Zappos at DRS: Why is Social Commerce So Hard? How Zappos is Navigating Social

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Social media, while great for formalizing the user fan base, doesn't necessarily help translate "likes" into purchases. How can retailers better leverage the opportunities presented by social into sales? Learn about Zappos' approach to creating social media experiences that encourage loyalty and customer follow through. Speaker: Alice Han, ux designer/product lead, Zappos

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@alicehan7777 | @zapposlabs

Social Commercewhy is it so hard? Alice Han, UX Designer / Product Lead

@alicehan7777 | @zapposlabs

About Me

Alice Han (@alicehan7777)

UX Designer / Product Lead at Zappos Labs

Ice Hockey player

Undefeated at Dr. Mario

@alicehan7777 | @zapposlabs

@alicehan7777 | @zapposlabs

@alicehan7777 | @zapposlabs

Facebook Stores

“We just didn’t get the return on investment we needed from the Facebook market, so we shut it down pretty quickly”

“For us, it’s been a way we communicate with customers on deals, not a place to sell.”

- Ashley Sheetz, VP of marketing and strategy at GameStop

@alicehan7777 | @zapposlabs

Facebook impact

In September 2010, 1.9% of traffic to Burberry’s website came from Facebook

A year later, 29.1% of site traffic was from Facebook

Using Facebook as a platform to drive traffic at a fraction of the cost of what they’d pay on Google

@alicehan7777 | @zapposlabs

Is Social just for marketing?

Can we bring social to our sites?

Can we help our customers shop with their friends?

@alicehan7777 | @zapposlabs

What has Zappos Labs tried?

@alicehan7777 | @zapposlabs

@alicehan7777 | @zapposlabs

Shares are still a very small % of total orders

Customers love sharing on Pinterest and Facebook

Not many customers tweet, but tweets get clicked on the most

Great place to start

What we saw

@alicehan7777 | @zapposlabs

@alicehan7777 | @zapposlabs

50/50 AB test

3% of people clicked on tab

Those 3% performed well!

But just having the tab there brought down the entire group

What we saw

@alicehan7777 | @zapposlabs

@alicehan7777 | @zapposlabs

@alicehan7777 | @zapposlabs

It’s hard for a brand to inject themselves between you and your friends

Value needs to be extremely high

What we saw

@alicehan7777 | @zapposlabs

Who is contributing to the evolution of social commerce

@alicehan7777 | @zapposlabs

Social gift giving

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Poshmark

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Soldsie

A hat sale drummed up 100 “sold” comments and 459 “likes” in 24 hours100,000 users, $1,000,000/month

@alicehan7777 | @zapposlabs

How?

Treat social commerce as R&D

Create a culture of experimentation

Measure carefully

Learn quickly & iterate

@alicehan7777 | @zapposlabs

thank you(to those who didn’t nod off)

ahan@zappos.com@alicehan7777