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Amazon has just hooked up with Facebook to add social shopping features powered by the shopper’s Facebook friends list.  (NY Times article. WSJ article.)  My guess is that this will prove to be the watershed moment for social commerce.  Where Amazon leads, others follow.  Amazon pioneered customer ratings and reviews, which are now found on commerce sites across the web.  Amazon pioneered community cross-sell tools (”customers who looked at this also looked at that”, “customers who bought this also bought that”), which are now provided to online merchants by at least half a dozen vendors.  And while Amazon may not have pioneered the integration of 3rd-party social graphs into online stores (we’ve been at this for a few years), the ecommerce world is likely to take its cues from Amazon in this area, too.

Here’s what it looks like on my Amazon profile page:

And this is just their initial feature set; lots more must be just around the corner.  Merchants interested in the potential of “on-site social commerce” should check out what Amazon has done here and keep an eye on where they go next.

(For those interested in archeology: before Facebook built the one-social-graph-to-rule-them-all, Amazon had social-graph-building aspirations of their own.  They called it “Amazon Friends and Interesting People.”  Dig here to learn more.)

If you sell online and haven’t seen TripAdvisor’s new Facebook integration, check it out.  It’s a great example of what the future of social commerce is going to look like.  Go to any destination page on www.tripadvisor.com and look for the blue box to the right of the image.  Here’s what it looks like for me for Zurich:

There are three aspects of this application that point the way to the future.

Context.  You could get the information displayed here - which of your friends has been to a place you’re researching - by going to the TripAdvisor Cities-I’ve-Visited app.  But would you?  Here, TripAdvisor is delivering the social information in the context of your normal research path, rather than forcing you to detour to get it.  That makes you much more likely to consume this influential content.  For online merchants, context is just as important.  Shoppers do product research on product sites, not on social sites.  So it’s more powerful to bring the social references into the normal shopping path than it is to bring product information into the social environment.

Data source integration.  This tool combines two data sources - one from TripAdvisor and one from Facebook.  TripAdvisor has a database of places that many of their members have been.  It comes from a popular app they built a few years ago called “Places I’ve Visited”.  These data are combined with Facebook’s who-knows-who data, enabling TripAdvisor to tell you which of your friends have been to a particular place.  (Note: this has nothing to do with Facebook’s “Like” functions!)  As a merchant, you have a database just like TripAdvisor’s that you can leverage in a similar way: your purchase history data.  A mash-up between this data set and friend lists from Facebook (and other sources) is the key to delivering socially-enhanced shopping experiences.

Message-based communication.  The backbone of social commerce, to date, has been customer reviews.  Though highly effective, they’re not really all that social.  The shopper who posts a review never knows who will read it.  The shopper who reads a review can’t reach the person who wrote it.  There’s no direct communication between shoppers.  But in this TripAdvisor app, a visitor is offered a channel to connect directly to people with knowledge of the topic.  This is not passive Q&A where questions just hang around waiting for someone who can answer to happen by.  This is a message-based model where shoppers can actively reach out to one another.  My question about Zurich is not just posted on the Zurich page, it’s sent to the inbox of people who have been to Zurich.  That deepens and extends the engagement of the current visitor, who is called back each time their question is answered.  And it re-engages the past visitor who receives and answers the question.  This direct, message-based communication is also in the (near) future of social commerce.

It’s a big day at TurnTo: we’re introducing our Social Commerce Suite.  (Yes, we know that it’s ambitious to call it a “Suite” with just 2 products – please humor us. Also, there’s more in the pipeline…) Official press release here.

So what’s new? 1. We’ve done a nearly complete overhaul of our current product, now branded “Social Merchandising” and 2. We’re introducing a new product called “Social Purchase Sharing”.

Social Merchandising. We’ve made improvements top to bottom.

