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• Executive level roles in world class, growth
oriented companies: Walmart (CMO
walmart.com and VP Market Development
Global eCommerce) Blue Nile (VP Marketing)
Williams-Sonoma (VP/GM eCommerce & VP
Marketing), Gymboree, (VP Marketing) &
Prophet (Associate Partner)
• Quoted on executive topics, retail, B2B
commerce and the social web topics.
Bloomberg West TV, Wall Street Journal, New
York Times, Investor Business Daily, Forbes.com,
Bloomberg BusinessWeek, Tech Crunch,
Internet Retailer
Lauren Freedman
President, the e-tailing
group, Inc.
• 16 years ecommerce consulting
• Author, It’s Just Shopping
• 50+ years traditional retail and catalog
experience
The Voice of Cross-Channel Merchandising
• Fortune 500 client projects ranging from
strategic planning, merchandising, marketing,
to technology development and messaging
• Proprietary research studies on mystery
shopping, mobile, merchandising and
consumer behavior
Cathy Halligan
SVP, Sales & Marketing,
PowerReviews
Today’s Speakers
#SocialFuture2
Webinar Agenda
#SocialFuture
1. The e-tailing group Trend
Tracker
2. 5 Social Shopping Trends
Shaping the Future of
E-commerce
• 2011 Social Shopping Study
Results
• Implications for E-commerce
3. 5 Trends Summary
4. Q&A
Follow along on
#SocialFuture
3
Consumers rely on the product page for comprehensive, compelling
and consumer-focused content
Information Is Even More Essential to Decision-Making
Customer Reviews
Q&A
Rich Media
#SocialFuture5
the e-tailing group Mystery Shopping Features
2010 2009 2008 2007 2006 2005 2004 2003 2002
STANDARDS
Product Recommendations 98% 98% 95% 96% 90% 88%* 80% 79% 71%
Video 88% 64% 62% 45% 38% 20% 8% 12% 17%
Zoom 86% 88% 90% 86% 81% 79% 70% 62% 61%
Alternative Views 80% 76% 68% 66% 57% 45% 21% 12% n/a
CATEGORY-CENTRIC
Color Change 61%* 64%* 60%* 57%* 46%* 34%* 24%* 13%* 9%
Shop by Outfit 51% 32%* 39%* 40%* 24%* 30%* 37%* 6%* n/a
View in a Room 49%* 42%* 27%* 5%* 11%* 9%* 8%* n/a n/a
3D 18% 21% 10% 9% 14% 4%* 4%* 4% 2%
COMMUNITY-CENTRIC
Product Reviews 87% 74% 58% 50% 38% 32% 24% n/a n/a
Share Button 75% 67% 28% n/a n/a n/a n/a n/a n/a
"Like" Button 36% n/a n/a n/a n/a n/a n/a n/a n/a
e-tailing group Mystery Shopping Studies, 2002-2010* Subset of 100 sites
#SocialFuture
Ten-year Product Page Tactical Penetration Indicates
Important Evolution
6
Source: 2011 e-tailing group Annual Merchant Survey
Rich Media and Social Selling Strategies Continue to
Rise in Importance for Delivering ROI
2011 2010 +/- % 2011 2010 +/- %Keyword search 99% 98% 1% Recently viewed 73% 64% 9%
Cross-sells 96% 95% 1% Brand showcase 72% 59% 13%
Email as a merchandising vehicle 96% 94% 2% QuickView 72% na na
What's new 96% 87% 9% Twitter marketing 72% na na
Sales/Specials 95% 94% 1% Contests 69% 54% 15%
Seasonal promotions 92% 95% -3% Free shipping - unconditional 69% 55% 14%
Top sellers 92% 88% 4% Mobile commerce 68% na na
Up-sells 92% 87% 5% Wish lists 68% 53% 15%
Guided navigation 91% 70% 21% Email customer service alerts 67% 62% 5%
Search landing pages that are merchandised 90% 87% 3% Color change 65% 56% 9%
Advanced search 88% 78% 10% Interactive tools 65% 35% 30%
Product ratings/Reviews 88% 69% 19% Gift certificates/Card via email* 64% 60% 4%
Free shipping - conditional 87% 55% 32% Gift certificates/Cards via mail* 63% 60% 3%
Alternate views 86% 83% 3% Product comparisons 63% 46% 17%
Coupons/Rebates 86% 80% 6% Mobile applications 61% 41% 20%
Facebook merchandising and/or marketing 86% na na Live chat 59% 45% 14%
