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Social Commerce
 How Technology and Integration is
 Shaping Up the ‘Social Buying’ Experience

 FGI Presentation – March 7th, 2012




www.social2B.com
Contents

    Social Commerce – Where is it now?  What are the solutions?

    Where is Social Commerce going?     Why do you need to be aware of it?

    Who are the leaders?                How do you start and integrate for
                                          success?




www.social2b.com                                                               2
Social Commerce Dimensions

                                            • Sharing your purchasing
                                              decisions before, during
                                              and after buying

                                            • Communicating your
                                              decisions with others –
                                              family, friends, strangers

                                            • Volunteering your reviews
                                              and quality control check-
                                              points – ‘Citizen Shoppers’

                                            • Becoming brand advocates
                                              and influencers, thus
                                              benefiting from closer
                                              brand engagement



www.social2b.com                                                           3
Social Commerce Dimensions




                                            • Engaging the audience
                                              where they buy and
                                              engaging their
                                              sentiment, sharing, volu
                                              nteerism

                                            • Engaging buyers where
                                              they connect, by being
                                              relevant and value-
                                              driven




www.social2b.com                                                         4
Social Media ‘Enablers’




www.social2b.com                             5
Social Commerce Market – 2010-2015




www.social2b.com                                        6
Social Commerce – Sharing and Social Influence




                                  Source: Forrester and Shop.org - 2011
www.social2b.com                                                          7
Social Commerce – F-Commerce




                             Source: Forrester and Shop.org - 2011
www.social2b.com                                                     8
Social Commerce – Brand Interaction




www.social2b.com                                         9
Social Commerce – Stats Infographic




www.social2b.com                                         10
Social Commerce – Early Success Stories




www.social2b.com                                             11
Most common ‘social tactics’ deployed by brands

    •   Ratings and Reviews
    •   Microblogs and landing pages
    •   Social Recommendations
    •   Company Blogs (including vide blogs)
    •   Client generated comments
    •   Product sharing on social sites
    •   Social Shopping Aggregator Sites (deal sites)
    •   Ability to engage open APIs (more on that later)




www.social2b.com                                           12
Most common ‘social tactics’ deployed by brands –
   Ratings and Reviews

                               • Used by most retailers (also a
                                 common function for many
                                 eCommerce platforms –
                                 Magento, Shopify, ATG, DemandWare
                                 , etc.)

                               • Opportunity to reduce content
                                 creation efforts and shift to 3rd party
                                 generated content

                               • Benefits to product
                                 development, field testing, and up-
                                 sell/sell-through (if well integrated
                                 with analytics and customer service
                                 process)
www.social2b.com                                                     13
Most common ‘social tactics’ deployed by brands –
   Microblogs – (Twitter, Tumblr, Pinterest, Chill, etc.)




www.social2b.com                                            14
Most common ‘social tactics’ deployed by brands –
   Microblogs – (Twitter, Tumblr, Pinterest, etc.)




                   • Easy and relatively
                     inexpensive to launch

                   • Quick Disposal or extra
                     inventory (Dell example)

                   • Customer Service extension
                     benefits

www.social2b.com                                       15
Most common ‘social tactics’ deployed by brands –
   Social Recommendations



                                          Opportunity to
                                          ‘crowdsource’ opinion

                                          Exposes clients to
                                          more content

                                          If built in, increases
                                          time on site and
                                          upsell opportunity




www.social2b.com                                                   16
Most common ‘social tactics’ deployed by brands –
   Company Blogs

                                   • Good opportunity for SEO

                                   • Integration of content and
                                     commerce through
                                     links, suggestions, reviews
                                     and ‘shares’

                                   • Low cost add-on to the
                                     existing commerce site

                                   • Relevance is important –
                                     not just aggressive
                                     promotion


www.social2b.com                                                   17
Most common ‘social tactics’ deployed by brands –
      Client Generated and Suggested ‘outfitting’




www.social2b.com                                          18
Most common ‘social tactics’ deployed by brands –
      Client Generated and Suggested ‘outfitting’

                                            • Assists in
                                              merchandizing
                                              support and cross-
                                              sells

                                            • Customer
                                              Engagement

                                            • Unique Approach




www.social2b.com                                             19
Most common ‘social tactics’ deployed by brands –
      Client Generated and Suggested ‘outfitting’


                             • Assists in merchandizing support
                               and cross-sells

                             • Customer Engagement

                             • Unique Approach

                             • Integrating ‘high-touch’ and digital
                               experience




www.social2b.com                                                      20
Most common ‘social tactics’ deployed by brands –
      Product Sharing on Social Sites (FB+Twitter)

                                      • More effective than
                                        company’s social network
                                        pages

                                      • Opportunity to use
                                        Facebook’s or Twitter’s
                                        infrastructure to evangelize
                                        the brand

                                      • Best relevant sharing (with
                                        events, item quality, item
                                        level communications, etc.)

