Cartfly, Buzzing Across the Net….

Cartfly is an e-commerce tool used in social networks.

As its name indicates, it is essentially a “shopping cart”, a usable and installable basket embedded into e-commerce sites. Contrary to other tools, Cartfly presents itself as a widget that can be installed very easily. 

PC World writes:

Here the key word is not only “easily” but also “share”.

Cartfly can be installed on the whole constellation of Web 2.0. applications.

  These include the profile pages of Facebook, MySpace, Hi5, Blogger, TypePad, WordPress, Friendster….

Cartfly is fully engaged in the development of social commerce in opening up new monetization possibilities for the Web 2.0 .  PageMage, Nimbit, and Payvment storefronts are  also some of these new social commerce tools. 

They all bet on a rapid growth in their points of sale. This is where social networks come into play.

Cartfly counts on its widget becoming widespread and buzz on the net.

It also is betting on its business model, free download and installation, and a commission starting from 3% on all sales, in order to soon become a “must have” tool, and additionally, in its original and übersimple format are boutiques created with this widget. Cartfly assures that there already exist thousands ….

Social Commerce on Facebook, Uh! How Many Storefronts!

Storefronts opening on Facebook!
What does this entail?


Payvment is an E-commerce solution provider who is proposing a new application entitled Storefront integrated in Facebook.  This application allows e-tailers to install stores on Facebook.

The advantage of Storefront is the ability to be launched on any fan page, thus giving “e-tailers” a solution to sell their products on fan pages.


Thus Fan pages are emerging, as the  point of passage for Social Commerce, as I previously  mentioned with the Nimbit platform dedicated to the music industry.  These tools permit, in fact, the integration of business with a “fancasting” perspective.





Moreover, Payvment is compatible with integration via Facebook Connect on e-tailer's web sites


Storefront even goes a step further and combines offers from different e-tailers by mutualizing them. But in doing so with  retailers’ offers it is possible however, that Storefront oversteps e-tailer's wishes….


And concerning the brands, will they be overtaken by e-tailers, when now they are the main source of business fan pages? 


The success Payvment's remarkable initiative will be measured by the number of Storefronts that are launched on Facebook and deserves close monitoring as it confirms that Social Commerce is indeed progressing and moving  “inside Facebook”.

What’s in a (Things) Box?

ThingsBox, a new social shopping application on Facebook, allows you to select recently purchased products, or items that one wishes to have and give feedback or get feedback from friends.

This touches upon one of the essential components of Social Commerce; receiving reliable opinions before making a purchase.

What is noticeable about ThingsBox is the integration on Facebook and the interaction between using the application and posting comments on walls that generates the propagation of feedbacks.

The ThingsBox application is divided into 3 parts; a “HaveBox”, a “WishBox” and a box entitled “Undecided”.

This division allows subtle interactions between friends.  I put in my HaveBox items that I have and hand them over to be commented on, by posting them on my wall or by directly asking the opinion of certain friends.

I can also ask them about the contents of my “Undecided” box, but also ask them about things I have in my “WishBox”, otherwise what are friends for…..

Judging by the list of products recommended by ThingsBox, this application seems to specialize in electronics, laptops, cameras, and telephones…..and suggests buying such items on Amazon.

Is an affiliate business model sufficient for ThingsBox?

Is Your Brand “Direct to Fans”? The Nimbit Way!

Social networks are establishing new relationships between brands and their clients. In particular, the fans, as shown by Nimbit.




Where, in the world before social networks, admirers were sure bets as clients, the reality is now different.


Always full of enthusiasm, brand and music lovers alike, have become organized fans, finding, for example, on Facebook, information sites for meeting, commenting and adapted marketing campaigns


New marketing networks are on the verge of breaking out.
 This is what Nimbit wants to do with the music industry!





Nimbit's concept is simple.  Set up on each artist’s fan page a Nimbit boutique called “My Store” where, besides music, fans can also purchase concert tickets, T-shirts, and other paraphernalia of the artist.


In a nut shell, all “Music & Merch”, everything from music to its merchandise that could be of interest to fans.


Many independent artists and labels are utilizing Nimbit.

