social commerce: fact or fiction?
DESCRIPTION
Online retailers are under-investing and under-performing as social media marketers.TRANSCRIPT
Eric Boggs@ericboggsFounder, CEOArgyle Social
Social Commerce:Fact or Fiction?
Social Commerce Nirvana…
#SocialFresh @ArgyleSocial
Welcome to Farmville
If Zynga can build a $9B business selling virtual livestock, then online retailers must be
KILLING it, right?
“The number of transactions we see from our Facebook
commerce tabs is not insignificant, but the tabs are
more for communicating new products to our
customers.”
IR500 Retailer
“Our Facebook store has had very little impact on our business. We don’t promote it
to our customers because our site provides a much better
shopping experience.”
IR500 Retailer
“Facebook has not made a strong impact on sales, at least according to our data in GA. Most of our social sales come from from fans clicking on the links we post,
not from transactions on our Facebook storefront.”
IR500 Retailer
So what gives?
#SocialFresh @ArgyleSocial
Let’s get data driven…
• Argyle aggregated social data from the IR 500.• We analyzed 28 publicly available data points
for each retailer, ranging from audience size to marketing practices.
• The data set includes:– Massive retail brands like Starbucks, Levis, &
NASCAR.– Niche sites like Golfballs.com.– Really niche sites like PressureWashersDirect.com.
• This is work-in-progress research.
#SocialFresh @ArgyleSocial
Context: Audience Size
<10k 10k - 100k 100k - .5M .5M - 1M 1M - 2M 2M - 5M 5M - 10M >10M0
20
40
60
80
100
120
140
160
180
200
Audience Size
Num
ber
of
Reta
ilers
#SocialFresh @ArgyleSocial
Context: Audience Size
<10k 10k - 100k 100k - .5M .5M - 1M 1M - 2M 2M - 5M 5M - 10M >10M0
20
40
60
80
100
120
140
160
180
200
Audience Size
Num
ber
of
Reta
ilers
Mega-brands are the exception, not the rule.
Plan accordingly.
#SocialFresh @ArgyleSocial
FB Integrated Commerce4%
13%
84%
Facebook Check Out
#SocialFresh @ArgyleSocial
FB Integrated Commerce4%
13%
84%
Facebook Check Out
Most retailers haven’t made significant social commerce investments.
#SocialFresh @ArgyleSocial
SMM Tools
Enterprise – 3%
Mid-tier – 7%
Free/cheap – 91%
Free/Cheap:Tweetdeck, HootSuite, et al
Mid:Argyle, Awareness, et al
Enterprise:Buddy Media, Vitrue, et al
#SocialFresh @ArgyleSocial
SMM Tools
Enterprise – 3%
Mid-tier – 7%
Free/cheap – 91%
Free/Cheap:Tweetdeck, HootSuite, et al
Mid:Argyle, Awareness, et al
Enterprise:Buddy Media, Vitrue, et al
Sophisticated retailers are running social with
the same tools as Mom & Pop.
#SocialFresh @ArgyleSocial
Asking For the Sale
Facebook Twitter
Frequently
26%
Rarely24%
Never49%
Always 1%
Frequently29%
Rarely27%
Never44%
How frequently do retailers use CTAs on social properties?
#SocialFresh @ArgyleSocial
Asking For the Sale
Facebook Twitter
Frequently
26%
Rarely24%
Never49%
Always 1%
Frequently29%
Rarely27%
Never44%
How frequently are calls to action used on social properties?
Your fans can’t read your mind. Use calls to action
to direct consumer behavior.
#SocialFresh @ArgyleSocial
Few special offers…
Facebook Twitter
Do posts include special offers?
No71%
No77%
Yes29%
Yes23%
#SocialFresh @ArgyleSocial
No special offers…
Facebook Twitter
Do posts include special offers?
No71%
No77%
Yes29%
Yes23%
Exclusive content and incentives drive
community.
Key insight: Retail is a case study for all social media marketers.
#SocialFresh @ArgyleSocial
Still WIP…But With Obvious Applications
• Find your peer group.• Make strategic technology
investments.• Ask for the sale.
• More insights later this month…– Feb 23 webcast with
#SocialFresh @ArgyleSocial
Marketers: Ask yourself…