FreshNetworks have an interesting Infographic on the rise of Facebook commerce. Unsurprisingly, people are finding that personal recommendations lead to higher purchase rates and that the numbers for purchases made via Facebook are on an upwards trend.
A few years ago I had an idea about how to take advantage of these behaviours, which I still haven't seen anyone attempt in quite the same way - rewarding recommendations, but doing so in a way that encourages targeted recommendations...
At the moment, through things like affiliated links, etc. I can post links to Amazon and other sites on my blog and as such I am "recommending" products. On other sites, such as TripAdvisor, I can leave general recommendations for places and products I've been to and used. People who trust me can use these links and if they do, I earn money (this has never actually happened to me btw - I'm talking theory here!).
There are other services out there that encourage the sharing of links to products and work like a kind of pyramid scheme. The more people you share with, the more likelihood you have of someone buying and you get a cut of that from the vendor. The problem is that this encourages spammy behaviour, which decreases the value of these recommendations and makes it more likely that people will click-thru, destroying the usefulness of the system.
In my mind, the reward to the user making the recommendation needs to be tied to the percentage of people who buy, not the number. So if you send a link to the new Matt Nathanson album to 10 people and one person buys, you get significantly less reward than if you only send to one person and they buy. It forces the recommender to really consider who will actually like/want a product. This makes the recommendations far more valuable to the vendor as well as the person receiving the recommendation. Everyone wins!
Until someone cracks this recommendation problem, we're probably not going to see the full value of social networks in e-commerce. Which is why I like the way Google is moving with Circles. They are trying to encourage more sharing, while also making it more relevant to the people receiving the links. If that really takes off (and I personally think it will) then it will naturally expand into e-commerce.
So that's going to be G-Commerce then....? ;-)
Saturday 16 July 2011
Thursday 14 July 2011
Will opening in the US help Spotify become Prime Time?
So, after what feels like years of arguing, fighting and "almost" launches, it looks like Spotify is finally about to launch in the US. So will this be the moment when Spotify crashes into the public consciousness, or will it, after so much hype, die a sad and slow death?
First off, I love Spotify. I think it's an absolutely amazing service. Yes, there are frustrations over some music not being available (Arcade Fire!), but in general, if you want it, it's on there. It's stunningly quick. The offline functionality makes it perfect for me out here in India - I can swap my music around as and when I have Internet connectivity. It's legal. And the mobile app (when I'm back in the UK) means that I can't see me replacing my Creative Zen (which has sadly kicked the bucket).
So I'm a fanboy. There are, of course, some things it could improve on. The social aspect still needs work. The obvious one here is a tie-in with Facebook. That's what I'm hoping for. I think that is what will push the service into the mainstream proper.
Obviously the US market is important, but I don't imagine that the US launch is going to be a launch-pad for further success in Europe. I have friends in the US, but just because they use a service doesn't mean I use it. For most people in the UK and Europe, the US launch isn't going to change anything. One or two more friends will start using the system. So far, so meh....
Which means that the service as it is at the moment isn't enough for some people. They need that additional incentive to use it. It needs to be tied to Facebook.
Let me clarify on this. The last thing I want is the integration the way it is at the moment. I don't want my Facebook stream bombarded with single tracks shared from Spotify. That would be noise for noise's sake. What I want is to have a "music" section of Facebook, which people can link their Spotify account to. I want to be able to see what people are listening to right now. What's popular amongst my friends. Who is recommending what. Group playlists. All in one place.
So, yes, it's great news for Spotify that they're finally launching in the US. For one thing, it gives them the ability to finally focus on something else and everyone can stop wondering when this will finally happen! I'm just hoping that the next "something else" they focus on is integrating with Facebook....
First off, I love Spotify. I think it's an absolutely amazing service. Yes, there are frustrations over some music not being available (Arcade Fire!), but in general, if you want it, it's on there. It's stunningly quick. The offline functionality makes it perfect for me out here in India - I can swap my music around as and when I have Internet connectivity. It's legal. And the mobile app (when I'm back in the UK) means that I can't see me replacing my Creative Zen (which has sadly kicked the bucket).
So I'm a fanboy. There are, of course, some things it could improve on. The social aspect still needs work. The obvious one here is a tie-in with Facebook. That's what I'm hoping for. I think that is what will push the service into the mainstream proper.
