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Posts Tagged ‘Facebook Commerce’

Flash Sale for Facebook StoresAlready one of the leading F-commerce solutions in the industry, comparison search engine SortPrice.com announced this week that they’ve added another cool feature to their Facebook Store Application that allows merchants to run Flash Sales right on their fan pages.

The company says the new component is just the latest in a long line of upgrades to its Facebook retail application, which is currently being used by more than 1,500 retailers across the nation.

According to SortPrice, the Flash Sale feature is, in part, an attempt to bridge two big recent F-commerce trends: the rise in popularity of daily deal sites like Groupon and the reality that most Facebook users tend to “Like” retail brands in the hopes of getting a special deal as a result.

“We’re really excited to offer this feature, since Flash Sales and the daily deal models have proven to be very effective and popular tools for retailers,” said Doron Simovitch, the company’s co-founder and CEO.  “Shoppers love such deals for their exclusivity and merchants can really capitalize on that potential by quickly and easily incorporating flash sales into their overall social shopping offerings.”

SortPrice merchants who are operating Facebook stores through the company can run one Flash Sale per day (for now) on their Facebook fan pages, listing a specific product for a discounted price for a limited time, with the option to include a promo code or coupon if they wish.  Simovitch says the Flash Sales are ideal if a merchant has a high volume of merchandise they need to move quickly or they just want to reward their Facebook fans for their loyalty.

“It’s another way to engage your Facebook fans and provide them with an incentive, which is ultimately the name of the game when it comes to social shopping,” he said.

One of the major benefits of the component is the ease in which a Flash Sale can be set up—SortPrice says retailers can have one up and running in less than five minutes by picking an item from their catalog and then setting the special price and time frame for the sale right in the management console that SortPrice provides to all of its retailers.

The console is also where SortPrice retailers can control the look and feel of their Facebook stores, enable or disable particular components, enact side-by-side product comparison features and more.

Keeping things consistent throughout its broader application, SortPrice has also included all of the usual social shopping features in the new Flash Sale offering.  Users can “Like” or comment on Flash Sales and share them with their Facebook friends as well.

We’ve followed a lot of SortPrice’s F-commerce work in the past few years.  They were, after all, one of the first companies to even offer retailers a storefront application back in 2008 and since then, their client list is an impressive 1,500-plus national retailers.  An earlier SortPrice press release said those merchants posted more than $3.78 billion worth of merchandise on their Facebook stores in 2010 and with the Flash Sale component, we’re guessing the company will pick up quite a few more clients in the coming months.

As always, we welcome your thoughts and comments!

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In a likely indicator that the growing number of online shopping resources available to consumers is actually making people better and smarter shoppers, a new report reveals that product research is taking up an increasingly larger share of the overall shopping experience and that more people are doing such research on social networks.

One out of every two people polled for The E-tailing Group’s report, titled “The 2011 Social Shopping Study,” said they spend at least 75 percent of their overall shopping time researching products.  That’s a substantial increase over the 21 percent of consumers who said the same thing just a year ago.

The group credits the rise in time spent researching to increases in both the amount and quality of information available to shoppers online.  (We’ll wager that the economy probably has something to do with it too.)

“People are willing to take the time to do research,” says Lauren Freedman, president of The E-tailing Group.  “They will do anything to find the right price.”

Furthermore, the survey shows that nearly one-third (29 percent) of all respondents are employing social media sites to conduct their product research.  This despite the fact that that a mere 18 percent of the retailers in The E-tailing Group’s late-2010 mystery shopper survey include actual customer reviews on their Facebook pages.

It’s almost certain, however, that the inclusion of reviews and similar features on retail Facebook pages is substantially more widespread across the industry than the The E-tailing Group’s sample size indicates.  In fact, it’s hard to believe the use of social networks for product research would be as high as it is if that wasn’t the case.  Nevertheless, Freedman makes the case that social network product research is indeed relevant and could very well increase even more.

“Social is emerging as a significant way that some consumers research products,” she says.  “In some early adopter categories it can be important.  However, in other categories it probably isn’t top of mind.  The real question will be whether social media is adopted by most younger consumers and become a standard way consumers research products.”

