Social Commerce

Groupon Founders on the True Value of Social Commerce

What’s the true value of social commerce; selling with social media?

The simplest answer (and ours) is that social commerce helps businesses realise their word of mouth potential (i.e. the referral value component of total customer value), which can be worth 44% of how much each customer is worth to you (what proportion of your new customers come to you by word of mouth?).

But Eric Lefkofsky and Brad Keywell, co-founders of #1 group-buy site Groupon have a slightly different answer.

The value of social commerce is two-fold;

  1. Social commerce helps businesses get online (social has a lower barrier to entry)
  2. Social commerce helps your business grow (“disseminate”) faster (viral effect)

At last week’s Chicago’s Idea Event, the two co-founders pointed out that many businesses have not cracked ‘digital’; Social in general and Groupon in particular is an easy way to get online.  There’s more to social commerce, they imply, than advertising or running direct mail campaigns on ad-supported social networking services.

So, need to convince a boss or client to invest in social – here are three reasons (two admittedly related)

  • Social commerce helps businesses get online
  • Social commerce helps your business grow faster
  • Social commerce helps you drive word of mouth sales

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.

5 Comments Add New Comment

  1. Hello I am so excited I found your webpage, I really found you by accident, while I was
    looking on Askjeeve for something else, Nonetheless I am here now and would just like to say cheers for a incredible
    post and a all round enjoyable blog (I also love the theme/design),
    I don’t have time to look over it all at the moment but I have
    bookmarked it and also included your RSS feeds, so when I have time I will be back to read more, Please do keep up
    the superb job.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.