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4th August, 2010 John Horsley, Client Services Director, Econsultancy.com Digital Trends : Snapshot 2010 Online Customer Complaints Crowdsourcing Social Commerce Mobile Vodafone Direct Sales, Team Briefing

Digital Trends Snapshot 2010

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This is a presentation I gave to the digital marketing and e-Commerce teams at Vodafone on digital trends including complaint sites, online customer service,Crowdsourcing, social and mobile commerce.

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Page 1: Digital Trends Snapshot 2010

4th August, 2010

John Horsley, Client Services Director, Econsultancy.com

Digital Trends : Snapshot 2010

Online Customer Complaints Crowdsourcing Social CommerceMobile

Vodafone Direct Sales, Team Briefing

Page 2: Digital Trends Snapshot 2010

| 13 January 2008 | Course Title| 2

Online Complaints & Online Customer Service

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| 3

Online customer complaints

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Online complaints & customer service

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Brand rating sites and apps

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Complaints on Social Networks

Complaints on social networks

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- Provision Of Customer Service * Resolution Of Issue * Providing Help And Advice (product) * Reputation Management

- Retention Of Existing Customers * Providing answers / solutions - where the customer is

- Conversion Of New Customers * Prospective customers seeking advice * Unhappy customers using competitors service

- Competitor Intelligence * Issues with new products * Consumers attitude towards competitors services & products

- Product Development * Development of products, plans and pricing * Makes company aware of any issues * Services

Online complaints handling

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CrowsourcingWikipedia, “Crowdsourcing is the act of outsourcing tasks, traditionally performed by an employee or contractor, to a large group of people or community (a crowd), through an open call”.

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Changing Relationships

The changing relationship of consumers and brands

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Crowdsourcing Examples : Vodafone

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Crowdsourcing Examples : Papa Johns

Top 3 submissions go on sale 2nd - 29th Aug

Winner gets: - Pizza for life - Appearance in TV ad - 1% of sales up to $10K

Papa John’s Facebook Competition

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Crowdsourcing Examples : Lego Mindstorm

Lego MindStorms.com

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Lego Mindstorm

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Crowdsourcing Market Research

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Crowdsourcing cycle of adoption

Gartner, hype cycle - This generally how technologies are adopted.

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Loyalty Sales

Customer Engagement

Co-Creation& Insights

Brand & Design

Advocacy

Loyalty

Brand Value

Sales & Business Growth

Product Dev& Innovation

Crowdsourcing effect on sales

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| 13 January 2008 | Course Title| 17

Social Commerce

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Timing of 5 Overlapping Eras

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78% believe that consumer recommendations are the most credible form of advertising.(Nielsen, “word of mouth the Most Powerful Selling Tool, 2007).

Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. ("Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape," JupiterResearch, March 2007)

Power of a review on purchase

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Increased social traffic to Retail 500

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mCommerce

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QuickTime™ and a decompressor

are needed to see this picture.

Searches for gadgets

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Growth in mobile phone sales

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Smartphone sales increased by 48.7% to 54.3 million units in this year's first quarter [Source: Gartner, via AOP Digital Landscape Report, June 2010]

Smartphone usage is up 70% and growing faster in the UK than Europe [Source: Comscore/GSMA MMM, via AOP Digital Landscape Report, June 2010]

There are 15,375,945 mobile media users in the UK. (3 month average to January 2009) [Source: M Metrics via Orange survey, March 2009]

Web traffic from mobiles is already estimated to be growing 8 times faster than web traffic from UK PCs. [Source: Deloitte]

Smartphone Addicts

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37% of smartphone owners have purchased something non-mobile with their handset in the past 6 months.

19% of total smartphone owners have purchased music from their device, 14% have purchased books, DVDs, or video games and 12% have purchased movie tickets.

41% of iPhone users and 43% of Android users are most likely to check sale prices at alternative locations from their mobile phones while they are shopping.

The second most likely activity is accessing consumer reviews, with 39% of iPhone owners and 31% of Android owners investigating reviews from their handset before they purchase.

Smartphone mCommerce transactions

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Amazon made $1billion in sales via mobile in past 12months.

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QuickTime™ and a decompressor

are needed to see this picture.

QuickTime™ and a decompressor

are needed to see this picture.

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QuickTime™ and a decompressor

are needed to see this picture.

QuickTime™ and a decompressor

are needed to see this picture.QuickTime™ and a decompressor

are needed to see this picture.

O2 iPhone app

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are needed to see this picture.

Vodafone Apps

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Marketing agency Sponge, found that 40% of retailers questioned have no plans to use mobile in the next 24 months.Internet Retailing June, 2010

Fantastic first mover advantage for the 60% who do see the opportunity.

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Summary

• Complaint - Every cloud has a silver lining• Consumers relationships with brands are changing• Be where your customer is • Crowds contain wisdom and generate sales • Gain eyeballs, advocates and revenue through social commerce• Mobile is a 2 way communications channel - beyond utility

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Thanks for your time

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Join Econsultancy today at http://econsultancy.com. All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsulancy.com Ltd 2009.