Social Commerce IQ 2012 [Report]

Social Commerce IQThe most recent report from 8th Bridge provides an overview and trend evaluation of the most recent state of Social Commerce. Data from the report was gathered during the period from August to October this year, where 475 companies based on the 2012 Internet Retailer Top 500 and Second 500 were involved.

 

In an introductory statement, 8th Bridge CEO Wade Garten says:

“Social commerce has pivoted its focus from e-commerce transactions on social networks to a new kind of social network in which users are connected by their interests (Interest Graphs) rather than friendships (Social Graphs). The industry has witnessed the rise of a new phase of social commerce where innovative retailers have begun deeply integrating social shopping into their websites rather than relying on social network websites for engagement.”


Customer Survey
A survey among 1,819 U.S. residents on their Facebook usage and interest in social commerce conducted  from July 9 – July 12, 2012 point to some interesting statistics:

  • 70 % of people would prefer to hear about a new product rather from their friends, than from a brand.
  • 43 % of survey participants have asked their Facebook friends for advice before buying a product.
  • Facebook is the most preferred platform to share products (63 %), followed by Twitter (25%) and Pinterest (22%).
  • 44 % of people are most likely to discover new products on Facebook,  21% on Pinterest and 13 % – on Twitter.


Social Commerce Trends
A significant trend can be witnessed in the rapid adoption of Pinterest. In less than a year, 78 % of the IR Top 500 have established a Pinterest presence with an average of 22 brand boards, and 51 % of the sites now have website integration via the Pin It button. However, the average upstream traffic from Pinterest to the IR 500 in general is twenty times less than the traffic driven from Facebook.

In addition, in Ecommerce Sites (IR Top 500) social elements like ratings & reviews sections, like- , tweet- and pin buttons are increasingly being integrated. However, the integration of new tools, the use the Custom Open Graph and specially designed social shopping apps with Facebook Login is still low due to their recent appearance, but the industry expects an increase in their adoption levels in the near future.

 

What I would definitely recommend as a must read, is Chapter four of the report, where 8th Bridge shares some social commerce Best Practices, which will suit as key drivers for success for retailer companies in their e-commerce strategies of 2013.

You can read the full report here or review the main points in the infographic below:

2012-SCIQ-Infographic-660x5494

 

Get Ready for the Bots – on Facebook Messenger

2Facebook Messenger was released 5 years ago and now has over 900 million users. Originally receiving a flood of negativity towards a standalone messaging app, compared to one simple Facebook app, users seem to be warming to it. The decision to make it standalone does make a lot of sense, since messaging is a big part of people’s lives nowadays and Facebook even bought the domain messenger.com to launch a version for web browsers last year. Their 900 million users will more than likely be merged with Whatsapp’s 1 billion users, which means that Facebook will have the personal phone number of every single user – sounds like $19 billion well spent.

 

Open for Business

So that’s humans covered. Where to go next? Facebook is now venturing into their next Messenger-based project: bots. If you haven’t been keeping up, Facebook launched Messenger Platform last month, which holds within it, chatterbots. Luckily, these bots are not machine learning bots, such as the disaster that was Microsoft’s Tay. They do have some humorous replies if provoked but they ultimately steer the conversation back to the subject they’re designed to cater for. Thanks to their highly advanced Send/Receive API, these bots are able to reply with actual structured messages, including links, images, hotel reservations, the weather etc. You may immediately compare this to Apple Siri, Microsoft Cortana, Google Now and Amazon Echo, but what sets bots on Messenger apart is the fact that businesses can develop them, which in turn gives them another way to develop customer service. Simply put, bots could end up changing the world by replacing humans in such job sectors. Without the bespoke customer service integration that Messenger bots provide, the above voice-activated services will most likely not be able to solve business-related queries themselves. Having said that, the way bots behave is very reminiscent of the way Siri does. Maybe they’ll talk to each other one day and we’ll get the best of both.

 

Customer Service and Added Value

So how can these bots work for brands? Well, eventually, every major company in the world will have an account, which will be a first port of call when contacting their company. The reason this is almost definite is due to Facebook’s already-mammoth-sized network of users. It doesn’t get any bigger than Facebook when advertising to individual people, so connecting Messenger bots (as customer sales reps, for example) is extremely attractive. Messenger codes, one of many things taken from Snapchat, will also make it easier for businesses to connect with their customers. One industry example is how bots will almost certainly change how banking works for the consumer, replacing an app or web-based system with a dialogue with a machine that is able to understand your every need. The option to send money within Messenger itself is highly likely too, like Snapchat allows. This could also eliminate the hassle of speaking to a bank’s voice recognition system when calling by telephone – no more time (and money) wasted by the dreaded “I didn’t catch that. Please try again.” These voice recognition systems are essentially bots done badly, but they’re based on voice, which is a lot more difficult to translate into zeros and ones. Plus, you cannot autocorrect your voice (yet). I can see this whole system being replaced by bots – it could even connect you to a human advisor with ease, as you’re most likely already using your phone. Even if you’re using the desktop version or Facebook Chat, I’m sure they’ll figure something out. Besides banks, what other markets will benefit from this? Restaurants, travel and possibly supermarkets with online shopping services are big industries for it to thrive. The healthcare industry could also be a large portion – Healthtap have already created their bot, which isn’t surprising considering one of the first ever chatterbots was called DOCTOR and simulated a psychotherapist. In fact, the potential amount of markets are endless for this stream of interaction – just like it is with human customer service.

 

At the end of the day, customers are moving towards messaging as their preferred choice of customer service. And as generations progress, it will no doubt become the standard – a phone call will most likely be reserved for long, meaningful conversations with friends and family, which in turn will add even more meaning to them. The phone call will no longer be taken for granted, but talking to robots will be.