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THE SOCIAL SHOPPER How Retailers Can Connect With Customers Marisa Peacock the Strategic Peacock North American Home Furnishings Association #NAHFA High Point Market, High Point, NC April 18, 2015

How Retailers Can Connect With Social Shoppers #HighPoint

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THE SOCIAL SHOPPERHow Retailers Can Connect With Customers

Marisa Peacock the Strategic Peacock

North American Home Furnishings Association #NAHFAHigh Point Market, High Point, NC

April 18, 2015

WHAT IS SOCIAL SHOPPING?

Social shopping refers to consumers who use social networking services and sites to share their latest purchases, deals, coupons, product reviews, want lists, and other shopping finds.

#NAHFA

WHO IS A SOCIAL SHOPPER?Social shoppers are social media users who strongly agree with the statement: “the brands and products my friends use influence my own purchase decisions.”

#NAHFA

HOW MANY FRIENDS DO YOU HAVE?

The average number of Facebook friends of US Facebook users in 2014, by age group

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FRIENDSHIP TRUMPS RESEARCH

Researchers from Oxford, Harvard and the University of Limerick found that:

Community members randomly copy the choices made by other members in the recent past so that products whose popularity levels have recently grown the fastest are more likely to be selected, whether or not they are most popular overall.

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TYPES OF SOCIAL SHOPPERS

• Efficiency Sprint Shopper

• The Peer Shopper

• The In-the-Know Shopper

• Impulse Buying Shopper

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EFFICIENCY SPRINT SHOPPER• Uses social media to help zero

in rapidly on consumer-generated information to make sensible purchases

• Looks at top-rated reviews for best results

• Relies on group think to make decisions

• Uses sites like Yelp or recommendation engines.

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THE PEER SHOPPER

• Relies heavily on recommendations and tips from friends

• Trust their friends more than other sources

• Uses Facebook as their primary network for gathering insights

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THE IN-THE-KNOW SHOPPER• Cultivates a following based

on their insider status

• Mentions or tags brands/products in posts or updates

• Craves connections with brands/products

• Uses Twitter, check-ins to broadcast purchases, visits

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THE IMPULSE BUYING SHOPPER

• Suffers from FOMO - fear of missing out on great deals

• Uses daily deal sites, searches for coupon codes before buying

• Shares deals to friends to receive incentives

• Participates in online give-aways, contests and other social promotions

#NAHFA

5 CATEGORIES FOR SOCIAL SHOPPING

Group Shopping Sites

Sites like Groupon or Living Social that encourage groups of people to buy together at wholesale prices.

Shopping Communities

Using the wisdom of crowds, users communicate and aggregate information about products, prices, and deals. Many sites allow users to create custom shopping lists and share them with friends.

Recommendation Engines

sites that provide customers opportunities to write reviews and offer advice to fellow shoppers.

Shopping Marketplaces

Sites like Polyvore or Etsy that bring sellers and buyers together to connect and transact. The marketplace affords buyers and sellers methods to connect and communicate whilst also performing the role of e-commerce facilitator for sellers and discovery engine for buyers.

Shared Shopping

Sites that allow shoppers to form ad hoc collaborative shopping groups in which one person can drive an online shopping experience for one or more other people, using real-time communication among themselves and with the retailer.

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WHAT SOCIAL SHOPPING LOOKS LIKE

Facebook: social shoppers are more likely to have Facebook profiles over all other social networks

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source: Netbase

WHAT SOCIAL SHOPPING LOOKS LIKE

Twitter: 75% of social shoppers have Twitter profiles

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source: Netbase

WHAT SOCIAL SHOPPING LOOKS LIKE

Instagram: on Instagram, 45% of social shoppers are influenced to purchase a product in at least one category (homewares, cosmetics, etc)

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source: Netbase

WHAT SOCIAL SHOPPING LOOKS LIKE

Pinterest: 52% of social shoppers indicated that they look to Pinterest for product inspiration

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source: Netbase

WHAT SOCIAL SHOPPING LOOKS LIKE

Blogs: Before making a purchase in at least one product category, 64% of social shoppers consult message boards or blogs for inspiration

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source: Netbase

WHAT SOCIAL SHOPPING LOOKS LIKE

Reviews: 75% of social shoppers prefer consumer reviews, over expert reviews, before making their purchases.

