Archive for the ‘e-commerce’ tag
With the holiday season just behind us, it’s easy to forget that what is commonplace behavior now- bookmarking wanted items onto wishlists to share with friends and family, or using Twitter to give and receive product recommendations both spontaneous and prompted- were only just beginning to blossom five years ago.
The new year is the time most businesses write up their reviews of the past year and put together their predictions for what’s coming next. These reflections and predictions don’t have much weight without context, however, and that’s what we aim to provide here: A brief history of social commerce that can hopefully shed more light on why everything that worked in 2013 did so, and give us a better foundation for looking ahead to 2014. As social platforms become more integrated into our lives, social commerce becomes something every company must address, if only from a support perspective.
Social Commerce in 2008
The term “social commerce” was actually first introduced on Yahoo in 2005, but it wasn’t until three years later, in 2008, that it really began to build the foundations of what we recognize now as modern social commerce. 2008 was the year that expectations and suggestions around social media and e-commerce started to actually become business practices. However, the thinking was that social platforms were only good for increasing brand awareness and general marketing; the potential for revenue remained unrealized. Most companies thought of social ventures as a bonus activity, and not a requirement for success. (x)
In 2009 as new technologies become ubiquitous- Twitter, smartphones- online and offline shopping begin to blend together more. Companies take notice of their customer’s changing behavior and build communities for them to interact and share information in. (x)
An argument grows about what exactly social commerce is: A revolution from e-commerce, or an evolution of it? Others argue that social commerce is something that shoppers do together (social shopping) while e-commerce is businesses being in a social space together. (x) This debate will continue to evolve over the next several years, without a final clear answer (though currently e-commerce and social commerce seem to be used pretty interchangeably with the term social shopping being differentiated).
2010 found social commerce really beginning to pick up steam around the world– however marked cultural differences become clear between those who turn to social outlets for shopping in order to save money, and those who come primarily for the fun, social aspect of it (x). An all-encompassing global strategy therefore isn’t going to cut it; brands wanting to engage in social commerce will have to develop targeted, regional approaches.
Group buying endeavors like the aptly named Groupon hit their heyday in 2010, and Facebook begins to turn a real profit, getting skeptics seriously excited about the future possibilities with social commerce. Twitter users follow brands for deals and are often motivated to click through to a site where they can make a purchase, but a click-through doesn’t guarantee a purchase and shopping cart abandonment is an issue. Consequently, this is also the year that stores work harder via social to retain customers and keep them coming back to the physical store to shop (x).
Pinterest, launched in 2010, sees explosive growth in 2011. Its image-based design with easy click-throughs to sources makes it perfect for showcasing products. Facebook gets its own term for social commerce on the platform: F-Commerce. Options range from built-in storefronts that lead off-site to make purchases, but that include varying levels of social engagement (“ask a friend” about a product, for example) to complete in-Facebook purchasing with companies like 1-800-Flowers. The future of F-commerce is uncertain, but seems promising if some kinks- like having to go off-site to complete purchases- can be ironed out.
A lot shifts as e-commerce picks up steam in conjunction with social platforms, from 2011 onward. F-commerce sees decline from clumsy design; big stores like Gap, Nordstrom and J.C. Penney close their Facebook shops. A few tweaks could revitalize F-commerce, however, since Facebook’s core user group remains loyal and users still consult their social networks when shopping.
Pinterest continues to gain market share (possibly in part due to its long tail sales cycle), but may have a solid challenger in relative newcomer Polyvore, a social commerce site that allows users to build “sets” to express their style, then buy. Other platforms- like photo sharing site Instagram and blogging site Tumblr- begin to experiment with advertising, which may eventually lead to e-commerce efforts. Google+ has potential too, from the sheer size of the user base and potential SEO benefits.
With the “Internet of Things” fast approaching on the horizon, 2014 looks to be the debut of things such as t-commerce, or buying H&M underwear via your smart TV during the Super Bowl. What about Twitter commerce; shouldn’t that be t-commerce? In 2013, Twitter hires its first Head of Commerce to help enable shopping directly via its 140-character posts.
Overall, online retail is only expected to grow, with Forrester predicting sales of $370 billion by 2017. Increasing portions of the population use the mobile and tablet devices they use for social platforms to shop as well, which reinforces the idea of growing social commerce. It will be interesting to see how quickly being able to buy something directly from whatever platform- or object- you happen to be using becomes ubiquitous, and whether one platform or object will be able to rule the lion’s share of the social commerce field.
So, with all of that, what are your predictions?
Note: The Evolution of Social Commerce: The People, Management, Technology, and Information Dimensions by Chingning Wang & Ping Zhang (pre-publication version)- was a tremendous help in forming the basis of this research, especially in the summaries of the years before 2010. Paragraphs and sentences built from its ideas have been marked and linked (x).
It may only be September, but the holidays are quickly approaching (the first holiday ad of the season has already aired!). If you work in retail, e-commerce, travel or any of the myriad industries that get busy this time of year, it’s time to be thinking about your fall and holiday social media campaigns.
In particular, understanding who your fans and customers are – and establishing specific strategies for communicating with them through social media – can help you maximize the results of these campaigns. Who are you talking to on social channels? How can you find out who they are? And how you can more effectively reach and help them? Here are a few steps to help guide the way.
1. Plan before you begin.
Plan different messages to reach out to your audience at different points in the purchase cycle: You want to get their attention in order to attract them to buy, then keep it afterward so they aren’t just a customer, but poised to become an advocate.
