Facebook is simply impossible to ignore these days. The social media giant is growing exponentially and looks to be winning the battle for the title of “King of Social Networking”. But while Facebook has ingrained itself deeply into the public’s hearts, it has struggled somewhat to convince businesses that it can be legitimately monetized.
Good for Fans, Not for Business?
Facebook fans can while away their entire day on the site if they wish – and many do. When not in front of their home computer, or sneaking a quick look at work when the boss isn’t watching, many users possess Facebook apps on their mobile phones and have access to the site all day long. Why is it then that Facebook has gone all out to keep their “friends” happy yet it has not attracted businesses, both large and small, to use the platform more broadly in their marketing mix?
One problem in particular for businesses comes from Facebook’s inability to conduct transactions for e-commerce sites directly on the Facebook platform itself. While most companies are happy to utilize the site for driving traffic, attracting customers and building brand recognition – there has always been an inability to transact directly on the site. Until now…
Introducing Payvment
Payvment is a storefront application that deals directly with the transaction problem by providing e-commerce storefronts on Facebook. Retailers can use the application to create a virtual shop and accept money from Facebook users via a PayPal account or from credit cards authorized via PayPal. This new application has brought the vital ingredient to Facebook that retailers have been waiting for – the ability to transact directly with users.
While there are other e-commerce apps available, Payvment is the only one that allows a Facebook user to buy from multiple retailers all in one shopping trip – and add all the items to one shopping cart – all without leaving Facebook.
The Payvment application interconnects retailers by creating a gateway to additional brand pages on each retailer’s page. This network system can encourage Facebook users to browse for additional items and provides free promotion for any retailer using the Payvment application.
Previously, if any business wanted to attract people to their page on Facebook, they needed to use clever promotional tactics or advertising. Payvment has introduced an ingenious system whereby retailers sign up to the application and agree to offer a “store” discount to anyone that signs up to become a fan of the retailer on Facebook.
What’s in It for the Retailer?
Why would a retailer willingly agree to offer a discount and reduce any potential profit margin?
The answer lies in one of the features of Facebook – namely, the notifications system. If a person agrees to become a fan of a retailer, a notification is then sent to all their friends informing them of this.
This notification system is free advertising and almost as good as a personal recommendation. Friends seeing this notification could be encouraged to check out the retailer’s page for themselves and would also be offered the same discount offer. If they then decide to join as a fan, their friends will receive a notification. This clever tactic of utilizing Facebook’s notification method is similar to viral advertising and could mean masses of new customers for retailers using the Payvment storefront app.
The Changing Face of Facebook
While always being dismissed as nothing more than a marketing tool, it appears that Facebook is now becoming a realistic platform for e-commerce. Businesses can now see demonstrable ROI with applications such as Payvment, allowing transactions to occur directly with users – without having to drag them away from the site itself.
The interconnected network format of Payvment is reminiscent of a large shopping mall complex, with the advantage that a customer only has to pay at one universal checkout. Even better, they will not have to call their friends to tell them what a great store they found, or what huge discount they were given – because the shopping mall will already have taken care of that.
Payvment’s application solves a key problem for e-commerce sites on Facebook but has added an equally valuable marketing and distribution component that leverages Facebook’s notification system, allowing businesses to extend their reach and capture more customers. Payvment has turned the site into a far more viable option for e-commerce retailers.
About The Author: Roko Nastic is writer and editor at WebmasterFormat.com. He writes on various webmastering topics including web design, content management systems, internet marketing, blogging tips and similar.
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