Social Commerce

F-Commerce Solution Providers | Updated July 2011 Benchmarking from Ogilvy

The social@ogilvy team have posted (embedded below) an update to their original benchmarking of f-commerce (Facebook commerce) solution providers (8thBridge, Adregate Markets, Milyoni, Moontoast, NorthSocial, Payvment, ShopIgniter, Usablenet, Zibaba) as part of a more general primer on f-commerce.

In the primer (embedded below) we really like Ogilvy’s focus on the need for fan-store exclusivity, and even the proposed use of ‘like-gating’ (access contingent on Liking) to separate the fickle from fans.  We’d have preferred a focus on metrics other than counting fans/interactions/impressions (specifically – counting dollars (sales, customer value and ROI) and advocacy), but check it out – and let us know what you think.

Speed Summary

  • Global e-commerce is set to grow to $963 bn (19.4% p/a growth) in 2013
  • By 2013 the largest regional e-commerce market will be Asia ($323 bn vs $235 bn, vs Europe $283 bn)
  • The Web will be involved in 53% of total retail sales by 2014
  • Currently e-commerce on social networks is small – 27% of consumers ready to buy physical goods on social networks
  • F-Commerce means selling goods of services using Facebook
  • The 5 Benefits of F-Commerce: Customer Insight, Customer Experience, Customer Loyalty, Customer Advocacy, Facebook ROI
  • Two types of F-Commerce – “On Facebook” (F-Stores, Facebook Credits, Facebook Deals), and “With Facebook” (Facebook Ads, Custom Apps, Facebook Places)
  • F-Commerce Strategic Framework
    • Discoverable:  Brand pages must be easy to find and also integrated with other brand digital assets (e.g. social plug-ins on website)
    • Exclusive:  Brands should keep exclusive content/ value behind fangate, Visitors must first like the brand page before seeing its content
    • Engaging: Using a content calendar, brands should encourage 2 way conversations to maximize organic word of mouth on Facebook – Word of mouth generated by engagement will spread content out to the friends-of-friends circle for better discovery and exposure
  • Facebook Measurement Model
    • Reach: #fans, #mentions of walls, #news updates * fans, #ad impressions
    • Engagement: #discussion topics, #wall posts on brand page #/tone reviews posted, #video views
    • Action: Click through rates for advertisements, #contest entries, #apps downloaded, #offline actions driven by coupons or special offers, web traffic generated

Chartered psychologist specialising in consumer behaviour, wellbeing and technology. Certified CX professional experienced in Design Thinking. A researcher, writer and speaker, Paul is head of Digital Insight at SYZYGY.

6 Comments Add New Comment

  1. You can add Mallify to this list too!

    User stays in FB for the whole of the transaction
    No transaction fees – just one flat fee each month
    Reseller model can be applied to products (others can sell your products, making a truly viral concept)

  2. ROI metrics are definitely key, but (especially on Facebook) fan interaction is probably the most important aspect to measure. Facebook is more about marketing than selling, so you’re going to see the true value of your investment by measuring how well you’re engaging your fans.

    TabJuice should also be added to this list:
    Customizable storefront
    Sales Analytics and Configurable product comment options
    Super affordable – $19.99/mo, no commission or contract
    All on Facebook checkout.

  3. Buegle is the social media division of Freestart plc. A Buegle store is an easy to manage social commerce website that integrates a feature rich e-commerce platform seamlessley with Facebook and Twitter.

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