E-retailers looking to grow cannot afford to be antisocial
Functioning as a sales channel is not the most important role the Internet plays in retailing, and never has this been more clear than during today`s social networking phenomenon, said Lorna Borenstein, vice president of product strategy on youth and education at Yahoo Inc. "Word of mouth is becoming more prevalent and significant in retailing because the web is megaphoning consumers` opinions," Borenstein said Feb. 1 during a presentation titled "The Impact of Social Networking on E-commerce" at the Shop.org 2007 FirstLook conference in Orlando.
To capture and focus the power social networking can have in increasing e-commerce site traffic and sales, retailers must carefully search for consumers online who like to talk about products they buy, consumers whom some in retailing dub "advocates," said Borenstein, who previously was vice president and general manager at eBay Inc. "Advocates` influence is disproportionate to their numbers, and they typically tell twice as many people about products than non-advocates," she said. "They have wider online social circles, are better connected via numerous web sites, and are more likely to write product reviews."
Many tactics can be used during an online safari for advocates. One example is leveraging blogs. Rather than launch a blog, retailers should scour popular blogs in search of advocates with strong voices that capture the attention of a great number of blog readers, fellow consumers, Borenstein suggested. From there retailers can devise ways to get to know these individuals and get their brands into discussion.
"People are out there right now talking about products in social web settings," she said. "You can approach one, for instance, and say, `I love what you said. Can I post your content on my retail site?` That`s a way to get to know them and understand them."
Retailers, she added, cannot keep treating all customers as if they are the same—they`re not.
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