Let’s take for example the folk singer Ellis Paul whose next album is already available to fans on his fan page, or the London Symphony Orchestra who has a fan page and a Nimbit store.


The “music business” never ceases to amaze us. On one end of the spectrum are  major labels, very rigid attitudes, and on the other end is the ingeniousness of ITunes, Deezer, Spotify, and now Nimbit


What does Nimbit offer that ITunes doesn’t?


A direct link with fans, that I call Fancasting, the opposite of Broadcasting.  Louis Vuitton demonstrated this phenomenon recently with their Paris fashion show available exclusively on their fan page. 


By proposing to market “Music and Merch”, Nimbit is taking that extra step!

EBay, With a Little Help From My Friends (The Page Mage Solution)

EBay to my friends, the Page Mage solution

 
Talk about Social Commerce to your friends and they will give the name Ebay.  And rightly so, since the auction site is the referent of social shopping.

However, Ebay, in its own turn, is impacted by the rapid expansion of social networks and their user friendly quality.  Doesn’t auction selling on Ebay run the risk of giving way to social networks where internet users are increasingly spending the majority of their time?

This is where Page Mage can be helpful.  A platform for designing Ebay auction templates, which helps improve ones selling page using videos, slideshows or even pop ups.

Page Mage is even taking it one step further by incorporating a “share” function that enables to post a page on Blogger, Facebook, MySpace or LiveJournal.

As indicated by Eric Scifres, CEO of Page Mage,

“By sharing the listing where people are congregating, a listing’s visibility grows exponentially.”

For example, on Facebook, your Ebay offers will appear on your “wall”, allowing your friends to leave comments or to share, in turn, your offer with other friends.

If the transaction is still done on Ebay the solution proposed by Page Mage takes the opposite direction of Facebook Connect by releasing the offers into the social network.

Is this a new trend?

From Social Marketing to Social Commerce

On the Internet e-marketing is linked much more to e-commerce than marketing and commercial activities outside of the Internet.

This is even more the case with social networks.  Social marketing and social commerce often overlap each other.  If the second one is not yet come about, it is very possible that it will directly develop from the first.

Several recent contributions by reputable commentators are following the leads of both E-Marketer and WebPro News.

Chris Crum wrote on WebPro News “Beyond Social Media Marketing to Actual E-Commerce”

“We talk a lot about social media marketing – using social networks like Facebook and Twitter to market brands and drive traffic to sites.  There is no question that these can be effective tools for doing both of these things”.

But will social marketing remain limited to these two objectives?  Is it just a question of developing a fan base and then directing it to brand sites or E-commerce sites?

Chris Crum continues:

“As time goes on, it may become helpful or perhaps even necessary to use these tools for actual e-commerce.  The common thinking behind social media marketing is that you don’t want to be too sales-pitchy in your conversations, and in some ways that is still very true.  However, while social media is largely about conversations, it’s not only about conversations”.

Activity on social networks is not, strictly speaking, only built on conversations. For dozens of millions of young people and more and more adults, social networks have become a “hang out place” that have developed into mediums where one can share photos or even play between friends, on asynchronous mode . All these are social activities that continue or strike up conversations.

He adds however that people are not content with conversations only,

“They are looking for information.  They’re using social networks to help them make purchase decisions.  Sometimes this is through conversation.  Sometimes it’s as simple as being a fan of a brand’s Facebook page and receiving timely updates.”

The commercial outlet of all this social activity is logical.  It is the outcome of two symmetrical forces at work.

There is an obvious social aspect to shopping that has been part of our culture for a long time while shopping also plays an integral part in our social relations.  Take, for example, the Tupperware network that developed in 1948. 

Denise Zimmerman, president of NetPlus Marketing Inc. was actually just interviewed on this subject by E-Marketer, “Social Shopping and the Brand Experience” and talks about a natural evolution.

“If you successfully connect and make shopping valuable to the community in a way that’s easy and accessible and meets their needs, it’s a no-brainer”.

As a matter of fact, Facebook just simplified Facebook Connect implementation on web sites.  This is currently the best way to link E-commerce sites to the network which has an extremely practical advantage.

