First came the Social Network (thank you Mr Zuckerberg) which, connects over half a billion users. Now the big chiefs of the online world are all competing to be the first to properly monetise these social platforms and evolve them into revenue streams.
Currently there are strong influencing factors online that persuade us to purchase (or not). Take Amazon as an example, long have they recognised the successes in recommending products based on your purchase history, viewing activity and the trends of like minded shoppers. It wasn’t long before this simple model was adapted and adopted by many other commerce platforms and now we’re seeing this evolve to include more personal input; take Google’s search tool launched last year, this pulls through recommendations and reviews from your friends and family around the term you’re searching for. Admittedly it didn’t spread like wild fire but the theory is strong.
If you’re looking to buy a film and Amazon or Google tell you via Facebook that your friends think it’s ace, you’re more likely to buy it right? In fact, according to last years Econsultancy survey 90 per cent of purchases have some level of influence from the social arena.
The bit that seems to have everyone up in arms is the public display of your spending habits. Tools such as Blippy publish your transactions in real time encouraging those in your social circle to view and comment. The question is: Is this an honest and open way of sharing your trends, habits and interests or, is it really just a way of bragging about how you splash your cash? Is it about status or is it about making informed decisions in the impulsive world of online commerce and then seeking the reassurance you’ve made the right choice?
Do you really want people to know you get your knickers from M&S and not Agent Provocateur?
Either way, 2011 is marked to be the year that bucks the Social Commerce trend so, if you’re serious about your business stop waiting in the wings and get yourself a strategy… Fast!
A bit area for sure in 2011…I’m interested to see where it will lead!