So how, exactly, are consumers using social media to conduct product research? According to the report:

–59 percent of respondents say they read customer reviews;

–42 percent access question-and-answer features that allow a consumer to pose a question to other shoppers or respond  to another person’s query;

–26 percent converse in community forums;

–15 percent view user-generated videos or create their own video;

–13 percent access a retailer or manufacturer’s Facebook page;

–13 percent pose questions in their news feeds;

–9 percent monitor, respond to, or post tweets on Twitter

We’d be interested to hear what our readers have to say about this.  Are you using Facebook, Twitter, etc. for product research?  If so, how are you going about doing so?  Leave us your thoughts and comments!

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Don’t look now, but Facebook’s takeover of the world continues!

According to a new report by research firm eMarketer, the social networking giant’s web advertising revenue is growing at such a clip that it will overtake both Google and Yahoo this year and become No. 1 in online display ads.

eMarketer’s data projects that Facebook will generate $2.2 billion in U.S. advertising revenue in 2011, which equates to roughly 17.7 percent of all display ad revenue across the industry.

Just last year, Facebook only accounted for a little more than 12 percent of total online advertising revenue.  Such profound year-over-year growth shows that more and more businesses of every size are adopting Facebook’s package of banner ads, web page sponsorships and video ads to reach consumers.

“Facebook’s supreme popularity—both in terms of numbers of people and amount of time they spend there—creates a plethora of display ad impressions, mainly for its unique form of banners,” said eMarketer’s David Hallerman.  “And that popularity is also boosting what advertisers will pay for its display ads.”

The data paints a picture of a rapidly changing landscape in online advertising, one in which Facebook is gobbling up more of the pie while Google and Yahoo are both failing to keep up.

Google appears to be in better shape than Yahoo, at least.  eMarketer forecasts that Google’s 2011 U.S. advertising revenue will total $1.15 billion, an increase of more than 34 percent from 2010 and a figure that gives the company 9.3 percent of all online advertising revenue.  Yahoo, meanwhile, despite an increase in overall advertising revenue this year, will see its share of total revenue fall from 14.4 percent to 13.1 percent.

That trend is expected to continue into next year as well. In 2012, eMarketer estimates that Facebook will handily increase its dominance in the U.S. display market, relegating Google and Yahoo to fighting for the second spot.  Facebook is expected to garner 19.4 percent of the market in 2012, while Google and Yahoo will be in a near-deadlock at 12.3 and 12.5 percent respectively.

Leave us your thoughts and comments!

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While there are some notable exceptions, new research from think tank L2 reveals that a majority of luxury brands are failing to capitalize on the potential of Facebook when it comes to engaging and motivating present and potential customers.

L2 reviewed the Facebook activity of 100 different “prestige” specialists for the report and found that more than half of those companies have only an “average” Facebook presence or worse.  L2 cited BMW, Clinique and Audi as the luxury brands with the strongest, and most effective, presence on the social networking site.

“Every few decades, the prestige industry experiences a seminal moment where a breakthrough channel, marketing innovation or product reconfigures the landscape,” says L2’s founder, Scott Galloway.  “Prestige marketers are making significant investments in Facebook growth, but many still fail to authentically engage with their fans.”

In scoring each company’s Facebook efforts, L2 employed four different criteria.  Size and velocity indicators, such as the number and growth rate of Facebook Likes, comprised 35 percent of the index score, while another 25 percent was based on programming traits including the quality of communications content, ecommerce integration and creativity.  Engagement factors totaling the number of fan posts and other contributions to a fan page made up 25 percent of the index score and the remaining 15 percent was based on the overall coordination across the entire digital space.

BMW, which boasts nearly 5.7 million Facebook fans, topped the rankings with a score of 175 points.  L2 credited the carmaker’s multi-lingual outreach to consumers and its 2Originals tab that solicits videos, photos and clips from fans as major factors contributing to its overall #1 position.

