Retailers should jump in soon and learn by doing.
Booz&Co recently published a report on Social Commerce titled Turning “Like” to “Buy” Social Media Emerges as a Commerce Channel
Link to the complete report: http://www.strategyand.pwc.com/media/uploads/BaC-Turning_Like_to_Buy.pdf
Social Commerce revenues are set to grow six folds from $5bn currently to $30bn within 5 years. This estimate is only for hard goods and does not include services. Social media has already revolutionalized the way people communicate and connect with each other. Now it will rapidly transform the way people shop as well.
There are opportunities to use social commerce at every step of the purchase funnel – awareness, consideration and conversion and also within post purchase components of loyalty and services. As with every other initiative, measuring the success is key.
While most companies are focusing on the awareness stage, it seems to have limited value in spurring social commerce. 71% users said that “liking” a company on Facebook has is not correlated to purchasing from that company
Some companies are building applications to entice users to leave social networking site and visit their own site. However, companies can and should do more in the consideration stage.
This is where social commerce can have the biggest impact. Influencing shoppers via friend recommendation represents a huge opportunity. 81% of teenage girls rely on their friends and peers for trend information and 45% get opinions from friends before buying clothing and footwear.
Events is another such category. Fans would be more likely to attend an event if they know that their friends are attending that event as well.
Loyalty and Service
Companies should give their customers a chance to advocate on their behalf. Provide them both an incentive an opportunity to spread the word and become a loyal customer.
It is critical to determine the right metrics and measure them continously.
Four Imperatives for eTailers
1. Jump in soon and learn by doing.
2. Develop a strategy for getting the data you need.
3. Define what the customer experience should be.
4. Integrate social commerce into an overall multi-channel strategy.
Jai Rawat, CEO, ShopSocially