Embracing Social Commerce (Part 2)

Following on from the previous article, we’re going to delve a little deeper into Social Commerce and look at a couple more aspects of what is set to be online marketing’s next big thing.

by Spiro - March 2013

In part 1 of our blog post on Embracing Social Commerce we looked at what social commerce actually is, what consumers are saying and doing about it, what some of the benefits of social commerce are and how it works. Following on from that, we’re going to delve a little deeper into Social Commerce and look at a couple more aspects of what is set to be online marketing’s next big thing.

What Are Some of the Latest Social Commerce Trends?

Currently, in terms of social commerce, there are a number of strategies that are making waves: customised recommendations, f-commerce (Facebook commerce), “sharing” purchases with friends before buying and social based rewards.

First up are customised recommendations from a company, which are based on your social interactions and preferences. This is done by implementing Facebook Connect on your site or ‘social sign on’, which allows companies to track your social activity with the aim of targeting and presenting you with products and services based on the data they collect. It’s a great opportunity for companies to become more relevant, but understandably, some consumers feel it is too big an invasion of their privacy.

F-commerce is the latest example of social commerce and with new strict privacy policies in place, consumers are increasingly more comfortable with shopping via the biggest social network in the world. Currently, the top three brands on Facebook also sell directly on the site, these being Coca-Cola, Starbucks and Disney.

“Sharing” purchases with your friends has become one of the hottest social commerce trends as it allows would-be buyers the opportunity to get their friends' approval or opinion before they buy a product. This application is proving to be especially popular with online clothing stores.

As we saw earlier with the stats, social rewards are one of the main reasons why a person follows or likes a company profile on their social network of choice. Unfortunately, loyalty doesn’t come cheap and it’s rare for a company not to offer a great prize or reward for what is essentially free exposure across one of the hottest marketing tools around – social networks.

Which Companies Have Run Social Commerce Campaigns?

Companies such as: Amazon, Apple, Coca-Cola, Diesel, Disney, Dove, Gap, Heinz, Levi’s, Macy’s, Max Factor, Mazda, Nike, Nine West, Old Spice, Pampers, Pantene, Starbucks and Volkswagen have all run successful social commerce campaigns through Facebook (f-commerce), although a lot of companies also do cross-over campaigns so that those who follow them on Twitter or FourSquare can also benefit from special deals.

How to Make Social Commerce Work for You

The quickest way to get the ball rolling and make your e-commerce site more ‘social’ would be to add a Facebook ‘Like’ button. You can also start encouraging visitors to review products which are then posted on your site. What's important here and what forms the basis of social commerce is that all reviews, both positive and negative, are posted. It shows brand transparency and credibility, so that if reviews are positive they are more likely to be believed. Most consumers would be weary of a page of product reviews that were 100% positive. So how can you encourage your visitors to get talking about your products?

Here are a few ways you can start out:

  • Encourage reviews, recommendations and referrals through newsletters and competitions
  • In the order email, link to the product and ask them to review it once they have used it a number of times
  • Offer exclusive deals, rewards for ‘sharing’ with friends, discounts or vouchers off their next purchase and review
  • Create a sense of urgency with products that are only available for a limited time

On an international platform, social commerce has taken the online marketing world by storm and there are a lot of big brands that are seeing big results. Locally, social commerce is on the up and up too, and if it’s found to be a viable option for your brand, then you would be wise to incorporate a social commerce campaign as part of your e-commerce strategy.