• Shoppers who open the widget but don’t personalize it by checking for friends will now see a range of other customers and their purchases designed to give the site that buzzing busy-store feeling and to encourage consideration and purchase of more items. (The goal is to address one of the big limitations of the shopping online: lots of stuff in the stores, but no people.)  We’ve built a ranking engine that selects which customers and which items to show, ensuring the greatest relevance given limited data.
• We’ve made the value and process of personalizing the widget a lot more transparent to the user, so many more of those who open the widget will go the next step and personalize it to see their own friends in place of those the system picks. Underlying this is a simplification of the sharing rules to a vanilla Twitter-style “follow” model. (See our last post about the importance of simplicity when it comes to privacy and sharing.) We’ve also switched to delegated login for most of the friend list sources we support, including the newest Facebook protocols. (The short explanation: it’s better.)
• The widget now shows big, attractive product images throughout, so not only are shoppers seeing which of their friends also shop at that store, the purchases those friends made look particularly inviting.  Good for cross-sell and order size improvement.
• The comment mechanism has been redone to both capture more input from buyers and to show it more visibly to shoppers.
• We’ve made significant enhancements to the guts of the system to provide greater speed and reliability. These include use of a Content Delivery Network as well as a range of server-side caching and summarizing strategies. The design point was to be able to support the largest ecommerce sites out there.
• We’ve added new tools for optimizing the button that calls up the widget. It doesn’t do stores any good to have a fabulous social merchandising tool if only a few shoppers use it. We now provide a range of more interactive button designs as well as tools for doing rotation tests (randomized A/B/C tests) of alternatives. In its initial use, we’ve already seen large engagement rate improvements.

In a nutshell: you have to see it. So here’s the first screen shot we’ve released:

Social Purchase Sharing. Our partner merchants have been telling us how valuable it is when a customer posts to their social network (most often Facebook and Twitter) about their purchase. So we’ve added a simple tool to significantly increase the amount of purchase sharing online stores can generate. It’s an overlay that appears on the order confirmation page right after a purchase and makes a clear, persuasive appeal to share. The permission obtained from the buyer is also used to power the Social Merchandising widget, so the “sharing” appears both on the social networks and on the store site itself. Here’s an example of the overlay – just picture it on top of your order confirmation page. (See also our blog post on “Like” vs. “Bought”.

The TurnTo Social Commerce Suite will be generally available to online retailers at the beginning of Q3, 2010.

If you are in Chicago this week for the Internet Retailer show (IRCE), please come by booth #431 and we’ll give you a full demo.

If you’d like more information on the thinking that went into these products, please have a look at the white paper we just released: Onsite Social for Online Commerce.

In short: keep it simple.

In the first version of TurnTo, we were determined to set a gold standard on privacy control.  We provided a multi-level model for authorizing purchase information sharing.  We had forward and reverse models for specifying friend relationships.  We let users create groups of friends then share with groups while excluding individuals or sub-groups.  We provided time-based controls that let users specify review periods.  And that’s just the stuff we implemented; our plans went even further.

You know how that movie ended: no one used these functions.  And we’ve been stripping them out of the system one by one ever since.

Here’s what we learned: when it comes to sharing purchase information, there’s them that do, and there’s them that don’t, but there’s no one in the “I would if only I had more granular controls” group.  The best way to serve your users is to keep the model very simple so that it’s obvious at first glance what sort of information sharing is going to happen.  It’s OK to be very open, very restrictive, or anywhere in between, as long as the rules are obvious.  Granular controls don’t help you increase your audience. At best they’re ignored, and at worst they cause confusion and bad feeling.

In contrast, Facebook has been moving in the opposite direction.  They wanted to make their environment more open to enable functions that would be valuable to their members.  But they felt a significant part of their membership might prefer the old, more restrictive model.  So to keep everyone happy, they added granular privacy controls.  “Everyone can have it just the way they want it.”  But in trying to keep the old and the new at the same time, what used to be simple got complicated.  And that hasn’t worked.  People get their settings wrong and are surprised.  People feel duped if their settings change without warning, or they feel coerced if pressed to change settings they were happy with.  Or they feel burdened by having to learn complicated rules for something that used to be simple. Or they lose confidence in the system and back away.  And what about those conditions where A meant to share only with B, but B shares everything with everyone, and A didn’t see that one coming?  Now Facebook has added the Bandaid of bundling those granular controls into higher-level preferences.  “You want it small, medium, or large?  Don’t worry about the details.”  That might help - we’ll see.

