Over the past couple of years the term ‘Social Commerce’ has been banded around constantly in the social media marketing community, and as more and more brands realise the massive amounts of potential to shift product and sell services via social media, I felt was time to address the elephant in the room…

What is Social Commerce?

If you don’t know, it’s ok; we’re all friends here, nobody’s going to judge you for not knowing the latest marketing jargon. (This is where we hug by the way).

Let’s go through the basics…

Social Commerce (or SC) can be broken down into 6 elements, here they are:

1) One for One - (‘Reciprocity’ or Social Psychology)

If a company gives a follower in their network something for free, that person should feel the need to return the favour, whether buying that product again in the future or giving good recommendations for the company to somebody else.

2) Part of the Crew - (Community Involvement)

When people find another individual or a group that shares the same values, likes, beliefs, etc. they find themselves with a sense of ‘community’ and people are more committed to a community that they feel accepted within. So like the school playground ‘cool kids’ scenario we’re all familiar with, if you’re accepted into a group, naturally you start to build a bond, which if reciprocated by your peers, is incredibly powerful. (We’ll have to talk about brand ambassadors another day but hopefully you get the picture…)

3) Word on the Street - (Social Proof)

With companies like eBay, Amazon, AirBnB and Nike that allow public feedback of products and services post moderation, they’re able to build trust and confidence with other buyers. 55% of buyers turn to social media when they’re looking for information and reviews, and another interesting read (if you loooove a bit of data) is how the statistical analysis of 1.2 customer reviews stacks up against effectiveness of product purchase on Amazon.

4) Listen to Your Mates - (aka Authority)

Many people need proof that a product is of good quality. On top of the social proof, cemented authority around purchase is like the same as you being a 16-year-old boy and your mate saying:“Maaaate, have you tried the new Fifa 16? It’s awwwwesome, you’ve got to get it”. I imagine that’s how 16-year-old boys talk anyway…

5) Thumbs Up - (Liking or Starring)

Built on top of Authority and Social Proof, customers trust customer endorsements. Outside of customer reviews or recommendations if a product has lot of ‘likes’ or ‘stars’ then the consumers will feel more confident and justified in making a purchase.

6) Fresh Out the Oven - (Scarcity)

Being from a ‘salesy’ background, I know if you said to someone, “You’ve got to get it now! It’s the last one,” pressure can generate a sale (which unless it’s true, I don’t endorse by the way). But a greater value is assigned to products that are regarded as either being in high demand, limited or seen as being in a shortage. If this is true, it’s a fantatsic time to buy product usually at the beginning or end of a trading period.

If a customer understands as a loyal community member that they’re purchasing something that’s unique, special, or not easy to acquire, they’ll have more of a willingness to make a purchase. It’s not uncommon for brands to share ‘Flash Sales’ or ‘Limited Stock Releases’. Just don’t lie about it if you’re adopting it as a strategy - it could be the feather on top of your weights if that comes out…

What does all that attribute too then? Well, this is the fantastic thing about Social Commerce - many things! Not only revenue but engagement, community and loyal followers. The days of opening up a physical high street store and just crossing your fingers for passing trade evaporated with the death of VHS (which I’m still bitter about). As a brand, you now have the ability and tools via social media to learn from your customer, make friends with them and give them what they want over and over again. FOR FREE!

In theory, if you’re successful at building an effective Social Media community with involvement, authority and demand you could buy that high street store, fill it with product and accurately project it all being sold out even before you open the doors. Just read some of the 2014 Black Friday social media activity as a case study.

The world is your oyster, you better pull up a chair and tuck in your napkin.