Have we officially entered the era of social shopping? Several recent developments point to "Yes." The techno-trend seems to be gaining momentum as more and more retailers launch applications and sites incorporating social shopping technologies.
Social shopping is a fusion of social media technologies and e-commerce. It allows users to tap their friends and online communities to share and enhance their shopping experiences.
One of the earliest and most prevalent forms of social shopping is the user review and rating. Reviews are beneficial to consumers and retailers alike. Consumers rely on them to provide insight into a product's real-world performance. Retailers encourage them because studies show that the presence of user reviews boosts e-commerce conversion rates.
But just as social media has evolved from basic message boards, so too has social shopping evolved from simple user reviews and ratings. In recent years, sites like Kaboodle and Polyvore have emerged that allow users to collect products from across the Web and blend them together to create personalized style boards or sets. These collections, shared with friends and the public at large, allow for a richer and more personal expression of style.
More recently, retailers like Wet Seal and Zappos have incorporated social shopping features within their own sites. Wet Seal's Fashion Community has been credited with delivering a 10 percent increase in sales and a 10 percent rise in average order for sessions that include visits to the shopping community section.
Another model of social shopping is the integration of shopping functionality into a social networking environment. Earlier this month, 1-800-Flowers laid claim to the first retail transaction conducted through Facebook when it sold a "Slice of Life" floral arrangement through its Facebook Fan Page on July 8, 2009.
And social shopping's impact is not confined to e-commerce. Sites and applications abound that allow users to rate and review stores, restaurants and attractions in the real world. Increasingly, these applications are becoming mobile, allowing consumers to tap into social shopping networks wherever they shop.
In time, social shopping may well reshape upstream business processes. Earlier this year, Forrester analyst Jeremiah Owyang forecasted the rise of an Era of Social Commerce, wherein social networks become more powerful than brands' CRM systems and social groups work together to aggregate purchasing power and define the products they want from brands. Already, brands like Starbucks and Dell have launched online idea communities to harness the wisdom of the crowds to improve their businesses and products.
So how can you prepare for this impending wave of innovation? Barkley recommends conducting a social shopping opportunity audit as a first step in creating a social shopping strategy.
1. Identify the social networks and social habits of your target segments.
2. Identify those places where your brand, your products and your competitors are being discussed.
3. Consider the emerging social shopping models—social network applications, third-party sites and brand site integration—and determine a best fit for your brand.
4. Conduct a website analysis to determine which social shopping technologies may make sense and how to best integrate them.
To request a Social Shopping Opportunity Audit, contact:
Mike Swenson
mswenson@barkleyus.com
