Home Data-Driven Thinking Does Social Commerce Really Matter this Holiday Season?

Does Social Commerce Really Matter this Holiday Season?

SHARE:

“Data Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Yuchun Lee, VP and general manager of IBM’s Enterprise Marketing Management. He was previously founder and CEO at Unica.

Marketers preparing for Q4 are no doubt keenly aware of the importance of a multichannel strategy, including traditional, digital and mobile channels. But where does social media come into play this holiday season?

Let’s be honest, social media hasn’t exactly been the shining star when it comes to online shopping. Many believe the fact that social commerce has stalled shows it isn’t worth the time and investment. Not true.

Consider the back-to-school season. In August, our research found shoppers referred to online stores through social networks generated 2.2 percent of all sales, an increase of more than 113 percent over 2011. While many students held off on buying to see “what’s cool in school,” some chose not to wait and turned to their social networks for this insight.

These gains aren’t earth shattering, but they point to the revival of social commerce and furthermore, indicate social commerce has an impact when it comes to customer feedback and the overall customer experience. To get the most out of social media this holiday season, I believe marketers need to pay attention to four basic rules:

  1. 1. Use a strong sentiment analysis tool:

    I think we can all agree, social media is a gold mine for customer input, but marketers need to be able to analyze that input. To really make use of social media and all its rich data, the CMO and their team must utilize some sort of sentiment analysis to understand customer opinions, whether they be positive, negative, sarcastic, etc. Sentiment analysis also helps marketers compare against their competitors by markets, providing valuable insight.
  2. Understand customer behavior on all channels: Marketers must integrate customer profiles from offline transactional data with digital and organic/owned media channels. To maximize the benefits that come with the social channel and with all channels, marketers need to understand how customers behave through each using all types of data.
  3. Run an integrated social campaign: In our recent State of Marketing Survey, 79 percent of marketers indicated they run social media marketing in silos, discretely and on an ad hoc basis. This is simply the wrong way to go. To really see the benefits of social media, marketers must coordinate all offline and online campaigns. Social media must be as much a part of your in-store campaign, as it is your digital campaign.
  4. Make it easy for your customers: Marketers need to create an environment in which it’s easy for customers to amplify the good news about your brand. Are your customers able to easily “like” you in the moment in which they are most satisfied with your brand? It’s as simple as embedding a like button, but also think of other creative ways your company can create an opportunity for a customer to provide their feedback and amplify the positive aspects of your company.

I’ll be the first to admit that social commerce has a long way to go before it catches up with its overachieving brother — mobile commerce. But that’s not to say marketers should throw it out the window altogether. Instead, stick to the four rules I mention above and use social media for what it’s really worth – gaining valuable insight into your customers’ preferences, needs, wants, and experiences.

Follow IBM (@ibm) and AdExchanger.com (@adexchanger) on Twitter.

Tagged in:

Must Read

Comic: Game Over?

The Google Antitrust Remedies Are Too Little, Too Late – But Publishers Will Take What They Can Get

Given how much the market has changed since the Google trial began, and the wiggle room in the ruling itself, publishers aren’t expecting much relief from the court’s behavioral remedies.

Comic: "Deal ID, please."

Can Sell-Side Curation Solve The Cookieless Audience Problem For Advertisers?

Indie agency KWG says sell-side curation can target more high-performing inventory with better match rates and lower data fees than buy-side curation.

Infillion Acquires Foursquare, Adding More Location Data To Its Ever-Growing Ad Tech Stack

Infillion checked in with its latest acquisition on Friday: Foursquare. Apparently, if there’s a strategically interesting or distressed ad tech asset on the market, Infillion will find it.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

HBO MAX’s Reddit Account Was Compromised And Used For Ad Fraud

A week ago, HBO MAX had its verified Reddit account overrun by a hacker group, which eluded notice for two days while it ran 108 different ad permutations targeting an unknown number of Redditors.

Gaming Wants To Prove It’s Just Like Other Media Channels – While Also Owning How It’s Different

Adapting other channels’ strategies might be what gaming platforms need to do to get advertisers comfortable spending more. Leaning into gaming’s differentiators will come later, after bigger budgets arrive.

Comic: Clickbait

Taboola Eyes The Finance Vertical With An Offer To Acquire Ad Network Dianomi

Taboola has made an offer to buy Dianomi, a UK-based ad tech company that connects financial advertisers with premium business and finance publishers.