What is Social Commerce?

When it comes to Social Commerce and you’re heading to entrepreneurial achievement it is crucial on the web. If this is the first time you hearing about social commerce and what it means, then you’re at the right spot. In this blog post, we will discuss the importance of what social commerce can offer, as well as some fundamental social commerce strategy tips.

Social Commerce

Social Commerce

Social Commerce? What is it?

This social commerce term originally appeared in 2005 in Yahoo’s search blog. The Search Engine Company used this phrase in order to describe products and tools that would make shopping online more social by leveraging social media networks and by facilitating content which is user-driven.

(An inceptive blog post in Yahoo, was talking about a them launching of a new product, Shoposphere and it’s Feature “Pick-list” – kind of like a wish life of products that your friends can see as well.)

Examples of social commerce:

  • Customer reviews and rating systems just like the ones on Amazon and Ebay.
  • Social media sharing add-on features like Facebook Like button on product pages.
  • An online shopping experience which is customized to tailor what would be displayed on a web page by gathering the information based on an open social graph of a user.
  • Open forums on e-commerce sites driven for the community.

Social Commerce is Treacherously Undervalued

For small businesses, there so happens to be a lack of awareness with the power of social media and social commerce for increasing profits, gaining new customers and most especially to retain your current customers too.

For small-sized businesses, as per a survey, only about 37% of them believed that social media maketing would be the best ideal to attract new visitors and customers.

In a study, marketing with social media was only ranked 4th on the list. Online advertising, sites with daily deals and business directory listing sites were the top on the charts.

Why Social Commerce is Important?

Social commerce opportunities are ripe, and they have been for quite  a while. Let us tell you the reason why.

Social Commerce will Improve Visibility

At any given time the average user of social media network services follows about 10 businesses and brands and spends up to about 11 hours a day being connected to the internet.

These consumers of social media are able to provide you with a strong, solid base to help build a good image for your brand.

Plus, 42% of these social media network users do research exclusively of products they would want to buy through social sites. Therefore, a brand which does not have a good social commerce feature in its place could lose quite a bit of visibility within the customer base segment.

Social Commerce Is Able To Produce Value

For a Business, the monetary worth of a Facebook fanatic is about $174, well… according to the  social media marketing company Syncapse.

So a basic, back-of-a-receipt calculation would suggest that a Facebook Page with approximately 5,000 fans is imaginably worth a $870,000 advantage (certainly, the research study would show that the value of the social media network,   Facebook devotee for a particular company or business varies).

So, Social commerce, then, becomes vital in this regard since it is one of the few ways obtainable to you for growing the size of your social media networks.

Social Commerce Can also Increase Traffic

Facebook’s click-through rate on walls is an astonishing 6.5% whereas a lot of other forms for online marketing such as banner advertisements would already be measured tremendously successful at only a 2% for click-through rating.

Moreover, in the same research findings with Syncapse referenced above stated, it was observed that about 66% of a business’s Facebook fan support believed that distribution of shared information with others is important when it comes to social media.

This means that your Facebook fans play a crucial and critical role in increasing your reach towards new visitors who are not yet on your fan list. This then means more site traffic to your company’s Facebook page and, indirectly, to your actual website.

Social Commerce Strategy

The following are strategy tips which can help you to improve implementations for your social commerce.

Sharing your Identity

When you are starting your social commerce strategy implementation, keep in mind these 3 things:

  • Community
  • Conversation
  • Identity

In this social commerce design, what you use to communicate is identity for conversation with your community. It is imperative that you create a social commerce plan which involves transmitting the identity your image or brand effectively and properly.

Present Ways For Your Customers To Interact with One Another

Social media network services are designed in such a way that it encourages the free swap of information between the users. You can integrate the same idea within your company site. An e-commerce site should grip additional means for developing interactions between users.

That’s when social commerce would step in, in the form of open forums, the commenting system, during conversational threads of your company Facebook page, and so on.

Analyze Your Existing Social Media Network

Reviewing the topics discussed that are occurring in your social media network could give you immense insights about the thoughts and perceptions people have about your business. Your social network is your key data point for your business social commerce strategy.

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