A currency for the future?
August 17th, 2010
This week’s Tinnovation session was all about Facebook’s latest plans for world domination, Facebook Credits.
Facebook Credits have been available in their ecosystem for a while now, mainly in the form of the Facebook Gift Shop, you know the thing where you can buy a friend a virtual bunch of flowers, a fish or similar. However with the gift shop shut down like so many real world high street stores, the way is paved for the release of Facebook Credits, a currency initially for use “in game” but with a strategy for so much more.
FB Credits are available to purchase today, http://www.facebook.com/credits/ at a value of approximately $0.10 per credit. You can also win Credits in a variety of games and in order to kick things off Facebook are randomly seeding credits to lucky people.
The vision for the future is to merge the virtual with the real worlds, deals have already been done with Disney for ticket purchasing and P&G’s Max Factor for beauty products.
The principle behind the move is to allow users to shop whilst never leaving the comfort and security of their Facebook page and with US users currently averaging 7 hours a month on their favourite social site that’s a lot of time for impulse purchases!
What’s in it for Facebook I hear you say, well about 30% of any purchase made with Credits that’s what, great business for Mr Zuckerberg and friends.
One day the currency will be interchangeable with the high street allowing you to spend your amassed credits in a store near you!
The team had a quick brainstorm as to where Facebook Credits purchasing would be beneficial:
- VIP tickets – Recieve benefits when purchasing with FBC, similar to O2′s Priority scheme
- Micro payments – Long been an issue online, but FBC could be a great method for purchasing one off music downloads, movie rentals, content access, subscriptions and of course exisitng Facebook games in-app purchases
- Top ups – PAYG mobile accounts for example
- Personalised transactions – If the purchaser needs to associate a pyment with an individual, such as festival tickets to a kid who doesn’t have a credit card
- Group bookings – Currently being used with the Disney Together scheme, invite a group of friend to see Toy Story 3 at the weekend, on acceptance the group booking can be made with out leaving the Disney/Pixar Facebook page with the bonus of exclusive content
- Loyalty programmes – Online Nectar or Clubcard, keep coming back to the same Facebook-hosted online retailer to receive Credits
- Promotions/Competitions – On and offline, like the soft drink promotions where you have a unique code printed on the ring pull exchanged for Credits
- Recommendations – recommend a friend to receive Credits
- Location-based rewards – Visit a real world retailer regularly to receive Credit benefits
With other online purchasing models such as PayPal and Google Checkout now ubiquitous combined with Facebook’s ever growing dominance in the social space this is certainly one to watch!
Buzz term of the week: “Social Commerce”