Buzz phases like “social commerce” get thrown around way too frequently these days, but we often miss it when micro components of a macro trend are taking place before our very eyes. So – what is social commerce? Here’s a great example.
A friend of mine – Ed Zimmerman – is a world-class wine nut (an understatement) and someone whose recommendations on wine can be trusted to the nth degree. Thus, when he tweeted last night that he was fired up for the new release of a great wine from a small boutique producer in Napa called Zeitgeist, I reply Tweeted that I’d love an intro. Got the intro this morning, signed up on the Zeitgeist web site, and bought some wine. Simple. Zero marketing effort/customer acquisition cost on the winery’s part, zero friction to get me signed up, and if I like their wines I’ll be a customer for life. I’ll also probably visit the next time we’re in Napa (hopefully soon).
This is one of the reasons why we are seeing a massive surge in new e-commerce models many are calling “E-Commerce 2.0,” and it’s brilliant. When customer acquisition costs drop to near $0, and you gain quality customers who are referred by other quality customers, the e-commerce flywheel can really get rolling. I get 10 emails a day from wine lists I subscribe to, and I rarely buy. I get one Tweet from Ed, and boom – I make a purchase.
Another reason we’re an investor in Buddy Media and are constantly on the lookout for other companies riding this new wave.
How many people might read this post and buy some Zeitgeist wine (the flywheel keeps cranking…)?