How do I this? Put yourself in the customer’s shoes: when was a time a company communicated with you in a way that made you a repeat customer? What made you recommend them to someone else? Use that perspective to build your communication. Remember that communication is a two-way thing; social media in particular shouldn’t be used as a megaphone from which to shout your marketing messages. You’ll do much better by talking, listening, and responding. (More on the how for that in the next section.)
2. Anticipate needs.
What can you do for your customers? What has worked in the past? If you haven’t already taken a comprehensive look at what was successful and was not successful in past campaigns and planned based on both of those factors, you need to do that now.
How do I do this? There are several options for the how: If you have the data somewhere you can get to it and the time to go through it yourself, do so. If you don’t have the data, consider something like our historical reports to get it. Send a survey to targeted groups. Ask them on your social networks. Listen to what customers and potential customers are already saying: set up alerts for key terms associated with your brand and products. Try a combination of Google Alerts, Mention, or columns in something like TweetDeck (see more free tool suggestions from Social Media Examiner) and running something like a TweetReach snapshot report to capture a portion of the conversation. Listen to what it is that your customers want from you.
3. Tailor your message.
Tailor your message for each platform you’re on. Blasting out the exact same message to Twitter, Facebook, LinkedIn, Pinterest and Tumblr followed by a longer version on your blog is just going to cause potential customers to tune you out. Pull out a different, salient tidbit to feature in each place.
How do I do this? Think about what approach works best in each place too: short, pithy messages do well on Twitter, with links to more information. Images perform well on Tumblr and Pinterest; images and excerpts do well on Facebook. Link everything back to your blog or website, where you should have a landing page with details about your campaign. Stagger your messages (Try out scheduling on platforms like TweetDeck, learn how to schedule posts on Facebook, or look into a tool like Buffer). If you haven’t already looked at which times of day produce the best results, experiment during this campaign and track it all so you can plan it better next time.
You also want to tailor how you’re talking to customers and potential customers at each point in the purchase cycle. As you search for and find brand mentions- as discussed in the previous section- pay attention to what kind they are. Is someone asking for a recommendation in a certain area and listing out possibilities, one of which is you? Did someone else recommend you to someone who asked for a recommendation? Don’t respond to every mention of your brand if it’s high volume, but do thank people who have recommended you, and answer questions from potential or new customers asking about things like how your product works. If they express a preference for another brand, don’t try to prove that yours is better. Wish them luck with their purchase. If you always err on the side of polite and respectful, your brand will become known for it and could be recommended in the future because of it.
And those people recommending you? Those are your brand advocates. Another reason to say thank you– and to pay attention to what space they’re influential in. Follow them if you don’t already. Engage in conversations where it’s appropriate. Don’t stalk them; engage them.
4. Provide support.
Be ready to take questions- plan answers and make sure staff knows features upside down and backwards- and have a policy in place about how soon you’ll respond to customer queries. Research shows that 42% of customers who have reached out to a company about a problem on social media expect a response within an hour. This doesn’t change much for nights and weekends either.
How do I do this? The research doesn’t qualify if this is for big brand companies, or holds the same for smaller folks who have fewer resources and staff, but the reality of it remains the same: if you really want your campaign to go off well, you’ve got to put in the work and time. If you’re small and taking care of support yourself, draw boundaries (you’ll take time for dinner at night, the phone goes off while you’re asleep etc) but for the rest of the day the technology exists to be alerted when someone contacts you and for you to respond promptly. If you commit to that level of support during your campaign, you might just do well enough to hire someone else to help you with it the next time around.
How do I respond? If you don’t already, have an FAQ page set up that you can direct common queries to. If you do have one, take some time to go over it and revise it if necessary. If it’s campaign-specific, direct them to the landing page for it. Have a support email address ready to give out when lengthy or difficult queries pop up on social media.
More support. Follow-up. Engage. You’ve established that you’re there for your customers with a high level of support, so don’t drop the ball on that now. In addition to responding to any problems customers have down the line from their purchase, maintain a social presence that will engage them.
How do I do this? There are many different ways to accomplish these things: Follow up with anyone who’s had a problem to be sure they’re still happy; they’ll be impressed that you did. It’s as simple as sending a quick tweet their way. Reward customer loyalty; if you know someone made their 5th or 10th purchase during your campaign, send them a little thank-you gift. One Kings Lane sends customers Thank You stationery with their first purchase, as a way of saying thank you for being a customer and letting the customer send out thank yous of their own. Birchbox sends customers who are with them for a year a small branded gift in the mail, such as a leather keychain. Do whatever makes sense for your brand. Just a thank you message alone can mean a lot if done in sincerity. This kind of behavior turns customers into brand advocates.
As for ongoing customer engagement, ask yourself this when you’re planning content: is it interesting? Does it address a question or problem customers have; is it useful? Is it entertaining? If your content doesn’t fit one or more of these categories, consider revising it. If you’re bored while you’re working on it, nobody is going to want to read it– let alone share it and champion you to their network. (This is similar to the content strategy Chris Penn of SHIFT discussed in our TakeFive with him.)
And if someone is sharing your content? Say thank you. Is someone publicly thanking you for excellent customer service? Say thank you again. Favorite the tweet. Simply paying attention to what customers are saying and letting them know that you appreciate it can mean a lot, and makes a difference in having you come to mind before a competitor when they’re asked to recommend a company.