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1、,Social Commerce,PRESENTED BY GROUP THREE,CONTENTS,Theory,Meaning,Social commerce is a subset of electronic commerce that involves social media,online media that supports social interaction,and user contributions to assist online buying and selling of products and services.,More succinctly,social co
2、mmerce is the use of social network(s)in the context of e-commerce transactions.,Origin,The concept of social commerce was developed by David Beisel to denote user-generated advertorial content on e-commerce sites,and by Steve Rubel to include collaborative e-commerce tools that enable shoppers to g
3、et advice from trusted individuals,find goods and services and then purchase them.The social networks that spread this advice have been found to increase the customers trust in one retailer over another.,Aim,Social commerce aims to assist companies in achieving the following purposes.Firstly,social
4、commerce helps companies engage customers with their brands according to the customers social behaviors.Secondly,it provides an incentive for customers to return to their website.Thirdly,it provides customers with a platform to talk about their brand on their website.Fourthly,it provides all the inf
5、ormation customers need to research,compare,and ultimately choose you over your competitor,thus purchasing from you and not others.,Features,1.Content,2.Community,3.Commerce,The basic need to engage with customers,prospects and stakeholders through valuable published content on the web.Google is the
6、 organization that has been at the forefront of indexing and making findable content on the web.,Being able to fulfill customers needs via a transactional web presence,typically online retailers,banks,insurance companies,travel sales sites provide the most useful business-to-consumer services.,Treat
7、ing the audience as a community with the objective of building sustainable relationships by providing tangible value.Early incarnations of Community were mobilized through registration and engaged via email programs,this evolved into online forums,chat-rooms and membership groups where users were ab
8、le to interact with each other,an early example being Yahoo!Groups.,Features,4.Context,5.Conversation,6.Connection,The online world is able to track real-world events and this is primarily being enabled by mobile devices.This is a vital element to Social Commerce where the data is now available to o
9、rganizations wishing to provide products and services to consumers.,The new online networks are defining and documenting the relationships between people these relationships may originate in the physical world or online and may manifest in the other as a result of a connection in the first.LinkedIn,
10、Facebook,Twitter are prime examples of online networks Professional,Social and Casual.,The Cluetrain Manifesto noted that all markets are conversations this may now be reversed for Social Commerce to say that all conversations are markets.A conversation between two parties will likely surface a need
11、 that could be fulfilled,thus providing a potential market for supplier organizations.The challenge is for suppliers to be able to tap into those conversations and map those into the range of products and services that they supply.,Features,Passive consumption demand：Consumers do not have a clear an
12、d strong consumer demand,but they are stimulated by commodity information in the process of social interaction and generate consumer demand.Influenced by consumer behavior：In business,the most difficult is the establishment of the trust relationship between businesses and consumers,and from the inte
13、rest relationship,is essentially a conflict between the seller and the buyer,and this kind of trust relationship naturally independent,just can affect the intervention through social ties.Users participate in the creation of commerce information：In the Web2.0 era,more and more information content in
14、 social commerce is generated and dominated by end-users.For example,people use twitter,social networking platform to exchange information and share the shopping experience.,According to the specific display form,the current social e-commerce platform can be divided into the following four modes.,1、
15、The first type is based on the common interests of social e-commerce model,this model represented by Mushroom Street,the characteristics of this model to solve the user demand for goods in the shopping,at the same time,the profit model is direct and the profit ability is stronger.,The operational mo
16、de,3、A third type is a form of media guides,represented by Guangguang(逛逛),is characterized by a strong media properties,like a fashion magazine,let the user to fully feel the charm of goods when reading it.This pattern is often difficult to assemble a large number of users,the interaction is poor.,4
17、、The fourth type is the form of online shoppers to offline consumption.Currently,The Public Comment（大众点评）in this field is very great.The characteristic of this type is that the users consumption goal is clear,the entertainment attribute is weak,and the demand for the commodity is higher.,The operati
