Posts Tagged ‘Social Shopping’

Social Giving Meets Social Shopping

by on Tuesday, March 9th, 2010

We have written about social shopping, which is the heart of the Zavee platform, but are you familiar with “social giving”? Social giving is Social Media used for philanthropic or other non-profit purposes. Social giving wasn’t widely discussed even a year ago, but two events – the disputed elections in Iran and the earthquake in Haiti – gave rise to a tremendous amount of Social Media activity, which in turn got people thinking about the role of Social Media in the non-profit sector.

According author Geoff Livingston, who follows social giving closely, social giving can be a source of both new donations and newly engaged donors and activists. Social giving also can engage consumers in corporate philanthropy campaigns.

  • In the wake of the elections individual Iranians used Social Media to get news out of the country after the government had restricted conventional media access.
  • A post on Philanthropy Potluck discussed campaigns the author called “social giving contests”, in which consumers determine how companies distribute funds as charitable contributions. The post cites campaigns by Target and Tom’s of Maine, in which the public got to “vote” for potential recipients of donations.
  • Immediately after the quake in Haiti, the American Red Cross and other organizations launched texting campaigns that raised over $30 million from individuals who sent a text message that automatically added a donation to their wireless bill. More than $20 million was raised by the American Red Cross alone, a sum unlikely to be raised as quickly, if at all, by conventional solicitation methods. The Red Cross using the same text2give program to raise funds for victims of the earthquake in Chile.

Zavee’s social giving feature combines several social giving concepts. Like the social giving contests, Zavee shoppers control the distribution of the 20% of our fees that we have committed to donate to civic and charitable causes that have joined Zavee. The mechanism for directing Zavee contributions is called Care Shares(tm). In addition to their cash back rewards, Zavee shoppers earn points called Care Shares based on the amount of each purchase from a Zavee merchant. Zavee shoppers periodically select which causes will receive their Care Shares. Zavee contributes cash to those causes based on the Care Shares allocated to each cause, which means that shoppers who purchase more control a larger slice of the contribution pie. (Yet another reason for shoppers to purchase from Zavee merchants.)

Santas Race for Charity

Santas Race for Charity (via Lincolnian)

Shoppers make their own decisions about how to allocate their Care Shares, but the networking features of Zavee encourage shoppers to discuss the various causes in our program. We take networking a step further by putting the causes themselves in the network. That means that they can engage directly with shoppers to provide information, answer questions, announce events and otherwise enrich shoppers’ understanding of the value they provide to the community. The benefit to causes of communicating effectively is clear: greater awareness and understanding by shoppers can lead to greater allocations of Care Shares, which means greater contributions by Zavee. Causes also can encourage their own members to join Zavee, who presumably will be inclined to allocate their Care Shares to the cause to which they belong.

The Zavee takeaway:

  • Causes may not be as far up the curve as companies (to say nothing of individuals) when it comes to Social Media, but events like the Iran elections and the Haiti quake response demonstrate the potential impact Social Media can have for non-profits.
  • The non-profit sector is likely to develop uses for Social Media that are both creative and effective. Businesses should be watching.
  • Programs like Zavee, which combine the consumer-business integration of the social giving contest with the active participation of the causes themselves on the network, will be one way to for causes to gain a great deal of value from Social Media.

2010: The Year of Social Shopping

by on Tuesday, December 29th, 2009

As we come to the end of a most unusual year I’d like to provide an update on Zavee’s progress, as well as offer some additional thoughts.

Our most important news is that Zavee is almost ready to go live. We are finalizing the launch release of our software and expect to begin processing transactions by mid-January. We began our merchant sales efforts in November and already have signed up scores of local businesses in our South Florida launch market. Our consumer acquisition program will begin in January and ramp up over the next several months.

Shopping with Friends

Shopping, Socially

One of the most gratifying – and, frankly, amazing – things about the process of creating Zavee is the extent to which people who know what they’re talking about are saying the same things we are about Zavee’s core concepts. In short, Zavee is in the right place at the right time.

When we describe Zavee as a “social shopping” platform we recognize that this is a new concept for most consumers and businesses. Social media marketers, however, say that social shopping is poised for growth:

“Social shopping is really still in its infancy,” said Andy Lloyd, CEO at Fluid, an e-commerce technology company. This means retailers and solution providers are still thinking about how people connect with other people around buying decisions in an online environment and how they can facilitate those gatherings. “The challenge is people don’t know what social shopping is or what it does,” Lloyd continued, which is why the adoption rate isn’t very high yet.

Search professionals have been quick to see the advantages of social shopping for merchants, including advantages we discuss with merchants constantly: the ability to connect with customers, enhance credibility and leverage word-of-mouth.

