The Social Psychology of Social ShoppingHow Social Commerce Works

1

Dr Paul MarsdenDigital EthnographerSyzygy Group

So what is this social commerce thing?

2

So what is this social commerce thing?

2

“Social commerce is a subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services”.

Social commerce

Social commerce is not new... (coined by Yahoo 2005)

3

FTOAF (forward to a friend), referral programs

ratings & reviews

social platforms (forums, blogs,bookmarking)

realtime social shopping, Facebook Connect

Future: mobile,sCRM, curated marketplaces

Social commerce is not new... (coined by Yahoo 2005)

3

FTOAF (forward to a friend), referral programs

ratings & reviews

social platforms (forums, blogs,bookmarking)

realtime social shopping, Facebook Connect

Future: mobile,sCRM, curated marketplaces

Social Commerce: Creating places where people can collaborate online, get advice from trusted individuals, find goods and services and then purchase them.

In plain English...

4

Helping people buy where they connect... ...and connect

where they buy

And it’s a hot area in social media marketing right now...

5

And it’s a hot area in social media marketing right now...

5

...because it helps solve a real problem: social media ROI

6

Technology Hype CycleEcho-Chamber Social Media Marketing

“Getting” it is easy: selling with social media

7

+ =

Ratings& Reviews

Recommendations & Referrals

Forums& Communities

Social Media Optimization

SocialShopping

Social Ads& Social Apps

Doing it can be more difficult: selling with social media

8

Doing it can be more difficult: selling with social media

8

It’s about people (influencing people), not technology

9

The social psychology of shopping can help

10

The social psychology of shopping can help

10

We use social intelligence to “thinslice” buying decisions

11

Social Intelligence - The ability to understand and learn from each other and profit from social situations

We use social intelligence to “thinslice” buying decisions

12

Social Intelligence - The ability to understand and learn from each other and profit from social situations

The TOM test

We use social intelligence to “thinslice” buying decisions

13

Social Intelligence - The ability to understand and learn from each other and profit from social situations

The TOM test

We use social intelligence to “thinslice” buying decisions

14

Social Intelligence - The ability to understand and learn from each other and profit from social situations

The TOM test

We use social intelligence to “thinslice” buying decisions

15

Scarcity Popularity Affinity

Authority Consistency Reciprocity

Social commerce can cue thinsliced purchase decisions

16

+ =

Scarcity Popularity Affinity

Authority Consistency Reciprocity

The scarcity cue; scarce stuff is good stuff

17

The COOKIE JAR EXPERIMENT 1975

Using the scarcity cue to cue purchase decisions

18

Using the scarcity cue to cue purchase decisions

19

Using the scarcity cue to cue purchase decisions

20

Using the scarcity cue to cue purchase decisions

21

Using the scarcity cue to cue purchase decisions

21

Social Intelligence @ Work: Scarcity

Use exclusive information to persuade. Influence and rivet key players’ attention by saying, for example:“...Just got this

information today. It won’t be distributed until next week.”

The affinity cue; follow those you like

22

The NIXON KENNEDY DEBATE 1960

Using the affinity cue to cue purchase decisions

23

Using the affinity cue to cue purchase decisions

24

Using the affinity cue to cue purchase decisions

25

Using the affinity cue to cue purchase decisions

26

Using the affinity cue to cue purchase decisions

26

Social Intelligence @ Work: Affinity

Create early bonds with new peers, bosses, and direct reports by informally discovering common interests—you’ll establish goodwill and trustworthiness.

Charm and disarm. Make positive remarks about others - you’ll generate more willing

compliance

The consistency cue; be consistent

27

Drive Carefully

The BIG BILLBOaRD EXPERIMENT 1966

Using the consistency cue to cue purchase decisions

28

Using the consistency cue to cue purchase decisions

29

Using the consistency cue to cue purchase decisions

29

Using the consistency cue to cue purchase decisions

29

The authority cue; follow the leader

30

The SHock Box Experiment 1961

Using the authority cue to cue purchase decisions

31

Using the authority cue to cue purchase decisions

32

Using the authority cue to cue purchase decisions

33

Social Intelligence @ Work: Authority

To activate advocacy, don’t assume your expertise is self-evident. Instead, establish your expertise before doing business with

new colleagues or partners; e.g., in conversations before an important

meeting, describe how you solved a problem similar to the one on the agenda

The reciprocity cue; payback favours

34

The COKE AND RAFFLE TICKET EXPERIMENT 1975

Using the reciprocity cue to cue purchase decisions

35

Using the reciprocity cue to cue purchase decisions

36

Using the reciprocity cue to cue purchase decisions

37

Social Intelligence @ Reciprocity

Create goodwill upfront by giving what you want to receive. Lend a staff member to a colleague who needs help; you’ll get their

help later.

The popularity cue; follow the crowd

38

The 42ND Street Experiment 1969

Using the popularity cue to cue purchase decisions

39

Using the popularity cue to cue purchase decisions

40

Using the popularity cue to cue purchase decisions

41

Using the popularity cue to cue purchase decisions

41

Social Intelligence @ Work: Popularity

Use peer power horizontally, not vertically; e.g., show that your initiative is popular with your peers if management resists.

Social commerce matrix

42

Social commerce road map: LEAD

43

Listen: Begin by listening, with a purpose - deploy a social media monitoring and response service to identify social commerce opportunities; listen and learn from competitors

Experiment - Start with small scale experiments to identify what works for you. Test and learn with quick and easy experiments to explore ROI potential

Apply - Build on what works and has ROI potential, apply learning and insight to build social commerce into your digital strategy

Develop - Develop your social commerce solution with user feedback and competitor intelligence on an ongoing basis. Experiment with new solutions

Thanks! Enjoy our social commerce white paper

44