Will setting up a transactional Facebook store drive loyalty to a retailer’s brand in the long term, and is it worth the investment?

A big increase in engagement is unlikely just because of a Facebook store

Social commerce has been one of the ecommerce trends of 2011, and Facebook has been at the forefront of this drive. To date, Asos is one of the only UK retailers to open a fully transactional Facebook store. Other retailers such as Dune have a site where shoppers can browse products using the Facebook platform.

Investing in a Facebook store may seem like the right move for a retailer and it may well boost brand awareness. However, many are sceptical about its value in increasing customer loyalty.

Gareth Mee, chief executive at social analytics firm nToklo, says: “Given that most people do not go to Facebook to shop, after the hype it’s unlikely brands will see a big increase in engagement because of a Facebook store.”

He adds that the captive audience for most retail brands on Facebook is small in comparison to the audience that exists on their own sites: “Many well-known retailers have fewer than 30,000 fans yet may get up to 2 million monthly unique users.”

Facebook’s user base may still be growing, but consumers are looking to join communities and groups relating to particular interests rather than sharing everything with everyone. This makes the long-term benefits of a Facebook store uncertain.

Mee adds that launching a Facebook store will mean maintaining two transactional stores. He says retailers risk splitting their user base – potentially taking traffic away from the official site, rather than driving more sales. One option, he says, is for retailers to take advantage of their existing communities by adding social features to their own sites.