SOCIAL COMMERCE:HYPE VS. REALITY

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PRESENTED ENTHUSIASTICALLY BY

MICHAEL LAZEROW

CEO, BUDDY MEDIA

THREE BREAKTHROUGH IDEAS THAT WORK TODAY

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WHAT IS SOCIAL COMMERCE?

ECOMMERCE 1.0

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“UTILITARIAN HUNT FOR STAPLES”

-OM MALIK

ECOMMERCE 1.0

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CONVENIENCE.PRICE.SELECTION.

CONVENIENCE

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CONVENIENCE

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PRICE

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SELECTION

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SOCIAL COMMERCE

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“FRICTIONLESS SHOPPING”

SOCIAL COMMERCE

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SOCIAL AND INTEREST GRAPHS DRIVE BUYING DECISIONS

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TALI IS SHOPPING FOR A SUIT FOR HER HUSBAND.

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THE WORLD IS BUILT AROUND PEOPLE.

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THANKS TO FB, THE WEB IS ORGANIZING AROUND PEOPLE.

SEARCH: A BLUNT INSTRUMENT

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IF YOU ONLY HAVE A HAMMER, YOU TEND TO SEE EVERY PROBLEM AS A NAIL.

- ABRAHAM MASLOW, PSYCHOLOGIST

BLACK-HAT SEO EXPERTS

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SOURCE: SEARCHENGINEWATCH.COM

“The popularity of Google’s search engine is still second to none, but Google has been plagued by black hat SEO practices and content farms for a while now … ”

CONTENT FARMS

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- MASHABLE, FEB. 2011.

LAST-CLICK ATTRIBUTION

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Last click attribution ignores 97% of spend driving conversions.- JULY 2010 DATAXU STUDY

SOCIAL

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HUMAN BEHAVIOR, NOT CODE.NOT EASILY SPAMMED.NOT EASILY CONTROLLED.

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IS YOUR BUSINESS BUILT AROUND PEOPLE?

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PHYSIOLOGICAL

SAFETY

LOVE/BELONGING

ESTEEM

SELF-ACTUALIZATION

MASLOW’S HIERARCH OF NEEDS

SOURCE: http://en.wikipedia.org/wiki/File:Maslow%27s_Hierarchy_of_Needs.svg

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PHYSIOLOGICAL

SAFETY

LOVE/BELONGING

ESTEEM

SELF-ACTUALIZATION

MASLOW’S HIERARCH OF NEEDS

SOURCE: http://en.wikipedia.org/wiki/File:Maslow%27s_Hierarchy_of_Needs.svg

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PHYSIOLOGICAL

SAFETY

LOVE/BELONGING

ESTEEM

SELF-ACTUALIZATION

MASLOW’S HIERARCH OF NEEDS

SOURCE: http://en.wikipedia.org/wiki/File:Maslow%27s_Hierarchy_of_Needs.svg

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PEOPLE WANT TO FEEL LOVED AND A SENSE OF BELONGING.

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PEOPLE WANT TO FEEL RESPECTED AND ACCEPTED.

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PEOPLE WANT TO REALIZE THEIR POTENTIAL.

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SHARING HELPS ACHIEVE EACH OF THESE NEEDS.

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IDEA #1

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SOCIAL COMMERCE IS MORE ABOUT COMMERCE THAN SOCIAL.

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HYPE ALERT: SET UP A STOREFRONT ON FACEBOOK.

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DESPITE MANY ATTEMPTS, ECOMMERCE SUCCESS ON FACEBOOK IS LIMITED.

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WHY?

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FACEBOOK USERS ARE NOT ON FACEBOOK TODAY TO SHOP.

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BRING FACEBOOK TO YOUR

COMMERCE RATHER THAN

COMMERCE TO FACEBOOK.

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BRING FACEBOOK TO YOUR

COMMERCE RATHER THAN

COMMERCE TO FACEBOOK.

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REALLY????

EXPRESS.COM HAS LIMITED SHARING WHILE IT HAS A FULL STORE ON FACEBOOK FOR THE 3% WHO SHOP THERE.

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IDEA #2

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YOUR SMALLER, VOCAL CUSTOMERS MAY BE YOUR MOST PROFITABLE CUSTOMERS.

RAISE YOUR HAND IF …

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YOU HAVE SHARING FUNCTIONALITY ON YOUR SITE.

KEEP IT RAISED IF …

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YOU KNOW HOW MUCH REVENUE IS BEING DRIVEN THROUGH SHARING.

KEEP IT RAISED IF …

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YOU KNOW HOW MUCH REVENUE IS BEING DRIVEN BY PRODUCT THROUGH SHARING.

