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THE SIX DIMENSIONSOF SOCIAL COMMERCETHE LATEST INTERNATIONAL DEVELOPMENTS IN DRIVING REVENUE
MARK ELLIS, MANAGING DIRECTOR, SYZYGY
3
Definition: Social Commerce
Word-of-mouth, applied to e-commerce.
“Selling with Social Media”
Social commerce is a subset of e-commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services.
AUGUST 11, 1994NETMARKET.COMFIRST-EVER INTERNET PURCHASE
11.50 AM JULY 8, 20091-800-FLOWERS.COMFIRST PURCHASE WITHIN FACEBOOK
Sharing your purchasing decisions before, during and after buying
+ = € / $
INCREASE TRAFFIC, SALES (CONVERSION)AND AVERAGE ORDER VALUE
BRAND AMBASSADORS“PEOPLE ARE MORE VALUABLE OWNING AND USING YOUR
PRODUCT/SERVICE THAN THINKING ABOUT BUYING IT”Paul Srivorakul, Ensogo.com
2 STRATEGIES
SOCIAL MEDIA ONE-COMMERCE PLATFORMS
Helping people connect where they buy
E-COMMERCE ONSOCIAL MEDIA PLATFORMS
Helping people buywhere they connect
6 x SOCIAL COMMERCE TOOLS
2
1 RATINGS & REVIEWS
2 RECOMMENDATIONS &REFERRALS
3 FORUMS &COMMUNITIES
2
4 SOCIAL SHOPPING
5 GROUP BUY
6 PURCHASESHARING
IT’S ABOUT
PEOPLE INFLUENCING PEOPLENOT TECHNOLOGY
1. BE HONEST2. BE CONVERSATIONAL
3. BE REMARKABLE (LET GO)
THE SIX DIMENSIONSTO SOCIAL COMMERCE SUCCESS
1. SCARCITY2. AFFINITY
3. RECIPROCITY4. POPULARITY5. AUTHORITY
6. CONSISTENCY
#1. SCARCITYLESS IS MORE (PERCEIVED VALUE)
Frederick the GreatPRUSSIA, 1774Effectively re-branded the Potato by making it a ‘scarce’ Royal delicacy
Christian LouboutinLimited Edition Barbie Exclusive Collector’s Dolls
@DellOutlet $6.5m Twitter RevenueExclusive Discounts and Snap Promotions
GROUPONWorld’s largest ‘Group Buy’ Platform
POP-UP ONLINE STORESLucky Magazine and HSN create 48-hr exclusive Facebook shop
FACEBOOK DEALS (MOBILE)Geo-located local deal promotions have huge expectations for 2011Gap offered 10,000 free jeans to the first 10,000 check-ins (then 40% off)
#2. AFFINITYSHOP WITH LIKE-MINDED PEOPLE
Dell SwarmGroup Buy for technologyDaily deals for Dell bargain hunters
Levi’s Friends Store‘Shop Together’Real-time Global Shared Shopping Functionality
PingApple’s Social Network
Connecting 160m iTunes Customers1m sign-ups in first 48-hrs
#3. RECIPROCITYPAY BACK FAVOURS
Adidas Outlet StoreMember Get Member Social CouponsEarn free shoes by inviting friends in
Fiesta MovementFord’s Social Commerce Experiment (2009)100 free cars in return for monthly YouTube posts11,000 videos, 15,000 tweets, 11m social visitors, 5m shares, 50,000 enquiries, 38% awareness (Gen-Y)
Starbucks foursquareNational ‘Mayor Offer’ (USA) Loyalty Programme$1 off each drink for all Starbucks foursquare Mayors nationwide
Toys R UsToyologistsConsumer panel of (free) toy reviewers on Facebook, Twitter and YouTube
#4. POPULARITYFOLLOW THE CROWD
P&G Amazon Facebook StoreSelling 1,000 products an hour (direct to consumers)Top 29 brands from Always to Zest
The undisputed Kings (and Inventors) of Social CommerceLeading the way since 1995 (£24.5bn turnover, 2009)
BurberryArt of the TrenchBecome a trench coat model (200,000 visitors week-1; 5m to date)
#5. AUTHORITYFOLLOW THE LEADER (EXPERTS)
vente-privee.comExclusive private club for curated designer brand discounts40,000 orders per day; $1.1bn Sales; $70m profit
AppleExpert Discussion ForumsHosting and feeding a platform for thousands of Apple ‘experts’
French ConnectionYoutique (YouTube) – “Plinking”Expert fashion videos with annotated ‘Buy’ buttons
#6. CONSISTENCYONE STEP AT A TIME
BlendtecWill it Blend (YouTube)Smiling is consistent with liking, liking is consistent with buying130,000,000 videos viewed; Home blender sales increased +700% since 2006
Starbucksmy STARBUCKS IDEAFeedback is consistent with caring, caring is consistent with loyaltyConsistent Customer Focus: using Social as an Ideas Platform to improve the product and service
f-commerceFacebook Stores (and storefronts)‘Get It First’ VIP Store, discounts and exclusives for Facebook Fans
f-commerceSoftware suppliers creating integrated Facebook storesE.g. Alvenda; Usablenet; Milyoni; Payvment;
SUMMARY7 KEY POINTERS for 2011
1. EXPERIMENT - START SELLING ON SOCIAL PLATFORMS2. ADD MOBILE (SHARING) INTO YOUR SOCIAL MIX3. IMPLEMENT SOCIAL PLUG-INS e.g. FACEBOOK ‘LIKE’4. UP-SELL WITH REVIEWS AND RECOMMENDATIONS5. INTEGRATE ‘CHAT’ SO FRIENDS CAN SHOP TOGETHER6. MAKE YOUR WEBSITE THE SOCIAL FLAGSHIP7. BRING YOUR OFFLINE BRAND EXPERIENCE ONLINE
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