Sharing via social networking 86% 63% 23% Multiple ship-to's 59% 57% 2%
Category content 83% 68% 15% Limited hour promotions 58% 50% 8%
Exclusives 83% 77% 6% As advertised/As seen in 57% 38% 19%
Zoom 81% 74% 7% Frequent buyer programs 56% 46% 10%
Promotional Incentives to buy 76% 58% 18% Create your own custom/personalized products 50% 43% 7%
Video 75% 68% 7% Shop by outfit/Shop by solution/View in a room 48% 38% 10%
Alternative or deferred payment methods 74% 66% 8% In-store pick up and/or Returns 43% 24% 19%
Blogs 74% 52% 22% Gift/Wedding registry 33% 26% 7%
Gift center/Gift suggestions 73% 61% 12% In-store product locator/look-up 33% 22% 11%
* Not broken out mail/email in prior studies
Ranking of Features Very Valuable to Neutral (Top-3) 2011 vs. 2010 In Ability to Deliver ROI
Rich Media and Social Selling Strategies Continue to Rise
in Importance for Delivering ROI
#SocialFuture8
Merchants Embrace Social Opportunities
• More than 750 million active
users
• 50% of our active users log
on to Facebook in any given
day
• Average user has 130 friends
• People spend over 700
billion minutes per month on Facebook
#SocialFuture9
Beyond Reviews The Social Media Tools That Most Merchants
Employ/Plan To Employ Are Facebook-Related
Q36
Which Community and Social Media tools does your
company employ today or plan to employ?Employ Today
Plan to Employ in the
Next 12 Months
Considering for
Future, Beyond 1
Year
No Plans to Employ
Facebook page (company fan page on Facebook) 82% 8% 5% 5%
Customer reviews (user-generated product reviews) 66% 20% 12% 2%
Twitter publishing (monitor, respond to and post tweets) 53% 22% 13% 12%
"like" button on product pages (allows friends to view other friends
interests)52% 30% 10% 8%
Blogs (periodic blog postings to your customers) 48% 22% 12% 18%
Social listening tools (tracking the sentiment of online conversations
about your company)37% 26% 22% 15%
Viral videos (distributing user-generated videos or creating your own) 34% 20% 23% 23%
Facebook connect (allows users to post content about my company to
their friends)34% 29% 25% 12%
Questions and answers (customers asking and answering questions
about your products onsite)26% 22% 26% 26%
Community forums (for conversations among customers & between
you and customers)22% 20% 24% 34%
Product suggestion box (forum for customer to share ideas/
suggestions for product improvements)20% 26% 23% 31%
Facebook shop (allows shopping without leaving the Facebook
interface)15% 32% 35% 18%
#SocialFuture
Source: 2011 e-tailing group Annual Merchant Survey
10
Merchants have yet to realize significant ROI from social
programs
Q37
Rate your level of agreement with each of the
following statements relative to your company’s
ROI from social media initiatives.
Strongly
Agree
Somewhat
Agree
Neutral
Agreement
Somewhat
Disagree
Strongly
Disagree
Social media is all about engagement and building stronger
relationships with our customers44% 36% 16% 2% 2%
We are testing social media and see our efforts to date as
mostly R&D25% 47% 16% 8% 4%
Social media tactics are growing our ecommerce business 12% 29% 30% 17% 12%
We have seen substantial or significant ROI from our social
media efforts to date4% 14% 37% 23% 22%
#SocialFuture11
Survey Methodology
#SocialFuture
In March 2011 PowerReviews and the e-
tailing group fielded an online
questionnaire to over 1,000 consumers (51%
male/49% female) who shop online four or
more times annually, spending over $250
via that channel.
