Chapter 7
Social Commerce: Foundations, Social
Marketing, and Advertising
Learning Objectives
1. Define social commerce and describe its roots and
evolution.
2. Describe the scope, drivers, and content of the
social commerce field.
3. Summarize the benefits and limitations of social
commerce.
4. Describe the major models of social shopping.
5. Explain how advertising and promotions are
conducted in social networking environments.
6. Describe how social networking can facilitate
customer service, customer support, and CRM.
Social Commerce:
Definitions and Evolution
• Definitions and Characteristics
o * Social commerce (SC)
• The Evolution of Social Commerce
The Foundation of Social Commerce
The Major Roots of Social Commerce
The Content of the Social
Commerce Field
• The Landscape and Major Components
of the Field
• *Social Media Marketing (SMM)
• *Enterprise 2.0
o Examples of Social Enterprise Applications
The Major Dimensions of Social Commerce
The Benefits and Limitations
of Social Commerce
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Benefits to Customers
Benefits to Retailers
Benefits to Other Types of Enterprises
The Social Business: An IBM Approach
o * Social business
• New or Improved Business Models
o * Business model
• Concerns and Limitations of Conducting
Social Commerce
Social Shopping: Concepts,
Benefits, and Models
• Definitions, and Drivers of Social Shopping
o * Social shopping
o The Drivers of Social Commerce
o Concepts and Content of Social Shopping
o Why Shoppers Go Social
• * Communal shopping
Social Shopping: Concepts,
Benefits, and Models
o The Roles in Social Commerce
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Connectors
Salesmen
Seekers
Mavens
Self-sufficients
Unclassifieds
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Visual Sharing
Online discussions
Journals of products and their use
Guides
o Benefits of Social Shopping
o What Components to Expect in a Social
Shopping Site
Social Shopping: Concepts,
Benefits, and Models
• Traditional E-Commerce Sites with Social
Media Additions
• The Major Types and Models of Social
Shopping
o Group Buying
o Deal Purchases (Flash Sales)
o Online Shopping Together in Real-Time
• Shopping Together Sites
• Co-Shopping
o Online Shopping Communities
Social Shopping: Concepts,
Benefits, and Models
o Common Features in Communities and Forums
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User forums
User galleries
Idea boards
Q&A forums
Brand communities
Comprehensive (multipurpose communities)
o Examples of Shopping Communities
• Polyvore.com
• Kaboodle -- a Unique Social Shopping Community
• Private Online Shopping Clubs
Social Shopping: Concepts,
Benefits, and Models
• Other Innovative Models
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Find what your friends are buying
Wanelo
Filtering consumers reviews
RealGifts
Virtual gifts
Social auctions
Getting help from friends
Shopping without leaving Facebook
Crowdsourcing shopping advice
Helping bloggers sell products
Event shopping
Social Shopping: Concepts,
Benefits, and Models
• Social Shopping Aids: From Recommendations to
Reviews, Ratings, and Marketplaces
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Recommendations in Social Commerce
Ratings and Reviews
Social Recommendations and Referrals
Illustrative Examples of Recommendation Sites
Example: How Intuit Corp. Helps Consumers with Recommendations
Concerns about Social Reviews and Recommendations
• Other Shopping Aids and Services
o Yelp: The Shoppers’ Best Helper
o Collaborative Reviews
o Dealing with Complaints
Social Shopping: Concepts,
Benefits, and Models
• Social Marketplaces and Direct Sales
o * Social marketplace
o Direct Sales from Within Social Networks
o Socially-Oriented Person to Person (P2P)
Selling, Buying, Renting, or Bartering
• P2P Lending
• P2P Sharing (also known as collaborative
consumption)
Social Shopping: Concepts,
Benefits, and Models
• Shopping for Virtual Goods in a Virtual
Economy
o * Virtual goods
o * Virtual Economy
o Why People Buy Virtual Goods
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Generating special experiences
Generating emotions
Small purchases make people happier
Virtual goods are low cost and low hassle
• Real-Time Online Shopping
• Social Shopping in the Near Future
Social Advertising: From Viral Advertising
to Location-Based Advertisement/Marketing
• Social Ads and Social Apps
• Viral (Word-of-Mouth) Marketing and
Social Networking
o * Viral marketing
o * Viral Blogging
o Other Viral Marketing Methods
• Location-Based Advertisement and
Social Networks
Social Advertising: From Viral Advertising
to Location-Based Advertisement/Marketing
• Geosocial Networks
o * Geosocial networking
o The Technology for Location-Based Social
Networks
• How LBS Works
o Foursquare and its Competitors
• How Foursquare Works
• Changes in Business Model
• Competition: Brightkite and Facebook Places
o Strategy for Small Businesses in LBS
o Privacy Concerns for LBS
• Opt-In Versus Op-Out
Social Advertising: From Viral Advertising
to Location-Based Advertisement/Marketing
• Using YouTube and Other Social Presentation
Sites for Advertising
o * Viral Videos
• Using Twitter as an Advertising and Marketing
Tool
Recruiting and finding jobs
Brand display
Market research
Delivering offers
Collaboration
Customer service
Using professionals to enhance company presence on
Twitter
o Cost effectiveness
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Social Advertising: From Viral Advertising
to Location-Based Advertisement/Marketing
• Other Innovative Ways to Advertise in
Social Media
o The Changing Rules of Branding
o Using Blogs
o Using Coupons
o Mobile Advertising
Social Customer Service
and CRM
• How Does Social Networking Empower Customers?
o Social CRM
• * Customer relationship management (CRM)
• * Social customer relationship management (SCRM)
o The Components of Social CRM
• How to Serve the Social Customers
o * Social customers
o Methods and Guidelines for Social Customer Service
• Methods and Guidelines for Social Customer
Service
• The Evolution of Social CRM
The Elements of Social CRM
Social Customer Service
and CRM
• Cipriani’s Multidimensional Presentation
o The Landscape
o Touch Points
o Evolution of Business Processes in CRM
o The Evolution of Technology
o Organizational Mindset
o Conclusions
The Landscape of CRM vs. SCRM
Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008.
slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.
Touch Points in CRM versus SCRM
Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008.
slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.
The Evolution of Business Processes in SCRM
Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008.
slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.
The Evolution of Technology from CRM to SCRM
Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008.
slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.
The Organizational Mindset for SCRM
Source: Courtesy of F. Cipriani, “Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008.
slideshare.net/ fhcipriani/social-crm-presentation-761225 (accessed December 2014). Used with permission.
Social Customer Service
and CRM
• Implementation of Social Customer
Service and CRM
• Some Recent Applications
o Social Networking Helps Customer Service in
Small Companies
• Reputation Management System
Managerial Issues
1.
2.
3.
4.
5.
How will social commerce influence businesses?
Do companies need to sponsor a social network?
Is it wise for a small business to be on Facebook?
How to deal with false reviews and fake followers?
Should we embark on selling via social networking?
Summary
1. Social commerce definition and evolution.
2. The scope, content, and drivers of social
commerce
3. Benefits and limitations of social commerce.
4. Describe social shopping.
5. How advertisings and promotions are
conducted in social networking.
6. Conducting social customer service and
CRM.