its implications?  I’ve spent years in the midst of the evolution of commerce: As traditional commerce shifted into a digital world, becoming e-commerce, and now evolving through the evolution of social media into Social Commerce. The implications here are huge because the maturing of Social Commerce is… Relationship Commerce.

There are some guiding principles to Relationship Commerce.  None seem drastically different on their own; though they seem radically new when applied to the realm of commerce:

  • Relationships matter.  Discovering something you love is great, learning about it from someone you trust is even better.
  • Buying from someone you like is way more fun and rewarding than buying from someone you either do not like, or have no feeling one way or the other.
  • Shopping can be better.

Relationship Commerce is simple yet novel, it’s buying from people, brands, and entities you know and trust and learning about through social channels in a way that is authentic, natural and a part of your daily interactions. If marketing is relevant, it is a “service” NOT a “promotion.”

But in a fast paced, digital world, defining and maintaining our relationships has become unexpectedly difficult.  Social Media has enabled us to connect with an infinite number of individuals; it has given us the tools to extend relationships that years ago would have been impossible.  But in many respects we are failing and simply starting to believe that a “follow” or “like” is a relationship and after that we can simply move on to the next. This is not an email list or a database. We must be certain to remember: “Social Media is a facilitator of relationships, but it is not the relationship itself.”  You have to give to get. No relationship can survive without trust; it’s so simple in concept yet not always easy to execute.

With effort, a relationship may begin from the request of a Facebook friend or following someone on Twitter; but make no mistake – that initial request or follow will never create the relationship.  Trust is built upon interaction, when you’re true to your word, authentic, and genuine. To build relationships online, you (as a brand or individual) have to offer value in return. Be it via valuable information and content, or personal introductions, engagement and interaction… connection will remain key.

By asking questions and proposing ideas, you can engage your followers in such a way to give them the ability and reason to respond. Then when they do respond, interact with them to solidify your relationship, lest it fade away. Directly acknowledge their response, ask follow-up questions and share their insights with others.  Follow me on Twitter (@tedrubin) and you’ll see what I mean. The more responsive you are to your audience, the more responsive they’ll be to you. And that’s where relationships are born. It is this interpersonal exchange, the relationship, which differentiates Relationship Commerce.  You might even consider picking up the phone sometime and actually talking to someone… or even to many. Life is not just about financial exchange, and neither is commerce… especially in today’s hyper-connected “click here to share” world.

The way I see it, we’re overdue for a revolution in retail.  So many of us have been sharing our passions and discoveries, it’s about time brands and retailers took notice, gave us a voice, embraced the consumers perspective, and realized how our social presence can enhance their bottom line.

Originally posted at Collective Bias

The 6 Pillars of Social Commerce: Understanding the Psychology of Engagement

Social media is about social science not technology. As such, its value is not realized in the Likenomics of relationship status nor in the scores individuals earn by engaging in social networks. The value of social media comes down to people, relationships, and the meaningful actions between them. As such, its value is measured through the exchange of social currencies that contribute to one’s capital within each network. Through conversations, what we share, and  the content we create, consume and curate, we individually invest in the commerce of information and the relationships that naturally unfold. It is in how these relationships take shape that is both in and out of your control. This is why, in the age of social networking, relevant engagement counts for everything.

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Brands Setting Up Shop on Facebook… no big deal

Not sure why the media, and some “pundits,” are so ga-ga over this. Seems to me to simply be another place to sell stuff and nothing unique about it… think “click to buy here” or about shops offered in the past from Yahoo, etc. Shoppers tend to buy most in dedicated ecommerce environments where they are comfortable and in a buying frame of mind.

This is nothing more than an additional storefront in a place that someone is less likely to make a purchase. IMHO will not add significant sales to a retailer, but worth trying if available and cost effective. Even Facebook is not expecting much in sales or they would be asking for a rev share/affiliate fee… instead they want to simply sell more ads which they know will be profitable for them.

Ted Rubin

Takeaways from Altimeter’s “Rise of Social Commerce”

Altimeter Group hosted The Rise of Social Commerce event on October 6th and 7th at the Four Seasons in Palo Alto. Theme for the conference was: The push for customer advocacy. Reinvent your brand through the Rise of Social Commerce

Shoppers want to belong. They want to be heard. They crave a better buying experience. Power is shifting from the retailer to the shopper. Social commerce is filling the void between clicks and bricks to deliver this personalized experience.

Technologies are emerging answer the challenge. Point of Presence (POP) is combining with Point of Sale (POS) to influence, persuade, and guide shopping. Artificial reality and virtualization is enhancing interaction. Social media is evolving to social commerce to improve the in-store experience. Attend this event to understand how companies are capitalizing on these trends to influence shopping on mobile devices, automate check-out and link the voice of the customer to the value chain.

The following points represent my takeaways from this landmark session:

  • Social commerce was defined as “the use of social technologies to connect, listen, understand and engage to help improve the shopping experience.”
  • In 2010, 20% of 200 companies had a social commerce strategy; in 2011 86% plan to have one.
  • 90% of companies will increase funding for social commerce by 8% in 20011
  • It seems that the Social Commerce world is fixated on what they refer to as “frictionless commerce” vs. the value of relationships.
  • The vast majority of discussion centered around how to create direct sales by leveraging the social graph.
  • Although most examples reflected that the companies making the biggest inroads to increased sales are those that allow the most interaction/relationship building it seems most etailers have not been able to let go to that degree.
  • Brands, not etailers, are the ones doing the best job of nurturing/leveraging relationships. Seems it may be because they do not have the pressure of next quarter performance, and the need to show direct sales to senior mgmt, so have more leeway to nurture relationships and plan for the future.
  • “Birds of a feather flock together” clearly points to peers influence more within their personality/behavior groups, therefore a very positive element for OpenSky developing strong sales around taste-makers and affinity groups.
  • According to many presenters the Social Media/Commerce journey starts with curiosity (OpenSky’s discovery factor) and leads to Advocacy… sharing their great experiences (a key to OpenSky success).
  • Influencers, when/if they see the value, can create group habit by including the group in the before, during, and after. What seems clear is that it is important that OpenSky provide the tools for Sellers to allow/encourage their audience to share the fact that they are buying… via input, reviews, forums… which in turn will enable the “group effect’ to help them grow, build their brand and foster the purchasing behavior.
  • The Social Consumer is empowered and has influence of her own. Be certain to provide the tools that allow this consumer to leverage the new found power. She wants a dialogue and wants to be heard and recognized.
  • Influencers do not equal simple amplification of an offer/product value… but add depth and breadth to the relationship.
  • Facebook is not a channel for commerce, but a platform that can enable commerce. Many are mistakenly looking at FB as a channel.

It seems to me the view/perspective I keep hearing is all about leveraging consumer’s social graph to sell more product. But when I hear the case studies, and see where true progress is being made, I hear more about interaction, engagement, and sharing… i.e. relationships.

When I think about social commerce what seems to be the greatest opportunity is growing/nurturing the connection, participation and loyalty of a consumer, which in turn will build ROR… Return on Relationship. This is the first step required to make all this social integration sustainable and long lasting. Relationships are what will lead to the ability to sell more, not using customers to sell more product, but by facilitating/enabling feedback, sharing, reviews, and therefore build dynamic advocates who openly sell product they love and are passionate about.

Ted Rubin

Editors Note: Agenda for event & complete presentations are available at http://bit.ly/RiseOfSocialCommerce