SanomaVentures presents Social Shop: De toekomst van social commerce

SanomaVentures presents: De toekomst van social commerceAffiliatedag, Utrecht, 22 mei, 2014

why invest in start-ups?what criteria to use?the investment processInvestment case: Social Shop

v e n t u r e s

why invest in start-ups?

access to unrestricted innovation

by entrepreneurial talent

create options for future portfolio expansion and

revenue growth

value creation, through media exposure, expertise, business

network and mentoring

right time: growing entrepreneurial and incubator activity and financing demand

what criteria to use?

scope• consumer web

• mobile & tablet

• video & connected tv

• e-commerce

• advertising & marketing services

• e-learning

v e n t u r e s

start-ups with live product

and first customers

people

ambitiondedicationexecution mentalitycomplementarity / diversitytrack-record

v e n t u r e s

product

uniquenesssolving a real problembusiness modelscalability/viralityfit with sanoma

v e n t u r e s

plan

international marketcustomer acquisitiontechnical roadmapresource planningcash management

v e n t u r e s

the investment process

what we offer• working capital

• media exposure

• online expertise

• business network

• strategic & financial guidance

• investment size: €100k-500k

v e n t u r e s

400

1. orientation

• Business plan screening

• Meet the team• Info document*

150

3 wks

2. assessment

• Pitch to group• Investment assessment

• 1st round Feedback from experts• Term sheet*

25

3 wks

3. planning &

negotiation

• Discuss roadmap, budget and mediaplan

• Investment and option agreement*

14

3 wks

4. decision making

• 2nd round feedback from experts

• Investment proposal*

10

3 wks

5. execution

• Due Diligence investigation

• DD report*• Finalize and sign contracts

• Media sales

8

3 wks

v e n t u r e s

Investment case: Social Shop The future of social commerce

May 2014

social commerce network

Facts

Quick overview

Goal

“In 10 years everyone buys everything via friends”

Traction

• EUR 23 mln in sales to date

• 30,000 consumers run their own shop

• 7 mln products in catalogue

• 30 A- brand partners

Engaged network

>50% of shops have sold something

Award winning

Accenture Innovation Award 2013

Growth

Doubled sales, shops and brands last quarter

Set for acceleration

SanomaVentures invests, development capacity doubled, international ambition

source: Barclays Social Commerce Report 2013

source: 8th Bridge Social Commerce IQ Retail report, 2012

network reach

Friends of

friends

Friends

Loyal

Customer

Word-of-mouth is the best advertising

Social networks empower consumers to promote at scale

av. #friends 130

heavy users 310

av. #followers 150

• Some 70% of network

friends have similar

socio/demographics

• Enthusiasm is real,

interest is transparent

• Sales arguments are

relevant en non-suspect

If your loyal clients are your best salespeople

Why not give them their own online shop?

…and customize

his Social Shop

Sanders other

favorites are down

here

shopkeeper can

view performance,

rankings &

statistics

shopkeeper can

easily promote his

shop via social

media

…and customize

his Social Shop

upload photos,

Youtube videos,

etc, or use stock

photo

he decides if and

how he shares the

reward with the

buyer

friends can engage with

Sander through

comments (on facebook)

favorable product

review

button places

product in basket

at brands website

Vanity URLs: www.socialshop.nl/sander

KISS: Social Shops consist of just one page

To stimulate engagement, product discovery and cross-sales

Shops can hold an unlimited number of products

traffic

friend reads review, evaluates the deal offered, clicks out. -Social Shop is platform-agnostic, runs on proprietary domain-

------- available soon -------

shopkeeper promotes (products in) his shop to social network friends

friend buys on brands website

Our answer: employ trusted relationships to

convert social network reach into sales

gross sales

Promotion is key

We make it as easy as possible

Statistics are a motivation

Traffic, conversions and sales are trackable

Social Shop delivers more than sales

benefits in 4 areas

Brand builds relationship with shopkeepers

resulting in significantly lower churnrates and

higher LTV

People that buy from a friend show more

brandloyalty

We calculate reductions between 10 and 25%

Text

Text

Promotions from customer in social networks

produce direct turnover

Shopkeepers’ collection inspires cross- and

upselling

Adressable prospects to be indentified through

social channels

4. Superpromoter Community & Insights 3. Brand Exposure

Shopkeeper promote their shop through

numerous social posts, each with approx. 150

impressions

Consumers posts turn up in friends timeline >50%

of the time, as opposed to a company page with

<15%.

Shopkeepers only promote brands they really like,

so brands can expect a very positive tone-of-voice

1. Social Sales 2 . Loyalty

Brand can engage with her shopkeepers through a

dedicated online community, thus building a

relationship based on transparancy and trust

Insights in superpromotor behavior through

analysis tools & dashboard

Opportunities to co-create new solutions and

marketing activities with superpromoters

Ambition

100.000 Social Shops at YE 2014

Growth

To improve visibility we want to grow. We doubled last quarter.

