Virtual World Real Potential

Walking into a bar or nightclub alone and striking up a conversation with a stranger is daunting for the majority of people.  By nature, most people have insecurities which inhibit them from doing such a thing.  But now, the latest addition to the world of virtual reality enables people to feel comfortable doing exactly that. Based within an application inside Facebook, Dot Friends allows users to determine exactly how they look, what they wear and even how they move on the dance floor.

The application, which is currently in Beta, lets users choose which places to “enter” anywhere in the world.  Bars and nightclubs are represented by drop pins on a world map and on entering users are transported to a graphically enhanced experience of being inside a bar or club.  And that’s just where the fun begins.

Within each environment users can select videos which are played out on a big screen within the bar or club.  Virtual currency is used to buy drinks which can be given to anyone in the club.  With public and private chat functionality, users can strike up conversations with strangers or chat with a group of friends.  A choice of customized dance moves enables the user’s avatar to become the center of attention on the dance floor.  Alternatively, users can choose to sit at tables or by the bar and just quietly take in all the action.

Similar to the early days of online chat rooms, Dot Friends is the next generation of socializing within the already social environment of Facebook.  Dot Friends will also soon be giving users the chance to create their own bars and nightclubs and take control of their own virtual environment.  Unlike online chat rooms, the virtual world created by Dot Friends is full of unleashed potential.

Brands have already begun to approach Dot Friends in order to ‘own’ customized social environments in order to promote products.  Until now, f-Commerce has not been successful and the sale of goods within Facebook has not taken off as expected.  This has been identified by brands being unable to understand the psychology of social consumers and correctly engage in social interaction.  Now brands have the chance to interact with users in a zone where the user already feels comfortable.  They can additionally speak directly with brand representatives, ask questions and receive real-time answers.  This makes the social interaction and engagement of users through Fan Pages a thing of the past.

Dot Friends have a plan to add a whole host of features and functionality to their existing virtual world. The potential to add new venues such as coffee shops, libraries which can be connected to online reading areas, celebrity zones with celebrity interaction, picture and art galleries displaying inspirational and original work, television shows, supermarkets, clothes stores, dating areas – is endless.

For users, the attraction is initially the same as the eagerness to be a part of online chat rooms in the late 90’s.  The thing that will keep users returning is the age of social in which we now live and the sometimes necessary urge to temporarily escape the madness of the real world.

 

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Changes to Facebook Pages Sees Another Setback to Retail Brands Selling on Facebook

After implementing timeline for fan pages Facebook has yet again changed the playing field in the way that brands interact with customers through their branded Facebook fan pages.

The ability to set a default landing tab will affect retailers who are using fan page apps such as Payvment and ShopTab in order to sell directly from their pages.

Small to medium sized retailers, who have already had little luck selling in Facebook with little, if any, marketing budgets will be hit the hardest by this move.  As reported a little while ago by CommerceOnFacebook, it will be the enterprise solutions of retail applications who will benefit the most from this change.

Companies such as 8th Bridge, ShopIgniter and Sortal who offer both customized solutions and the correct tools for successful marketing will now pull away from the crowd.  ‘Off the shelf’ solutions which rely on the merchant to find their own marketing success, will see a continued decline in signups and subscription cancellations.  Smaller storefront providers will probably begin to shut their own doors or change their Facebook applications completely.

Due to the most recent changes, not only the ability to set the default landing tab has changed.  The size of the canvas has increased which means that subscription based storefront providers will need to move fast to keep up with the development changes.

Fan pages will have the same timeline format as personal pages.  The picture at the top of the screen displayed on the default landing tab will not have the ability to link anywhere, display pricing information or have any clickable call to action.  Developers of fan page storefront applications must now offer retail customers solutions which entice shoppers to enter the storefront.  This is yet another click away from the reach of customers, who have already displayed a lack of interest in shopping on Facebook.

Below is the new layout of the Walmart Facebook fan page after the switch to the new timeline.

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Has f-Commerce Ended Before It Has Even Begun?