Finishing second was Clinique, and it was the cosmetic giant’s Next Best Thing application in particular that helped the company compile a score of 165.   Audi (156 points) and Lexus (154) finished third and fourth respectively, while the beauty group Bare Escentuals’ score of 149 was good enough for #5 on the list.

Overall, only 12 prestige specialists achieved a ‘genius’ ranking for their Facebook presence and another 26 earned a ‘gifted’ designation.  The remainder of the companies fell into the ‘average’, ‘challenged’ and ‘feeble’ categories.

One major trend to emerge from the data was the reality that a big following on Facebook doesn’t automatically translate into consumer interaction. Bare Escentuals, for example, compiled its top five ranking with only 325,000 or so Facebook followers, while larger names such as Burberry and Gucci were well behind despite having more than 3 million fans each. The 700 fan posts that Bare Escentuals gets each week was the highest of any brand in the study.

Other highlights from the study:

–Less than half of the luxury brands researched (48 percent) have a permanent link to Facebook on their own website, while half link to YouTube and 43 percent link to Twitter;

–Companies that allow/encourage comments to be posted to their Facebook walls scored better (an average of 107) than those that employ a more closed approach (82 score, on average);

–In evaluating more than 800 different wall posts, L2 determined that material addressing products yielded the highest levels of interaction. Promoting deals and/or contests on Facebook walls tend to solicit a more limited response.

–Watch/jewelry, fashion and champagne/spirits brands delivered the highest number of consumer engagements, followed by automotive and beauty.

So why are luxury brands lagging behind everyone else on Facebook?  L2 didn’t say, really, but we’d be interested to hear your guess on the subject.  Leave us a comment below!

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If you’re a small or mid-sized retailer looking for first-hand help in marketing and expanding your social networking presence, now there’s a unique opportunity for you to do just that thanks to Facebook and OPEN, the small business arm of American Express.

The two have teamed up to roll out “Facebook Big Break for Small Business”, a new national contest designed to help change the way small businesses use Facebook to connect and engage with customers in a more authentic and personalized way.

“Small business owners are experts at customer engagement, but the tools and techniques for finding and engaging customers are quickly evolving,” said Julie Fajgenbaum, American Express OPEN’s vice president for Brand and Customer Marketing.  “It’s critical that business owners understand these new channels and platforms, which is why we are collaborating with Facebook to educate on the benefits of engaging customers through social media and provide real, tangible tips on how to do it effectively.”

Seeing as this is a contest, you probably just want us to get to the good stuff, aka what you get if you win, already right?

Well, five winners will eventually be selected and awarded an all-expense paid trip to Facebook’s headquarters in California for a two-day, in-depth one-on-one business ‘makeover’ and a $20,000 cash prize to help their social media strategy moving forward.

During these makeovers, winners will be advised on how to best maximize Facebook to improve the marketing of their business and service to both existing and new customers.  Each winner will get practical and personal training on best practices for using all of Facebook’s business services, including Pages, Ads and Social Plugins.  All of these training sessions will be filmed and shown on both OPEN’s Facebook page and OPEN Forum, AmEx’s small business resource site.

The contest will also award ten runners-up with $2,500 worth of Facebook advertising to help them target new customers.

If you want to enter, it’s pretty simple to do so.  Visit OPEN’s Facebook page and fill out the short questionnaire describing how you would utilize the winning prize to better your business.  Ten finalists will be chosen by a panel of industry experts based on, among other things, their commitment to their business and its overall growth and their enthusiasm for small business in general.

The finalists will then compete in a final round of judging where OPEN Facebook fans will be asked to vote for their five favorite small businesses to win the trip to Facebook and $20,000 prize.

This sounds like a pretty nice opportunity to us, and one that doesn’t require much legwork on your end so get to it and leave us your feedback about the contest in a comment below.  Good luck!

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We’re not ones to stifle opposing views or even reject a healthy debate on some of the topics we cover here on Junkie, but sometimes we come across information from so called industry “experts” that is simply mind-boggling and necessitates a response.

