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Facebook Commerce - Show Me The Money

Mar 11, 2012   |   Andrew Kamphuis Recommended for:   Marketing, Ecommerce, Tasting Room & Hospitality
Facebook Commerce Facebook Commerce

Do people actually buy wine on Facebook?

From a previous blog post we know that Facebook drives a lot of traffic to winery websites. We also know that this traffic from Facebook is good traffic. We reasoned that we should bring the transaction closer to the customer and in October 2011 we launched Facebook commerce on the Vin65 platform.  We also knew it was a bit experimental and therefore we haven't charged a monthly fee for it.

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The answer

Over the last 5 months we've seen a lot of interesting movement on Facebook commerce. Two of our clients have more than 10% of their ecommerce sales on Facebook. Several of our winery clients are in the 4-5% range, but we also have a number of clients who have yet to get a sale on Facebook which might discourage some.

Facebook commerce is in its infancy and we are really at an experimental stage. When ecommerce was in its infancy there were a lot of successes and a lot of failures. Brands like Toys "R" Us launched their ecommerce store in 1999, only to close it down that same year and in 2000 partnered with Amazon. A few years later, that partnership ended and Toys "R" Us now has its own ecommerce store.

The same thing is happening today in Facebook commerce.  There is currently a lot of trial, some success, some failure, and as we start to experiment with merging ecommerce and social platforms there is a lot of learning and a lot of opportunity, especially for small business.

Make your Facebook commerce page work right now

It's still early and the verdict is still out, but here are a few things that do work.

Add value - Give your customer a reason to shop on Facebook. Duplicating your website store isn't an effective strategy. Use exclusivity, rewards, and engagement as ways to create value. For example reward your Facebook fans by selling your new release wine on Facebook a few days before having it go on sale on your website. Or have exclusive events or promos just for your Facebook fans. Makes your fans feel like they are VIPs.

Create great customer experiences - Just like your website and mobile site, the customer experience matters. The Facebook app real estate is tight (although it just got a lot better with the advent of timelines), so be mindful of the space. If the content is engaging, if the Facebook app is responsive, and if it's easy to use, it will be more effective. We know that on the web a better customer experience sells more wine - and we are sure this holds true on Facebook.

Do something different - It might fail, but it might also succeed. Because Facebook commerce is relatively young, customer expectations aren't that high. It's a great time to try something and learn. Be sure to measure and solicit feedback. Facebook is all about engagement and feedback.

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Over the next few years as Facebook commerce matures (it's not going away) people will become accustomed to buying through Facebook, and companies will learn and optimize the experience. Until then it's a great time to play and learn new ways to effectively sell more wine online.

As an aside - here are a few articles worth reading:
EConsultancy - Can f-commerce work for retailers
Get Elastic - Is F-Commerce "Fail" Commerce?
EMarketing - Case Study: Heinz UK Fans Warm up to Facebook Personalization Campaign

What do you think?  Have you bought anything on Facebook yet?

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