The Social Shopper
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Transcript of The Social Shopper
©2012 PHENOMBLUE LLC.
STEPHEN LEUDIRECTOR, STRATEGY FOR PHENOMBLUE LA
@STEPHLEU
SCOTT BISHOP VP, STRATEGY FOR PHENOMBLUE
@THESCOTTBISHOP
Phenomblue is a brand experience agency.
We are an agency of strategists, designers and engineers using technology to connect people and brands.
The brands we work with.
WTF IS SOCIAL COMMERCE?
It is not limited to a specific platform or network
buying stuff
online
digital coupons
Social commerce is the introduction of social aspects traditionally associated with brick-and-mortar shopping into the digital realm
Much of the time spent is
with experts and getting their advice
before purchase
Social interaction with
friends and peers to receive
feedback
WHY IS THIS HAPPENING?!
What's driving social commerce?
What's driving social commerce?
new interaction mediums
• Online Video: 22hr viewed per month by individual user
• Social Media: 1 in 5 of all minute spent online
• Mobile: 4 in 5 smartphone owners purchase on their devices
Comscore 2011
What's driving social commerce?
new interaction mediums
digitally-connected consumers
• 52% of laptop owners also own smartphones
• 31% of smartphone owners also own tablet devices
• 13% of american that own multiple devices own all three
Pew Research 2012
What's driving social commerce?
new interaction mediums
digitally-connected consumers
on-demand culture• 2 billion hours spent by Netflix
streaming customers
• 4 billion hours of video watched monthly on YouTube
• Wikipedia ranks in the first page results for 90%of Google searches
Comscore 2011
What's driving social commerce?
new interaction mediums
digitally-connected consumers
on-demand culture
Generation C
WHAT'S GENERATION C? I THOUGHT I WAS TALKING TO
MILLENNIALS
Generation C
aged 18-34
American
more female than male
Generation C
aged 18-34
American
more female than male
They are not a standalone demographic defined by age, geographic location, gender or affluence
Generation C, the Connected Generation, are those who integrate Web usage and digital devices as part of their everyday life
These are the social shoppers
84% of millennials rely on UGR and UGC
from strangers in making their purchase.
70% of boomers does the same
Users of age 50+ are the fastest growing
adopters of social media, at a rate of 49%
year over year
Users of age 45 – 50 are the fastest
growing adopters of smart devices, at a rate
of 5% year over year
Bazaar Voice 2012, Pew Research 2011, Nielsens 2012
GENERATION C
Generation C
They are a psychographic defined by their interests, attitudes, values and behaviors
Generation C
They derive their social status by what they share
They exhibit bee-like swarm behavior
They thrive on “social oxygen”
TWITTER IS WHERE I CONNECT WITH STRANGERS
FACEBOOK IS WHERE I BRAG TO MY FRIENDS
Generation C
The Web, and the digital devices that provide access to it, let people define themselves however they want
Generation C
Consumers have never before had so much power to shape a brand
And it works both waysTHE SHOPPER'S INFLUENCE
THE COMPANY'S INFLUENCE
FOLLOW THESE TENETS FOR SUCCESSFUL SOCIAL COMMERCE
(OR RISK A SLOW, INGLORIOUS DEATH)
1. Personalize the experience
2. Let consumers influence their friends
3. Be a thought leader
Geolocation
Facebook-Connect, Twitter OAuth
CREATE A CUSTOMIZED EXPERIENCE AND IMMEDIATE CALL TO ACTION BASED ON THE USER’S PHYSICAL LOCATION
FACEBOOK-CONNECTED USERS ARE NINE TIMES MORE LIKELY TO SHARE THEIR EXPEIRENCES
1. PERSONALIZE: TOOLS
1. PERSONALIZE: EXAMPLE
Beyond user info gathered from its own site, Amazon.com utilizes Facebook Connect to recommend products that match the interests of users and their friends
Ticketmaster’s customized app recommends
products based on user activities
1. PERSONALIZE: EXAMPLE
Provide the digital means for natural social habits
2. INFLUENCE
FRIEND
FRIENDWATCH
TRAVEL
LIKE
LISTEN
Macy’s Magic Fitting room bridges the gap between brick
and mortar and digital, and provides a unique experience
2. INFLUENCE EXAMPLE
2. INFLUENCE EXAMPLE
Spotify’s open graph app broadcasts the customer’s
engagement through multiple points of distribution
When your brand is a trusted expert and advisor, consumers willingly share their own experience and testimonials
3. LEAD
Personality
Expertise
PROVIDE A DISTINCT IDENTITY AND VOICE THAT APPEALS TO CONSUMER'S EMOTIONS
SHARE YOUR KNOWLEDGE WITH CUSTOMERS TO ENABLE THEM TO MAKE INFORMED DECISIONS ABOUT YOUR BRAND
3. LEAD: TOOLS
3. LEAD: EXAMPLE
64% of shoppers look for reviews before making a purchase
By providing sound advice, they may buy your product or share the value they’ve received – or both
Though the actual content
is not directly related to
the product, the brand
personality and value
delivered helps the viewer
to remember the brand
3. LEAD: EXAMPLE
Brands must provide an experience worth sharing, and foster an environment where they can facilitate conversation
BUT HOW DOES IT GET ME $$$$$$?
Traditionally-accepted purchasing process
DECISION
CONSIDERATION
ENGAGEMENT
AWARENESS
How the purchasing process actually works
DECISION CONSIDERATION
ENGAGEMENT
AWARENESS
SOCIAL RECOMMENDATION
Online conversation has a tangible value
that are measured by DPS (dollar per
share) and VPS (visits per share)
The average dollar per share increased by
85% from $1.78 to $3.23
The average visits per share increased
from 7 to 17 visits
17% of social media users have purchased
a product/service based on a friend’s post
Eventbrite 2012, Forrester Research 2012
SOCIAL COMMERCE - THE BOTTOM LINE
Be a part of guiding that social recommendation
Speaking to your audience
companies and brands revolve around them
“we”—not “me”
create conversations consumers can swarm to
join conversations within and across communities
THE PROGRESSIVE COURSE OF SOCIAL COMMERCE
Mobile Shopping
NFC (Near Field Communication)
Logistics
As of Q2 2012, purchases made through a mobile device now account for 15.1% of all online purchases
Technologies and advanced devices enable social behaviors to take place online, providing such interactions with scale, speed and convenience
Mergers and acquisitions are already taking place to support this trend
MOBILE SHOPPING
Source: IBM 2012
Enriches the mobile shopping experience
Provides consumers the option to freely share their personal information
Other emerging technology will allow for seamless connectivity with consumer devices
NFC (NEAR FIELD COMMUNICATION)
If prominent e-commerce players are able to execute this change, big-box retailers will be forced to adapt
Addresses a core customer value (convenience) in a new way
The importance of marketers encouraging social discussion and recommendation of their product/service will become paramount
LOGISTICS
THE SOCIAL COMMERCE REVOLUTION HAS JUST BEGUN
Takeaways
“Social commerce” is not a turnkey solution and not a channel
Social commerce is a conduit for discovery and discussion that bridges the social divide between brands and consumers shopping online
Marketers should integrate time-tested methods of tracking and adjusting to social consumer behavior with technology optimized for multiple platforms
Thanks.
STEPHEN LEUDIRECTOR, STRATEGY FOR PHENOMBLUE LA
@STEPHLEU
SCOTT BISHOP VP, STRATEGY FOR PHENOMBLUE
@THESCOTTBISHOP
PHENOMBLUE.COM©2012 PHENOMBLUE LLC.