Success in Social Commerce - Research Paper Example

? Success in Social Commerce I. Introduction The present scenario of social commerce has been experiencing a significant and phenomenal growth since the preceding few years. In relation to the present day context, the notion of social commerce can be considered as one of the rapidly growing strategies for the marketers in order to strengthen their standing in the global business environment. The increasing notion of social commerce has been accumulated a historical growth through an effectual incorporation of the social media (Margiotta, 2012). In relation to the fiercely competitive position of the global business environment, it has been observed that e-business is considered as an essential component for the modern marketers in order to strengthen their business operations which further enable them to lead among their competitors in respective industries (SAGE Publications, n.d.). This radical change in the global business environment has been observed due to the immense development and incorporation of ‘Information and Communication Technology (ICT) within the organizational processes. The integration of ICTs in the organizational processes has been considerably facilitating the modern organizations to emphasize considerable changes that further enables then to increase their business performances at large (Phan, 2003). Emphasizing upon the immense usage of the social commerce, the primary objective of this paper is to identify the major commercial success of the modern marketers through the integration of social media in their business processes. With this regard, the discussion of this report will also be focused on highlighting various successive factors of social commerce and their drawbacks which can radically change the overall functions of the organizations. II. Dimensions of Social Commerce In general, the term social commerce can be defined as the subset of e-commerce which tends to employ social media within the organizational processes ensuring enhancement of the efficiency and credibility within the growing business environment. Moreover, the notion of social commerce is duly practiced by the modern marketers to render adequate shopping experience to their potential customers and remain them within the organizational offerings. The process is further regarded as one of the effective and widely used online solution tools for the modern marketers in terms of promoting their broad array of products or services to extended group global customers (Marsden, 2010). Social commerce generally constitutes various major dimensions that comprise social shopping, rating along with reviews, recommendation as well as referrals, communities and forums, social media optimization and social ads and applications (Marsden, 2010). All these dimensions relating to social commerce plays a decisive part for the modern organizations which aids them to monetize their business practices through reinforcing sales and accumulating large groups of potential customers at large (Social Commerce Today, 2012). The different dimensions linked with social commerce have been described hereunder. Dimensions of Social Commerce II. I. Social Shopping The facet of social shopping can be considered as one of the effective dimensions of social commerce that allows the customers to share the experience of online purchasing in an effective manner (Marsden, 2010). The dimension significantly includes certain different models that have depicted hereunder. II. I. a. Group Buying The group buying process in the social shopping dimension enables the users to utilize their buying power in terms of purchasing together. In this process, the users significantly obtain better value of purchasing products or services frequently through involving buyers from different social media sites such as Twitter and Facebook among others. In relation to the present day context, the companies like Dell Swarm, Adidas and Intel Fan Plan among others are well known for using the strategy of selling their products in a bulk to a group of customers (Marsden, 2010). II. I. b. Social Media Store Social media store is also regarded as a convenient type of online store which enable the users to buy their desired product or service while they are connected with any social media site. The process also solicits different opinion as well as recommendations from the online users. For instance, Reebok and BestBuy among others are few of the major online media stores operating in the present social commerce business setting (IBM Global Business Services, 2011). II. I. c. Co-Browsing The concept of co-browsing can be defined as an effective process which incorporates synchronization among different users and enables them to communicate regarding their purchasing. The process enables the users to purchase products or services together and it also develops chat facilities amid the users within the community or circle. For example, Charlotte Russe, the fashion retail chain as well as Mattel, a toy manufacturer are few of the major brands that enables the user to avail the facility of co-browsing services (Marsden, 2010). II. I. d. Social Shopping Portal The type of social shopping portal offers the users to shop their desired products or services from different online stores through using a large number of social shopping tools. The process is often incorporated with a large number of social commerce tools including comments, recommendations, bookmarks along with rating of the product or service in a non-synchronous manner. According to the present day context, the leading social shopping portals are Kaboodle, Stylefeeder and Pikaba among others (Marsden, 2010). II. I. e. Portable Social Graphs It enables the social media users to link their social networking sites with the e-commerce destinations and allows them to interact with their followers and friends within the different communities or groups with the aid of following and executing portable social graphs. For instance, Facebook which enables it’s users to connect their communities and friends with the e-commerce destinations. For instance, Charlotte Russe, Burberry and Juicy Couture are few of the major brands that are highly involved with such social commerce practice (Marsden, 2010). II. I. f. Group Gifting It is an effective social shopping e-commerce