Paul Dunay, Global Managing Dir. of Services, Social Marketing Avaya, was also interviewed by E-Marketer, “The Future of Social Shopping” touching upon the practical aspect of Facebook Connect, and closing with a definition of Social commerce,

“Social commerce is working with or using your social graph, which is defined as your followers or your friends, and allowing them to help you make buying decisions.”

“Facebook Connect would allow you to go to a website like Dell.com and authenticate yourself using your Facebook profile, allow your identity to be known and access friends so you could spark up a chat.  So I could say, “Hey, Jeff, I’m looking at this new fancy laptop or this netbook.  I heard you bought something.  Would you recommend this to me?”

All this, he adds, would be like virtually taking your friends shopping with you.  In order to do this, internet search will have to go through your graph of friends, and perform what Paul Dunay calls a “social search”.

However, for this concept to work, it is necessary for those in our social graph to identify their consumer skills, and even some of their purchases allowing them to become public to our friends.

Lack of privacy and  consuming information not meant to be shared creates an obvious objection to this idea.

The success of  fan pages, however, proves the opposite.

The Brands are their Fans

If "media is the message" according to the well known Marshall McLuhan equation, on Facebook the "brands are their fans".

Fan pages are one of the most widely used mediums of expression and association on the network.  A very significant part of these, around 1 out of 4, concern brands.


Whether it be the official page created by the brand itself, the one initiated by the fans, which the brand subsequently joins forces with or not, or even the pages dedicated to products.
Here are the top 30 on Facebook:

 


This ranking of products is very revealing:

It reflects more than 54 million pieces of fan feedback and brand support. This number accounts for 1/6 of Facebook. Of course, numerous fans supported many brands.


Starbucks, “a hang our place for real”, is in the lead as first place in the virtual world.  This is not an accident!

Neither is the strong presence of candies and various “junk food” brands, such as Nutella, Pringles, Kinder, Ferrero Rocher, Krispy Kreme, Reese’s, Skittles, and the ever essential Toblerone.
What are they all doing on Facebook?

They are expressing an identity, even an attitude.  Red Bull is the only beverage present in the top 30 besides Coca-Cola.  Unthinkable, without this “attitude” component, the red beverage has achieved a third of the “fan level” of the black liquid.


It is similar with “fashion” brands, whether it is clothing, shoes, accessories, or boutiques, which compete with food.  Adidas and Victoria Secret are in the lead, followed by Nike, Converse, Zara, Puma, Lacoste and H&M. 


Is a brand not showing in the top 500 in danger?  Without a doubt, even if they don’t know it yet!

This virtual use of brands on Facebook is usually doubly passive, meaning that the fans are proud to belong, but are not very active, and that the brands themselves, in many cases, are often left alone due to not being very active, even on their official fan pages.

This is not at all the case with Coca-Cola who uses its fan page as an active tool and shows the way.

McLuhan would say that fan pages are mild, neither cold like the television, neither hot like the radio. 
Social networks are a media all their own.  Here the media is you!  When a user declares him or her to be a fan, brand and user mutually assert themselves.  

Golf, Fans, and Brands, the Golfsmith case

The growing popularity of Facebook fan pages or their equivalent on Twitter indicates a major change in E-marketing and the direction it is taking.

No longer is it enough to give consumers the floor on Internet sites, which, in reality, few sites do. From now on it is necessary to start multiple conversations with fan pages on Facebook and followers on Twitter.

With 7000 fans on Facebook and 1200 followers on Twitter, Golfsmith, a producer and distributor of golf equipment, has a notable and innovative presence on social networks, yet remains average.

Eric Mahlstadt, Senior Online Store Manager, talks of his business strategy in relation to social networks.

“The value right now to us as a retailer is not as much about what kind of people these are, but what kinds of experiences they’re having.  We’re interested in providing as many choices and platforms as possible for our customers to share thoughts and ideas and provide input.  The struggle then becomes having enough engaged ears to hear all the feedback and to be nimble enough to act on that feedback” 

Golfsmith already has an open website where comments are welcome and the home page strongly encourages users to leave feedback.

In order to link user feedback on its site and those from fan pages on Facebook or followers on Twitter, Golfsmith chose a social marketing solution proposed by Bazaarvoice, a specialist in “community management”, called Social Network Accelerators.

How does it work?