Survey Objectives
Explore consumer utilization of social media across a range of merchants and
channels to understand perception, interest and propensity to buy based on that
engagement
Understand the consumer’s level of interest in community across the web and its
implication on researching and shopping behavior
Trend customer reviews and social shopping to monitor changing and evolving
consumer behavior
13
5 Trends in Social Shopping
Consumers are spending more time researching,
across more sources, expecting certain social tools in
the process
Research starts with search, but SEO alone is no
longer enough
Consumers use Facebook for sharing and discovery,
not for research
On-site deployment of social tools has the greatest
impact on e-commerce sales
Facebook’s Open Graph is emerging as the social
platform of choice for e-commerce
1
2
3
4
5
14 #SocialFuture
Consumers are spending more time
researching, across more sources,
expecting certain social tools
#SocialFuture
1
15
Consumers are Researching Now, More Than Ever
#SocialFuture
50%
29%
15%
13%
8%
0%
21%
29%
24%
17%
8%
1%
75% or more
50-74%
30-49%
15-29%
1-14%
None
What percent of your overall shopping involves researching products online?
2011
2010
16
Time Spent Researching Online Assumes A
Heavy/Medium/Light Mentality
Q6
4%
3%
18%
12%
34%
7%
22%
4%
4%
23%
29%
11%
29%
More than a month
A month
A few weeks
A week
A few days
A day
A few hours
When shopping for an information-intensive product (computer, appliance, television, etc.) how much time do you typically spend online researching prior to completing the purchase?
2011
2010
Lig
ht
He
av
yM
ed
ium
#SocialFuture17
48%
31%
23%
22%
18%
Customer Product Reviews and Ratings (peer-generated product reviews and related content)
Q&A (customers asking and answering questions about products onsite)
Product “Likes” (# people who have “Liked” a particular product)
Product “Likes” by People You Know (people you know who also “Like” a product you are considering buying)
Community Forums (for conversations among customers or between you and other customers)
Outside of the standard product information (images, descriptions, etc.) how important is finding the following user-generated content on a retailer’s site when researching online?
(Top-2)
Customer Reviews and Q&A are the most important
UGC when researching
Q6
#SocialFuture18
Reviewing Products is the Social Activity that Consumers
Participate in Most Frequently
Q6
70%
49%
49%
42%
43%
Rate a product purchased
“Like” a retailer
“Like” a manufacturer
“Share” with others product you have browsed on a website
“Share” with others a product you have purchased from a website
When thinking about products or brands, how often do you participate in each of the following activities? (Top-3)
#SocialFuture19
2. Make content easy to find and consumeFocus on the fundamentals, the social tools most
important to consumers in the shopping process
#1 Customer Reviews #2 Q&A
20 #SocialFuture
Enhance the fundamentals with new social technologies
1.0 2.0
Star rating and text box (comments) FormatSummarized, star rating & histogram,
comments + structured, attributed data, rich
media & reviewer verification
Search & sort by average rating SearchPersonalized search & navigation based on
personality, pros, cons, best uses of a product
Not applicable SocialFacebook-powered reviewer profiles,
comments & sharing
Not applicable DistributionOpen platform to syndicate &
Distribute content across social web
Benefits accrued to consumers and
ecommerce team Insight Benefits energize the entire organization
21 #SocialFuture
Do you know?