tools that allows the social network users to collectively purchase a gift through online. For instance, ‘Pitch In’, an effective online service offers group gifting for the products that provide by BestBuy (Marsden, 2010). II. II. Rating and Reviews Rating and review can also be regarded as one of the effective and widely used social commerce dimensions which offers the users to evaluate review of the product or service through an involvement of third party during online buying process. It significantly offers the opportunity of discussing and evaluating the products or services to the users before purchasing (Mudambi & Schuff, 2010). The rating and reviews also includes certain major social media tools which have been discussed below. II. II. a. Customer Rating and Reviews This tool relating to social media facilitates the users to provide their ratings and reviews concerning any product or service belonging from different e-commerce, social networks or review sites. For instance, Amazon, Bazaarvoice and Power Reviews are few of the major rating and review online service providers in the present online customer rating and review process (Mudambi & Schuff, 2010). II. II. b. Expert Rating and Review This can be considered as the independent and authorized view linked with social media platform providing ratings along with reviews of any specific product or service rendered by any online shopping brand. For instance, YouTube and SlideShare are few of the major examples of social media sites in terms of expert rating and review process. On the other hand, Metacritic and Crowdstorm among other are the major examples that can related with dedicated review sites (Marsden, 2010). II. II. c. Sponsored Review Sponsored reviews are generally defined as an online social media tool where the customers tend to pay for reviewing any particular product or service. PayPerPost and SubvertAndPrifit are few of the major examples that cane related with sponsored review (Marsden, 2010). II. II. d. Customer Testimonials This tool enables publishing customers’ reviews as well as stories and allows the other users to put their comments and recommendations. For instance, the Bazaarvoice is one of the major examples of customer testimonial online social media offering different users to publish their respective stories (Mudambi & Schuff, 2010). II. III. Recommendation and Referrals Recommendation and referrals can also be regarded as the other major social commerce dimensions which tend to promote users’ personal recommendations surrounded by the online social media circles (Abdou & Pointon, 2011). The dimension is often used by the users for social shopping portals. The dimension also possesses a set of effective tools that have been depicted in the following discussion. II. III. a. Social Recommendation The tool enables the users to provide personal purchasing recommendation to other customers based on their profiles. For instance, Apple iTunes Genius recommendations Honk.com is the major example of social recommendation tool (Caspian Media, n.d.). II. III. b. Social Bookmarking It enables the users to easily find out the desired products as per their browsing nature and also recommends the products or services to the users that searched by the other users (Enders, Hungenberg, Denker, & Mauch, 2008). BestBuy and Amazon among others are the major example of social bookmarking tools. II. II. c. Referral Programs The tool significantly involves rewarding users as well as partners to refer new customers for any product or service. For instance, Amazon Associates and Vente-Privee among others are the major example of referral program tools (Caspian Media, n.d.). II. IV. Forum and Communities The forum and communities can be further stated as an effective social commerce dimension which tends to connect different consumers with each other and enable them to trade in a moderate business environment extensively. The major tools of this dimension are as follows: II. IV. a. Brand Community It can be referred as private circles or communities of different users typically revealing a significant level of loyalty towards any brand. For instance, Juicy Couture’s Community Club is a well-known online brand community social site which has been performing tremendous growth in the social commerce environment. II. IV. b. Retail Blogs It significantly helps the users or customers to discuss about the performances of the e-commerce activities of any organization. Moreover, the tool can also be regarded as an effective way for the customers to provide recommendation for further improvement of the products or services. Dell’s IdeaStorm and MyStarbucks Idea among others are few of the major examples of retail blogs. II. IV. c. Discussion Forum This tool facilitates the customers or the users to attain adequate support and solutions of their various problems through the help of any online discussion forums. For instance, the discussion forum of Apple Inc is quite renowned for facilitating peoples to resolve their various queries and problems at large. II. IV. d. Q&A Forums The tool is widely used by the modern commercial brands for the purpose of accumulating customers through conducting Frequently Asked Question (FAQ) format. In this context, Ask & Answer and Bazaarvoice among others are the major examples using Q&A forums. II. V. Social Media Optimization (SMO) Social Media Optimization (SMO) is one of the widely used social commerce dimensions which is often designed to attract or grab the attention of the customers to the websites. The major tools of this social commerce dimension have been discussed below. II. V. a. News Feeds It significantly involves offering organizational news concerning its special deals and exclusive information or offers through the involvement of different social media sites. For example, Dell Outlet and Carrefour FaceShopping are few of the major news feeds which provide news of different social media sites including Facebook, Twitter and others. II. V. b. Social Media Events The tool tends to conduct media events in different social media platforms to promote the syndicated offerings. For instance, ‘Random House Cover Design’ contests can be related with social media events. II. V. c. Media Sharing The tool generally used for the purpose of publishing advertisements through different social media locations