Column: Social evolves from ‘go here’ to #BuyNow
October 16, 2013 | Cameron Wykes | Comments
Social commerce (or “S-Commerce” for the uber-savvy amongst us) has evolved. Once, it leveraged social platforms to drive traffic to a branded, transactional site. Increasingly, it’s the place where the call-to-action, the consumer engagement and the full transaction itself all takes place within ubiquitous social platforms like Twitter.
According to Compete Digital Intelligence, during its time measured study, 27% of general internet users bought something from a retail website. Twitter users, however, made purchases at a rate of 33% from the same sites. When Twitter users were exposed to a Tweet from a retailer, that purchase rate increased to 39%. This represents a lift of 1.4x and 1.2x, respectively, and is true across a variety of retail categories.
Clearly these numbers suggest that people who see a retailer’s Tweets are even more likely to make an online retail purchase, and that Twitter users arrive on a retail website with a higher intent to purchase than an average site visitor.
But social commerce is becoming less about using tweets and hashtags to drive to a branded retail site. Those in the field leverage social transactional partners like Chirpify to help online retailers get customers to the product of their desire quicker, and buying with more confidence.
Focusing specifically on social network-based commerce, Chirpify disrupts the typical process of moving the Twitter follower from the “tweet to transaction” faster, with fewer steps, providing marketers and retailers another transactional touch-point within their intended purchase funnel. Think of this like the PayPal of EBay.
“Hashtags are the new URL” – Chirpify CEO, Chris Teso.
So here’s how it works: users register on Chirpify, add their twitter handle, credit card or debit information, and can then act on any #actiontag promotion to purchase virtually anything through Twitter, Facebook and Instagram.
For example, one of your favourite brands may tweet a special offer or exclusive invite to you and its other followers… “Get in on the fun this weekend with our VIP pass for only $35. Tweet #BUY #VIPWEEKEND and get yours now!”
From there, it’s as simple as responding with the action tags #BUY #VIPWEEKEND and the deal is yours. All backend transactions are done automatically through Chirpify.
As marketers, we can leverage this type of transaction service across a number of touch-points and unique situations.
Building brand loyalty through LTOs
Limited time offers have been at the heart of sites like eBay and BeyondTheRack.com. Adidas uses Chirpify to offer exclusive products and offers to its 14 million social fans and followers.
Live event interaction
Chirpify can be used during sporting events, concerts or branded experiences to drive spontaneous engagement and immediate sales opportunities. Green Day, Tim McGraw and The Polyphonic Spree all sell songs and merchandise during concerts and TV broadcast events.
Second screen engagement
TV and movies are among the most popular topics in the social sphere and second screen engagement is still on the rise. While many start-ups and established media content brands alike are in the space of second screen interaction, it still has a long way to go. Chirpify will certainly create a study base for marketers to leverage in selling everything from the clothing the actors are wearing to soundtracks to travel.
Think of how commercials filled with puppies and kittens asking for donations will do when they throw up those puppy eyes and an #actiontag asking for a measly five bucks… How could you resist?
Utilized the right way, #actiontags could really take a big chunk out of the purchase funnel model, driving faster intent to purchase, and bringing more relevancy and engagement to brands within the social space.
Looking at pure numbers, Chirpify claims a conversion rate of just over 4% which, compared to the more traditional display ad space (average 0.09% CTR in Canada), is big step in the right direction for marketers looking to drive direct sales online.
Cameron Wykes is the Chief Invention Officer at KBS+