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source: Netbase

HOW GENERATIONS SHOP

WHO ARE THEY?• Millennials: Born between 1985-2000; are

currently aged 15-30.

• Gen X: Born between 1965-1984; currently aged 31-50

• Boomers: Born between 1946-1964; are currently aged 51-69.

CONSUMER INSIGHTS

• PunchTab surveyed 1,143 U.S. consumers in September 2014 to find out what they’re planning when it comes to holiday shopping this year, including when they plan to buy and where (in-store or online).

SOCIAL MEDIA CHANNELS

PURCHASE INFLUENCES

MOBILE INFLUENCEWhile Not In-Store Boomers Gen X Millennials All

Browse for items in online stores 24% 41% 44% 35%Look for coupons or sales 20% 34% 37% 30%

Compare prices between different stores or online shopping sites 23% 35% 36% 30%

Make my shopping list 21% 30% 40% 30%Research items on brands’ websites 21% 30% 37% 29%

While In-Store Boomers Gen X Millennials AllCall, text, or email others to get input on

an item 28% 42% 45% 38%Take a picture of an item to show others

to get input 29% 41% 41% 36%

Compare prices for similar items at other stores or online shopping sites 25% 39% 38% 34%

Check my shopping list 19% 33% 39% 30%Look for mobile coupons 19% 28% 30% 25%

How will you use your smartphone to assist with holiday shopping?

BEST PRACTICES

HOW RETAILERS CAN CONNECT WITH SHOPPERSMarketers can leverage social shopping to drive traffic, sales, and loyalty and become the ultimate influencer. Let’s learn how to:

• Show Social Proof

• Analyze sharing behaviors

• Create a new vocabulary

• Integrate online and in-store experiences

#NAHFA

SHOW SOCIAL PROOFConvince visitors to take an action by showing the support of hundreds or thousands of “likes” or testimonies from people they may know.

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MAKE SHARING EASY• encourage customers to share

what’s in their cart after check-out

• offer promotional codes to those that share their purchases with friends & family

• ask/reward customers to Instagram/Tweet their wares after purchase

ANALYZE SHARING BEHAVIORS

• Monitor and measure what items get shared the most from your site

• Identify the social sites that drive the most traffic to your site (and lead to conversions)

• Listen & respond to online conversations to offer suggestions, tips, promotions

#NAHFA

CREATE A NEW VOCABULARY• Learn what words customer are using to describe your products.

• Incorporate those words into messaging & social targeted advertising.

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INTEGRATE ONLINE & IN-STORE EXPERIENCES

• Optimize your store’s wi-fi. Can customers connect easily?

• Make check out mobile. Can customers use mobile coupons easily?

• Buy Online, Pick Up In Store. Show inventory for local customers.

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WHAT IS SHOWROOMING?Showrooming: when customers use a mobile device to compare prices online to in-store prices, and then leave the showroom to buy online. (46% of people in the US showroom)

Reverse Showrooming: when consumers go online to research products, but then head to a bricks-and-mortar store to complete their purchase. (69% of people in the US reverse-showroom)

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source: BI Intelligence

source: BI Intelligence

WHAT YOU NEED TO KNOW ABOUT SHOWROOMING

Amazon.com remains the No. 1 place where showroomers end up making their purchases, but it's an even more popular destination for reverse showroomers who ultimately buy elsewhere.

Location-based technology can engage customers while they are in-store and provide them with personalized offers on the item they are looking at or mobile-only promotions as they walk by a store. Personalized mobile notifications can turn browsers into buyers.

42% of consumers using a mobile device while in-store spend more than $1,000, while only 21% of shoppers without a phone spend as much.

#NAHFA

source: Interactive Advertising Bureau

source: BI Intelligence

QUESTIONS?

[email protected]

www.strategicpeacock.com

@marisacp51

THANK YOU!