Rise of Social Commerce (Webinar)

Rise of Social Commerce#rscwebinar

February 3, 2010

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Lora Cecere and Jeremiah OwyangAltimeter Group

© 2011 Altimeter Group

Read the report2

Rise of Social CommerceA Trail Guide for the Social Commerce Pioneer

Published November 1, 1010

Download at: slideshare.net/loracecere


Qualitative: 54 interviews of social pioneers

Quantitative: 123 respondents from retail and consumer products

In vitro: 145 conference attendees

Our methodology3


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“Social Commerce provides social context to the shopping experience. It is not B2C.”

“Social commerce is in development. It is less about cool widgets and more about the power of the digital relationship.”

“Engaging on topics that are important and earning the right to offer them the opportunity to buy. Earning attention and capturing intention to deliver a personalized response. “

“It is a new way to manage the long tail of the value chain. Product selection by the people for the people.”

What is Social Commerce?


“The use of Social Technologies to anticipate, personalize and energize the

shopping experience.”

It is both a channel and a new way of doing business.

Our belief5


The Potential of the Open Graph

Source: Gigya


For Hallmark….8


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There were many trails west….


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Dell

Dell’s Key Social Media Milestones


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The Rise of Social Commerce

Stage Goal Questions

Stage 1: Let’s Be Social

Awareness What are the best tactics to use? How do I influence the most influential?

Stage 2: Enlightened Engagement

Dialogue How do I make it easier for the shopper to engage? How do I effectively introduce the shopper to

enterprise processes? How do I use social technologies to improve

dialogue with the value chain?

Stage 3: Store of the Community

P2P How do I use shopper insights? Which shopper input best reflects market

opportunity? How do I engage trading partners to deliver against

the store of the community?

Stage 4: Frictionless Commerce

Redefinition How do I redesign the buying experience? How do I enrich enlightened engagement processes

without slowing buying cycles?


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Fans like You! Amazon partners with Facebook to show customers what their friends have bought


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Brands post frequently, but few engage in two-way dialog

Source: “The 8 Success Criteria of Facebook Page Marketing,” Altimeter Group, 2010

Altimeter Group rated 30 top brands on 8 success criteria for Facebook fan page marketing.


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Strategists want to have dialog, but not support

Source: “How Corporations Should Spend on Social Business,” Altimeter Group, 2011

We asked 140 corporate Social Strategists what their top external (go-to-market) objectives are in 2011.


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Organize for social business


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- One department controls all efforts- Consistent- May not be as authentic- e.g. Ford

CENTRALIZED


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ORGANIC

- Organic growth- Authentic- Experimental- Not coordinated- e.g. Sun


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COORDINATED

- One hub sets rules and procedures- Business units undertake own efforts- Spreads widely around the org- Takes time- e.g. Red Cross


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MULTIPLE HUB AND SPOKE OR “DANEDELION”

- Similar to Coordinated but across multiple brands and units

- e.g. HP


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HOLISTIC OR “HONEYCOMB”

- Each employee is empowered- Unlike Organic, employees are organized- e.g. Dell, Zappos ©


Customers Like products on Levi’s pages


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Levi’s auto-populates a shopping cart based on friends’ Likes


Review aggregation: Pros, cons and best uses


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Listening and learning in new product launch: Produce Saver Response

#Future15SB @bwdumars


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Listening and learning in new product launch: Produce Saver Response

#Future15SB @bwdumars


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Diapers.com: Conversation precedes Commerce

Your baby becomes the social face of Diapers.com

Questions, suggestions and humor around being a parent

Twitter parties

Mommy clubs


Diapers.com: Conversation precedes Commerce

75% orders from repeat customers

45-day return metric

50% of Facebook users are engaged

for an hour/day


Dove: Launches Facebook Store in 201132

• 32 Brands• Engaged Consumers• Less Channel Tension

with Retailers than eCommerce


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Customers choose which designs get created in ModCloth’s Be The Buyer Program


Wet Seal: Social Strategy

Social Network Engagement Cross Channel Mobile

User Generated Content


Facebook Virtual Runway – Dec 2009

App Generates3X CustomerFan News Feed PostsThan from Fan PageInteraction


Shop with Friends – Dec 2009


Wet Seal Social Network Game – August 2010


Cross Channel Mobile – Oct 2009

Outfit Views500K+ per week


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Delta


Other ideas:

Groups

International

Facebook rewards

Leverage partnerships

Rethinking Travel


Universal ID

Intersection of Interest and Social Graphs

Like Button tied to Open Innovation Networks

2-D Barcodes

Social Search

Virtual Currency

Trends we are following44


We don’t know what “west” looks like

Find a Scout: Customer advocate to help navigate the trail

Lighten your load as you go….

Preparing for the journey45

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Jeremiah [email protected]

web-strategist.com/blog

Twitter: jowyang

THANK YOU

Lora [email protected]

supplychainshaman.com

Twitter: lcecere

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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage. We have four areas of focus:

Leadership and Management, Customer Strategy,

Enterprise Strategy, and Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

[email protected].

ABOUT US

http://www.altimetergroup.com/

Rise of Social Commerce (Webinar)

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Transcript of Rise of Social Commerce (Webinar)