4 Reasons to Invest in Social Commerce
With the holiday shopping season behind us, online retailers are looking towards 2012 and the opportunities for increasing revenue this year.
A key action item on most online retailers’ lists for 2012 is social shopping. In 2011, social networking, led by Facebook, broke the tipping point. With over 800 million users, Facebook is racing towards its 1 billionth user. Beyond its number of users, a second and no less important statistic is the amount of time each user spends on Facebook. Americans spend an average of 6.9 hours per month on social networks, with three minutes out of every four minutes on social networks spent on Facebook (and one minute out of every five minutes spent online on Facebook), according to comScore.
With the growth of Facebook, it’s clear that the social network is now a social platform. One of the activities best suited to this new social platform is commerce. From the results we started seeing in 2011 — which will only grow in 2012 — here are four reasons why your brand should add social commerce in 2012:
1. Strong conversion rates: With Facebook leading the internet in terms of time spent on-site, it’s no surprise that the Facebook storefronts we work with are seeing up to 4 percent conversion rates driven by strong user engagement. Historically, brick-and-mortar retailers said that it’s all about “location, location, location.” Well in 2012, that location includes Facebook.
Facebook isn’t the only social game in town, however. Retailers should be experimenting with all available social commerce solutions in order to maximize conversion rates while offering consumers the best way to shop online. Twitter has proven to be an effective marketing vehicle for many online retailers, and given the importance of Google AdWords to so many online retailers, Google+ is a platform that must be tested. LinkedIn is another social platform which should be mined for marketing opportunities, particularly for B-to-B businesses.