Sucharita Mulpuru has made no secret of the fact that she doesn’t believe in f-Commerce.  Mulpuru, a senior analyst at Forrester Research has even been quoted as saying “In the history of retail, there has probably been nothing that has been so widely anticipated yet underwhelming as the ‘era of social commerce,’”.

To back up her theory, one just needs to look at the recent news whereby big brands such as Gamestop, J C Penney and Nordstrom have made the decision to close their Facebook stores.  In a recent telephone interview with Bloomberg she was once again quoted with negativity toward f-Commerce, “There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop, but it was like trying to sell stuff to people while they’re hanging out with their friends at the bar.”

However, with that said, I don’t believe that f-Commerce or the future of selling products within a social environment should be dismissed so easily.  Instead, everyone involved with f-Commerce needs to take a step back, admit temporary defeat, understand the failings to date and either rebuild or improve the social shopping experience.

Even using Mulpuru’s own analogy of selling people ‘stuff’ while they hang out in a bar can be used positively.  For example, if someone if hanging out in a bar find out why they’re there, who they want to be with and what they would spend money during their visit.  Again using the ‘bar’ analogy, customers would be interested in being presented with relevant offers according the situation.  People are distracted into doing things spontaneously.  Just look at the success of all of the ‘off Broadway’ comedy shows.  Everyday hundreds of people on the streets around Times Square are asked “Do you like comedy?”  Has a comedy club ever decided to stop using this marketing tactic due to other comedy clubs not having success?  The answer is no.  This is the same reason why retailers looking to promote and sell within Facebook should not give up just because big name brands have not had success.

Admittedly things should change.  Storefronts in Facebook, sitting on Fan pages have become too readily available at too little cost.  Thereby alluring retailers into thinking that selling on Facebook is easy.  It’s not, nothing in life is.  But it doesn’t mean it’s time to give up.

Facebook itself has done very little to assist retailers get traction.  There have been no ‘best practice’ case studies on Social Commerce produced by Facebook.  Perhaps if Facebook didn’t take 30% on the sale of each Facebook credit, the credits may have a real monetary value that could be used to make purchases within Facebook stores.  After all, buying tangible goods is far more important and valuable than being used to buy virtual game tokens or imaginary swords.

Consumers still do not understand the security aspects of purchase transactions within Facebook.  This needs to be more widely spoken about.  It’s incredible that Facebook manages to get mentioned in the press at every given opportunity but does not use this sway to educate consumers.  Zuckerberg’s quote of how commerce on Facebook will blow up is almost two years old and is still being used by f-Commerce startups in their marketing material.

In short, f-Commerce has not been done correctly.  The education and psychology of social consumers is still not understood well enough.  Development companies offering Facebook storefronts to the masses,  with no aid to assist their storefront customers, has also been detrimental to the industry.  If things do not change, if Facebook does not pay heed, f-Commerce may come to an end.  But it will not be the end of social commerce.  Social commerce began when the first person shared with a friend details of a deal or an offer via the web.  Facebook’s existence did not create f-Commerce.  It just created additional opportunities which, as yet, have not been fully optimized.

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Incentivized Pre-Sale Social Sharing by AddShoppers

In short, Add Shoppers™ is a pre-sale solution for e-Commerce providers to incentivize more sales through its unique social sharing technology.  But that’s just the tip of the iceberg.  This robust platform gives retailers the opportunity to easily install share buttons which, in turn, offer coupon code incentives to their potential customers.

For example, a retailer logs into the Add Shoppers™ dashboard, selects either the code which fits their e-Commerce shopping platform provider or a custom code, then adds the short java script to their e-Commerce site.  Icons are then displayed showing the coupon amount the potential shopper will receive once they’ve shared the item on either Facebook, Twitter, Email, Pinterest, Kaboodle, Stumble Upon or Google Plus.

Platforms currently supported by the Add Shoppers™ technology include Magento, Volusion, Big Commerce and Shopify.  In an effort to increase sales and virally spread product offerings this really is a no-brainer for both retailers and e-Commerce platforms looking to offer their retail customers additional tools to increase sales.

