Success in Social Commerce - Term Paper Example

?SUCCESS IN SOCIAL COMMERCE of Introduction and Evolution of Social Commerce Social commerce is a fusion of media and business in which there is a possibility of transacting businesses online. Therefore, it is considered to be an actual subset of electronic commerce in which social media is used (Liang & Turban, 2012). The aim is to use online media to support all social interactions and the contributions of the users in enhancing online purchases and transactions. The idea of social commerce was first introduced onto the media in the year 2005 on yahoo media. In that year, issues like shoposphere came out but were marred by many assumptions and projections on the uncertainty on the side of the consumers. As technology developed, these challenges were being turned into opportunities and over the years to date, there are several changes that have come up due to the changes in technology. Since the major aim is to reach out to the consumers through the social media, the recent years have seen inculcation of online sites such as MySpace, twitter, Facebook and as these have been made accessible through mobile phones (Weintraub & Litwinka, 2013). Defining Success in Social Commerce Success in social commerce includes use of many parameters that shows the changes that have been experienced over the years and the developments that are being experienced. These parameters of success include many issues that comprise a compilation of many components of social commerce. Success also includes use of all the initial objective goals that would make it possible for a strategic success to be realized (Rad, 2011). Clarity can therefore be defined by use of the following very important procedural methods; Clarity of ROI Goals Return on investment (ROI) is very important especially when it comes to consideration of the long term strategy of the company engaging in social commerce. One of the factors that will lead to a high success on the ROI realized is the acquisition of new customers. Customers play a very important role in realization of the business prospects. For instance, the current generation specializes in use of Facebook, Twitter and YouTube. Therefore concentration on advertisement through these will increase the number of customers and hence a high ROI (Berger & Heath, 2007). For instance, Vente-Pricee Company, a European leading Retail Company created a Facebook referral program that made sure that there is a new acquisition of new customers. The second goal that would increase the returns is the capture of new data points and website referrals. Website referral is the sharing of website information where there is an aim of increasing the customer web by increment of the information shared online. Capture of new data points is also a method that would be used to modernize the information system and help install new technology that works fast enough to the best interests of the customers and the company (Duan & GuWhinston, 2008). The outcomes of website referral and data point capture are diverse. According to Liang and Turban (2011), information shared on micro-blogs act as special media that is used to reach out to many individual blogs hence sharing the information. Loyalty program growth is an issue that should be captured in the objectives and therefore aims at retaining the existing customer base apart from addition of more customers. Online business is an issue of the current generation. For instance, to retain loyalty of Facebook users, Carrefour, a leading retail company in the world invented face shopping mostly for those that use Facebook only. Response to customer sentiments is a method that will be used to listen to the customers and make sure that all the needed changes are made. This ensures that their demands are met hence making the ROI more by virtue of adding value to the needs of the customers (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011). Implementation of On-Off the Media Strategy This is a strategy that makes sure that there is continuity of information flow. Many companies have chosen Facebook given its large following. However, an on-Facebook and off-Facebook strategy has to be initiated as a backup for the operations of the Facebook in place (Evans, 2010). On-Facebook is a storefront that is embedded within the Facebook canvas. It is a method in which sellers get to interact with their customers whenever the company site is on (Armano, 2010). Off-Facebook is the utilization of the Facebook data in driving the elements of the website of an organization as well as the mobile environments. Personal environments are used as well as their Facebook ads to get to the customers when there is no direct connection between them and their customers. It is some kind of back up to the existing data information that makes sure that the customers are still able to access the information they want even if they are off the net or the company Facebook working is not on. Therefore, from the perspective of the business, there is an increased sale that is optimized. Optimization of the sales is meant to make sure that the company has a high profit realized and a low output as far as the expenses are concerned (Berthon, Pitt, McCarthy, & Kates, 2007). This method is used to boost awareness of product viability and method used to reach to the customers, accelerate decisions that are made by the customers and the companies and also develop continuity in the operations of the business. Creation of the Correct Media Dimensions Realistic goals have to be set