While trendwatching.com says group-buying platforms such as Groupon are revolutionizing local retail, consumers usually don’t actually know the other members of the group that they’re buying with.
So, while consumers get to leverage the power of the web to benefit from better deals, the actual shopping experience frequently lacks the F-FACTOR.
Consumers, of course, have strong incentives to share certain purchases, especially for F-FACTOR-friendly experiences such as buying event tickets: what’s not to like about automatically inviting friends to a concert or movie right after purchasing a ticket?
- 83% of consumers state that they tell their friends if they get a good deal. (Source: JWT Intelligence, December 2010)
- Facebook announced in April 2011 that every time a user posts on Facebook about buying a ticket from Ticketmaster, the company estimates they receive an extra USD 5.30. (Source: New York Times, April 2011)
- Eventbrite, the event ticketing site, found that users are 10 times more likely to share details of events they have bought tickets to (than those events they are still considering whether to buy). The ticket sales generated by people who share details of purchased events are 20% higher than if they haven’t yet bought tickets. The site estimates that the value of a Facebook share is USD 2.53. (Source: Eventbrite, March 2011)
So, expect to see more tools that help consumers easily share and co-ordinate relevant purchases with their close friends and family, but for now we’ll just highlight a few:
- Disney’s Tickets Together Facebook app enables users to buy theater tickets directly from Facebook, posts details of the screening on a user’s wall and enables them to invite friends to buy tickets.
- Indian consumers can do something similar with ticket site BookMyShow’s Ticket Buddy Facebook app.
- Ebay’s Group Gifts feature, launched in November 2010, allows users to invite friends to split the cost of a gift. The application integrates with Facebook to allow friends to be privately invited, while information from the recipient’s profile can even be used to suggest suitable gifts.
- In April 2011, Facebookpiloted ‘Deals in Facebook’ in various US cities including Atlanta and San Francisco. Facebook users in these cities can find local deals and then easily share, buy and plan them with friends. Users are alerted to deals through email, Facebook notifications and, if their friends buy the deal, through their News Feed. Also, when users see deals from a business that their friends frequent (i.e. check-in at), this information will be also be included in the deal.
This series includes the FIVE ways that the “F-FACTOR” influences consumption behavior
- The “F-Factor” In Business