From a consumer perspective, social shopping taps into basic principles of human behavior. Marketers increasingly recognize the potential of social shopping and are aligned with Zavee’s perspective on integrating social networking functionality with search and review capabilities:

In social shopping, you see recommendations and reviews that your friends have shared. You see items that your friends have purchased or brands that your friends have shopped with. This matters a lot when you’re shopping for a digital camera and are stuck deciding between three different models. Of course, the last 10 years’ worth of people’s purchasing histories and written reviews on Amazon may help you narrow your choice – if you can filter out the noise. But those reviewers are entirely anonymous to you, even though they may use a real name and have a rating history with the site.

We believe that 2010 will be the year in which social shopping comes of age. This clearly is good news for Zavee. We believe that our social shopping platform, which also integrates a cash-back rewards program and a mechanism for raising funds for local civic and charitable organizations, offers a compelling value proposition for merchants, consumers and causes. We can’t wait to prove it.

From all of us @Zavee, a happy, healthy and prosperous New Year to all!

Who Uses Review Sites? You Do (And So Do Moms)

by on Tuesday, November 17th, 2009

LexisNexis has issued its 2009 Online Ratings Survey, an online survey of 561 legal professionals, small business owners and consumers that was conducted by Lightspeed Research in April 2009. The survey has been reported on extensively online, including at XML Journal and WebProNews. The full results are available here. The surprising results of the survey are that small business owners are active users of these sites – even more so than consumers.

Here are some of the highlights:

  • 87% of small business owners surveyed and 63% of consumers have provided feedback on review and ratings web sites.
  • More than half of small business owners and 43% of consumers believed that review and rating web sites mean businesses are held to higher standards.
  • Businesses tended to trust independent third party ratings, while a majority of consumers considered reviews from actual customers to be more trustworthy.
  • Businesses’ greatest area of concern was false and malicious reviews.

More recently, a “mom-centered” site called momconnection.com surveyed 583 mothers with children under 12 (out of their panel of 5,000 moms) about social media and its role in helping them make buying decisions. The study found that utilization of social media was very high: 81% of the respondents said they were members of Facebook (but only 23% had Twitter accounts) and 60% reported visiting a social networking site in the previous 24 hours.

Moms Already Social Shoppers

via momlogic.com

The study also found that personal recommendations were by far the most powerful drivers of purchasing behavior, a phenomenon we have noted before. In its research brief on this study, Mediapost found it “surprising” that only 24% of respondents reported using Facebook in making a purchasing decision, and that far fewer used MySpace or Twitter.

We don’t find this data surprising and we certainly don’t find it troubling. First, social shopping is relatively new, especially on social networks like Facebook and Twitter which only recently have become business-friendly. Just as overall utilization of social networks has increased dramatically over the past few years, we fully expect that utilization for exchanging information and experiences about brands and products will catch up. Especially because, as the research indicates, moms interact with brands at a very high level. Not only did 81% report visiting a marketer’s web site for product information, 36% reported becoming a fan of a marketer on Facebook (which is a little difficult to reconcile with the 24% figure cited above).

What does surprise us is how many major brands haven’t fully committed to social networks as a marketing medium. How can moms be expected to use Facebook to connect with marketers if marketers in the categories moms care about aren’t using Facebook to connect with them? So if a mom says she doesn’t use Facebook to help her decide which breakfast cereal to buy, it may indeed be that she just isn’t comfortable using social networks to crowdsource purchase decisions, but it could be that the brands she cares about haven’t given her a reason to try.

Another interesting finding from this study is how moms get and share information about products. Although personal recommendations are by a wide margin the preferred medium, 41% of respondents report consulting “mom-focused web sites” for information (presumably including the sponsor of the research) and 34% get information from shopping web sites. 54% have shared their opinions by rating or reviewing a product online and 37% have posted about a product in an online forum or blog. For a group that doesn’t obviously include large numbers of early adopters, we think this shows a reasonably high level of engagement with social shopping.

If moms are already using socially-oriented web sites – but not Facebook or Twitter – to help them make better purchasing decisions, it may be that they have figured out which sites offer relevant content and a valuable experience and aren’t limiting themselves to the big social networking brands. That suggests two things: first, that as marketers make better use of Facebook and Twitter they will find a ready audience of social shoppers. And second, that consumers are willing to use social shopping web sites that don’t have the brand strength of Facebook and Twitter, at least so long as they provide value to the consumer. As observers of social media marketing we are confident about the first observation. As developers of a new social shopping platform we are optimistic about the second.

Update: This post about the Maclaren stroller recall illustrates how active moms are on social networks, and how much influence they can have over marketers.