At 11am on 12th October Vincenzo Calenne, Head of Sales Ecommerce Ciao UK, took a look at social shopping, one of the biggest trends of 2011. The increasing convergence of online retail and user review platforms presents an important opportunity for online retailers and businesses to take advantage of user reviews and content, and build a positive online brand for commercial success.

1. E-Commerce Expo London 2011 Vincenzo CalenneHead Of Sales Ecommerce Ciao UK

2. Social Shopping: where do you stand?

3. Today’s agenda Ciao at a glance Shopping is moving Importance of online reputation Online criticism Conclusion

4. Ciao at a Glance

5. Ciao at a glance About ciao.co.uk Source: Comscore Comparison Shopping, ComScore, July 2011

6. Ciao at a glance About Europe #5 #4 7.252.000 unique visits 3.763.000 unique visits #1 #1 #1 1.665.000 unique visits 4.326.000 unique visits 4.099.000 unique visits 210.000 unique visits #1 #5 #3 Source: Comparison Shopping, ComScore, July 2011 748.000 unique visits

7. Ciao at a glance Bing and MSN shopping channel across Europe

8. Ciao at a glance What is Ciao.co.uk? price comparison …and many product offers

9. Ciao at a glance What is Ciao.co.uk? users opinions on products

10. Ciao at a glance What is Ciao.co.uk? users opinions on merchants

11. Shopping is moving

12. Shopping: increasing reach Almost 90% in the UK Reach of Retail Sites in European Countries - January 2010 vs. January 2011 - Age 15+ - Home and Work Locations

13. Growth of retail on mobile devices Increasing by 100%-130% Growth in Mobile Retail Activity Penetration Among Total Mobile Subscribers and Smartphone Owners - 3 Month Avg. Ending May 2011 - YoYTotal EU5 (FR, DE, IT, ES and UK), Age 13+

14. Mobile: retail vs other categories Fastest growing mobile categories

15. Future scenario:importance of online reputation

16. Buying Cycle Consumer decision making process Research Consumer Advice & opinions Advice & opinions

17. Purchase Decisions: what really matters Advice: online and offline 46% 24% 16% 8% 3% 2% Source: Penn, Schoen, Berland Associates, Inc., LinkShare Trend Watch Research: New Info Shoppers, RecessionBuyersandthe 2009 Online Shopping Outlook, 2009

18. Mobile: reviews and opinions Reasons consumers go to social media or social networking sites Source: IBM Institute for Business Value analysis. CRM Study 2011

19. Power Shifting: companies to consumers Consumer reviews 68% of users have changed their purchase decision based on other consumer reviews.1 “People are looking to own the research process, not to be told by either salespeople or advertisers what the product is about.”3-Penn, Schoen & BerlandAssociates 79% of online UK retailers surveyed reported that the main benefit of consumer-generated rating and reviews was that they improved site conversion rates.2 -eMarketer, 2009 Source: 1CiaoUser Survey ciao.co.uk, April 2011 | 2eMarketer, 2009 3 Penn, Schoen & BerlandAssociates Market Research 2010 |

20. Online criticism

21. Online criticism Negative review: typical situation

22. Online criticism How do you react? frustration uncertainty distrust fear suspicion

23. Online criticism How do you deal with criticism? 4% 3% 14% 4% 38% Source: Visitor survey at Internet World London, April 2009

24. Action vs passive Negative review: response

25. Action vs passive Feedback request within email reply

26. Action vs passive Other examples: UK

27. Action vs passive Other examples: Spain

28. Action vs passive Other examples: the Netherlands

29. Action vs passive Other examples: Italy

30. Conclusion

31. Conclusion Assign resources Identify relevant sites Check regularly Understand criticism as an opportunity Develop dialogue

32. Questions? Vincenzo CalenneHead of E-Commerce Sales UK vincenzo.calenne@microsoft.com www.ciao-group.com Microsoft Ltd Ciao Commerce DivisionCardinal Place 100 Victoria Street London SW1E 5JL UK Ciao in Social Media: http://twitter.com/ciao_uk http://www.facebook.com/ciaouk