But if Facebook had asked us, we would have told them this: it’s OK to change, even radically.  (You of all companies know that and have shown the guts to do it.)  Decide on the basic approach to privacy you think is best for your users and your business.  And throw everything else out.  Some users will gripe about the changes (like they did when you introduced the news feed).  But then they will see the wisdom of your new model, their behavior will adapt (some may share less, others more), and they will thank you thank you thank you for keeping it simple.

First: we wholeheartedly agree with the ideas underlying Facebook’s big announcements today. People want to be able to interact with their friends on sites all across the web, not just within Facebook.  And sites don’t all want to have to become Facebook apps to support this.

TurnTo has been working to enable contextual delivery of social networks on ecommerce sites since our founding in 2007.  And we’ve proved that the benefits for both shoppers and merchants are significant.  So we applaud Facebook, appreciate the validation that their heading in this direction provides, and are already hard at work incorporating their new API.

We also think that to derive maximum advantage from an Onsite Social strategy, ecommerce sites should not rely exclusively on the new Like-based functions that Facebook is providing, but should - more importantly - leverage their purchase transaction data.  Here’s why:

It’s useful for your shoppers to see which of their friends know about your store and the products you sell.  Facebook’s API takes care of the problem of determining who you shoppers’ friends are.  But how do you determine what those friends know about?  Facebook’s new Like button lets shoppers register a connection to items on your store that they, well, like.  But Like does not equal know-about.  And many people who buy from you - and therefore REALLY know about you and your products, will never click Like.  In other words, there will be loads of false positives and false negatives.

If you were a content site, this might be the best you can do.  But as a commerce site, you have a unique asset: the purchase transaction.  You already have a massive set of people who really do know about you and your products, and the list grows every day.  They’re called: customers.

So go ahead and use the new Facebook plugins.  But also, and more importantly, leverage your transactional data to socialize the shopping experience on your site.  That’s where the big opportunity lies.

Business Week just published a piece on the potential for Facebook in online shopping.  They focus on the role of Facebook Connect in enabling shoppers to post questions to their Facebook network before making a purchase.

It makes sense that this is the primary way Facebook Connect has been used so far in online shopping, since it’s the easiest to implement.  But it’s just scratching the surface.  The real potential is in bringing the social network to the shopping site (not the other way around).

For one thing, many people are hesitant to blast questions that they know are only relevant to a small portion of their network out to everyone.  No one wants to be a spammer.

Also, most shoppers don’t think of Facebook as the place to go when researching a purchase.  The primary research destinations are merchant sites and content sites that address the product category.

Combine those two considerations and what you get is a requirement for a system that runs on the merchant (or content) site and tells a shopper which particular people can help them with their purchase decision, so only relevant people receive the shopper’s questions.

If you sell online and this makes sense to you, check out the way TurnTo’s merchant partners are using the TurnTo system to achieve exactly this.  www.turnto.com/partnerlist.

I had fun during the Internet Retailer Conference this week chatting with Ina Steiner, Editor of the AuctionBytes blog.  We covered a lot of topics in a short time.  She has posted the conversation as a podcast.  Enjoy.

Here’s what Citysearch CEO Jay Herratti told the New York Times last week regarding their recent trial of Facebook Connect:

In the four months the site [Citysearch] has been testing Facebook Connect, 94 percent of reviewers have published their reviews to Facebook, where an average of 40 people see them and 70 percent click back to Citysearch. That has translated into new members: daily registrations on Citysearch have tripled.

If you are an on-line merchant, don’t leave all the Facebook Connect fun to the publishers!  With tools like TurnTo, a Facebook Connect implementation is far easier and quicker than you might imagine.  And results like those from Citysearch show the benefits can be dramatic.

Last year, ecommerce sites that sell to “grown ups” sometimes told us, “We don’t need a social shopping strategy – our customers don’t use social networks.”  That was last year.  The landscape is changing at an incredible pace, and customer profiles in 2009 are going to look quite different.  Take a look at this article about the growth rate in the over-55 Facebook population.

http://www.bizreport.com/2009/02/is_facebook_going_gray.html

Here’s our second presentation from day 2 at the OnMedia conference.  This one is a straight-up product demo and company backgrounder without the “theory” from yesterday.  The TurnTo part runs from min. 36-46.  (As with yesterday’s, we’ll swap in the individual video once we get it from the conference.)