like YouTube, SlideShare and Flickr. II. VI. Social Ads and Apps Social Ads and Apps can further identified as a widely used social commerce dimension in which a branded content is provided by the organizations through the use of paid social media platforms. Major tools of this dimension include: II. V. a. Social Ads The tool enables to give advertisements of the organizational product orservice in the paid social media locations like Facebook, Twitter and YouTube among others. II. V. b. Social Apps The tool tends to create online application programs which support social interaction. For instance Nike+. On the basis of the above discussion, it can be affirmed that the aforementioned services have been chosen owing to the reason that these services are currently playing a decisive part towards determining chief success factors of social commerce. Key Success Factors of Social Commerce The term social commerce is generally referred to as the notion of involving social media and its convergence in both offline along with online business environment. In relation to the major successive factors of social commerce, it can be identified that range of aspects facilitate both the marketers and the customer groups to efficiently perform their buying and selling activities (Wang & Zhang, 2012). In accordance with the present and relatively contemporary trend, social commerce has been speedily advanced within the business practice of the modern organizations. With the major significance, effectiveness as well as efficiency, the present trend of social commerce provides ample opportunities for the modern organizations in terms of strengthening their respective business processes to attain greater competitive position in the fiercely competitive business market (Wang & Zhang, 2012). According to the budding growth and development of the present e-commerce environment, it has been apparently observed that the social commerce incorporates different chief success factors of social commerce (Kamel, 2006). A few of the major key success factors of social commerce have been described hereunder. I. Improves Customer Engagement Improving customer engagement can be regarded as one of the major beneficial aspects of social commerce through which an organization can attract its potential groups of customers. The nature of social commerce can be identified as the process of connecting the global users with the organizations and building strong relationship with them through following an efficient buying and selling procedure. As result, it helps the organization to improve its present performance and delivering exceptional services in accordance with the needs and desires of the customers (Andam, 2003.). II. Strengthens Communication Process of the Organization to its Potential Customers The proper involvement of social media in the e-commerce activities can facilitate the modern organizations to improve its present performance by strengthening the procedure of communication. Moreover, the process also allows the marketer to gather a large number of reactions regarding its offerings and facilitate to develop organizational performance at large. The facet of social commerce basically generates an effective way for recognizing the cause and effect of the organizational offerings that are offered to large base of customers (Smith, 2007). II. Improves Collaboration with the Customers Collaboration can also be regarded as one of the major strengths of the social media strategy which enables the organizations to build a strong affiliation with its potential as well as other group of users belonging to various disciplines. In relation to the fiercely competitive business market, it has been identified that the e-business is incessantly becoming a major consideration for most of the organizations enabling them to raise as well as to enhance their overall business performances at large. Moreover, the organizations of the present business world tend to involve e-commerce in their respective business operations in order to obtain better control and retain their existing customers by a significant level. This can be owing to the reason of increased level of globalization, internationalization and extreme business market competition (Eghoff & Mabey, n.d.). Conclusion The organizations belonging to this present competitive business environment seek to highly involve social media in their business processes for the purpose of attaining their predetermined business goals. In relation to the present rapid transformation of the technological advancements, it has been identified that the business strategies of the modern organizations are highly focused upon involving online business as crucial approach. The approach empowers the organizations towards identifying along with building potential customer groups to whom different products or services would be delivered. The products or services that are rendered by the modern organizations are marketed and promoted efficiently through the mode of online which certainly enable the organizations to perform their trade operations beyond the national boundaries. The communication and technological advancement within the ICT model provides an extensive number of tools to enhance the efficiency as well as the effectiveness of the business operations of the modern organizations at large. However, the increasing transformation of the online business also tends to generate fiercely competition among the organizations with regard to their value and quality of products or services. Therefore, it can be concluded that the involvement of social media in the organizational process has considerably enhanced the performances of the organizations in terms of customer engagement procedure and most significantly strengthened their sustainability in this competitive landscape of financial market. References Abdou, H. A., & Pointon, J. (2011). Credit scoring, statistical techniques and evaluation criteria: A review of the literature. Retrieved from http://usir.salford.ac.uk/16518/4/Credit_Scoring_Statistical_Techniques_and_Evaluation_Criteria_A_Review_of_the_Literature_-_USIR_Version_(2).pdf Andam, Z. R. (2003). E-commerce and e-business. Retrieved from http://www.kau.edu.sa/Files/830/Files/61164_Ecommerce%20and%20E%20Business.pdf Caspian Media. (n.d.). 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