With the news that 84% of global consumers now trust personal recommendations over any other form of traditional advertising, it's clear the industry needs to sit up and pay attention to the full potential of peer-to-peer advising on social. Evidence suggests advertisers could be doing more in this area. As despite many believing that social networks can drive incremental sales, an understanding of the interactions taking place around their companies is arguably limited. In this presentation, Peter Janes, founder of social marketplace Shopa, will discuss how brands can join the conversation and place social interactions at the heart of a truly effective e-commerce strategy.

1. The peer-to-peer
effect
Exploding your e-commerce strategy
with social recommendations

2. The power
of recommendation

3. The power of recommendation
A social recommendation is 45x more
effective in generating sales. Primarily
because of trust
We are social creatures and WOM drives much
higher R.O.I than any other form of marketing
79% of 18 - 34 year-olds Regularly make
purchases based on social recommendations

4. RECOM
MENDA
TIONSCreate DemandHarvest Demand
SE
O
SE
M
The new channel for customer acquisition

5. The evolution of
online shopping

6. Brick & Mortar stores start taking the internet seriously
Paypal Launches as an alternative way to pay on line
1994 The first online sale takes place
1994 / 1999 High Street Moves Online

7. Internet users 361
million
Google launches
Adwords
Apple launches iTunes
Ecommerce giants collapse
2000 / 2002 The Bubble Bursts

8. 1 Billion now online globally
The term “Cyber Monday”
More than 50% of UK households have Internet
access
Facebook.com launches
2002 / 2006 Social Networks Emerge

9. 2.5 Billion internet users online
Groupon - Rise of aggregate sites and 'Group buying'
The race begins to become mobile first
Luxury retailers Launch online
2008 / 2012 Online shopping goes mainstream

10. A marketplace that works directly with retailers
Facebook’s attempt with F-
commerce fails
Scene is set for a pure
marketplace
Recommendations become the
n°1 driver of sales
2012 / onwards - The rise of social shopping

11. So What is Shopa?

12. The evolution of Online Marketing
1.0
Search and transact
via Flat directories
2.0
Search and transact
via Networks

13. Product focused People focused
Search =
method of discover
Recommendations =
method of discover
Machine learning behind
purchase decisions
Activity of friends
behind purchase
decisions
Social
Marketplace
Traditional
Marketplace

14. The new target market
The ‘Anytime, Anywhere & Anyplace generation’
The ‘Connected Generation using internet and
mobile for ALL their activities
Generation Y - The 24/7 connected
Generation

15. What does Gen Y use social media for?
57% like looking into other people’s worlds
47% want to meet people with similar interests
59% - To keep in touch with friends and
family
46% like to express their opinions and views on
topics

16. Social /
people
focused
Affili
ate
Flat
Sales/
Marketpla
ce
Competitive Landscape

17. Social Meets Retail
UGC - Pinterest Model Traditional Marketplace Model
User Inspired Commerce - Shopa Model
Purchasable Products
UGC

18. UIC - User Inspired Commerce

19. UIC - User Inspired Commerce

20. UIC - User Inspired Commerce

21. SOCIALMARKETPLACE
CustomerEngagement AverageNumberSessionsPerUserPerWeek
* Based on average of 100 retail and social network sites (Zenith Media 2014)
ONLINERETAILER
0.65
SOCIALNETWORK
3.2
1.95

22. Keys to commerce success in the new world
Provide social validation tools for
content created by users
Make the user the STAR of your show and they
will love you for it
Provide a platform for individuals to express
themselves and simple tools to seamlessly share

23. Lots of small conversation starters
Cultivate conversation leaders and incentivise
Deploy quick response money across web,
search, social and mobile
Keys to commerce success in the new world

24. Seek connections and interactions
Share Knowledge
Shift - brand centric to network centric
Final Thoughts
Surrender control to users

25. Thank you
Founder / CEO @petejanes
pjanes@shopa.comPeter Janes