                                      • Many options exist for
                                        content publishing and
                                        commerce on FB
www.social2b.com                                                 21
Most common ‘social tactics’ deployed by brands –
      Social Shopping Aggregator Sites

                                        Aggregated and incremental
                                        traffic

                                        More engaged relevant
                                        shoppers based on
                                        preferences

                                        Conversion is moderate –
                                        early in the sell cycle

                                        Behavioral aspects are
                                        visible – based on
                                        preferences, price
                                        sensitivity, etc.


www.social2b.com                                                   22
Most common ‘social tactics’ deployed by brands –
      Open APIs



                                        Take advantage and
                                        crowdsource technology

                                        Great for ‘ready made’
                                        projects

                                        Lower cost of entry


                                        Proven and tested




www.social2b.com                                                 23
Most common ‘social tactics’ deployed by brands –
      What about Facebook?


                                            Integration of on-site
                                            experience

                                            Brand Extension

                                            Feedback aggregator
                                            via
                                            surveys, polls, comm
                                            ents, shares, likes




www.social2b.com                                               24
Most common ‘social tactics’ deployed by brands –
      Value of a Facebook ‘Like’ (2010-2011)?




www.social2b.com                                          25
What do Lady Gaga, Coke, Batman and Pampers
      have in common?




www.social2b.com                                    26
www.social2b.com   27
Trends and Drivers for Social Commerce


                                      Retailers are beginning to overlay
                                      ‘social graph’ on digital and brick-
                                      and-mortar locations

                                      SoLoMo – Social, Local and Mobile
                                      is beginning to bridge the gap
                                      between physical and digital

                                      Commerce and Social Commerce
                                      will unite the audience on physical
                                      and social worlds

                                      Gaming may act as a catalyst in
                                      social commerce as an early driver
                                      (Zynga, etc.)

www.social2b.com                                                         28
Trends and Drivers for Social Commerce
                                      Millennials and younger
                                      generations are ‘blending real life
                                      and digital life’ – they don’t know
                                      the difference (‘Generation C’)

                                      Social Apps, games, local
                                      deals, mobile technology are
                                      driving ‘addictive’ behaviors

                                      ‘Location based tracking’ through
                                      Gowalla (FB) and Foursquare may
                                      help drive traffic to stores (physical
                                      and digital) and solicit immediate
                                      feedback

                                      Location based monitoring and
                                      activation (LocalResponse via
www.social2b.com                      Twitter and local check-ins)        29
Trends and Drivers for Social Commerce:
               Example – PepsiCo ‘Social Vending’




www.social2b.com                                         30
Trends and Drivers for Social Commerce:
               Example – Macy’s ‘Magic Fitting Room’




www.social2b.com                                         31
Trends and Drivers for Social Commerce:
             Example – Diesel’s Integrated Social Experience




www.social2b.com                                          32
Trends and Drivers for Social Commerce:
             Example – Adidas ‘Holiday Hookup’




www.social2b.com                                       33
Potential and How You can Improve

                                                  Online sales will grow at 10%
                                                  compound rate through 2015
                                                  (Forrester)

                                                  Younger generations are looking for
                                                  recommendations and validation from
                                                  peers anywhere and for anything

                                                  Integration of Real-World and Social
                                                  World is real and will continue to
                                                  dominate

                                                  Mobile technologies and Smart Phones
                                                  will continue to augment the
                                                  experience of shopping

                                                  SoLoMo will continue to drive traffic to
                                                  brick-an-mortar through ‘social
 Image credits: EdologicIL; RenaultNL
                                                  engagement’ (Likes, Check-Ins, etc.)
www.social2b.com                                                                         34
What’s next in Social Commerce Integration

                                     Integration of social gaming and social
                                     commerce – turning virtual currency
                                     into real currency

                                     Helping shoppers build collections and
                                     sharing with friends – your way
                                     (Polyvore, The Trunk Club, Fits.me, etc.)

                                     Shopping content aggregation and
                                     management, virtual closets, shareable
                                     wish lists (SVPPLY, Groupon, etc.)

                                     Specific interest graphs – new frontiers
                                     evolving from Social Commerce – Social
                                     Interest Graphs, integration of groups
                                     and interests directed at brands, etc.


www.social2b.com                                                          35
What’s next in Social Commerce Integration



                                    Case Study – Walmart ShopyCat

                                    Aggregated shopping helper (avatar)
                                    integrating preferences and choices for
                                    family members, friends and alike
                                    interest groups




www.social2b.com                                                          36
What’s next in Social Commerce Integration

                                       Case Study – Pose

                                       Mobile and Social Shopping
                                       experiences. Share your branded
                                       outfits with friends and family. Solicit
                                       input and feedback. Get rewards for
                                       sharing and featuring brands. Become
                                       style influencers.