KEEP IT RAISED IF …

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YOU KNOW HOW MUCH REVENUE IS BEING DRIVEN BY CUSTOMER THROUGH SHARING.

MIKE IS SHOPPING FOR A T-SHIRT.

HE FINDS IT AND SHARES IT WITH HIS FRIEND IAN.

by Ian Shafer

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SMALL BUYERS CAN BE BIG SHARERS & SELLERS.

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IDEA #3

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SILOES ARE KILLING SOCIAL COMMERCE.

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PAID OWNED EARNED

LIMITED CREATIVE TESTING

NO LANDING TAB OPTIMIZATION OR MARKET SEGMENTATION

NO VIRAL TUNING

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EARNED

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ELIMINATE THE SILOES

OWNED

PAID

• PAID MEDIA (ADS), OWNED MEDIA (FB PAGES, WEB SITES) & EARNED MEDIA (VIRAL SHARING) MUST WORK TOGETHER TO SUCCEED ON FACEBOOK.

ELIMINATE THE SILOES

CREATIVE OPTIMIZATION LANDING TAB OPTIMIZATION VIRAL TUNING

WHAT CAN YOU DO?

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INTRODUCING SPINBACK

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YESTERDAY BUDDY MEDIA ANNOUNCED THE ACQUISITION OF SPINBACK.

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FIRST SOLUTION THAT MEASURES ROI FOR SOCIAL ON FACEBOOK, AND OFF.

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INTRODUCING EASYSHARETM

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INTRODUCING EASYTRACK ANALYTICSTM

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EASYTRACK ANALYTICSTM

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EASYTRACK ANALYTICSTM

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EASYTRACK ANALYTICSTM

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CASE STUDY: DAILY DEAL CLIENT

+ $4.48 IN NEW SALES PER SHARE+ 3.6 UNIQUE VISITS PER SHARE+ 12.5% CONVERSION RATE VS 2.2% ON AVERAGE

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CASE STUDY: DAILY DEAL CLIENT

WOMEN ON FB IN THEIR 30S FROM THE BOSTON AREA DROVE $6.15 PER SHARE ON AVERAGE.

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THE AVERAGE FACEBOOK SHARE GENERATES $2.10 IN INCREMENTAL SALES.

- AGGREGATE SPINBACK CLIENT DATA

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AVG CONVERSION RATE FOR A FACEBOOK SHARE WAS 10.2%.

- AGGREGATE SPINBACK CLIENT DATA

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THE MOST SHARING FOR INTERNET RETAILERS OCCURS ON WEDNESDAYS, FOLLOWED BY THURSDAYS.

- AGGREGATE SPINBACK CLIENT DATA

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12:13PM - 1:45PM ON WEEKDAYS IS ‘MAGIC HOUR’ FOR RETAILERS.

- AGGREGATE SPINBACK CLIENT DATA

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27-33 YEAR OLD WOMEN ON FACEBOOK ARE THE MOST ACTIVE SHARERS, AND DRIVE THE HIGHEST CONVERSION RATES.

- AGGREGATE SPINBACK CLIENT DATA

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TWITTER DRIVES HIGHEST CTR BUT HAS MUCH LOWER CONVERSION RATES COMPARED TO FACEBOOK AND EMAIL.

- AGGREGATE SPINBACK CLIENT DATA

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MOST "LIKED" BOOK: HARRY POTTERMOST "LIKED" GAMESHOW: FAMILY FEUDMOST "LIKED" GAME/TOY: ZYNGA REWARDVILLEMOST "LIKED" HOUSEHOLD SUPPLIES: TIDEMOST "LIKED" MOVIE: THE HANGOVERMOST "LIKED" MUSICIAN/BAND: THE BEATLES2ND PLACE: LADY GAGAMOST "LIKED" TV SHOW: HOUSE2ND PLACE: GLEE3RD: ELLENMOST "LIKED" TV NETWORK: HGTV

SPINBACK USERS

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“SPINBACK HAS ALLOWED US TO TURN OUR SOCIAL MEDIA STRATEGY INTO MORE THAN JUST ‘CLICKS’, ‘FOLLOWS’ AND ‘TWEETS.’  WE ARE NOW GETTING ACTIONABLE DATA SHOWING US DEMOGRAPHICS, PRODUCT TRENDS AND, MOST IMPORTANTLY, REVENUE TIED TO OUR ACTIVITIES."

- JASON ROUSSOSPRESIDENT & COO OF LIVING DIRECT

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Michael Lazerow

CEO, Buddy Mediae:

michael@buddymedia.com

Twitter: @

lazerow

THANK YOU!