Turning like to buy

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  • Publicado : 23 de agosto de 2012
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Perspective

Matt Anderson Joe Sims Jerell Price Jennifer Brusa

Turning “Like” to “Buy” Social Media Emerges as a Commerce Channel

Contact Information Berlin Dr. Florian Gröne Senior Associate +49-30-88705-844 florian.groene@booz.com Chicago Jennifer Brusa Associate +1-312-578-4550 jennifer.brusa@booz.com Dallas Joe Sims Partner +1-214-712-6636 joe.sims@booz.com Dubai Karim SabbaghPartner +971-4-390-0260 karim.sabbagh@booz.com Düsseldorf Roman Friedrich Partner +49-211-3890-165 roman.friedrich@booz.com Frankfurt Olaf Acker Partner +49-69-97167-453 olaf.acker@booz.com Hong Kong Edward Tse Senior Partner +852-3650-6100 edward.tse@booz.com Houston Matt Anderson Partner +1-713-650-4142 matt.anderson@booz.com New York Fabian Seelbach Senior Associate +1-212-551-6073fabian.seelbach@booz.com San Francisco Jerell Price Principal +1-415-263-3764 jerell.price@booz.com São Paulo Fernando Fernandes Partner +55-11-5501-6222 fernando.fernandes@booz.com Vienna Klaus Hölbling Partner +43-1-518-22-907 klaus.hoelbling@booz.com

Booz & Company

EXECUTIVE SUMMARY

As consumers around the globe spend more time on social media of all kinds, it is inevitable that some of their postsand comments relate to what they are going to do at the mall and what products they like. Many consumer-oriented companies have already responded to this shift by setting up Facebook fan pages or Twitter feeds. These can be great ways of engaging with and influencing customers, especially since the individuals on a social networking site are usually connected to other individuals whom they trust andrespect. So, in the best case, a company that has something appealing to sell can, through an initiative involving social media, provide an impetus far superior to traditional advertising—recommendations from the most influential people of all, the prospective buyer’s friends and family.
But company influence through social groups and traditional marketing models is stopping well short of theemerging opportunity. For many customer segments, shopping in the physical world has always been social: I can go to the store with you and put an item in your shopping basket, saying “This is perfect for you.” Now, some companies are using social media in a similar way: as a place where they can transact business with their customers and where customers can shop with each other. E-commerce iscoming of age. These trendsetting companies are focused on products and services that benefit from the unique characteristics of social media, including the opportunity to get quick feedback from multiple friends and family members. The market for social commerce has been embryonic to date, but that will change over the next five years as companies race to establish stores, pushing up social commercerevenues sixfold, to US$30 billion globally. As this growth surge happens, social commerce will take its place alongside stores, telesales, and the more traditional Web to emerge as a significant sales channel in its own right.

Booz & Company

1

THE IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR

Social media has revolutionized the way people communicate and maintain relationships.Globally, Internet users now spend more than four and a half hours per week on social networking sites, more time than they spend on e-mail.1 There is a public quality to how communication happens on social networks— people are, to use the Facebook analogy, sharing their thoughts on “a wall” for others to see. As more and more of what people think and do ends up getting communicated on these new-agebulletin boards, it is inevitable that social networks will start to affect what consumers buy and how they shop. In a way that has never before been true, consumers are determining which products and services succeed and are shaping the messaging. Underlining this point, Altimeter Group says there is now a fifth “P”—people—to add to the traditional four “Ps” of marketing (product, price, placement,...
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