Why CMOs Will Adapt To F-Commerce In 2012?
As CSO I speak to many CMOs about the opportunity to redesign their brand in the social space. And why they should adapt to Facebook Commerce in 2012. Because 800+ million people are actively waiting to be engaged and buy from their brand…
Why strategy is difficult sometimes? Unlike most CSOs, many CMOs think about the what and not the why.
CMOs tend to chase social channels and touch points, and think they need a Facebook App or Mobile App. CSOs however, like the opportunity to re-engineer brands in a real social way…
Difficulty two is about DNA and loyalty. Why should a CSO be dedicated to re-engineer a brand in a real social way, if that brand and its CMO are not willing to invest in a partnership with its social agency?
I have seen my social agency winning pitches at leading consumer brands. Next the CMO expects us to pitch on each and every new project again?
If that is the CMOs idea of building long term mutual beneficial relationships: Sorry I’m out. Please go somewhere else and chase the channels and apps without us.
Why do I like to work with CMOs that have the power to embrace innovation and are open for disruption?
Because breaking through conventions demands disruptive thinkers. Only a great new commercial idea can break through the conventions.
That is how great commercial ideas are invented. And great new commercial ideas will direct great new creative ideas.
Sorry, as CSO I have seen too many “great new big ideas” fail. Simply because it lacked: disruption.
Simply because it lacked: a powerful insight. Simply because the “big idea” was not fueled by a great commercial idea.
Why am I convinced that our CMOs will adapt to Facebook Commerce in 2012?
Reason one: eCommerce is already massive throughout the world. And Social Commerce will rise to $30 Billion in the US alone the next 5 years.
And $1.2 Billion is the projected size for Virtual Goods in the US for 2011.
Reason two: Facebook Commerce is much more than Apps or just Liking pages. There are 7 dimensions driving Facebook Commerce that make up the F-Commerce Ecosystem.
Here I will show you a theory and some very relevantt and actionable examples of other brands that have embraced F-Commerce…
The F-Commerce Ecosystem will show you the disruptive power and commercial idea behind F-Commerce. Click to enlarge the visual and please take your time to understand the why.
I think this picture would be interesting to share with CEOs, CMOs, CFOs and especially Procurement Managers that tend to make their social agency pitch again and again.
Or other brand stakeholders that do not see the commercial idea and are mostly extremely penny wise, but pound foolish in the process of selecting their new social agency. Try to get the big picture first, before you take decisions.
ALF: Always Listen First. In this new social field, you might just be the rookie with no clue of the impact on your company or brand yet. Think in partnerships and mutual beneficial relationships. Not in suppliers that you can build your brand the cheapest channel or app.
Even when you have your own Facebook page already. Does this make you the expert in the field of social media?
Commerce Inside Facebook
Since 2009, retail companies have embraced Facebook Stores. Shops integrated in Facebook Pages that either re-direct to the brands online shop or support real-money shopping right on the Page.
When re-directing from a Facebook Shop to your own Online Shop, make sure to guide the UI and Customer Journey! This is where many brands make their potential buyers get lost in translation. Consumers click your Facebook Shop to buy that product.
If you do: Don’t make them land on the general homepage of your own online shop, where next the consumer needs to select his country and needs to click 7 times to find back the product he wanted to buy.
Customer journeys like that will decrease your F-Commerce conversions dramatically. And as a result you will say: We’ve tried it, but it did not work for us. So, make it smooth, make it smart, make it slick. SEE, LIKE, BUY.
Community marketing and organic growth. I know CMOs want to move fast by launching advertising campaigns. But I will give you the Adidas Originals example below. It clearly shows why a brand needs smart community marketing to grow its Facebook fan base in an organic way. Click the visual to enlarge it…
As you have been able to see: SEE, LIKE, BUY does not start by running Facebook Ads. The most crucial part of engaging and growing your Facebook fan base in an organic (and thus much cheaper) way starts with creating and posting great content. And with a CRM driven approach: loyal fans, brand advocates and their friends.
So before you even start to chase the Facebook channel, are you the man with the plan, my dear CMO?
Facebook Ads and Sponsored Stories. Relax; did you really think I would skip the advertising opportunity to grow your number of fans and Facebook transactions?