18、onal mode,Best Practice,Social commerce in Facebook,Factors,The social media giant is heavily focused on developing such tools to attract both E-tailers and shoppers to Facebook,as it looks to spur on the budding trend in social commerce.Retailers are also likely drawn in by Facebooks massive user b
19、ase,which totals 1.7 billion people around the world.,On the main Facebook platform,the company plans to let merchants in emerging markets sell for free via their business pages,according to Fortune.Facebooks storefront tool is powered by e-commerce platform Shopify,which merchants subscribe to.,Mea
20、sures:,The rollout will be initially focused on markets in Southeast Asia and Latin America,and smaller merchants in these developing e-commerce areas will be able to display products for sale on their pages.When customers click on an item they want to purchase,they will be redirected to make purcha
21、ses or book services via Facebook Messenger.This will help small businesses raise their visibility,as their products will be available for viewing by Facebooks one billion daily users.,Measures:,Additionally,Icelandair has rolled out flight booking capabilities on Facebook Messenger.Users are able t
22、o message the Icelandair Messenger profile and input their desired trip information,including destination and the number of people traveling.Icelandair is the first airline to allow booking capabilities on Facebook Messenger.,Here are some of the key points,The Frist,The Second,The Third,Social is d
23、riving much bigger increases in retail traffic than any other online channel.Social media increased its share of e-commerce referrals nearly 200%between the first quarters of 2014 and 2015.,Facebook continues to grow its lead as the dominant social commerce platform.Facebook accounts for 50%of total
24、 social referrals and 64%of total social revenue.The sites changing demographics could make older consumers a strong target for retailers leveraging the platform.,For retailers to maintain these social gains,they will need to pay special attention to mobile,where social engagement with retail conten
25、t is still limited.Social media users are 35%less likely to share a brands or retailers social post on mobile than they are on desktop computers.,Here are some of the key points,The Fourth,The Fifth,The Sixth,Pinterest is a major social commerce player despite a relatively small user base.The pinnin
26、g platform drives 16%of social revenue despite an audience 6.5 times smaller than Twitter.New buy and action buttons on retailer posts should make Pinterest an even stronger referral and revenue engine for brands.,Instagram doesnt drive significant sales activity for retailers but high-end companies
27、 have been leveraging the platform for branding purposes.New Buy buttons on paid posts,as well as increased targeting capabilities,could make the app a more important direct-response driver.,Twitter is losing its influence for mass-market merchants,but it could still have a role to play among sporti
28、ng and events marketers,especially for location-based promotions.Recently,NFL and NBA teams have used Twitter to sell game tickets and merchandise.,News,In April 2016,KLM Royal Dutch Airlines integrated with Facebook Messenger to let travelers check in to their flights and access their boarding pass
29、es.Icelandairs presence on the messaging app will likely encourage KLM to expand its own tools on the platform.,Facebook,Data Analysis,Facebooks extensive efforts to provide purchasing capabilities on its platforms could help bring social commerce to the mainstream.Roughly 1%of e-commerce orders in
30、Q1 2016 occurred from a direct social media referral,according to Custora.This is down from just 2%during Q1 2015,indicating that shoppers prefer to make their purchases elsewhere.Facebooks global reach and trusted name could help its users feel more comfortable making purchases on the platform,part
31、icularly as the company continues to attract online merchants.,Results,Facebook stores can effectively and cheaply access visitors through their home message boards。Home message board increases the maximum flow of stores to the previous 1673%.,1,2,The first month of store opening,the baseline level
32、of visits is the 1-10%of the fan base(base level of traffic equals 1 to 10%of fan base).,3,Facebook stores generate an average of 17%of social participation(the average visitor is likes and shares).,4,Facebook shop visitors visit 5.9 pages on average each visit.,Results,The information generated by
33、the Facebook store(Note:the information produced by users sharing)has reached 25%of the fans number of fans.,5,6,The average length of visit per Facebook store is 2 minutes and 50 seconds,up 50%in the last three months.,7,The conversion rate of Facebook business is between 2%and 4%,which is the same as e-commerce website.(an average of 3.4%,the data comes from Forrester/Shop.ORG),8,The average value of each order is US$104,increasing by 24%per month.,THANK YOU,