 

“With the new Social Network Accelerators, Bazaarvoice ensures that companies achieve more from social commerce by using social networks like Facebook and Twitter as a distribution channel for user-generated content created on brand sites.”

How Do You “Metric” Word of Mouth? The Twitalyzer case

How do you measure word of mouth?

The Twitalyzer case!

While more and more brands are looking to establish a presence on social networks, there is an intrinsic difficulty in measuring the return on investment (ROI) obtained by marketing on social networks.

In any case, when it comes to analyzing more than click performance of ads on Facebook, for example, by measuring the impact of a fan page, of a Twitter account, or of word of mouth, the “metrics” still need to be defined.

Firstly, is it necessary to measure word of mouth?

Elaine Gantz Wright, who’s blog is specifically geared toward fund-raising activities on social networks and how they can help transforming society,  just published an interesting post on the subject, “The ROI that would be King” .

She mentions a comment made by new special media journalist, Clay Shirky that can be applied perfectly to marketing problems encountered in social networks.

“A revolution does not happen when a society adopts new tools.  It happens when society adopts new behaviors.”

 

Elaine Ganz Wright adds,

“And I think that quote sums up the core conundrum.  At the end of the day, social media is really not “a program” at all.  It is a fundamental shift in the way customers, donors, constituents, and employees consume and produce information.  Its behavior- a change in the way we are in the world.”

As is happens, the effect of marketing in social networks can be evaluated much like banner ads of the internet are or buying keywords though Google.

It’s not the R.O.I that we need to talk about for judging the impact conversations have on brands, fan pages with blogs or word of mouth in general; any of these marketing tools or situations that allow an “engagement “or, translated, an “implication” around brands to develop.

Elaine Ganz Wright talks about replacing the R.O.I with R.O.E (return on engagement).

Evaluating is of utmost importance!

This is where Twitalyzer comes into play and analyzes the impact of personal or brand accounts on Twitter.

The idea behind Twitalyzer comes from the development of several different metrics to calculate the impact of an account on the micro-blogging network, not only by its popularity (the number of followers).

What are the criteria?

• Impact, or the number of “followers”
• Authority, or the number of times you are “retweeted” by others (RT)
• Generosity, or the number of times that you “retweet” (RT) others
• Rapidity, the number of tweets that you publish within a 7 day period
• Clout, or the number of times that your account is referenced by others
• Signal to noise ratio which calculates the number of tweets that include URL’s, number of tags, RT’s and web addresses, meaning all the tweets that create socialization and information compared to those that are only anecdotes.
• Influence, which balances the different aforementioned measures

Twitalyzer has developed new metrics adapted to the presence on Twitter.  Indeed they only calculate the impact of your account and not free word of mouth that mentions a brand or a person independent of their account.

But at least these tactics go beyond the number of followers and separate the “influential” tweets form those that are purely anecdotal.

Let’s take for example the two brands Starbucks and Coca-Cola who took full advantage of the turn around of social networking and use the most influential Facebook fan brand pages, resulting in respectively, 3,850,000 fans and 3,706,000 fans (Sept 09).

Starbucks is ahead of Coca-Cola again on Twitter!

Here are the score boards developed by Twitalyzer:

Starbucks has a profound influence and a very high signal to noise ratio, referring to, in some way, the quality of its tweets, which also shows its weight (clout) to be at a maximum level. 

Coca-Cola doesn't score badly either on its signal to noise ratio, but its authority is much weaker.  It is also less generous than Starbucks, meaning less active in retweets (RT) than other accounts.  Is Coca-Cola more egocentric than Starbucks? 

Should we think that the Twitter audience likes Coca-Cola less than the Facebook audience, or is the black liquid just missing 140 characters of savoir-faire?

Did You Engage Vuitton Parading on Facebook?

What a superb idea Vuitton had!

Replaying his fashion show on Facebook. Where as the “live” fashion show was reserved for celebrities and other VIP, the “social” fashion show was accessible to fashionistas everywhere on the Facebook fan page “The Art of Travel by Louis Vuitton”.


This typical social marketing strategy allows one to break free from new marketing trends: “live” vs. “social”, this is the new alternative.

