Digital Business:
Social Commerce
Yu-Hui Tao
ytao@nuk.edu.tw
EC activities conducted in social networks by
using social software (Web 2.0 tools)
Social Commerce: Revenue
Source: Chapter 7, Electronic Commerce 2012 by Turban, King, Lee, Liang and Turban,
Pearson
Social Commerce: Relationship
Source: Chapter 7, Electronic Commerce 2012 by Turban, King, Lee, Liang and Turban,
Pearson
Social Commerce
Examples (Nutley, 2010)
• Dell computer made $6.5 million by selling computers
on Twitter in two years (Dell generated ideas from
community members, Idea Strom site; Dell has 80 Dellbranded Twitter accounts in expanding awareness of its
products and increased sales)
• Procter & Gamble sells its Max Factor brand cosmetics
through Facebook as part of what the FMCG giant calls
“small-scale direct-to-consumer” initiatives
• Disney allows people to book tickets for Toy Story 3 on
Facebook without leaving the social network
Social Commerce:
PespiCo
• PepsiCo gives a live notification when its customers are
close to physical stores(grocery, restaurants, gas
stations) that sell Pepsi products. Then PepsiCo sends
them coupons and discount information using
Foursquare
• Pepsi uses Twitter to supplement a toll-free telephone
number to share product feedback faster and in a more
personal way – reached a new audience that never
bothered to call
Social Commerce:
Mountain Dew
• Mountain Dew attracts video game lovers and sport
enthusiasts via Dewmoncracy contests. It uses the most
dedicated community members to contribute ideas. The
company used Facebook, Twitter, and YouTube to unite
consumers through a common interest
Social Commerce: Levi’s
• Levi’s ads on Facebook by enabling consumers to
autopopulate a “shopping cart” based on what their
friends think they would like. There is also a video on
YouTube to educate consumers on how to use Facebook
to shop for and with their friends
Social Commerce: Wendy’s
• Wendy’s uses Facebook and Twitter to award $50 gift
cards to those who have the funniest and quirkiest
response to various challenges.
Social Commerce:
Measuring ROI
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Decide on the goals and objectives
Plan how the goals will be achieved
Put the plan into action – implementation and execution
Measurement results
Revise, refine, adjust and possibly redeploy. Revisit the
goals and objectives and continue down the cycle.
Social Commerce:
Metrics
• Track traffic for finding leads (e.g., sources, changes
over time)
• Find the engagement duration
• Bound rate (how quickly a visitor leaves your site)
• Membership (numbers of their composition)
• Activity levels (by type)
• Conservation levels (by type)
• Brand and company/product mentions (reputation);
positive and negative comments in all social networking
activities
• How many friends of friends are resharing your links
and content?
• Blog interaction (several measures)
Social Commerce:
Metrics
• Loyalty and sharing: are social members really
interacting in the network repeatedly, sharing content
and links, mentioning your brands, evangelizing? How
many members reshare? How often do they reshare?
(Several possible measures can be used here)
• Extent of virality. Social members might be sharing
Twitter tweets and Facebook updates relevant to your
company, but is this info being reshared by theirnetworks? How soon afterward are they resharing?
How many friends of friends are resharing your links
and content?