As Cyber Monday approaches, a lot of e-tailers are contemplating the ROI of social commerce. While full service social commerce, such as setting up a store on Facebook might be a viable move for big players, like Procter & Gamble with its Pampers store on the social site, for smaller businesses the major play lies in adding social plugins, such as “Like” or “Share,” to their e-commerce sites.
The truth is, consumers aren’t visiting social networks to do their shopping. A recent simplyZesty article reported that Forrester found that the conversion rate for Facebook stores was equal to that of standard e-commerce stores, at between 2-4%, while also attracting traffic of between 1-10% of the total fan base rate.
For smaller shops, the return on setting up a social shop definitely seems minimal. But when it comes to socializing e-commerce sites, there’s a greater reward. ADWEEK recently reported that, “revenue per click from shoppers arriving via social media links is $5.24, versus the $3.18 per click spent by email shoppers, according to analytics company ClearSaleing.” Adding that, “‘Share’ and ‘like’ buttons help drive traffic since click-through rates for news feed links are vastly higher than for Facebook ads.”
Using “Facebook Connect,” on e-commerce sites, such as Levis and Ticketmaster, has also aided in adding social to e-commerce that doesn’t seem awkward or forced. If a friend chooses to share shopping habits, then the consumer can see what they’re buying or liking right at the point of the transaction or search on the e-commerce site which ultimately influences their purchase. Shoppers are relying more and more on social to inform their shopping decisions and to form relationships with retailers.
So, how can e-tailers get ready for the social commerce wave?
- Ensure the loading speed of social plugins won’t stop consumers from completing the sale
- Ensure you know the true effects of your campaign with path to conversion reporting
Here’s how TagMan can help:
- While some e-tailers still have concerns about using social plugins because of added page-load time, TagMan’s Smart Tag Loading functionality can significantly improve page speed.
- With path to conversion reporting, TagMan helps marketers fully realize customers complete path to conversion by housing all the tags from all channels in one place and enabling clients to see actually where and how different campaigns appear in and contribute to the path to conversion. One TagMan client was able to demonstrate natural search delivered 14 times more than previously credited for (Social media and SEO massively undervalued: study)
Finally, measuring the value and interplay between social and search becomes a greater reality with a tag management system.