Social Commerce - How technologies and integration are shaping the social buying experience - FGI...

Social CommerceHow Technology and Integration is Shaping Up the ‘Social Buying’ Experience

FGI Presentation – March 7th, 2012

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Contents

Social Commerce – Where is it now?

Where is Social Commerce going?

Who are the leaders?

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What are the solutions?

Why do you need to be aware of it?

How do you start and integrate for success?

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• Sharing your purchasing decisions before, during and after buying

• Communicating your decisions with others – family, friends, strangers

• Volunteering your reviews and quality control check-points – ‘Citizen Shoppers’

• Becoming brand advocates and influencers, thus benefiting from closer brand engagement

Social Commerce Dimensions

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• Engaging the audience where they buy and engaging their sentiment, sharing, volunteerism

• Engaging buyers where they connect, by being relevant and value-driven

Social Commerce Dimensions

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Social Media ‘Enablers’

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Social Commerce Market – 2010-2015

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Social Commerce – Sharing and Social Influence

Source: Forrester and Shop.org - 2011

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Social Commerce – F-Commerce

Source: Forrester and Shop.org - 2011

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Social Commerce – Brand Interaction

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Social Commerce – Stats Infographic

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Social Commerce – Early Success Stories

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Most common ‘social tactics’ deployed by brands

• Ratings and Reviews• Microblogs and landing pages• Social Recommendations• Company Blogs (including vide blogs)• Client generated comments• Product sharing on social sites• Social Shopping Aggregator Sites (deal sites)• Ability to engage open APIs (more on that later)

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Most common ‘social tactics’ deployed by brands – Ratings and Reviews

• Used by most retailers (also a common function for many eCommerce platforms – Magento, Shopify, ATG, DemandWare, etc.)

• Opportunity to reduce content creation efforts and shift to 3rd party generated content

• Benefits to product development, field testing, and up-sell/sell-through (if well integrated with analytics and customer service process)

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Most common ‘social tactics’ deployed by brands – Microblogs – (Twitter, Tumblr, Pinterest, Chill, etc.)

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Most common ‘social tactics’ deployed by brands – Microblogs – (Twitter, Tumblr, Pinterest, etc.)

• Easy and relatively inexpensive to launch

• Quick Disposal or extra inventory (Dell example)

• Customer Service extension benefits

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Most common ‘social tactics’ deployed by brands – Social Recommendations

Opportunity to ‘crowdsource’ opinion

Exposes clients to more content

If built in, increases time on site and upsell opportunity

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Most common ‘social tactics’ deployed by brands – Company Blogs

• Good opportunity for SEO

• Integration of content and commerce through links, suggestions, reviews and ‘shares’

• Low cost add-on to the existing commerce site

• Relevance is important – not just aggressive promotion

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Most common ‘social tactics’ deployed by brands – Client Generated and Suggested ‘outfitting’

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Most common ‘social tactics’ deployed by brands – Client Generated and Suggested ‘outfitting’

• Assists in merchandizing support and cross-sells

• Customer Engagement

• Unique Approach

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Most common ‘social tactics’ deployed by brands – Client Generated and Suggested ‘outfitting’

• Assists in merchandizing support and cross-sells

• Customer Engagement

• Unique Approach

• Integrating ‘high-touch’ and digital experience

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Most common ‘social tactics’ deployed by brands – Product Sharing on Social Sites (FB+Twitter)

• More effective than company’s social network pages

• Opportunity to use Facebook’s or Twitter’s infrastructure to evangelize the brand

• Best relevant sharing (with events, item quality, item level communications, etc.)

• Many options exist for content publishing and commerce on FB

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Most common ‘social tactics’ deployed by brands – Social Shopping Aggregator Sites

Aggregated and incremental traffic

More engaged relevant shoppers based on preferences

Conversion is moderate – early in the sell cycle

Behavioral aspects are visible – based on preferences, price sensitivity, etc.

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Most common ‘social tactics’ deployed by brands – Open APIs

Take advantage and crowdsource technology

Great for ‘ready made’ projects

Lower cost of entry

Proven and tested

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Most common ‘social tactics’ deployed by brands – What about Facebook?

Integration of on-site experience

Brand Extension

Feedback aggregator via surveys, polls, comments, shares, likes

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Most common ‘social tactics’ deployed by brands – Value of a Facebook ‘Like’ (2010-2011)?

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What do Lady Gaga, Coke, Batman and Pampers have in common?

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Trends and Drivers for Social Commerce

Retailers are beginning to overlay ‘social graph’ on digital and brick-and-mortar locations

SoLoMo – Social, Local and Mobile is beginning to bridge the gap between physical and digital

Commerce and Social Commerce will unite the audience on physical and social worlds

Gaming may act as a catalyst in social commerce as an early driver (Zynga, etc.)

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Trends and Drivers for Social Commerce

Millennials and younger generations are ‘blending real life and digital life’ – they don’t know the difference (‘Generation C’)

Social Apps, games, local deals, mobile technology are driving ‘addictive’ behaviors

‘Location based tracking’ through Gowalla (FB) and Foursquare may help drive traffic to stores (physical and digital) and solicit immediate feedback

Location based monitoring and activation (LocalResponse via Twitter and local check-ins)

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Trends and Drivers for Social Commerce:Example – PepsiCo ‘Social Vending’

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Trends and Drivers for Social Commerce:Example – Macy’s ‘Magic Fitting Room’

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Trends and Drivers for Social Commerce:Example – Diesel’s Integrated Social Experience

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Trends and Drivers for Social Commerce:Example – Adidas ‘Holiday Hookup’

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Potential and How You can Improve

Online sales will grow at 10% compound rate through 2015 (Forrester)

Younger generations are looking for recommendations and validation from peers anywhere and for anything

Integration of Real-World and Social World is real and will continue to dominate

Mobile technologies and Smart Phones will continue to augment the experience of shopping

SoLoMo will continue to drive traffic to brick-an-mortar through ‘social engagement’ (Likes, Check-Ins, etc.)

Image credits: EdologicIL; RenaultNL

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What’s next in Social Commerce Integration

Integration of social gaming and social commerce – turning virtual currency into real currency

Helping shoppers build collections and sharing with friends – your way (Polyvore, The Trunk Club, Fits.me, etc.)

Shopping content aggregation and management, virtual closets, shareable wish lists (SVPPLY, Groupon, etc.)

Specific interest graphs – new frontiers evolving from Social Commerce – Social Interest Graphs, integration of groups and interests directed at brands, etc.

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What’s next in Social Commerce Integration

Case Study – Walmart ShopyCat

Aggregated shopping helper (avatar) integrating preferences and choices for family members, friends and alike interest groups

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What’s next in Social Commerce Integration

Case Study – Pose

Mobile and Social Shopping experiences. Share your branded outfits with friends and family. Solicit input and feedback. Get rewards for sharing and featuring brands. Become style influencers.

Good integration between social and mobile channels. Excellent engagement model.

Thanks!

Alex Romanovich, Founder – Social2B International, LLC, CMO – EuroSpaClub International, Advisory Board Member – The CMO Club

Unique blend of technology, marketing andbusiness development skills and experience (IBM, SGI, Bertelsmann AG, Unified Technologies, Global AdvertisingStrategies, Social2B, EuroSpaClub Intl.)

Frequent speaker and advisor on topicsof Social Media, International and Multi-Cultural Mktg. (CNBC, CNN International, Forbes, Crains, Voice of America, etc.)

Social Media Marketing, Social ValueChain, Social Commerce, and Social Media Scalability Expertise

@Social2B

@alexromanovich

@eurospaclub

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