Case in point:  Forrester Research analyst Sucharita Mulpuru has authored a report due out today that essentially flies in the face of everything we’ve seen in the past 18-24 months, predicting that e-commerce will actually NOT flourish on Facebook, now or in the future.

The new report, titled “Will Facebook Ever Drive eCommerce,” basically asserts that Facebook’s bang is simply not worth a retailer’s bucks.  Mulpuru and her team interviewed about two dozen technology vendors, marketers and retailers who resoundingly stated that they have received little to no benefit from expanding to Facebook and other social networking sites.

Social network presences, she found, are less effective in terms of customer acquisition and retention, than both e-mail and paid search.  The study cites average Facebook metrics of a 1 percent click-through rate and 2 percent conversion rate, compared to email marketing’s 11 percent click-through rate and 4 percent average conversion.

The report also bashes the practice of using Facebook Likes as a promotional tool, arguing that they’re ineffective simply because most people just Like company pages on Facebook in order to qualify for discounts.

Mulpuru says that some companies (such as digital goods providers) could be helped by expanding to Facebook, but in summing up her overall position, she told the Wall Street Journal:  “You go to Facebook to find other people, not to find a product.”

Ok, so let’s analyze this a little bit further because frankly, Mulpuru’s entire premise seems way off to us even if we put aside our biased love for all things F-commerce.

First of all, basing a theory such as this on the ‘testimony’ of a mere two dozen participants in the social networking/ecommerce/marketing game raises a huge red flag.  Who these companies are, how long they’ve been involved in F-commerce and the methods they’ve used to try to gain success on Facebook are all relevant questions that are not adequately addressed by the report.   One could just as easily find another 20 or so companies (or more) that ARE having success with F-commerce and use them as an effective counter-argument.  Plus, while it’s impossible to say for sure the total number of retailers involved in F-commerce, we can definitely assume that there’s at least a few thousand out there.  Thus, the small sampling pool used in the report can hardly be considered authoritative, or accurate.

Furthermore, the assertion that Facebook Likes aren’t an effective tool for retailers simply because users generally will only take advantage of them in order to receive a discount or special offer doesn’t make much sense to us either.  After all, putting special offers in front of Facebook fans has proven to be an effective marketing tool for many merchants because of their exclusive nature—Facebook users feel special because they are actually getting something out of being a fan of a particular brand.  And sure, some of those users might grab of a discount and never use that merchant ever again.   But isn’t it safe to assume that even more would stick around and stay engaged with that merchant knowing full well that doing so could be to their benefit again down the line?

Finally, let’s talk about Mulpuru’s assertion that Facebook is a resource for finding other people, not products.

On the surface, sure that’s true. Hell, that’s how Facebook started in the first place.  But the statement also ignores how much Facebook has evolved over the years into much more than a resource for people to connect with each other. Games and other such applications have gradually sprouted up on Facebook over the years, attracting the interest of plenty of users.   Facebook’s Event feature has also grown in popularity and the advent of brand Fan Pages has witnessed thousands of companies building such pages as a way to connect with more people.

The growth of shopping on Facebook has also been gradual, but the momentum definitely points toward F-commerce  continuing to grow.  It’s safe to say that there are significantly more retailers selling on Facebook now than there was just 12 months ago, and those merchants are increasingly finding new ways to tap into the Facebook audience.

Now, if retailers truly believe that there’s no point to selling on Facebook, then why are so many of them on there? And why does it seem like more F-commerce providers are sprouting up by the week to build shopping applications on the site for those very merchants?  The answer is simple: the more than 500 million registered users on Facebook represent an audience that is simply too promising to ignore for any business sector.

Is e-commerce on Facebook an exact science?  No.  Is it perfect?  No.  It’s a relatively new phenomenon, one that is still in its infancy and should be expected to keep evolving in the future.  But it’s undeniable that Facebook’s users are gradually discovering that there are products and fun shopping options on the site and those users are increasingly taking advantage of them.  It’s also undeniable that more and more retailers are making F-commerce a regular component over their overall e-commerce strategy.