for the given social program (Curtis & Giamanco, 2010). These goals are set depending on the given special dimensions. There are six dimensions that are used to define success in the social commerce arena. Advanced social shopping is the first one and is used to enable synchronized shopping. People share the act of shopping through group buying, co-browsing, gifting and social network confronts. The second dimension is through ratings and reviews. Reviews provide evaluations through third party product evaluation. This is done through customers and experts (Boyd & Ellison, 2008). Thirdly, recommendations and referrals are very important in referrers are awarded for their supports and efforts. This creates a multiplication of the customer base to high levels. This can be done through referrals programs and customer recommendations. Another dimension; forums and communities are very important in making it possible to operate the business in an environment that is moderated and curated (Kaplan & Haenlein, 2010). Special toolsets to do this so that there is success are user forums, galleries and idea boards. The fifth dimension is the social media optimization (SMO). Here, visitors are attracted to websites and their contents. Optimization is done through platforms found in social media such as newsfeeds, media sharing and social events. These can be aired through twitter, Facebook as well as media blogs. The last dimension; social ads and apps are important in which case there is paid adverts and applications. Adverts are placed in the paid media for the purposes of expanding the customer base (Kietzmann & Angell, 2010). Creation of a Stable Media Silo A silo is a store. Therefore a stable media silo is a company media store that contains all the required information relevant to the social commerce program in place. Customer experiences are supposed to be taken care of from the onset of creation of all the contents of all the social ads and apps. The silos of information here are the website and Facebook stores. Facebook data and control is very important in this aspect and is supposed to be consistent with the market trends. The single silo should create a site that is all inclusive of all the required touch points and consistency required by the customers (Stephen & Toubia, 2010). Therefore, integration of the existing social commerce with tools, procedures and programs in existence creates a greater visibility for the company. Being Naturally ‘Social By Design’ and Social Principles The ‘social by design principle’ seeks to integrate personal issues in the business in which all the social concerns of all the individuals are taken care of. It is based on the idea of a few people making many. The social principles also inculcated into the program are very important (Ray, 2012). By social proof principle, it is stated that people tend to follow others depending on the social group that do exist. The authority principle indicates that people tend to follow someone that commands some respect. Therefore, attachment to one powerful individual will culminate into having a big crowd associated with this person. All the other principles; the liking principle, reciprocity, scarcity and commitment are all meant to create a following based on interrelationships (Wei, Straub, & Poddar, 2011). Value is what people love and the social commerce has to look for valuable personalities to take care of so that all other people that follow these become attached to the goods and services on ads. Having the Correct Control Social commerce is forever undergoing an evolution (Autores, 2011). Fresh experiences are always expected by the customers and therefore a rush to create these is necessary so that traditional e-commerce is replaced by the current trends. Tools for monitoring usage are supposed to be provided to be provided to the merchandisers. Another control is that which makes sure that there are new strategies that are tested (Westland, 2010). Creation of campaigns is very important in making sure that there is a high market presence at all times. Therefore, these controls are supposed to take care of all the problems that are to be experienced as well as the disadvantages of the social commerce. Conclusion By principle, the success of social commerce as captured in the paper is measured by three methods; ROI, Reputation and Reach. These are the same methods that are used in measuring the success of social media. From simplicity terms, the ROI is measured from the profits realized from the investments in the social media. The calculation of this is based on a long term aspect of customer loyalty and maintenance. Reputation is also used to measure the influence caused by the social media on the online reputation (Marsden, 2009). This is highly measured by totality in mentions generated which indicate success of the media. Reach on the other hand is used to measure all exposure metrics as well as the level of audience that accesses the media sites. This paper has therefore analyzed the success of social commerce. In light of the same, it has developed an analytical approach that looked at this success by reference to all the six factors that define the success of the commerce. References Armano, D. (2010, 11 5). Six social media trends for 2010. Retrieved 5 5, 2013, from http://blogs.hbr.org/cs/2009/11/six_social_media_trends.html Autores, V. (2011). Understanding Media, Today: McLuhan in the Era of Convergence Culture. Washington: Editorial UOC. Berger, J., & Heath, C. (2007). 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