1. Your UGC quantity? The number of customer reviews you have on your product pages
2. Your UGC generation effectiveness?Measured as the % of transactions that have UGC. Minimum
performance is 2% of transactions. Best practice is 5%+ of
transactions
3. Your UGC SKU coverage? Minimum performance is 35%+ of your core catalog
4. The rate at which that UGC quantity is shared on
the social web? And, the referral traffic and
resulting conversion? The value of a review shared to facebook is $15.72 with a $132
AOV
22 #SocialFuture
UGC Quantity and Coverage is the basis of the
consumer research experience
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Jan 2010
Feb 2010
Mar 2010
Apr 2010
May 2010
Jun 2010
Jul 2010 Aug 2010
Sep 2010
Oct 2010
Nov 2010
Dec 2010
Jan 2011
Feb 2011
Mar 2011
Apr 2011
May 2011
Series2
Series4
Series5
Series6
Series8
IR50 multichannel retailer
IR50 multichannel retailer
Ebay store home improvement online retailer
$250m home category online retailer
IR50 multichannel retailer
-4X
-2X
+4X.38%
.72%
#SocialFuture23
24
UGC Quantity and Coverage is the basis of the
consumer research experience
6%
38%
74%
49%
88%
46%
10%
16%
29%
Internet Retailer Top 100 Customer Reviews
Coverage, % of total SKUs
#SocialFuture
Make your content available wherever your
customers are researching
The social web allows for
open distribution of content
• Retailers
• Manufacturers
• Mobile Devices
• Review Sites
#SocialFuture25
Search engines are still the starting point for research
#SocialFuture
44%
33%
20%
2%
1%
I start with a search engine and look for top search results for products I desire
I start with retailer sites that sell the product I’m looking for
I start with the manufacturer’s site
I reach out to my social network on Facebook for recommendations
I pose a question on Twitter
When researching branded products online prior to purchasing (e.g. HP computer, Panasonic TV, Nike shoes) which of the following most closely
represents where you would begin that process?
27
UGC is considered most credible on Amazon
#SocialFuture
63%
51%
50%
47%
38%
21%
15%
Amazon.com
Review Sites
Search Engines
Retailer Sites
Manufacturer Sites
Please tell us how credible (or trustworthy) you feel the user-generated content (e.g. customer reviews and ratings, recommendations, etc.)
is from each of the following locations. (Top-2)
Followed by review sites and search engines.
28
1/3 of consumers are now using Google Shopping
#SocialFuture
31%
29%
22%
I use Google Shopping features to compare prices
I use Google Shopping to read product reviews
I use Google Shopping features to find local businesses carrying the products I'm searching for
Over the past year, Google has added more information about local retailers and their respective inventory. How would you characterize your current
Google Shopping utilization? (Top-2: all of the time/very often)
29
Left Nav includes shopping Search Refinement
links to Google shopping
Shopping OneBoxLinks to Google
Shopping
Q2 2011
UGC is becoming increasingly prominent within the
search experience
33 #SocialFuture
18%
23%
11%
9%
12%
Several times a day
Daily
Once a week
Several times a month
Once a month
How often do you check your newsfeed on Facebook?
More then 40% of consumers check their Facebook
newsfeed daily or several times a day
Q26-27
36 #SocialFuture
Consumers participate in Fan Pages primarily to discover
promotions
Q29
43%
27%
24%
24%
23%
22%
11%
I participate in the retailer’s Fan Page on Facebook to gain access to promotions
I participate in a retailer’s Fan Page on Facebook because I like or shop at that particular retailer
I appreciate that a retailer’s Fan Page on Facebook makes it possible for me to interact with and learn from other consumers that share my
enthusiasm in a given category
I participate in the retailer’s Fan Page on Facebook to receive rewards points
I interact in the retailer’s Fan Page on Facebook when I’m looking to get a specific question answered
I interact in the retailer’s Fan Page on Facebook when I want to make a comment about a specific experience with that retailer
I participate in a retailer’s Fan Page on Facebook because I want to feel like a part of that retailer’s community
Thinking about a retailer’s (or manufacturer’s) Fan Page on Facebook, please tell us which of the following statements are true for you.