We regularly reference data from Forrester Research here on Junkie and have always put a lot of stock in that data and the company on the whole.  But we can’t help but scrutinize this latest report from Mulpuru and her team and wonder where exactly they’ve come up with the notion that selling on Facebook is a waste of time when so much data out there speaks to the contrary.

Thoughts?  This is a post we’re really going to want to hear from you guys on so leave a comment!

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Google Rolls Out +1 to Compete with FacebookJust when you thought there were enough ways to show how much you like content on the web….

Google announced yesterday the launch of a new feature called the +1 Button, that’s going to bring a social element to web searches and compete directly with Facebook Likes for the attention of you internet users out there.

“Our goal at Google is to get you the most relevant results as quickly as possible,” said Google product manager Rob Spiro in a blog post.  “But relevance is about relationships as well as words on webpages.  That’s why we recently started to include more information from people you know — stuff they’ve shared on Twitter, Flickr and other sites– in Google  search results.  Today we’re taking that a step further, enabling you to share recommendations with the world right in Google’s search results.”

Spiro calls the +1 feature digital shorthand for ‘this is pretty cool’ and Google is obviously hoping that it becomes the de facto manner by which internet users give their seal of approval for items and content throughout the internet.

So how does it work?

Users will need to be logged into their Google or Gmail accounts to fully take advantage of the +1 feature.   Search results on Google will now include the +1 Button right next to web links, adjoining the current magnifying glass icon that is used for Google’s Instant Preview feature.

If a user comes across a site they particularly like, they can click on the +1 Button to share that sentiment with their Google friends and contacts.  Google will also keep a running tally of users who have “Plus One’d” individual links under each search result as well.  And just as Facebook does with its Like option, information on users’ preferences will be redirected back to Google itself.

Google’s only making +1 available to select users at the moment but more will be able to opt in the near future. And of particular importance to retailers and marketers, the +1 Button will also be something that can be added to sites outside of Google’s network as well, meaning you could see it on quite a few e-commerce sites right next to the popular Facebook Like button very soon.

We’re not sure how this is going to go over, honestly.  Google obviously thinks it has something that can compete with the Facebook Like but will internet users really spend the time to use yet another tool like that?  More importantly, is there anything about searches in general worth getting this excited over?

We’ll have to keep track of how brands and marketers employ this new feature before we make any bold predictions but in the meantime, leave us your feedback on the subject!

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Looking for an exciting, executive-level e-commerce job? Polish up your resume folks and keep your eyes on those want ads because Groupon is ditching its president and chief operating officer in the next few weeks.

The daily deal site announced this week that Rob Solomon, who’s held the post at Groupon for just over a year, will be stepping down.   No specific reason was reported for Soloman’s departure, though he will be retained as a company advisor after he leaves.

“Rob Solomon joined Groupon just over a year ago, doing what he once considered unimaginable and relocating his family from ‘God’s Country’ in Woodside, CA, to Chicago, bringing his experience as a seasoned Internet executive to help us turn Groupon into the next great technology company,” said Groupon CEO Andrew Mason “Now, Rob is moving on, taking his family back to God’s Country.”

(Editor’s Note: one of us has been to Woodside and unless something’s changed, hearing it called God’s Country is truly baffling. Anyway, we digress…)

In all seriousness, Soloman’s departure is pretty baffling as well, at least on the surface.

In the 12-plus months that he was on the job, Groupon saw enormous growth, to say the least.   The company expanded  from about 200 employees to nearly 6,500, expanding its daily deal offerings to 44 different countries after initially only running a U.S.-based operation and becoming the preferred daily deal resource among most shoppers.

“Rob has added enormous value to Groupon and we’ll miss having him around,” Mason continued.

Enormous value indeed, but the leadership change comes at a crucial time for Groupon.  The company hasn’t exactly had the best year thus far thanks to some glitches with a few of their discount offers that caused a couple of public relations headaches.

Meanwhile, both Groupon’s main competitor (LivingSocial) and an increasing number of internet players like Google and Facebook are either building up their own daily deal offerings or starting their own deal programs to compete directly with Groupon and grab a share of the top spot in the industry.   It’s an industry that could generate upwards of $6.1 billion in sales over the next 3-4 years, according to recent studies.

