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Differences Between e-Commerce and Social Commerce

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Differences Between e-Commerce and Social Commerce

by Donovan Dillon Contributor

Posted on June 19, 2014 18:32 PM

It is important to understand the differences between e-commerce and social commerce when creating marketing campaigns. Although the two work together, they must be addressed differently in order to maximize on the different methods consumers use to choose products and services.

e-commerce vs. Social Commerce

e-commerce purchases are managed directly from the company website, while social commerce sales are managed through social media and the seller’s website. This means that social commerce is less about decision-making than it is about learning more about a product or service. However, this does not mean that social media does not influence the buying decisions of consumers as recommendations from friends is still the top reason purchasers choose a particular company.

Customer Interaction

Another difference between social commerce and e-commerce is that with traditional e-commerce, the customer generates the interaction. In a brick-and-mortar situation, a customer enters the store, asks questions, talks to the employees and then chooses whether or not to purchase from that store. This is also true of an online storefront where the customer chooses to visit that website to make a purchase. Social commerce allows customers to share experiences before, during and after a purchase, which could lead another customer to enter that store or visit the website.

Identification of Customers

Traditional e-commerce methods have made it difficult to know who the customers are that visit either a storefront or website. Social commerce allows the company to identify who is visiting, which can lead to a narrowed target audience that will generate additional sales. Information that social customers share is also beneficial in determining potential customers. In addition, social commerce allows businesses to track and measure the success of their campaigns with more data than simply the number of visitors to a website.

Although traditional e-commerce - including online chat options and email campaigns - are still critical to the success of any company, social commerce is a growing process that allows current customers to reach potential consumers and better track the types of consumers responding to social media marketing. To learn more about how MODsocket can help take your small business marketing efforts to the next level, visit us at www.modsocket.com.


About the Author

Donovan Dillon is President of Ad Giants - a Next Generation Marketing Services company specializing in software-as-a-service and creative solutions that improve sales and marketing effectiveness. Donovan has over 25 years of marketing, product management and technology planning experience. He was previously head of Marketing for Broadwing Communications, and has held senior marketing and technical positions with Level 3, XO Communications, and ATT.