                                       Good integration between social and
                                       mobile channels. Excellent engagement
                                       model.




www.social2b.com                                                          37
Thanks!

                    Alex Romanovich, Founder – Social2B International, LLC,
                    CMO – EuroSpaClub International,
                    Advisory Board Member – The CMO Club

                    Unique blend of technology, marketing and
                    business development skills and
  @Social2B
                    experience (IBM, SGI, Bertelsmann AG,
  @alexromanovich   Unified Technologies, Global Advertising
  @eurospaclub      Strategies, Social2B, EuroSpaClub Intl.)

                    Frequent speaker and advisor on topics
                    of Social Media, International and
                    Multi-Cultural Mktg.
                    (CNBC, CNN International, Forbes,
                    Crains, Voice of America, etc.)

                    Social Media Marketing, Social Value
                    Chain, Social Commerce, and
                    Social Media Scalability Expertise
www.social2b.com                                                              38

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Social Commerce - How technologies and integration are shaping the social buying experience - FGI Presentation, March 7th, 2012

  • 1. Social Commerce How Technology and Integration is Shaping Up the ‘Social Buying’ Experience FGI Presentation – March 7th, 2012 www.social2B.com
  • 2. Contents  Social Commerce – Where is it now?  What are the solutions?  Where is Social Commerce going?  Why do you need to be aware of it?  Who are the leaders?  How do you start and integrate for success? www.social2b.com 2
  • 3. Social Commerce Dimensions • Sharing your purchasing decisions before, during and after buying • Communicating your decisions with others – family, friends, strangers • Volunteering your reviews and quality control check- points – ‘Citizen Shoppers’ • Becoming brand advocates and influencers, thus benefiting from closer brand engagement www.social2b.com 3
  • 4. Social Commerce Dimensions • Engaging the audience where they buy and engaging their sentiment, sharing, volu nteerism • Engaging buyers where they connect, by being relevant and value- driven www.social2b.com 4
  • 6. Social Commerce Market – 2010-2015 www.social2b.com 6
  • 7. Social Commerce – Sharing and Social Influence Source: Forrester and Shop.org - 2011 www.social2b.com 7
  • 8. Social Commerce – F-Commerce Source: Forrester and Shop.org - 2011 www.social2b.com 8
  • 9. Social Commerce – Brand Interaction www.social2b.com 9
  • 10. Social Commerce – Stats Infographic www.social2b.com 10
  • 11. Social Commerce – Early Success Stories www.social2b.com 11
  • 12. Most common ‘social tactics’ deployed by brands • Ratings and Reviews • Microblogs and landing pages • Social Recommendations • Company Blogs (including vide blogs) • Client generated comments • Product sharing on social sites • Social Shopping Aggregator Sites (deal sites) • Ability to engage open APIs (more on that later) www.social2b.com 12
  • 13. Most common ‘social tactics’ deployed by brands – Ratings and Reviews • Used by most retailers (also a common function for many eCommerce platforms – Magento, Shopify, ATG, DemandWare , etc.) • Opportunity to reduce content creation efforts and shift to 3rd party generated content • Benefits to product development, field testing, and up- sell/sell-through (if well integrated with analytics and customer service process) www.social2b.com 13
  • 14. Most common ‘social tactics’ deployed by brands – Microblogs – (Twitter, Tumblr, Pinterest, Chill, etc.) www.social2b.com 14
  • 15. Most common ‘social tactics’ deployed by brands – Microblogs – (Twitter, Tumblr, Pinterest, etc.) • Easy and relatively inexpensive to launch • Quick Disposal or extra inventory (Dell example) • Customer Service extension benefits www.social2b.com 15
  • 16. Most common ‘social tactics’ deployed by brands – Social Recommendations Opportunity to ‘crowdsource’ opinion Exposes clients to more content If built in, increases time on site and upsell opportunity www.social2b.com 16
  • 17. Most common ‘social tactics’ deployed by brands – Company Blogs • Good opportunity for SEO • Integration of content and commerce through links, suggestions, reviews and ‘shares’ • Low cost add-on to the existing commerce site • Relevance is important – not just aggressive promotion www.social2b.com 17
  • 18. Most common ‘social tactics’ deployed by brands – Client Generated and Suggested ‘outfitting’ www.social2b.com 18
  • 19. Most common ‘social tactics’ deployed by brands – Client Generated and Suggested ‘outfitting’ • Assists in merchandizing support and cross- sells • Customer Engagement • Unique Approach www.social2b.com 19
  • 20. Most common ‘social tactics’ deployed by brands – Client Generated and Suggested ‘outfitting’ • Assists in merchandizing support and cross-sells • Customer Engagement • Unique Approach • Integrating ‘high-touch’ and digital experience www.social2b.com 20