We’ll let you know who replaces Soloman as soon as we find out about it. In the meantime, we welcome your thoughts and comments!

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Today’s officially the first day of spring, which means a new season is upon us after a long and frosty winter in many places.  It also means it’s time to starting thinking spring promotions for many of your e-tailers and merchants out there, particularly if you’ve recently expanded to Facebook and you’re looking to start capitalizing on the move.

Home Depot is already rolling one a spring promotion of its own and it’s a great example of how you can use your Facebook/social networking presence to garner more customers and raise your brand awareness at a very important time.

The home improvement giant will be offering shoppers who give them a Like on their Facebook page exclusive offers every Friday through May 27th as part of the Spring Black Friday Event.  Deals are expected to be anywhere between 50 and 75 percent off regular prices on an assortment of gardening, lawn care and patio items.

“Spring is our Christmas,” says Craig Menear, Home Depot’s executive vice president for merchandising.  “As consumers continuously look for ways to affordably improve the appearance of their homes, we want to give them the best value possible to meet all of their indoor and outdoor needs.”

Prices should vary substantially from those listed on HomeDepot.com and in the chain’s store locations, thus adding to the exclusivity of the offerings for Facebook users.  Such a price differential, however, is rare for Home Depot:  typically the company’s web site checks where a shopper is located and then provides prices at stores in that immediate area to ensure a consistent pricing across all of its channels.

Eschewing that pricing strategy, however, definitely shows how important Home Depot views its’ Facebook outreach and audience.

Shoppers will be able to take advantage of the special deals and if interested, buy the products, without ever leaving Facebook itself.  A ‘Buy Now’ button will appear on every post that is announcing a special deal, directing consumers to a more detailed product description and a check-out option.

As we said, Home Depot is providing a great example of how to take your Facebook presence and maximize it.  They’re engaging their Facebook fans and motivating them to participate with the promise of exclusivity, which is an important component of any social networking marketing strategy.  And since they’re using Facebook Likes, the company will also be able to quantify how the promotion is doing as well.  Retailers who want to follow suit would be well advised to use the Spring Black Friday Event as a template of sorts when starting up their own Facebook promotions.

As always, we welcome your thoughts and comments below!

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One of the big things to look for in the immediate future as social commerce and social networking integration continue to evolve is which specific social media channels start to separate themselves from the rest as preferred resources by businesses.

In the e-commerce industry, as with most others, Facebook and Twitter have risen to the top of the social media priority list.  And in fact, it could be argued that both resources have actually been the driving forces behind businesses of every type making social media a bigger part of their broader marketing, promotional and customer service offerings.  While other sites preceded the two and even more that have arrived since, none have enjoyed the success of Facebook and Twitter.

So if we’re left to assume that these two are gold standard for social media now and in the near future, an obvious question arises: which one is more effective for businesses?

Well one event marketing company, Eventbrite, has released some internal data that suggests a Facebook “Like” carries a lot more weight, and is ultimately more profitable, than a Tweet.

Eventbrite’s research was unveiled earlier this week and details how each social media site contributed to the success of individual events the company prepared.   The data shows that the average Facebook like produced an additional $1.34 in profit, while a Tweet only added about $.80.

While obviously the effects of using both Twitter and Facebook will vary from industry to industry, the data does indeed have relevance for e-commerce companies, says Eventbrite’s Tamara Mendelsohn:

“…the findings apply broadly to all e-commerce businesses, because the foundations of e-commerce are shifting as the social graph becomes a meaningful influence in driving transactions,” says the company’s marketing director.

Eventbrite’s experiences are the result solely of its own marketing efforts, so we’d guard against reading too much into them.   You can check out more details of their research right here on their company blog.

However, it did get us thinking that this could prove to be a great discussion point for e-tailers and online marketers so we’re going to especially encourage you to comment on this post.  Leave us a comment with your thoughts or opinions and any relevant experience you may have in determining whether Facebook or Twitter is more effective.

Let’s get a good discussion going here, don’t be shy!

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