Social Commerce And The New Rules For Local Businesses
Ecommerce today is imbued with the same DNA that runs through Google. Itâ€™s automated. Itâ€™s algorithmic. Itâ€™s certainly not human. And the marketing campaigns that are built with this DNA are similarly data-driven. They employ number-crunchers to capture their leads and build their databases, all the while looking for incremental ROI and arbitrage opportunities.
But a new marketing game has come to townâ€”social commerce. And at its core is an entirely different bit of DNA: the DNA of Facebook. This new variety of social commerce is about conversations. Itâ€™s about relationships.Â Itâ€™s about re-humanizing online commerce. And for marketers to succeed with social commerce, they are going to have to rethink their game plan. Facebook has given us a brand new color palette. Now itâ€™s up to us to figure out how to use it. I like to call this learning process â€œde-ecommercification.â€
Succeeding with social commerce requires marketersÂ to act human. Rather than searching for information, consumers are discovering things through trusted referrals and recommendations. Instead of being a marketing medium driven by click-through rates and lead conversion, Facebook is a medium of relationships and conversations. This is going to require some adjustments by marketers, and in this new game they are going to need to:
- Practice the art of conversation. Social commerce is not about capturing leads and building databases. Itâ€™s about talking to people with an authentic voice, the same voice you would use if you were talking to them in person. Â (Remember, you’re talking to your customers in the same place they use to chat with their friends.)
- Build and deepen customer relationships. Customers are the trusted network, the community that surrounds a business. By taking care of your customers, you not only deepen those relationships, but you also fuel referrals.
Itâ€™s true that many other people in our industry besides me talk about â€œsocial commerce.â€ What they are really talking about, though, is â€œsocial shopping.â€ For example, if you were thinking of getting a new video camera, you would probably want to get recommendations from your friends about which one to buy. This is pretty cool, but itâ€™s also very incremental. Itâ€™s social icing on the ecommerce cupcake.
Social commerce will have its biggest impact with a different set of businessesâ€”businesses that are naturally â€œrelationship businesses,â€ and these are easy to spot. Theyâ€™re typically local businesses, those whose primary form of marketing has always been word-of-mouth referrals: local service providers, real estate agents, landlords and employers.
If youâ€™re looking for a new house cleaner, which would matter most to you:
a) A half-dozen reviews from people you donâ€™t know.
b) A coupon for 10% off the cleaner’s first visit.
c) Two friends that use the same cleanerâ€”and are fans?
Say youâ€™re looking for a new apartment and trying to figure out where to live, do you want lots of data on maps, or advice and recommendations from your friends and co-workers?
While social commerce is going to be disruptive to local businesses, that doesnâ€™t mean itâ€™s going to all be about deals (at least not yet). The DNA of Groupon (despite winning the Crunchie for Best Social Commerce App) is ecommerce while the deals it offers, which are cost-effectively generating leads,Â are ecommerce icing. In the new realm of social commerce, deals will evolve to serve a different master. They will be focused on deepening the relationships you have with your current customers, and through this end, fueling referrals.
This may sound complicated and confusing, but local businesses should get the hang of this quickly. Itâ€™s all very back-to-the-future stuff for them. Great local businesses have always been people-based businesses that understand the power of relationships and the importance of participating in a local community. Thereâ€™s a reason the car dealership sponsors the local little league team. Â What these businesses havenâ€™t yet been able to figure out is how take what theyâ€™re already doing in their local communities and transfer it to the new world of Facebook and the Web. But theyâ€™re learning . . . and when they do, it will be transformational not only for them, but also for usâ€”their customers.
- 70% of Local Businesses Use Facebook For Marketing
- The Future of Local Commerce = Facebook + Foursquare + Yelp + Groupon
- Facebook is Great, But Does It Make Businesses Any Money?
- Roost Reinvents Itself As A Super-Easy Social Media Manager For Local Businesses
- Give Up, Facebook: Social Commerce Will Never Catch On