Add Shoppers™ is a North Carolina based startup led by CEO Jon West.  Speaking to Commerce On Facebook, Jon stated “We just want to make the coolest, best product for retailers.  Our aim is to become the ‘add this’ of e-Commerce”.

Once a potential shopper shares an item, the retailer has access to a whole array of well laid out, easy to read and manage, reports.  The data includes information about the people who are the brands social influencers, which products are being shared, which social networks are producing the best return on investment, social network reach and demographic information including gender and geographic location of the people sharing the brands’ products.

The screenshots below show the dashboard layout and how the retailer would view their social reports:

Additionally, live examples can also be found on Fairway Styles and 3Tailer.

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Will Timeline Hurt The Popularity of Facebook?

The new and widely spoken about Facebook timeline will imminently replace all users’ current Facebook home page.  The look and feel of the timeline is a drastic change to the current layout.  But is this change for the best?  So far, the feedback that we’ve seen here at CommerceOnFacebook.Com, has only been negative.  Admittedly, the timeline does appear to go in line with the whole ideology behind Facebook, allowing users to ‘scrapbook’ events in their lives.  But is it really too drastic?

The feedback from a poll asking 620 Facebook users if the implementation is too drastic and too sudden (despite all the online hype) is approximately 70% against the timeline.  “Half the stuff on my wall has disappeared.  I have no idea how to customize it and I really don’t have the time or energy to figure it out” stated Philip Fletcher.  Philip decided to change over to timeline in advance of the compulsory switch, but has been disappointed.  “It’s just not what I’m used to.  I’ve had a Facebook account for nearly five years.  Even though there have been changes in the past, nothing has changed as suddenly and with so much impact as the timeline.  Right now, there are only two things keeping me on Facebook.  Five years of pictures and the fact that it’s an easy way to stay in touch with most of my friends.”

Asked if he would consider changing to another social network such as Google plus Philip answered “Up until now I would never have considered it.  But with all the changes to Facebook, and if Google plus has a way of keeping my pictures and network of friends in a familiar manner, I probably wouldn’t hesitate right now.”

But logistically speaking how easy is it for a mass migration from Facebook to Google plus?

Technically speaking it’s very possible.  There are many applications currently plugging into Facebook’s API for many different features and functionality.  If Google were to create a ‘migration’ APi, in theory any Facebook user could automatically transfer all of their photo albums over to Google plus.  And it wouldn’t just stop there.  All profile information currently held in Facebook could also be transferred automatically to Google plus.  The only thing holding people back would be the connection to existing friends and the initial change to a different network.  However, if the majority of people, like Philip Fletcher, feel that Facebook’s timeline changes are so drastic that it no longer resembles the ‘old’ Facebook, now would be the ideal time for Google to push hard with their Google plus social network.

From a business perspective it wouldn’t be such a bad thing either.  Facebook hasn’t really made any changes which assist businesses promote themselves or easily sell products inside Facebook.  The predictions for commerce on Facebook have still yet to come to fruition.  Google already has the infrastructure for Google checkout, organic search and paid advertising from both the advertiser and publisher perspective.   Facebook ads, although currently still cheaper than Google’s adwords, still do not offer the kind of ROI enjoyed by adwords customers.

Social gamers still using Facebook will also find that all their favorite games can also be found on Google plus.  And that these games do not rely on being played within Facebook in order to continue playing with existing networks of friends.

In short, the introduction of timeline could go either way, but it could just be the start of a major decrease of Facebook users.  Will Google take advantage of this and push hard with an automatic migration for existing Facebook users?  Or will Facebook realize their potential mistake before it’s too late and amend the way timeline automatically displays user information?  With approximately 50 million users, Google plus is already starting to show early signs that the battle for social network dominance is well underway.

 

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Curebit Offers Online Stores the Solution for ‘Word of Mouth’ Social Marketing

Everyone talks about how effective ‘word of mouth’ marketing is within the realms of social media. But how easy is it to get customers to recommend your products? Incentivized offers are nothing new. Most online companies have at one time or another considered implementing a ‘refer a friend’ program. Some have successfully managed this while others have fallen by the way side.

