August 1, 2010, 12:00 AM

Proceed With Caution

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Because of the uncertainty surrounding the return on investment of so many social commerce tactics and the fact that so many are in the early creation stage, it is impossible to make a case that significant investment in this channel is do or die. That said, there are pockets of promise as surely as there are precipices of peril. To help define which is which, we recommend that e-business executives lock in customer ratings and reviews (the one proven technology), test one or two technologies where the ROI is still unproven, and keep in mind that early adoption of social commerce tactics doesn’t guarantee success.

Sucharita Mulpuru is a vice president and principal analyst at Forrester Research Inc. serving e-business and channel strategy professionals.

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