Social & Mobile. These two are the future. Apps, Services, Gaming, Sales, Music – on Social & Mobile platforms are the future. In fact, already starting to happen. With PC & Mac sales dwindling, mobile CPUs getting faster, sleeker and more powerful, the day isn’t so far when 99% of the work that you do in a day (usually on a laptop or a tablet) would be done on Mobile Platforms, and mostly Socially. Which brings us to something which is extremely interconnected and relevant – Commerce. Are the days of B2B, B2C and C2C commerce over? Technically, yes. Its now time for social commerce.
Just like the Gaming industry has been severely disrupted with the advent of social gaming – online gaming tightly coupled with mobile platforms (iOS & Android), similarly – though B2B & B2C commerce would exist – but gradually dwindle over the years to give way for social commerce. Same for Recruiting. I recently wrote a blog post in which I had calculated the Social Media ROI on Social Recruiting – moving away from typical headhunters, HR staff and Recruitment Agencies.
The question that I hear most from Social critics is – Dude, show us the numbers!
One of the companies which is most social out there – and making it happen – socially, economically and successfully – is Eventbrite – the online ticketing vendor. Was reading one of their blog posts earlier today, “Social Commerce: A First Look at the Numbers“, written by Tamara, Director of Marketing at Eventbrite. Tamara explains the entire process flow of Eventbrite, measuring social commerce, the key takeaways, and a pictorial depiction of the entire workflow as well.
Quintessentially, here’s the major takeaways from the blog post:
- With “Social Commerce: A First Look at the Numbers,” Eventbrite is unveiling the first tangible data to quantify the value and impact of social media in driving eCommerce. We are tracking a new set of metrics that measure social commerce success and are excited to share them with the industry. In doing so we hope to spark conversation and begin to set standards and benchmarks around this new marketing channel.
- The social Web fuels the conversation and the communities that arise around live events. This conversation isn’t new, but we are now able to track the resulting transactions with unprecedented granularity.
- Deep and growing integrations with the major social networks mean that the power to drive organic social distribution is finally in the hands of event organizers and attendees.
- Sharing equals transactions: Dollars per share: Now, here’s where most B2B/B2C strategists/digital marketers miss the boat and eventually drown. In Social interactions across Social Networks, you’ll have to move away from the standard CPM, CPC, CPA and CPL advertising models. This wouldn’t work in Social Interactions. What works is the DPS (dollars per share) model. When someone shares an event with their friends through social media, this action results in real dollars. Our most recent data shows that over the past 12 weeks, one share on Facebook equals $2.52, a share on Twitter equals $0.43, a share on LinkedIn equals $0.90, and a share through our ”email friends” application equals $2.34. On an aggregate level across Facebook, Twitter and LinkedIn, and our email share tool, each share equals $1.78 in ticket sales. We’re seeing this number improve every week with the most recent four-week average equaling $1.87.
- It’s extremely sticky: Visits per share: The hyper-relevancy of the social graph breeds deeper engagement, greater sales and stickier audiences. On average each Facebook share drives 11 visits back to Eventbrite.com. Averaging across all channels, one share drives over 7 visits back to Eventbrite.com.
- It’s happening everywhere, across all sizes and types of events: Consistency of sharing: Sharing is consistent across event size. Sharing occurs at the same rate an event has 10 or 10,000 people.
*The text in italics above are excerpts from Tamara’s Blog post.
The key points (or words) to understand in Social commerce model are those which have been marked in red, which include:
- Quantifying value & impact of Social Media in driving eCommerce is essential to understanding the dynamics of ‘Social Commerce’.
- Social Web fuels conversations and communities surrounding it.
- Greater integration with major social networks mean – more power to drive organic social distribution.
- Which brings us to – Sharing = Transactions. This is ‘Dollar per Share’ model.
- Its extremely sticky in nature (unlike CPM, CPA, CPC, CPL models), DPS model is characterized by Visits per Share.
- Consistency of sharing is significant as well since sharing occurs at the same rate, whether event has 10 or 10,000 people.
If you have a company which is struggling to make ends meet, and you aspire to be the next Eventbrite, here’s the few questions that you need to ask yourself:
- Do I correctly understand the dynamics of ‘Social Commerce’?
- Am I using the ‘Social Web’ to add fuel to conversations and communities surrounding it?
- Is my business seamlessly integrated with major social networks?
- Is my business supporting the ‘Sharing = Transactions’ model (or ‘Dollar per Share’ model)?
Hope this set of questions can silence the critics and give way to more number of Socially Awesome and Financially Successful companies like Eventbrite.com.