The biggest problem, especially for small businesses, has always been the logistics of implementing such a program. In theory, it really isn’t rocket science. But when it comes to online tracking and the reward fulfillment, it just hasn’t been as easy as it sounds.

Now, designed for e-Commerce businesses, Curebit has the solution. First off, they offer simple and seamless integration for users of 3D Cart, Magento, Shopify, osCommerce, OpenCart, Zen Cart and DemandWare. They additionally offer custom integration for sites not using any of the above shopping platforms.

They allow the owners of online stores to offer paying customers a limited time discount in return for a successful recommendation to one of the customer’s friends. The customer can share the offer with their friends via Facebook, Twitter, eMail and Instant Messenger. On receiving the offer and clicking on the link, the friend is then taken to a landing page with additional details. Then, when the friend completes the purchase, the referrer is then notified and receives the discount for their next purchase.

Not only, is the store being recommended to new shoppers, but this also acts as a loyalty program for existing customers who become repeat shoppers. Documented on the Curebit website are two case study examples. Using Curebit, Diamond Candles ran a post-purchase campaign. Sales increased by 15% as a result of the campaign. Another client, Dodocase saw that 60% of their customers shared the offer, powered by Curebit, after making a purchase.

The system also identifies the power influencers with their “Social Influencer Tracking” giving merchants the ability to personally reach out to these customers and offer thanks or additional incentives.

So it’s no wonder that Curebit has just raised $1.2 million in funding from investors which include 500 Startups, Gordon Tucker and Alex Lloyd of Accelerator Ventures.

 

Below is a video which gives an overview of how Curebit works:

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Vendorshop Secures Funding of Approximately Half a Million Dollars

VendorShop Social, a leading social commerce software company, has secured investment funding of €400,000 ($515,000) to fuel its expansion plans.

“With our VendorShop software, we’ve established ourselves as one of the leading providers of Facebook store solutions for merchants and the funding is all about positioning ourselves for growth,” said VendorShop Social co-founder and CEO Chris Small.

Small added, “Technology is one of the bright spots of the Irish economy and companies like us are bucking the gloom.”

The Dublin-based company has sourced the funding from government agency Enterprise Ireland and two private investors. The company is expecting to grow the team to 10 people over the next 12 months and to double that within two years.

“We have developed a good understanding of how Facebook commerce works and we need to build that insight into our product. The money will allow us to achieve this goal by expanding the development team and enhancing our sales and marketing resources.” Small said.

The company is considering raising additional funds during 2012 to enable the business to scale more quickly. The goal would be to establish a significant presence in the United States and open a sales office in Australia.

“The VendorShop solution is already used by retailers in more than 15 countries including the United States, the United Kingdom, Australia, Malaysia, Singapore and Hong Kong,” Small said. “Getting closer to these markets by having a presence on the ground would be a great benefit to us.”

VendorShop Social powers thousands of Facebook stores with their VendorShop shopping cart software. It allows merchants to promote and sell their products directly from their Facebook page without redirecting customers to another website. The shopping cart also carries the McAfee Secure and VeriSign Trust marks of security and includes a range of powerful social shopping features such as allowing the retailer to offer discounts to customers who like their page or share products with their friends.

“Successful F-commerce is all about rewarding your best customers and showing them how much they are valued with exclusive offers and discounts,” Small said.

“For example, a fashion retailer might offer an exclusive discount or launch its new-season range initially to its Facebook fans. Imagine how powerful that is in creating brand advocates for a business. Not only will the business generate significant sales on Facebook but the person will also likely tell their many friends who will end up buying themselves via Facebook and other channels as well.”

