I’m by no means the first person to write about social commerce, it’s been with us for quite a while but despite the fact that most of us use it all the time a lot of businesses still, haven’t taken notice.
What is Social Commerce?
The concept is simple, essentially it works like this; if you decide you want to buy a new TV you will start by working out a short list of the best ones available. Once you have your list you are probably going to want to try and find out what other people think of these TVs on your list. How will you find this out? Reviews on comparison sites and you might even visit a forum and post a question. In most cases, your decision will be influenced in some way by other people opinions and what other people have to say. This is social commerce; the opinions of others driving you to buy one product over another.
In recent years we’ve relied on Google to find what we are looking for, we type in a search term and Google suggests the most relevant results. To do this Google crawls the web, indexing and ranking each page it finds. In a similar concept
Facebook knows that a female in their mid-twenties likes this movie and it can then make the assumption that other females in their mid-twenties will also like this movie. Multiple the likes of 1 member of Facebook by 500 million and this is the idea of the semantic web. People are using the Facebook likes to make a social connection with what they like, this connection is then passed back to Facebook who can use this information to make the same suggestion to others who may fit their demographic.
Why is worth taking notice?
It’s widely accepted that social commerce is going to be one of this year’s major online growth areas.
Groupon is now officially the fastest growing company ever and retailers are announcing new Facebook stores on a weekly basis, the tipping point seems to have been reached.
- Facebook Fans are 41% more likely to recommend a company and 28% more likely to continue using them in the future.
- 71% of consumers admit that reviews from family members or friends exerted a “great deal” or “fair amount” of influence on their buying decisions.
- 53% of people on Twitter recommend companies and/or products in their Tweets, with 48% of them delivering on their intention to buy the product.
- 67% of shoppers spend more online after recommendations from online community of friends.
With social media dominating the internet you can rest assured that social commerce is not just here, it’s very much here to stay. Companies need to adapt their marketing strategies to incorporate long-term social commerce strategies and prepare for the next developments…. F-commerce is quickly evolving from a buzz word to a very real way of expanding revenue channels. Watch this space for more information on F-commerce.