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

The Largest Shopping Mall Operator Has Its Own Retail Media Network

Simon Property Group, the largest shopping mall operator in the world, is taking its biggest step yet into the world of data-driven advertising. On Thursday, the company launched Simon Media Network, its version of a retail media network.

The Trade Desk’s Zuma Update Adds A Host Of AI-Powered Easy Buttons To Its Kokai Platform

TTD is introducing agentic AI workflow improvements and automated audience building, which are quickly becoming table stakes for programmatic platforms.

NBCU’s Streaming Strategy Involves Revisiting The Cable Playbook

In the modern streaming landscape, everything old is new again. At least that’s the case for NBCUniversal, which is trying to bring back bundled distribution deals and appointment viewing.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Joel Meyer, Chairman, Prebid.org

New Chairman Joel Meyer Dishes On Prebid’s Reset For The Agentic Ad Tech Era

OpenX CTO Joel Meyer, who was named Prebid’s new chairman, previews the org’s next phase and helping publishers navigate competing agentic protocols.

These are the days of our lives

After Years Of Fighting LGE, Alphonso Is Headed For An IPO – Unless Comcast Or The Koch Brothers Get There First

Alphonso – LG’s ad tech division – finally has a way out of its legal drama with parent company LG Electronics. Actually, it has three potential options.

Micro1 Wants Human Domain Experts To Profit From AI And LLMs

Much like the ecosystem of life that surrounds a blue whale, a market of AI SaaS vendors is springing up around the biggest AI companies. And AI data startup Micro1 is emblematic of the shifting nature of these early-stage AI vendors.