Examples of how retail brands are using VendorShop include:

  • Wine Market, a wine warehouse in Australia with an e-commerce enabled website as well as a Facebook store with 10,000 page likes, had sales of more than $AUS20,000 purely through its Facebook store in November 2011, with the trend continuing into December.
  • Rabia Z, a fashion retailer in Dubai with 20,000 page likes, uses VendorShop as a pop-up store solution – meaning that Facebook fans can access an exclusive range for a limited time. In October the brand launched its autumn-winter range on Facebook and did $US30,000 in sales on the social networking site in just a few weeks. The retailer also saw an increase in customer traffic to its studio.
  •  Chile Monster in New Mexico, USA, launched exclusively on Facebook 12 months ago and now has nearly 20,000 fans. The VendorShop store has been so successful, the business hasn’t seen any need for a traditional web-based e-commerce store.

 

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Targeting Trendsetters to Spread Word of Mouth Advertising

With the development of social media tools which enable brands to interact with their ‘Fans’, it was just a matter of time before the same principles were applied to advertising and acquisition.

While running a contest for the worst looking website, in order to promote the services of a young and energetic web design company, the team behind Trendemon began to understand the true power of ‘Word of Mouth’ marketing.

Speaking to CommerceOnFacebook.Com, Avishai Sharon, CEO and co-Founder of Trendemon explained how, after mentioning the contest to a leading hip-hop artist who then wrote about it and shared his thoughts with his social media followers, the contest landing page received 4,000 visitors in the space of one hour.  The need to spend money on advertising was no longer necessary and the seed of how successful ‘Word of Mouth’ social marketing could be accomplished was firmly planted into the foundations of Trendemon.

Trendemon is making inroads into the world of social advertising.  Basing the principals around social psychology and trendsetting influencers, they are tapping into a whole new world of social customer acquisition.  The offering is comprised of an interface which links directly to community leaders and trendsetters.  In the past, where advertising networks consisted of advertisers and publishers, social advertising with Trendemon consists of advertisers and community influencers.

The people who influence their followers can choose which offers to share with their community.  They can be rewarded based on these actions and can even choose to share the reward with their communities.

The technology aspect of the equation is twofold.  Firstly, analysis of trendsetters and their audience to create channel relevancy and secondly, matching campaigns to relevant trendsetters.

“It’s more than just technology,” stated Avishai “it’s understanding the human algorithm.  More than just an announcement of an offer, it is conversation dominance.”

In short, trendsetters are followed.  What Trendemon have created is a way to identify trendsetters within their communities and offer this influence in a natural way to advertisers.  Unlike a celebrity endorsement within a televised advertising campaign, this form of ‘celebrity’ endorsement is a much more personal and focused interaction.  This is the evolution of social media for business.  It is also easier to see the direct results of ROI in relation to social media interaction, using the Trendemon dashboard.

Grey Group has already seen the value in this type of advertising and has already become one of the first clients to sign up for access to the Trendemon interface and advertising services.

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The Key to Successfully Selling on Facebook

Imagine you’re a brand.  You want to have direct contact with the people who buy your products.  You want to know what they want.  How much they are prepared to pay for your products.  And who is recommending your products.  You want to identify your brand advocates and ambassadors and reward them accordingly.  You also want to be up-to-date with buying trends and therefore offer group deals and even customer initiated group deals.  All of this is now possible, but only in one place.

As a brand, selling directly and maintaining a direct channel of communication with your customers may seem a little alien.  It may also conflict with your distributors.  But what if you can give each and every distributor their own online channel of social communication and the ability to sell your products directly from this channel?  As a brand working with distributors you need to be able to set revenue percentages for sales and give your distributors an interface to view sales and commissions.

This is exactly what Panasonic Israel has done using the f-Commerce platform developed and supplied by SortalPanasonic Israel has over 25,500 fans on Facebook.  Therefore, from a common sense point of view, it’s just logical to be able to interact, learn a little and reward the consumers following the Panasonic brand in the Israeli market.  On top of that, Panasonic distributors also have exactly the same tools to utilize and leverage the power of selling on Facebook.  This is already being used by Future Audio Video Ltd, a smaller distributor who is now able to sell Panasonic products directly within Facebook.

