Editorial Articles

Social commerce is a huge topic of conversation at the moment and many marketers are trying to grapple with the best way to utilise social media to drive sales. immediate future’s research gives new insight into this area, providing brands with a clearer idea of customer behavior online.

If you believe the buzz, f-commerce is the new e-commerce. P&G have opened a Facebook store, French Connection now has a shopping channel on YouTube and shopping is now a community activity on Kaboodle.com.
 
The online world is changing the shopping experience and encouraging connection and collaboration. The consumer purchasing journey is no longer an isolated activity; it's a social one. A number of different factors are beginning to have a real influence on the world of e-commerce, in particular social media.

Yet, whilst many acknowledge the potential of social media for online retail, brands have yet to truly ascertain its real value and are only just beginning to understand how best to use it.

A survey which we commissioned in August 2010 from a sample of 2,000 internet users revealed that 46 per cent of consumers do not have a clear idea of what they want to purchase when they go online. This period of consideration presents brands with a vast opportunity to connect and forge relationships with their customers in a new and engaging way.

The path to purchase is no longer a linear process online. Instead, we are seeing the emergence of the 'social shopper'. Much more than just a buyer, today's customers are experts, critics and influencers.

So, the challenge for retailers is now finding an effective means of tapping into this new customer journey, harnessing the power of the social shopper and using it to drive traffic and sales.

Purchasing influence is shifting
Our research showed over a quarter of UK internet users have recommended a product to a friend via email or social networks, and most trust other consumers over television ads. We are responding less and less to traditional marketing messages and are placing more trust in the opinions of other consumers. Social networks provide a perfect breeding ground for conversation, recommendation and inspiration.

Customers are open to recognition and rewards
One of the most surprising findings from our research shows a huge appetite amongst consumers for recognition and reward. Dispelling the common theory that recognising customer contribution is unethical, respondents indicated that they would think better of a brand if they knew a review or recommendation had been rewarded. And interestingly, transactional incentives are not the primary motivators here.

We know that people are increasingly turning to other consumers online for advice and direction during the purchase cycle. Whether it is early product testing, exclusive discounts or private shopping days, online retailers can tap into the purchase cycle and engage with these influencers in a new way.

Shopping behaviour differs across categories
A one size fits all approach is not applicable in the world of social retail. Shoppers behave differently online depending on the type of shopper they are and the category of product or service they are looking for. For instance, when researching property or cars, people are more likely to spend time gathering information, ensuring that they have thoroughly looked into every aspect before they commit to purchase. The brands that provide detailed information, encourage reviews and facilitate conversations have the biggest opportunity to appeal to this group and create a loyal group of customers.

Understanding the changing landscape and nature of the customer provides a huge opportunity to engage with targeted, personalised and effective messages. Social media provides the platform for loyal customers to return the reward and amplify your brand messages to a wider audience. This small investment is the first step in creating strong brand advocates, a core group of influencers who will promote the brand in an effective way and ultimately recruit your customers for you.

Adam Lewis, Director, Immediate Future
Twitter: @iftweeter

To download a copy of The Social Shopping Explosion, click here