Obviously the US market is important, but I don't imagine that the US launch is going to be a launch-pad for further success in Europe. I have friends in the US, but just because they use a service doesn't mean I use it. For most people in the UK and Europe, the US launch isn't going to change anything. One or two more friends will start using the system. So far, so meh....
Which means that the service as it is at the moment isn't enough for some people. They need that additional incentive to use it. It needs to be tied to Facebook.
Let me clarify on this. The last thing I want is the integration the way it is at the moment. I don't want my Facebook stream bombarded with single tracks shared from Spotify. That would be noise for noise's sake. What I want is to have a "music" section of Facebook, which people can link their Spotify account to. I want to be able to see what people are listening to right now. What's popular amongst my friends. Who is recommending what. Group playlists. All in one place.
So, yes, it's great news for Spotify that they're finally launching in the US. For one thing, it gives them the ability to finally focus on something else and everyone can stop wondering when this will finally happen! I'm just hoping that the next "something else" they focus on is integrating with Facebook....
Wednesday 13 July 2011
Google+ isn't going to kill Facebook
Yep, I'm calling it. Google+ is not a Facebook killer. You can all stop your arguments and forget about reading any other posts on it. The thing is - I don't think that's what Google is aiming for here. Twitter on the other hand, could definitely be in trouble. Let me explain....
I've only had access to G+ for a couple of days, but from what I've seen of how others are using it (and my initial instincts), the way it's being used is far more akin to Twitter than Facebook.
For me, Facebook is where I find follow the actual lives of people I know. Very few people share links on Facebook among my friends (granted, that's a sample of ~200 people, but still), most of the stuff is along the lines of "here's a loads of pics of my holiday", "I'm hungover", etc. Twitter on the other hand, is where I go to see what other people are reading and sharing. The number of personal comments is far lower.
G+ seems to fit much closer to this link sharing idea. What's more, the ability to focus who you are sharing with means that in theory the items appearing in my stream should be much more applicable to me. Just as an example using the sort of stories I share:
1. Tech news
2. Sport
3. Social Enterprise / Volunteering / Charity Sector
Those are three very, very different areas. At the moment, if you follow me on Twitter, you get everything. If you're only interested in one of those areas, you might get fed up with having to sort through the noise and find the applicable tweets. You unfollow me. With G+ that doesn't happen. I know who is interested in football, who is interested in tech, etc. So they go in those circles and voila! Now I can share more stories, because I don't think I'll annoy people who aren't interested in those things, plus the click-through rate should be higher for each link shared as it is more targeted. As Google tracks who is clicking on what, they build a social graph that is surely more valuable than knowing that X likes to look at Y's photos!
I think Google is happy for Facebook to become the social network for drunk party photos and inane updates about what people's rabbits did just now. They want to control the network for sharing stories and links....and that's why I don't think G+ will kill Facebook, however much people want to put the two in a head-to-head.
I've only had access to G+ for a couple of days, but from what I've seen of how others are using it (and my initial instincts), the way it's being used is far more akin to Twitter than Facebook.
For me, Facebook is where I find follow the actual lives of people I know. Very few people share links on Facebook among my friends (granted, that's a sample of ~200 people, but still), most of the stuff is along the lines of "here's a loads of pics of my holiday", "I'm hungover", etc. Twitter on the other hand, is where I go to see what other people are reading and sharing. The number of personal comments is far lower.
G+ seems to fit much closer to this link sharing idea. What's more, the ability to focus who you are sharing with means that in theory the items appearing in my stream should be much more applicable to me. Just as an example using the sort of stories I share:
1. Tech news
2. Sport
3. Social Enterprise / Volunteering / Charity Sector
Those are three very, very different areas. At the moment, if you follow me on Twitter, you get everything. If you're only interested in one of those areas, you might get fed up with having to sort through the noise and find the applicable tweets. You unfollow me. With G+ that doesn't happen. I know who is interested in football, who is interested in tech, etc. So they go in those circles and voila! Now I can share more stories, because I don't think I'll annoy people who aren't interested in those things, plus the click-through rate should be higher for each link shared as it is more targeted. As Google tracks who is clicking on what, they build a social graph that is surely more valuable than knowing that X likes to look at Y's photos!
I think Google is happy for Facebook to become the social network for drunk party photos and inane updates about what people's rabbits did just now. They want to control the network for sharing stories and links....and that's why I don't think G+ will kill Facebook, however much people want to put the two in a head-to-head.
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