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This was the presentation used at CeBIT 2012 (Hannover, Germany) named "Leveraging E-commerce with Enterprise Social Networking: How an on-line customer community can boost your e-business".
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Leveraging E-commerce
with Enterprise Social Networking
How an on-line customer community can boost your e-business
Hugo TeruzziUK - Argentina
Twitter @Quanbit @GlobaliseUK
Social Networking Leveraging E-commerce
How and How much?
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Social Networking - Facebook
Prediction: 1,000,000,000 users in 2012
Facebook & E-commerce in 2010 FB Stores
F-commerce concept born in 2011
Is F-commerce the “next evolution” of E-commerce?
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F-Commerce vs. E-commerce
Is Facebook a competitor or an ally of traditional E-commerce websites?
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Competitor or Ally?
Launch your free site or store in Facebook
60,000 stores are based on Payvment
Payvment 2012: “Cross-Store Shopping Carts”
The number of micro-stores is growing fast
Several Apps are available to build sites & stores
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Competitor or Ally “Cross-Store Shopping Carts”
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Competitor or Ally Payvment concept is not new!
Competitor
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Competitor or Ally
The other side of the coin:
FacebookOpen Graph Protocol
Websites can use the “Like”, “Want” and “Own” buttons allowing visitors to share and connect
with friends
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Competitor or Ally
The biggest Facebook Open Graph partnerships:
Ally
Pages customised according to each visitor’s profile
Product recommendations, birthdays’ notifications…
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“Integrating Facebook Open Graph technology across eBay’s global commerce platforms represents a powerful way to bring people
together across an inherently social activity: SHOPPING”
Katie Mitic, Director of Platform
and Mobile Marketing at Facebook.
Social Commerce
WE-Commerce?
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The WE-Commerce EraWE-Commerce or Social Commerce connects
Social Media and E-commerce to enable consumers to shop with their friends
This is what industry leaders are doing:
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Facebook benefits for E-commerce
WE-Commerce
A Great Marketing Tool
A fantastic Traffic Driver
A way to spy on competitor activity
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How good is Facebook for companies engaging in conversations with their communities?
Engaging in Open Conversations?
This is the essence of Facebook but …
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Limitations of a public environment
Confidentiality is at risk
Negativity is difficult to manage
Participation is low
Facebook is oriented to People
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Confidentiality is at risk
Communities of employees or
partners cannot be public
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Negativity is difficult to manage
Negativity from clients
Negativity from associates or partners
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Participation is low
“1% Rule” or “90-9-1 principle”
• 90% of visitors are Lurkers
• 9% of users are Commenters
• 1% Creators – value adders
2000 contributions need 200,000 visits
Only 1% of the visitors create
content
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Facebook is oriented to People
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Product Orientation
Companies need product centred networks
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How to overcome these limitations?
Let’s take a quick look at what some of the industry leaders are doing
Confidentiality is at risk
Negativity is difficult to manage
Participation is low
Facebook is oriented to People
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What are the flagships doing?http://community.ebay.com/
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What are the flagships doing?http://MyStarbucksIdea.com/
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What are the flagships doing?http://www.ideastorm.com/
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The strategy is …
Creating a safe private environment for engaging in conversations and co-creating with your community
Using Public Social Networks to promote what you have developed with the private online community
To combine Private and Public Social Networks to leverage E-commerce
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Benefits of Private Social Networks
Private Social Networks can be bespoke designed around your product
They allow privacy among community members
They encourage deep member insights
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Encourage deep member insights
In a Private, recruited, 400-person community, more than 64% of members contribute new content 7+ times every month = an average of 2,000 meaningful insights! Communispace Study, 250 communities, 100,000 members
You need 200,000 visits to your Facebook fan-page for a similar number of insights
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1% rule 64% rule - Why?
Most appreciated values of Private Communities
Exclusivity and privacy – in small communities
The opportunity to forge relationships with other “selected” members and with the sponsoring brand
The knowledge that one’s voice is being heard
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Some Conclusions
Public Social Networks strongly collaborate with E-Commerce
Private Communities are becoming a MUST for E-commerce
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What about price? Public Social Networks are seen as FREE
Private communities are not FREE
Not every company is eBay or Starbucks
How much is a Private Social Network?
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Private communities are product oriented and bespoke; functionalities might be extremely variable
The job involves both technical and psychological skills; a multidisciplinary team is necessary – 5 to 10 people on average
How much is a Private Social Network?
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Time between 12 and 18 months
Price €500,000-€1,000,000
Building Private Social Networks
PROPRIETARY SOFTWARE
Time around 6 months
Price €50,000-€100,000
OPEN SOURCESOFTWARE