International Expansion

We’re now in the Netherlands and Belgium and plan to enter Germany and the UK in

2015.

More diversity in collections

Committing cool brands, local heroes, fast movers and leisure players to reach

maximum attraction for shopkeepers and their collections of favorites.

Investment

Fixed / variable fees apply

Operating fee: €10K - €30K

To design your shops, set the shop up technically, connect to your shopping cart,

create a marketing campaign, and execute sustainable activation programme.

Variable Fee: 35% of CPO

The other 65% will be transferred to the social shopkeeper and his friend. Social Shop

will fulfill and clear these transactions.

Sander Dullaart

founder

+31 653 836396

sander@socialshop.nl

Social Shop

Frederiksplein 1

1017 XK AMSTERDAM

social commerce network

May 2014

social commerce network

Facts

Quick overview

Goal

“In 10 years everyone buys everything via friends”

Traction

• EUR 23 mln in sales to date

• 30,000 consumers run their own shop

• 7 mln products in catalogue

• 30 A- brand partners

Engaged network

>50% of shops have sold something

Award winning

Accenture Innovation Award 2013

Growth

Doubled sales, shops and brands last quarter

Set for acceleration

SanomaVentures invests, development capacity doubled, international ambition

source: Barclays Social Commerce Report 2013

source: 8th Bridge Social Commerce IQ Retail report, 2012

network reach

Friends of

friends

Friends

Loyal

Customer

Word-of-mouth is the best advertising

Social networks empower consumers to promote at scale

av. #friends 130

heavy users 310

av. #followers 150

• Some 70% of network

friends have similar

socio/demographics

• Enthusiasm is real,

interest is transparent

• Sales arguments are

relevant en non-suspect

If your loyal clients are your best salespeople

Why not give them their own online shop?

…and customize

his Social Shop

Sanders other

favorites are down

here

shopkeeper can

view performance,

rankings &

statistics

shopkeeper can

easily promote his

shop via social

media

…and customize

his Social Shop

upload photos,

Youtube videos,

etc, or use stock

photo

he decides if and

how he shares the

reward with the

buyer

friends can engage with

Sander through

comments (on facebook)

favorable product

review

button places

product in basket

at brands website

Vanity URLs: www.socialshop.nl/sander

KISS: Social Shops consist of just one page

To stimulate engagement, product discovery and cross-sales

Shops can hold an unlimited number of products

traffic

friend reads review, evaluates the deal offered, clicks out. -Social Shop is platform-agnostic, runs on proprietary domain-

------- available soon -------

shopkeeper promotes (products in) his shop to social network friends

friend buys on brands website

Our answer: employ trusted relationships to

convert social network reach into sales

gross sales

Promotion is key

We make it as easy as possible

Statistics are a motivation

Traffic, conversions and sales are trackable

Social Shop delivers more than sales

benefits in 4 areas

Brand builds relationship with shopkeepers

resulting in significantly lower churnrates and

higher LTV

People that buy from a friend show more

brandloyalty

We calculate reductions between 10 and 25%

Text

Text

Promotions from customer in social networks

produce direct turnover

Shopkeepers’ collection inspires cross- and

upselling

Adressable prospects to be indentified through

social channels

4. Superpromoter Community & Insights 3. Brand Exposure

Shopkeeper promote their shop through

numerous social posts, each with approx. 150

impressions

Consumers posts turn up in friends timeline >50%

of the time, as opposed to a company page with

<15%.

Shopkeepers only promote brands they really like,

so brands can expect a very positive tone-of-voice

1. Social Sales 2 . Loyalty

Brand can engage with her shopkeepers through a

dedicated online community, thus building a

relationship based on transparancy and trust

Insights in superpromotor behavior through

analysis tools & dashboard

Opportunities to co-create new solutions and

marketing activities with superpromoters

Ambition

100.000 Social Shops at YE 2014

Growth

To improve visibility we want to grow. We doubled last quarter.

International Expansion

We’re now in the Netherlands and Belgium and plan to enter Germany and the UK in

2015.

More diversity in collections

Committing cool brands, local heroes, fast movers and leisure players to reach

maximum attraction for shopkeepers and their collections of favorites.

Investment

Fixed / variable fees apply

Operating fee: €10K - €30K

To design your shops, set the shop up technically, connect to your shopping cart,

create a marketing campaign, and execute sustainable activation programme.

Variable Fee: 35% of CPO

The other 65% will be transferred to the social shopkeeper and his friend. Social Shop

will fulfill and clear these transactions.

Sander Dullaart

founder

+31 653 836396

sander@socialshop.nl

Social Shop

Frederiksplein 1

1017 XK AMSTERDAM

social commerce network