Analysts predict shopping on the social web will become a $10B industry by 2015, and so it’s no surprise that many now call social commerce the “new frontier” of retail.
It makes perfect sense for retailers to begin exploring this area because social commerce –also known as “F-commerce” (short for “Facebook-commerce”) –offers an effective combination of benefits:
Retailers can use social networks to reach out and engage with potential customers while simultaneously facilitating a purchase.
Which retailers are leading the charge?
To find out, the social shopping platform 8thBridge analyzed the top 200 retailers on Facebook and scored them based on their account reach, engagement and shopping. The calculations produced what 8thBridge calls a “Social Commerce IQ™.” The highest possible Social Commerce IQ™ is 100, and here are the scores of the top 10 retailers in the study:
1. GameStop – 92
2. Victoria’s Secret – 89
3. Walmart – 84
4. Sephora -79
5. Clinique- 78
6. Eastbay- 77
7. FragranceNet.com -76
8. Hallmark -76
9. American Eagle Outfitters -75
10. Zales – 74
Earlier this fall, 8thBridge also surveyed 1,202 US residents about their Facebook usage and interest in social commerce. The data revealed that:
- Sale status updates have 30 percent higher engagement rates (vs “all” status updates).
- 57 percent of product Likes are from owners.
- 35 percent of people are more likely to buy “Liked” items.
- 35 million US Facebook users have shared a product.
- 22 million people have been driven to make a purchase based on a Facebook recommendation.
Note that social media success appears to be driven largely by post-purchase engagement, and that Facebook fans prefer sale status updates, i.e. updates which mention a specific sale or campaign. (No surprise there. As we’ve seen before, consumers tend to follow brands on social media because they expect extra promotions and information.)
You can download 8thBridge’s comprehensive, 115-page report here. (Registration required.) It’s a wealth of information to help retail marketers navigate what is quickly shaping up to be a very important new frontier.
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