Success story + love story= cash.

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With 23%* of its users accessing Facebook from their mobile and “check-ins” sky rocketing since the launch of Facebook places, “Deals” (the next location based Facebook feature) is bound to be a commercial success.

 

            Group buying= success story

            +

            Social & mobile= love story

            ————————————–

            Facebook deals= cash

 

Deals” is part of Facebook payments which organizes the revenue stream of Facebook credits and seems to be set up for a transaction platform that could go well beyond social currency.

 

Already live in the USA and Europe since November 2010, it was initially scheduled for the 3rd week of March in Australia but has been pushed back to end of Q2 2011. Australian users can already register for deals but won’t have access to offers until later this year.

 

Although we don’t have data on the business generated by retailers which have implemented “Deals” overseas, we can clearly foresee value to encourage loyalty, up sell, and grow earned visibility.

“Deals” will be available for merchants which are already active within Facebook, so might you be a local business owner or a major national retailer, you must prepare now if you want to take advantage of “Deals” right when it gets released. Here is your roadmap!

 

1-      Build a strong Facebook fan base:
Facebook aims at launching deals with pages that have a minimum of 10 to 15K likes. If you are not there yet, you have a few months to boost your recruitment. This aim is imposed by Facebook for the only reason that without scale, companies shouldn’t expect many sales from “Deals”…
It also seems that a significant ad investment would help to be amongst the launch partners. I am thinking that those rules won’t apply to small businesses and that they will be able to manually create and push their local offers.

 

2-      Audit your places:
For now the data available in Facebook places is provided by Wikipedia and Factual + user generated. This doesn’t mean that all your stores have been created or that they are all accurately located and up to date. Facebook should be able to help sort this out for key retailers only. For others: convenient to know that the format used for Google maps is also accepted by Facebook.

3-      Create the right offers:
Offers should be aimed at:

a.       Generating more/ frequent visit to point of sales

b.      Product cross sell/ up sell

c.       Reward loyal customers

But they could also be a social tactic and create:

d.      talk ability

e.       High impact

To achieve this: better to create offers that are available nationally (can be supported by advertising, catalogues,…)

For those who have created offers in foursquare before, you have the advantage of already knowing what works best for you.

 

4-      Inform & train your staff:
Very important point, and often where traditional retailers struggle is to inform all stores and train the staff who is going to be redeeming the offers. The best way would be to inform your store managers and make them responsible for the deployment.

 

All that Facebook can tell you about “Deals” is here:


Fbdeals

By the way, did anyone notice the quite release of “Questions”? have you tried it?

 

Marie Sornin

*source: Facebook- Mediabrands research- March 2011

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