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Social Commerce, Please.

By Stephanie Critchfield on Wednesday, June 4th, 2008

How do you make a purchase? If you’re anything like me, sometimes you have an idea of what you’re looking for, and other times you’re simply shopping with friends/family for the sheer joy of the experience. This pattern of buying isn’t really much different than it was 10 years ago - you buy what you need, and sometimes you indulge.

What IS different is how we make our final purchases today. The Internet plays a huge role. We’re highly informed consumers, researching our purchases heavily. We review forums, blogs and product reviews, and we comparison shop. Then, we refine our final purchase by locating the best place, on or offline, to make our purchase. More and more frequently, though, these final purchases are occurring online.

But something is still missing from the ecommerce experience.

ENTER SOCIAL COMMERCE

Engauge’s VP of Strategy, Raghu Kakarala, and Andrew Knight, the Director of Ecommerce at Astral Brands (the company behind Aloette cosmetics and Pür Minerals) recently spoke at an event on the topic of “Social Commerce.” I’d like to share some of the great information that came from this presentation, titled “Social Commerce: The Changing Face of Online Shopping.”

It began like this: the Internet has done an excellent job of allowing us to buy online. But in many cases, websites are missing the part that allows you the shop online. Important and powerful emotional motivators are absent - such as being around others while you shop, asking for advice from your friends, seeing your purchases as they are in the real world, and just plain having fun - the SOCIAL elements of shopping.

Engage with Your Audience

In the presentation, Raghu and Andrew each shared trends taking hold in ecommerce that are finally beginning to catering to the way consumers like to shop. Andrew shared how he was able to tap into the power of niche blogs to promote new products from Aloette cosmetics. He went where his audience was - popular cosmetics and beauty blogs with passionate people behind them. He shared Aloette products with them and hoped they would review them. And they did.

Andrew also discussed the tremendous strides reviews have made - such as with NewEgg.com. This little known website has a large an loyal following - raking in $1.9 Billion in online sales in 2007! Not only are they’re sales strong, their service is impecible - 20,000 service reviews equate to a lifetime review score of 9.8! NewEgg capitalized on this popularity by launching a community - Eggxpert (cute right?) that already has 60,000 users and 300,000 posts.

In addition, several brands are now offering Q&A, which allows them to actively respond to customer questions about products. Such as Answers Depot from The Home Depot Canada.

What Does the Future of Social Commerce Look Like?

Raghu discussed powerful new trends taking hold in some industries, which could - and possibly should - represent the future of online shopping. The fashion industry, for example, is an early adopter of many of these trends. Raghu shared several websites that showcase exactly what social commerce is all about.

ShopStyle represents a trend that many brands would be wise to consider. They developed a community that allows people to create “looks” based on their interests or the look of a celebrity. Then, people who like their looks can “follow” them. It’s not unusual for a ShopStyle user to have HUNDREDS of looks and an equal amount of followers.

Simply mouseover an accessory on a user’s “look” and you’ll get a snapshot view of where the product is for sale. Click on it and you’ll be taken there.

Raghu also shared a nifty application called Clavardon that allows for collaborative shopping. Simply, you go to their website, key in the URL of the website where you wish to shop, invite your friends, and you’re there - with a chat window above the webpage that allows you to collaborate on the shopping excursion with the friend or friends of your choice.

 

GRAVY

Just for gravy, I also wanted to share a website that Raghu covered that highlights the many aspects of Social Commerce. It’s not all about the interaction with others, it’s also about trying to mimic a real-life shopping experience. How many times have you looked online for an article of clothing only to find it, lifeless on the page? Then end up leaving and thinking “I have no idea how that would look on me!”? 

Without too much complication, Martin + Osa have managed to give you an idea. If you “Shop by Outfit” models actually WEARING the article of clothing turn into video, moving and turning, to give you an idea of how the outfit will sit on the body, how the fabrics lay together, etc.


(Click the image to see what it looks like in motion) 

Now, if they could only find models who don’t look so hungry, we’d really be onto something!

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4 Responses to “Social Commerce, Please.”

  1. June 4th, 2008 - Kyle Studstill Says:

    Along the same lines, I just today ran into the site iliketotallyloveit.com. It definitely tries to take advantage of Digg-like social interactivity, applied to unconventional and innovative gadgets and home items.


  2. June 4th, 2008 - Stephanie Says:

    Thanks Kyle. Ratings systems are a great example of Social Commerce. And, this is site is pulling it off very effectively. I, like, totally love it. ;)


  3. June 4th, 2008 - Raj Says:

    Great thoughts, Stephanie. The Martin + Osa “Shop by Outfit” tool is VERY cool. Unfortunately it’s a showpiece, rather than a core technology — they have yet to integrate video into the main product page. We recently wrote up some thoughts on M+O here: http://silverdock.com/blog/2008/05/01/american-eagle-bets-on-video-shopping-for-martinosa/

    In another vein, check out ShopItToMe.com which is innovating with “personalized commerce” — a very useful tool for the online apparel shopper. My wife is addicted.


  4. June 4th, 2008 - Andrew Knight Says:

    Stephanie,

    Great writeup! It was a fun event, thanks for having me. I just got back from the Bazaarvoice social commerce summit. If anybody is interested in this topic this was a great event!: http://www.bazaarblog.com/2008/06/01/heres-the-wrap-on-bazaarvoice-2008-social-commerce-summit/

    Andrew


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