(Check ALL that apply)
37 #SocialFuture
When shopping online, social sites are used primarily to
discover the pros and cons of a product
Q6
53%
30%
18%
11%
10%
6%
64%
24%
9%
12%
9%
9%
I don't use community and social media sites when shopping online
To learn from others about the pros and cons of products
To show my loyalty to my favorite brands
To get the word out on the street or “buzz” about products of interest to me
To feel like part of a community
To be a part of the “conversation”
How do you use community and social media sites when shopping online? I use community and social media sites to … (Check ALL that apply)
2011
2010
38 #SocialFuture
But still nearly 3/4 of consumers don’t turn to
social sites to research
Q6
6%
10%
13%
22%
49%
I always read and research on social sites to gather ideas
I often read and research on social sites to gather ideas
I sometimes read and research on social sites to gather ideas
I rarely read and research on social sites to gather ideas
I never read and research on social sites to gather ideas
Overall, how often do you use social sites such as Facebook and Twitterfor your shopping research to gather ideas?
39 #SocialFuture
Focus Facebook efforts where your customers are
participating most frequently, in the newsfeed
40 #SocialFuture
And ask consumers to like your brand at critical points
within the on-site experience
41 #SocialFuture
Consumers interacting with content in their newsfeeds
can have a dramatic impact on sales
The Results
57% of all verified reviews are shared
to Facebook
of all reviews shared to spur
further engagement through
Likes/Comments
more reviews are shared with
Facebook OnSite vs. traditional
methods
The value of a review shared to
Facebook with Facebook
OnSite.
70%
5X
$15.72
43 #SocialFuture
Research is happening on the product page, which hosts
the social features more important to e-commerce
Q6
59%
42%
26%
15%
13%
13%
9%
9%
Customer reviews (user-generated product reviews)
Q&A (customers asking and answering questions about products on-site)
Community forums (for conversations among customers or between you and other customers)
Videos (viewing user-generated videos or creating your own)
Facebook fan page (company fan page on Facebook)
Facebook newsfeed (friends talking about products)
Mobile (iPhone application, text alerts)
Twitter (monitor, respond to, and post tweets)
Please indicate the impact of the following Community and Social toolson your buying behavior. (Top-2: significant/good impact)
On
-Sit
eO
ff-S
ite
45 #SocialFuture
Nearly half of consumers say that an on-site community
experience is a factor in their shopping behavior
Q23
5%
16%
23% 23%
33%
Critical Very important Somewhat important
Only slightly important
Not at all important
How important is having a community experience on a retailer’s site to your likelihood of making a purchase from
that retailer?
46 #SocialFuture
35%
31%
30%
30%
29%
Enthusiast/Specialty blogs and/or community sites on topics of high interest to you (e.g. fashion, beauty,
technology, parenting, etc.)
Communities on your favorite retail sites
Communities on your favorite manufacturer sites
Manufacturer Fan Pages on Facebook
Retailer Fan Pages on Facebook
How often do you participate on each of the followingsocial networking or community sites? (Top-3)
With nearly 1 in 3 consumers actually participating in a
brand or retailer community
Q18
On
-Sit
eO
ff-S
ite
47 #SocialFuture
Expertise is the most important characteristic of other
contributors within a community
Q20-21
74%
68%
53%
48%
30%
Length of ownership/experience with a given product
Level of expertise in the category (e.g. expert, novice)
Demographics (i.e. age, gender, household income)
Where they/you live (e.g. city, state; urban/suburban/rural)
Their/your picture
When you think about contributors in an “enthusiast” (or special interest) community you belong to, how important is it to know each of the following
characteristics of those contributors?
48 #SocialFuture
On-Site Community is used primarily to get questions
answered and to gain access to rewards/promotions
Q22
34%
33%
29%
27%
23%
15%
9%
I interact with the retailer’s community when I’m looking to get a specific question answered
I participate with the retailer’s community to gain access to promotions
I participate with the retailer’s community to receive rewards points
I interact with the retailer’s community when I want to make a comment about a specific experience with that retailer
I participate in the retailer’s community because I like or shop at that particular retailer
I appreciate that the retailer’s Fan Page on Facebook makes it possible for me to interact with and learn from other consumers
that share my enthusiasm in a given category
I participate in the retailer’s community because I want to feel like a part of that retailer’s community
Thinking about a retailer’s community, please tell us which of the following statements are true for you. (Check ALL that apply)
49 #SocialFuture
Situation: BBY display is complex & does not
contain the core conversion driving elements
1. Rating histograms make it
easy to see the rating
breakdown across reviews.