Facebook Ads and Sponsored Stories are advertising options; messages appear in the Sidebar and in the News Feed. You can use Facebook ads when your community marketers or community managers have mastered the social interactions with your fans. But think about growing your fan base organic first!
Facebook ads can be extremely smart and targeted. You can target them on very specific demographics. But also on psychographics and even on passions of people.
So you can now finally connect to the right passionate people at once. Ask your social agency how this could drive your brand and business objectives (BoBo).
Facebook Credits . Facebook Credits is Facebook’s virtual currency. It’s redeemable for digital goods (gifts, games, movies and paid apps) and virtual goods inside games (extra levels, lives, character enhancements).
Brands have many opportunities to use Facebook credits to pull consumers gently through their funnel towards awareness, trial, loyalty and advocacy. On any possible screen. Ask your social agency for smart ideas, once you have mastered these steps above.
Understand that social games company Zynga (creator of FarmVille) sells 38,000 virtual items every second, this stuff is pretty popular with your consumers already. Even when you might think: I hate gaming or do not even know what Farmville is…
In 2010, Zynga’s virtual goods revenues hit $575 Million. The virtual goods industry is expected to total 1.2 Billion this year in the US alone.
Facebook’s Gift Cards can be purchased online or in supermarket checkout aisles, or can even be earned as loyalty incentives. When you launch your mobile app, your consumers can even earn rewards points for store check-ins, similar to Foursquare.
So Gift Cards can help you to drive your brand and business objectives. And maybe more important in the long run: it can make your brand more entertaining, relevant, innovative and beloved.
So if you want a love brand strategy, think beyond product advertising and get your true consumer insights from your social agency.
Facebook Mobile & Open Graph Facebook Commerce
Please do not get scared by terminology below. I’m not trying to win the bullshit bingo by throwing in fancy techy names.
Your consumers have massively embraced their mobile phone. Mobile is the next gateway for brands, communities and commerce. Maybe not for you yet, but certainly for many of your targets.
The Facebook Mobile Platform and Facebook’s mobile apps, allow status updates on-the-go that push to Notifications, Requests, Timeline and News Feed, which may be shopping related.
So when implementing your social and Facebook strategy, think about mobile being your next gateway. And think about SoLoMo: Social, Local and Mobile.
Facebook Open Graph Beta might seem scary stuff as well. It’s not. It can help CMOs to drive their brand and business objectives even to the next level.
Open Graph 2.0 will move beyond the Like, Share and Recommend buttons to incorporate a new set of “verbs and nouns” like “I Like,” “I Want,” or “I Bought.” These actions can be pushed through Timeline, Newsfeed and Ticker.
All smart new ways that you might not yet fully understand yet. But how could you? But your competitors that are accompanied by a smart social agency will certainly embrace this pretty soon. So is your brand guide stating that your brand is a true leader or a follower?
There is also Facebook Connect and its many eCommerce applications. And Facebook offers Social Plugins that allow users to perform Facebook functions on your site. Think “Like,” “Share” and “Recommend” buttons, fan widgets and comment boxes.
Facebook Places and Location Tab. How about your oportunities to adapt to Social Gaming, Social CRM and Social TV? Will you coin those social trends in 2012 or will you leave it up to others?
Facebook is connecting and processing more data. This data can be integrated online and in-store via the mobile experience. Another use for location info is Ticketmaster’s Interactive Seat Map, which lets you locate where your friends are sitting in a theater.
And this will be used by airlines as well in the business class my dear CMOs. The next time your PA books you a business seat for your next flight, she might be able to put you in a seat next to a fellow CMO – based on your LinkedIn data, that will be included in the booking engine.
We have heard that KLM Royal Dutch Airlines is planning Social Seating. So don’t be surprised that in 2012 – KLM passengers will be able to link their Facebook and Linkedin profiles before they book and buy a seat they check into. A bit like flight dating…
Maybe you will now understand my SEE, LIKE, BUY one-liner for Facebook Commerce better? I mashed-up Schiphol Airport’s tagline: SEE, BUY, FLY.
So when will you seize your opportunities to make your brand and business go fully socially overboard? Opportunities are all offered today!
This post took me a half day. I hope some CMOs find it inspiring.
It certainly helped me to share my passion and frustration working as a CSO. And I look forward to your vision on Facebook here in the comments.
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