Social Commerce

Our experts, Michael Fieg, Christian Farra and Ben Rund about Social Commerce.

Twitter, Facebook & Co are on everybody's lips.  Opinions are wide-ranging, from nonsense to mega-hype, on the significance of the micro-blogging services on e-commerce and multi-channel trading.
In Germany, 36% of online shops already have Twitter embedded, while 20% are planning to introduce it. This was the result reached by an investigation carried out by ibi research at the University of Regensburg.

Many companies are already reporting that their turnovers could increase significantly through the implementation of social media channels. Interactive media increase dialog with the customer. Putting aside a purely sales-figure oriented mindset, they enable authentic and direct communication with the customer. New customers can also be made aware of product offers.

So is the phrase "the trend is your friend" particularly apt in this instance? Online social networks are growing and increasingly influencing communication, be that in the business world or the world of the consumer. E-commerce prescribers must analyse precisely and decide which of their target groups can be reached through this medium. At present the media is particularly applicable to a target group of technology enthusiasts who love to experiment.

The decision whether or not social media should play a role in your communication and business strategy, and indeed what that role should be, cannot be made by this report. This report does, however, outline the important factors. This white paper takes a look at First Movers, who believe in social commerce and hope to discover what significance Product Information Management (PIM) has in this context.



Two thirds (67%) of customers who research a brand on Twitter are subsequently more prepared to buy that product. On Facebook this applies to 51% of users. There is hardly any distinction between the expectations of men and women. Females prove to be more prolific bargain hunters. The following figures from a study by Chadwick Martin Bailey support this notion:

Female target group: Why are you a fan of brands/companies on Facebook?
1.    In order to receive offers and discounts: 30%
2.    Because I am already a customer: 20%
3.    To show others that I like this brand: 15%
4.    For fun: 10%

Male target group: Why are you a fan of brands/companies on Facebook?
1.    In order to receive offers and discounts: 23%
2.    Because I am already a customer: 23%
3.    To show others that I like this brand: 18%
4.    For fun: 11%

With regard to B2B communication there has, to date, been a lack of clear evidence that a relationship between social networks and a decision to purchase really exists.
What is most clear is that customer feedback takes on an increasing significance in the world of web 2.0. A review posted online can be extremely exciting and effective, but only if I, as a retailer, am permitted to re-use this information. Staples, the office supplies discount store, has around 60,000 Facebook followers. On its fansite Staples publicises its current promotions, as well as discount codes and discount deals. Customers comment on and review these deals. Here PIM supplies the appropriate product data.

Shoes allows customers to review their products on Facebook. Shoes' customers can subsequently arrange the product list as desired. The Facebook user is sent to the linked store via a "Buy online"link.

Facebook is especially well suited for image galleries. Fashion store Mary & Paul demonstrate, albeit somewhat tentatively, what is possible. However, the fact is that, for fashion in particular, a Facebook shop window can be a way to reach potential customers. The appropriate images are provided by PIM using integrated Media Asset Management (MAM).

The Otto subsidiary Jungstil allows customers to select potential store products and displays them using (amateur) video content. This is more authentic in every way.

Jungstil goes even further: Customers have the opportunity to import "their" outfits onto Facebook. The photos are then commented on and reviewed by fashion journalists and bloggers. The winners receive prizes. Jungstil has thus created a direct channel to an unbelievably large community of fashion-loving customers. As far as some industry experts are concerned we could be looking at the "product managers of the future". There is a growing understanding that the female customer base in particular know which clothes they are going to be wearing in the coming summer.

Product data in social networks will thus be loaded with customer opinions and should be fed back into a Product Management System (PIM). This information then displays these allurements as soon as they can be used in other cross-medial sales and advertising materials. We are thinking along the lines of product flyers, mail outs or catalogs. These customer opinions also play an important role for product or category management in the selection of product lines.

This screen shows how customer reviews from Facebook are centrally stored in Heiler Product Manager.This top has an average rating of 5 stars, while the brand has 43,678 fans.

Direct customer opinions from the interactive web can be gathered and evaluated immediately. Which reviews and comments have been made by the target cluster-group, "German, 13-16 years old, female" can thus be precisely analysed. In this way, product information management facilitates the segmentation of target groups in social commerce.

Today's customer is a hybrid. Evidence shows that he is using more channels to get information on products before a sale occurs. Multi-channel is therefore not just a fleeting trend but a compelling necessity. Experts also talk of so-called cross-channel marketing, which is used within a particular marketing channel to draw attention to further sales channels. For example, a mail order company will advertise its catalog via its website, and vice-versa. Or its store on Facebook.

With Youtube, Facebook, Buzz and Twitter, a further sales channel has arrived in the e-commerce world. With it the danger of data sharing, inefficient processing and inconsistent product communication is increasing. The call for a solution to put in place central product data management and central communication is being reinforced more strongly than ever. The Enterprise Product Information Management (PIM) system solves just this problem.

We would love to know your opinions on this. On which social media platforms could product presentations increase turnover? Cast your vote at: http://heilerpim.wordpress.com/pimpolls/

Get a closer look at the offers from Heiler Software on Twitter, Facebook and Youtube. Find out all there is to know about products, white papers or best practices, in real time.


Find out more about PIM 360° at: www.heiler.com/pim360