2. 3 of 4 customers require
pros & cons to make a
purchase decision; make it
easy for them to get what
they want
3. Content (vs. histogram)
summaries are critical to
consumer decision making,
especially when viewing on
a mobile
4. Consumers’ #1 requested
feature is the faceoff.
On-site, focus on social tools that give customers all
the information necessary to make a purchase
1
2
3
4
50 #SocialFuture
Integrated profile with the world’s largest
community and your shoppers Improve credibility of on-site content
with robust user profiles
52 #SocialFuture
Situation: BBY display is complex & does not
contain the core conversion driving elementsWithin a user profile, focus on profile
elements that matter most to consumers
1. Profile Picture
2. Location
3. Expertise
4. Past
Contributions
5. Verified Badges
1
2
3
4
5
53 #SocialFuture
5
Facebook’s Open Graph is emerging
as the the social platform of choice for
e-commerce
5
#SocialFuture54
More people are researching on social sites than last year
Q6
36%
47%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Consumers using social networks for research
2010
2011
55 #SocialFuture
56
More than 20
times11-20 times 6-10 times 1-5 times Never
A retailer 5% 7% 10% 34% 44%
A manufacturer 4% 5% 11% 31% 49%
A product 4% 6% 11% 32% 47%
Over the last 30 days, how many times have you
“Liked” each of the following?
More then 1/2 of consumers are actively using the Like
button across the web
#SocialFuture
Of the off-site social content, Facebook continues to show
the most potential
Q6Q6
59%
42%
26%
15%
13%
13%
9%
9%
Customer reviews (user-generated product reviews)
Q&A (customers asking and answering questions about products on-site)
Community forums (for conversations among customers or between you and other customers)
Videos (viewing user-generated videos or creating your own)
Facebook fan page (company fan page on Facebook)
Facebook newsfeed (friends talking about products)
Mobile (iPhone application, text alerts)
Twitter (monitor, respond to, and post tweets)
Please indicate the impact of the following Community and Social toolson your buying behavior. (Top-2: significant/good impact)
Off
-Sit
e
57 #SocialFuture
1 In 3 shoppers think it’s important for ecommerce sites to
personalize their experience based on Facebook data
Q25
4%
11%
15% 16%
54%
Extremely important
Very important Somewhat important
Only slightly important
Not at all important
How important is it for you, as a shopper, to have a retailer personalize the site experience and connect product
recommendations to your Facebook account?
#SocialFuture58
21%
27%
52%
I have never connected to Facebook on a retailer’s site, but plan to in the near future
I have connected to Facebook from a retailer’s site in the past
I would never connect to Facebook from a retailer’s site
Which of the following best describes your experience connecting to Facebook from a retailer’s site?
It’s early days for Facebook, but 1 in 2 consumers have
or will connect from e-commerce sites
Q24
59 #SocialFuture
Situation: BBY display is complex & does not
contain the core conversion driving elements
Amazon paved the way with personalized
recommendations based on Facebook data
63 #SocialFuture
1
2
3
Facebook’s Open Graph allows for extreme
personalization and a better shopping experience
64 #SocialFuture
5 Social Shopping Trends Recap
Consumers are spending more time researching,
across more sources, expecting certain social tools in
the process
Research starts with search, but SEO alone is no
longer enough
Consumers use Facebook for sharing and discovery,
not for research
On-site deployment of social tools has the greatest
impact on e-commerce sales
Facebook’s Open Graph is emerging as the social
platform of choice for e-commerce
1
2
3
4
5
#SocialFuture65
Q&A – 10 minutes
66
Thank you.
Thanks for attending. Please take a
moment to complete our brief survey
upon leaving the webinar.
Today’s Speakers:
Cathy Halligan
SVP, Sales & Marketing
@CathyHalligan
Lauren Freedman
President
www.e-tailing.com
#SocialFuture