  • 21. Most common ‘social tactics’ deployed by brands – Product Sharing on Social Sites (FB+Twitter) • More effective than company’s social network pages • Opportunity to use Facebook’s or Twitter’s infrastructure to evangelize the brand • Best relevant sharing (with events, item quality, item level communications, etc.) • Many options exist for content publishing and commerce on FB www.social2b.com 21
  • 22. Most common ‘social tactics’ deployed by brands – Social Shopping Aggregator Sites Aggregated and incremental traffic More engaged relevant shoppers based on preferences Conversion is moderate – early in the sell cycle Behavioral aspects are visible – based on preferences, price sensitivity, etc. www.social2b.com 22
  • 23. Most common ‘social tactics’ deployed by brands – Open APIs Take advantage and crowdsource technology Great for ‘ready made’ projects Lower cost of entry Proven and tested www.social2b.com 23
  • 24. Most common ‘social tactics’ deployed by brands – What about Facebook? Integration of on-site experience Brand Extension Feedback aggregator via surveys, polls, comm ents, shares, likes www.social2b.com 24
  • 25. Most common ‘social tactics’ deployed by brands – Value of a Facebook ‘Like’ (2010-2011)? www.social2b.com 25
  • 26. What do Lady Gaga, Coke, Batman and Pampers have in common? www.social2b.com 26
  • 28. Trends and Drivers for Social Commerce Retailers are beginning to overlay ‘social graph’ on digital and brick- and-mortar locations SoLoMo – Social, Local and Mobile is beginning to bridge the gap between physical and digital Commerce and Social Commerce will unite the audience on physical and social worlds Gaming may act as a catalyst in social commerce as an early driver (Zynga, etc.) www.social2b.com 28
  • 29. Trends and Drivers for Social Commerce Millennials and younger generations are ‘blending real life and digital life’ – they don’t know the difference (‘Generation C’) Social Apps, games, local deals, mobile technology are driving ‘addictive’ behaviors ‘Location based tracking’ through Gowalla (FB) and Foursquare may help drive traffic to stores (physical and digital) and solicit immediate feedback Location based monitoring and activation (LocalResponse via www.social2b.com Twitter and local check-ins) 29
  • 30. Trends and Drivers for Social Commerce: Example – PepsiCo ‘Social Vending’ www.social2b.com 30
  • 31. Trends and Drivers for Social Commerce: Example – Macy’s ‘Magic Fitting Room’ www.social2b.com 31
  • 32. Trends and Drivers for Social Commerce: Example – Diesel’s Integrated Social Experience www.social2b.com 32
  • 33. Trends and Drivers for Social Commerce: Example – Adidas ‘Holiday Hookup’ www.social2b.com 33
  • 34. Potential and How You can Improve Online sales will grow at 10% compound rate through 2015 (Forrester) Younger generations are looking for recommendations and validation from peers anywhere and for anything Integration of Real-World and Social World is real and will continue to dominate Mobile technologies and Smart Phones will continue to augment the experience of shopping SoLoMo will continue to drive traffic to brick-an-mortar through ‘social Image credits: EdologicIL; RenaultNL engagement’ (Likes, Check-Ins, etc.) www.social2b.com 34
  • 35. What’s next in Social Commerce Integration Integration of social gaming and social commerce – turning virtual currency into real currency Helping shoppers build collections and sharing with friends – your way (Polyvore, The Trunk Club, Fits.me, etc.) Shopping content aggregation and management, virtual closets, shareable wish lists (SVPPLY, Groupon, etc.) Specific interest graphs – new frontiers evolving from Social Commerce – Social Interest Graphs, integration of groups and interests directed at brands, etc. www.social2b.com 35
  • 36. What’s next in Social Commerce Integration Case Study – Walmart ShopyCat Aggregated shopping helper (avatar) integrating preferences and choices for family members, friends and alike interest groups www.social2b.com 36
  • 37. What’s next in Social Commerce Integration Case Study – Pose Mobile and Social Shopping experiences. Share your branded outfits with friends and family. Solicit input and feedback. Get rewards for sharing and featuring brands. Become style influencers. Good integration between social and mobile channels. Excellent engagement model. www.social2b.com 37
  • 38. Thanks! Alex Romanovich, Founder – Social2B International, LLC, CMO – EuroSpaClub International, Advisory Board Member – The CMO Club Unique blend of technology, marketing and business development skills and @Social2B experience (IBM, SGI, Bertelsmann AG, @alexromanovich Unified Technologies, Global Advertising @eurospaclub Strategies, Social2B, EuroSpaClub Intl.) Frequent speaker and advisor on topics of Social Media, International and Multi-Cultural Mktg. (CNBC, CNN International, Forbes, Crains, Voice of America, etc.) Social Media Marketing, Social Value Chain, Social Commerce, and Social Media Scalability Expertise www.social2b.com 38