Understanding social commerce and what it means in today's digital e-commerce driven economy. Presentation for the 2011 Litle Client Conference.

1. SOCIAL COMMERCE
AS CUSTOMER EXPERIENCE
#lccsocialcom

2. WHAT IS SOCIAL COMMERCE?
AKA SOCIAL SHOPPING

3. FACT #1
WE CARE ABOUT WHAT
OTHER PEOPLE LIKE.

4. LIKEONOMICS
“5 BIG INSIGHTS”
Upcoming book from Rohit Bhargava of Ogilvy
www.likeonomics.com

5. INSIGHT #1
THERE IS A MODERN BELIEVABILITY
CRISIS
• Overlyhyped marketing messages and corporate greed have
led consumers toward a fundamental distrust of business.
• Social
media is bringing more visibility to it, as people have
more ways to uncover it than ever before.
• This
is the modern believability crisis, and it is impacting every
form of communication.
- Rohit Bhargava, Likeonomics.com

6. INSIGHT #2
PEOPLE MAKE DECISIONS
EMOTIONALLY, NOT LOGICALLY
• Thishas driven marketers and advertisers absolutely insane
for a very long time.
• Theway we make decisions has not changed, but our
understanding of it has.
• Bestselling books like Predictably Irrational, Blink, and Sway –
as well as mountains of new brain research point to the fact
that people are inherently irrational and that emotions play a
fundamental and often misunderstood role in decision making.
- Rohit Bhargava, Likeonomics.com

7. INSIGHT #3
STORIES ARE THE MOST COMPELLING
FORM OF COMMUNICATION
• Related
to our understanding of the power of emotion is the
growing attention on storytelling as the ultimate form of
communication, as it has been for thousands of years.
• Thepeople and organizations who tell better stories are the
ones that inspire movements, get elected or sell millions of
products.
- Rohit Bhargava, Likeonomics.com

8. INSIGHT #4
SIMPLICITY IS THE FOUNDATION OF
ALL GREAT COMMUNICATIONS
• Peopleare paralyzed by too much choice and nothing can kill
an idea faster than complexity.
• The most iconic products and services of today, from the iPad
to the Dyson Vacuum to the Flip Camera to Twitter all owe a
great part of their success to their inherent ability to simplify
everything about their experiences.
• Simplicity is the secret weapon.
- Rohit Bhargava, Likeonomics.com

9. INSIGHT #5
IN STRANGERS (AND
“MICROEXPERTISE”) WE TRUST
• Wikipedia is only the most visible example of a revolution in
trust that has meant that people are going online and trusting
the opinions and expertise of people who they don’t know.
• Content creation, aggregation and now … content curation
are all new forms of microinfluence and they are shifting
everything we know about trust.
- Rohit Bhargava, Likeonomics.com

10. FACT #2
NO ONE LIKES
ADVERTISEMENTS

11. It’s evident.

12. FACT #3
WE USE SOCIAL NETWORKS

13. THE PARTICIPATORY WEB

14. A TREND IS DEVELOPING

15. THE MILLENIALS ARE COMING
And it’s not grampa’s Internet anymore.

16. OUR SOCIAL GRAPH INFLUENCES OUR CONSUMER
BEHAVIORS.
i.e., reviews, votes, comments, recommendations

17. YET ONLY 20% OF
COMPANIES HAVE A
SOCIAL COMMERCE
STRATEGY!
But that’s changing, fast.
86% of those companies
polled plan to have a strategy
in place in 2011.
- Altimeter Group

18. “SOCIAL COMMERCE IS THE USE OF
SOCIAL STRATEGIES TO ANTICIPATE,
PERSONALIZE AND ENERGIZE THE
SHOPPING EXPERIENCE.”
- Altimeter Group

19. 3
“if I had to guess
social commerce
is the next area to
really blow up"
Mark Zuckerberg
August 23rd 2010

20. TWO FORMS
OF SOCIAL
COMMERCE

21. 1. SOCIAL
MEDIA ON
ECOMMERCE
PLATFORMS
helping people connect
where they buy

22. 2. ECOMMERCE ON SOCIAL MEDIA PLATFORMS
helping people buy where they connect

23. SIX MEDIUMS
OF SOCIAL
COMMERCE

24. RATINGS & REVIEWS

25. RECOMMENDATIONS & REFERRALS

26. FORUMS & COMMUNITIES

27. SOCIAL SHOPPING

28. GROUP BUYING

29. PURCHASE SHARING

30. SIX
DIMENSIONS
OF SOCIAL
COMMERCE

31. SCARCITY
less is more

32. AFFINITY
shop with like-minded people

33. POPULARITY
follow the crowd

34. RECIPROCITY
You scratch my back, I’ll scratch yours.

35. AUTHORITY
follow the leader, “we are the experts”

36. CONSISTENCY
one step at a time

37. YOUR CUSTOMERS ARE
ALREADY DOING IT
use these ingredients to optimize the customer experience

38. WHAT ARE YOU DOING?
Q&A

39. THANK YOU
Ben Saren
Vice President, Marketing
Litle & Co.
bsaren@litle.com
@bsaren