The rise of social selling in 2015

By Marcel Munoz, Chief Technology Officer, Thanx Media

Having a company presence on popular social media platforms has become a “must have” expectation for consumers, who see it as a sign that a company is dedicated to hearing customer feedback and delivering customer service. However, maintaining an open line of communication with customers on social media is only the first step in leveraging this powerful medium to connect with customers. We see tech-savvy brands moving to the next level — social selling.

Early attempts by brands to gain followers and fans on social media are now giving way to more sophisticated efforts to leverage the power of social influence to convert sales. Consider these facts:

• Referral traffic from Facebook, Twitter, Pinterest and YouTube increased 41.8 percent from 2013, driving 51.5 million unique monthly website visitors (2014 Internet Retailer Social Media 500 Guide)
• Revenue from those visitors increased 63 percent to $2.7 billion in 2013

These powerful referral channels are continuing to grow and, in addition to being a critical sales engine, they provide a treasure trove of data points for connecting with customers and improving the customer experience.

For example, real-time trends tap into these data points and help simplify merchandising efforts. Retailers can leverage customer data from their social network and e-commerce website activity to let shoppers know what relevant products are trending at the moment, whether by category, geo-location or other relevant criteria. In effect, placing trending products in the shopper's view creates the kind of gravitational pull that might happen when a window shopper at the mall sees a line at the Apple store for a new iPad release. Creating a similar experience by showing shoppers what products are hot using customer purchase data has great potential to influence purchase behavior in real time, engaging e-commerce “window shoppers” and new customers that are exploring what the site sells. Seeing leading retailers such as Zappos and Zulily experiment in this area provides excitement on how this will evolve throughout the year.

Another example is how these referral channels are bringing conversations outside of an e-commerce site. Sales and customer service reps have been moving beyond in-store efforts to strengthen customer relationships as well, employing the power of social media to build and sustain customer loyalty. On the flip side, shoppers have been turning to social media more and more as part of their purchase decision-making process. Friends (and trusted experts) have been influencing these shoppers through endorsements of products. Product reviews on a single e-commerce site are losing influence.

Increasingly, online retailers are adjusting to the Age of the Customer. Jim Blasingame, author and small business expert, points out that customers now control the access to product information. Customers also define their own shopping experience, whether it be in-store, Web, or mobile, and they do not want these channels limiting their buying decisions. Online retailers still provide the products and services, but innovation is needed to stay relevant to the customer.

Retailers are exploring innovative ways to influence the customer-driven shopping experience. An important goal is to deliver the most relevant prices and information in front of shoppers in real time. Mobile technologies will enable retailers to offer in-store discounts to shoppers who are checking prices online while at the store. Customers will expect stores to have apps that help with aisle navigation, product location in-store, and quick product pick up. Another application enables video chat in brick and mortar stores so that shoppers with a question won't have to wait for a clerk and hope he or she can answer it, but could quickly chat on their smartphone with a true product expert on demand. To support these innovations, providing free in-store Wi-Fi encourages this updated shopping experience.

The ongoing convergence of the in-store and online shopping experience will continue to present both a challenge and an opportunity for retailers. Those with the right technologies in place to meet and even exceed the customers’ growing expectations when it comes to embracing social selling and the Age of the Customer are sure to be rewarded for their efforts.

Marcel Munoz is chief technology officer for e-commerce software firm Thanx Media. (Photo by Randy Rodgers.)