Consumer Psychology for a Digital Age

The Secret to Social Commerce is Social Utility [Presentation]

Here’s a short presentation on how to turn social media into social sales by offering social utility; helping people solve their problems socially and solve their social problems.

Based on a review of social commerce examples in Social Commerce Today, we’ve spotted a pattern – social commerce works when social features offer genuine social utility that comes in three basic flavours.

  • Social utility that helps people solve problems socially using their social intelligence (ability to learn from each other and profit from social situations – e.g. collective buying) (Mercedes)
  • Social utility that helps people solve the social problem of standing out, by helping them manage their social status by expressing themselves (e.g. fan-first offers that ‘sell’ bragging rights (Burberry)
  • Social utility that helps people solve the social problem of fitting in by facilitating social bonding (e.g. social media gift stores (Starbucks, Anton Berg)

So the secret to making social commerce work?  Sell social utility.

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Today’s article is sponsored by Milyoni: The Leader in Social Entertainment

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Comments (10):

  1. Becca

    April 28, 2012 at 09:14

    Social media has now been a bridge between the actual consumers and the companies. It is a great place to reach your target market because more and more people are very active to social networking sites.

    Reply
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