Up until now, Sortal have been quietly, but confidently developing their f-Commerce solution.  After signing up a number of high profile clients within the Israeli market in 2011, Sortal are set to offer and promote their fully tuned solution to the rest of the world in 2012.

Sortal’s model is geared towards enterprise clients.  Each customer receives their own custom made, separately hosted application.  Built using the solid foundation of e-Commerce platform Magento, Sortal’s model is simple and focused.  They are looking at working with clients who have already budgeted for selling in Facebook and understand that uploading a few products to a fan page in the hope that items will sell themselves is not the way that commerce on Facebook will work.  Sortal clients must be serious about social media.

Sortal offer features that can already be found in the marketplace such as:

  • Group Offers
  • Offline Coupons
  • Purchasing Within Facebook

They also offer features that have yet to be seen or completely utilized within the social shopping stratosphere:

  • Full featured social loyalty program, including a points system for identifying brand ambassadors
  • Unlimited stores for distributors / affiliates based on Brand’s partners and resellers
  • Gifting – where the recipient is prompted to complete address details
  • Customer initiated group offers
  • Bargaining – which allows customers to name their own price for items

Additionally, being built around the Magento e-Commerce platform, all Magento functionality can be found within the Sortal Facebook store.  These features include:

  • Full account dashboard for customers and merchants
  • Ability to capture emails and send newsletters
  • Run in-store polls
  • Customer wish lists

If f-Commerce has been slow in 2011, part of the problem has been too many providers offering instant solutions to sell within Facebook, but not defining the methods.  The true success of f-Commerce depends on the actual selling within Facebook.  Selling in Facebook is not rocket science, but it is different to conventional online retailing.  Customers do not currently go to Facebook to make purchases.  However, given access to exclusive rewards and the chance to directly communicate with their favorite brands and retailers, will see the trust and purchase levels increase.  Cleverly implemented loyalty programs will keep customers returning and increase the conversion rates on sales.  Brands and retailers, whether big or small, who understand the importance of the investment in terms of both time and money in social media, will be among the first to experience success with social shopping on Facebook.  In short, brands who are able to listen to their customers and respond accordingly, will succeed.

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Online Retail Sales Set New Records This Holiday Season

“It’s just safer to stay at home and shop online,” was the sentiment echoed by a number of grim faced shoppers over the past week.  “There’s just the same bargains, if not better on the Internet. No queuing, no pushing, no fights, no chance of witnessing a murder and no problem either parking or waiting for a train or bus.  Everything can be done from home.  I don’t know why I didn’t stay home to begin with.” Stated Jeremy Anagola of South Tottenham, London.

Amidst the backlash of one of the worst sales results in the history of recorded sales, e-Commerce is emerging as the uncontended victor of the holiday season.  In addition, due to the peaceful surroundings of online consumers, brands are able to establish and build a better and longer lasting connection to their customers.  In-store customers see themselves as one of many, whereas online, despite the physical absence of a sales assistant, customers feel that they are the only customer of the store at the point of purchase.  This gives the store a better opportunity to bond with new and existing customers and offer additional deals to increase the online sale.  Add to that, smart targeting, where the store is able to show customers items that would appeal to the customer based on historical purchasing, and it is easy to see why online has taken over the mantle of land based shopping.

According to comScore consumer spending has already recorded a rise of 15%.  Forrester Research is predicting the final spending amount to reach $59.5 billion online, compared to $52 billion from last year.

In addition to online shopping, daily deal sites have also had a reasonably good holiday season this year.  According to another Forrester report, at least 29% of all online adults have used a daily deal site at least once.  However, could be set to change as Brands led by the likes of Walmart, are beginning to understand the value of controlling their own deals and not outsourcing to 3rd party deal sites such as Groupon and Living Social.

Online shopping is also better for returns according to one study.  Consumers are more cautious and less impulsive when buying online.  Additionally, when it comes to high priced technology items such as laptop computers and mobile phones, consumers have already taken the time to read an average of five to seven reviews per item.  Therefore, unless a product is damaged or defective, the likelihood of the item being returned is much lower.

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