Social Commerce is the NEXT BIG THING.

via Paul Marsden at SocialCommerceToday

Social Commerce along with Social Search and Social Mobile are 3 of
my big investment buckets (I invested in Aardvark, Milo.com in 2 of those categories). There’s an epic Wired UK cover story on Social Commerce. You must get the hard copy. I got a couple cool quotes in:

“I call it people rank, as opposed to [Google’s] PageRank. Just as PageRank gives more weight to a page with more authority, we can now identify the most influential people in a space. Traditional marketing? It’s dead. It’s real-time social marketing and commerce that really matter now. There will be multibillion companies in the social commerce space. We’re where we were with social gaming two or three years ago…It’s about ego, sharing your status and accomplishments, a quest for positive validation”

Great quotes from Mark Zuckerberg, Reid Garrett Hoffman,  Christian Hernandez, Andrew Mason, Bing Gordon and Michael Lazerow. See link at bottom. I’m so excited about the next great social commerce companies being built. I really believe that at least one entrepreneur can built the Social Amazon of our generation.

On the potential for social commerce:

  • Mark Zuckerberg (Facebook founder) “If I had to guess, social commerce is the next area to really blow up”
  • Andrew Mason (Groupon founder) “The size of the [social commerce] market is the size of every empty restaurant table”
  • Bing Gordon (KPCB investment (sFund)) “The potential for social commerce today is “infinite”… Every ecommerce site will have to adapt”
  • Christian Hernandez (Facebook)“There was an Econsultancy survey that said that 90 per cent of purchases have some sort of social influence – your friend recommended it, or you saw it on somebody. Until now there’s been no way of getting that ‘girls in the mall’ effect on a large scale. That’s the opportunity: it’s huge and untapped. And we have the benefit of both scale and identity”
  • Danny Rimer (Index Ventures) “It’s this notion that a transaction is more communication than the be-all and end-all. We believe that when you go to checkout, the end of that activity is sharing what you’ve purchased with friends. Everything is going to have to integrate a social layer in commerce. No question.”

On the rationale for social commerce

  • Andrew Mason (Groupon founder)  “Middle-class people sit around trying to think of how to spend money.  One of the most powerful ways to figure that out is looking at what you friends are buying, people you trust”
  • Christian Hernandez (Facebook) “Social recommendations can help you discover things that some algorithm won’t”
  • Danny Rimer (Index Ventures)  “When we buy something, we become its greatest champion. That is what social [commerce] can do. It really is transaction as communication. The internet lends itself to promoting and building validation, confirming that what you’ve bought is great. It’s one of the irrational, unexplainable but inherent bits of human behaviour.”
  • Shervin Pishevar (Social Gaming Network founder, investor) “It’s about ego, sharing your status and accomplishments, a quest for positive validation”

On social commerce business opportunities

  • Reid Hoffman (LinkedIn founder)  People will converse about your brand independently of you. You can’t stop the negative comments. But what you can do is maximise the likelihood of a distributed set of very good conversations. That has to be your strategy.
  • Christian Hernandez (Facebook) “I’m most excited about Deals – so when you check into a physical Gap, it gives away 10,000 pairs of jeans. Imagine you run a Gap promotion on Facebook, and track who walked into the store and cashed it in for a pair of jeans. It’s the advertiser’s holy grail: how does my brand
    money lead to foot traffic? It means you can figure out the return on your advertising. And users get to discover deals – your friend checks in and cashes in a deal, it gets shared. So if I learn that Tommy Hilfiger is doing an interesting deal nearby, I might just go and check it out myself. It amplifies the coupon model to 500 million people. There’s discovery, sharing, bragging about what you’ve bought, and redemption at the storefront”.
  • Reid Hoffman (LinkedIn founder) With millions of people in the role of publisher, the challenge for marketers is how you tastemake…Rather than buy [ads in] one TV show, it’s better to be in the fabric of the conversations. It makes more sense to participate in, say, girls displaying their purchase”
  • Reid Hoffman (LinkedIn founder) “You don’t say, ‘Wow, I bought this really cool toaster,” he says. “But it’s really relevant with music, movies, books – they are part of our identity, and they’re repetitive purchases. We buy maybe three
    books a month, at least one album a month, see three movies. That’s key. Look for purchases that can be part of people’s everyday lives”
  • Michael Lazerow (Buddy Media founder) “Facebook is now ‘This place where 50 per cent or more of our customers live online, where a quarter of all US ad impressions are – if we don’t go there I’ll be fired.’ So all of a sudden, brands
    are publishers who sell directly through social channels – bookstores, travel companies. And we’re just at the beginning.”
  • Shervin Pishevar (Social Gaming Network founder) “I call it people rank, as opposed to [Google’s] PageRank. Just as PageRank gives more weight to a page with more authority, we can now identify the most influential people in a space. Traditional marketing? It’s dead. It’s real-time social marketing and commerce that really matter now. There will be multibillion companies in the social commerce space. We’re where we were with social gaming two or three years ago.”
  • Sinan Aral (Stern School of Business, chief scientist, SocialAmp) “The companies that will succeed with social shopping are the ones that have science under the hood.”
  • Danny Rimer (Index Ventures) “We picked up a trend on YouTube called v-hauling. We saw these 18-to-25-year-old girls going online with their most recent shopping bag from Topshop and Target, explaining to the camera why these were awesome goods. And some of them had followers in the hundreds of thousands.”
  • Danny Rimer (Index Ventures) “[Privacy], It’s a generational thing: the new generation want to scream from the mountain-tops what they’ve bought and share the value with the largest audience they can get.”

http://socialcommercetoday.com/s…

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About kramereric

Serial Entrepreneur, Digital Enthusiast, Strategic Consultant, @erkramer
This entry was posted in Social Commerce and tagged , . Bookmark the permalink.

One Response to Social Commerce is the NEXT BIG THING.

  1. Raymond says:

    Following all these years I had been carrying out this workout
    considering it was going to whip me in shape, wow!

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