Or rather “live” & “social” that could quickly be expressed by “live” x “social”, with the showing on Facebook allowing members to discuss between themselves and increase the impact, as the collected insights on Facebook reveal.

Among all the media choices available the television broadcast is losing, and, also noted, was that neither the Louis Vuitton site itself, even though more directly linked to his collections, nor YouTube, another possible media platform for playing videos, was chosen.


By using Facebook, Vuitton chose to give his fans priority.  If the site keeps the video 24 hours after being played, the fan page finds significance in hosting the event and allowing fans to express themselves and to benefit from an exclusive opportunity.

Here are some of the most significant comments:

• The idea:  LV your idea excellent…. “…….. always love u louis vuitton……” “LV is the ultimate style statement”….. “Can’t wait to watch it. LV is the BEST!”….. “well done!!!!!! It was a nicely planned event!!!!
• The fashion show: “I saw very nice bags, me, who is a fan of louis vuitton”….. “LV is awesome I love the tradition canvas, the best!”…… “wasn’t crazy about the clothing”….. “nice! but the bags are really nice! :)”….. “The new line of bags is beautiful!”….. “In my opinion, epic fail: -don’t like the shoes (do I spy UGGS?!) nor the fur tails – Afro stuff capturing all the attention” “Bravo Louis Vuitton….the show was butter smooth….the colors were softly bright….the texture of the fabric was exquisite, especially in the lace-like shorts….I really liked the unique look….the furry shoes in assorted colors were outstanding….all the glimmer, colors, and uniqueness; deserves a real stand up ovation….YOU ARE THE BEST…” “love it….it gives me enough confidence……” “Awesome!! Beautiful!!!....” “Amazing show as usual…am so loving the bright color on the bags…nice”… “awesome colors, style and accessories are amazing!” “luv, luv, luv” “mad shoes…love it and the new reinvention of the kitty heel…love it”.

Over a period of 3 days 6500 points of positive feedback were obtained and a strong growth of the page was seen with The Art of Travel by Louis Vuitton increasing from 640,000 fans to 729,000 fans in a span of a few weeks, while still expecting for a growing amount of comments on fans personal walls.


Louis Vuitton achieved a successful advertising campaign and highlighted the appeal of his new accessory line, especially the bags. Above all, Vuitton was a forerunner and paved the way (with elegance) on Facebook.


if you missed it, the fashion show is still accessible on the Louis Vuitton site

Team with Twangu?

Form teams with Twangu?


Speaking of social commerce, here is a new Facebook application that is 100% "team commerce".
Only a few weeks old, Twangu wants to initiate this wave of social commerce predicted to be massive within the next several months or years. 


How does Twangu work?  Facebook users are invited to form "teams" that want to purchase items for a fixed price by the users themselves.


Once these groups are formed Twangu intervenes and places each team with a vendor of the product wanted, provided the seller agrees to purchase conditions of the team, notably on the price proposed for the item.


Items are usually purchased through PayPal and Twangu takes great care to guarantee that the transactions do no take place on Facebook itself, but on a secured site.  Obviously the idea of giving out your credit card number several days before buying the item creates a considerable problem, but Twangu is hoping that the possibility of getting your hands on something for a cheaper price will entice users to overcome their fears…..

And what kinds of teams are formed using Twangu?

Here is a sneak peak….

Ipod Touch 32GO for $100; PS3 games (without precision) for $30; jeans for $25; Wii Rockband 2 for $50; Windows7 for $49.95; Iphone 3G's at $199; "Future beach" kayaks for $199; Skullcandy helmets for $21.50 etc….while scrolling through red shoes, red dresses and red accessories for $1.


It is still too soon to tell whether this intermediary business model and the idea of the "group discount" implemented by Twangu will work!  Let's bet that other projects are in the works and is owed to the innovation of Twangu.

Social commerce and the "discount group" are, in any case, signed on in the context of the current recession.

The prestigious Wall Street Journal, in its Smart Money column, published an article in January entitled "How to Score Group Discounts With Strangers".

Shweta Oza, a Marketing professor at the University of Miami states in this article:


"Businesses worried about slumping sales and continued cutbacks in consumer spending are more amenable to offering group discounts.  You're enticing them by bringing them in more business, which they're hunting for in today's economy".