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Social Commerce –
real shopping [r]evolution?

Erica Schmidt, Global Search Director, iProspect
Zbigniew Nowicki, Managing Director, Bluerank
Social is a long way story

                             We have performed
                             Social Things since
                             our ancestors sat
                             around a fire and said,
                             "Ugh!" and developed
                             language what
                             allowed them to talk.

                             Just the tools and
                             speed have been
                             upgraded so far. Also
                             the talk evolved into
                             shared
                             communication.




                                                  2
Does a good product make social commerce easy?




                                                 3
Actually selling with social media may be far more
tricky than equation FB + product + review




                                                     4
Because social commerce is about influencing people



                                   and influencing
                                   is a very
                                   sensitive case if
                                   beside shopping
                                   we aim to keep
                                   positive
                                   experience




                                                       5
Influencing people requires right place and time




Allow customers to buy               ...and connect with customers in places
where they connect...                                 where they commerce




                                                                          6
What is so
special about
social?


                7
First: it is big, visits, traffic, pageviews, time




                                 InternetStandard: raport social media 2010




                                                                              8
Second: locally it is even bigger




                             InternetStandard: raport social media 2010




                                                                          9
Third: it makes you a friend with brands




                             InternetStandard: raport social media 2010




                                                                          10
And the ROPO is also based in social principle




                                                 11
Who plays
the drums?




             12
November 2008: Founded
3000 employees
250 markets worldwide
35 million registered users
$500 million: Projected revenue in 2010
$6 billion: Google’s bid to acquire Groupon November 2010
$15 billion: Possible IPO in 2011




                                                       13
Much better logo – collective buying power




                                             14
What is Groupon interconnecting together?




                 Online range                      Offline offer and
                 and decision                       brick&mortar
                    speed                              business




Two worlds that more or less were strongly separated so far. And moreover that it adds
social experience to the whole deal making a win-win deal for customers and vendors.




                                                                                     15
What is Groupon mechanics?




                             16
How does Groupon shapes our shopping behavior?




Need                                            Deal
• You want sth and you go for it, can be sth    • There is sth and you go for it, because
  you were preparing for a longer time            others go and it is perhaps cheap
• Price at the beginning is a secondary issue   • Reduced price and super conditions are
• You select from many, and pick up the one       the most important deal factors
  you really like                               • You get what you are offered to buy
• Usually is not an impact or accidental        • The deal is time limited so little time make is
  shopping, more rational approach                more emotional decision
• You more likely become ambassador             • Less likely to be a fan, just another deal




                                                                                                    17
Who looks into Groupon deals?

                   • Deal driven approach




                                                                             Online reputation
 Deal Hunters      • Do not spend much at the place beside the deal
                   • Not loyal, follow the deal not brand


    Smart          • Inspect terms and conditions carefully
                   • Discount or/and upgrade current status
   Selectors       • Could be loyal


  Occasional       • Registered by accident
                   • Rare buyers, resistant to deal advertising
  Shoppers         • Typical opt-in –> opt-out example


                   • Most valuable, but also most critical to your service
Wise Advisors      • Can spend more than the deal
                   • Loyal and returning if satisfied




                                                                                        18
What are objectives of groupon vendors?
                   • Train staff
   Hotel/SPA




                                                         Advertise locally
                   • Get the thing running
                   • Compensate low season


                   • Train new staff
 Barber Shop       • Introduce the service
                   • Fish and catch valuable clients


                   • Replace traditional local adverts
Fitness Center     • Sale non occupied hours
                   • Experiment with effectiveness


                   • Sale, sale, and sale
eFoto Service      • Become more popular among others
                   • Build customer database


                   • Get rid of unbelievable service
Lipo-supo-dupo     • Compensate the investment
                   • Catch losers who believe




                                                                    19
With Groupon everybody wins

                    Customers
                    • Get deals to SPA, cinemas,
                      theaters, restaurants, ect
                    • Trusted guide to local most
                      visited places
                    • Inspirational social maker




      Groupon                            Vendors
      • Provision on the                 • Effective and targeted
        discount coupons                   advertising
      • Large and opt-in                 • Clients who spent
        behavioral customer                more than the coupon
        database                           on additional services
      • Deal ambassadors                 • Viral aspects and
        among customers                    financial results


                                                                    20
Is Groupon
different?




             21
1   3



            Current deal draws
2           customer attention
            and promotes the
            hottest deal of the
            day.
            Page layout is very coherent and
            consists of 3 main sections:

            1. Deal of the day definition
            2. Call to action purchase module
            3. Supplementary deals




                                                22
1   3



                                          1

2
            Deal of the day definition
            Editors and web-designers compose
            unique deal

            •   Top line deal summary with super price
            •   Deal definition and benefits
            •   Important add-ons and conditions
            •   Deal details and reviews
            •   Link to vendor’s deal website
            •   Google Map Position
            •   Offline contact info




                                                         23
1   3



                                          2

2
            Call to action module
            Attention converted into direct sale
            with new customers within 24h

            •   Big „Buy now” 3D button
            •   Time urgent deal
            •   Different messages: discount – saving
            •   Time expire count down clock
            •   Deal count down counter
            •   Recommend to your friends feature




                                                        24
1   3



                                           3

2
            Supplementary deals
            System presents additional deals that
            fit into previous user behavior

            •   Short deal definition
            •   Picture support to draw attention
            •   Deal price details
            •   Call to action button
            •   Title links to deal landing page




                                                    25
It gets poular very fast




 Daily traffic level is bitting businesses with 5 and 10 years
 online presence and strong brand recognition




                                                                 26
It gets poular very fast




However it is young and weak as a brand in search




                                                    27
It gets poular very fast




 But it is more popular as a domain [pure online]
 brand and also visited more frequently




                                                    28
High popularity means lot of business and also lot of trouble




                                       Huge       Long visit
                                      interest      time


                                     So many
                                                     The
WatchMouse monitored the              deals
                                                   highest
availability (uptime) and              and
performance (page load speed)                     downtime
                                      users
of the most popular social
shopping sites from November
22 through December 22, 2010.



                                                               29
Online reputation management




               A famous     No limit
                barber       deal



                Around       Local
                 1600      reputation
               purchases   destroyed




                                        30
Search &
Social



           31
SEO for social channels consists of two
distinct areas: Making a social presence
(Facebook, Twitter, etc.) more visible in
search results, and how to leverage social
media channels for SEO value elsewhere.




                                             32
33
34
35
The clasical search gets modified accoriding to social
              How your inventory
                  [ROBOT]                                       Gogole PageRank
                 is indexed?



• Select from different           Product page                                   Checkout/Payment
                                                     • Manage selected
  categories                                           products
• Search within           • See product in           • Upsale with          • Select delivery
  particular criteria       details                    accessories            method
• Compare products        • Read specs               • Suggest promos       • Choose payment
                          • Get familiar with add-                            option
                            ons and similar staff                           • Survey about service
           Inventory                                        Shopping Cart




               What other people
                   [FRIENDS]                                       Web PeopleRank
              think about product?



                                                                                                     36
ADVERTISING




              37
38
39
40
41
ADVERTISING




              42
43
44
Keynoir- the premier Groupon




                               45
46
Yes, and they also have mobile version too!




           APP or WEB, what would you like to use today?




                                                           47
The combination of social and
mobile provides unprecedented
opportunity to connect and
engage with consumers while
driving key business goals.




                                48
The Power Triumvirate


It must be local,
nearby offer                    Local
Others must desire, so
you want to aspire the
crowd demand

It must be easy to get
                           Mobile   Social
on the way, anytime.




                                             49
3 reasons
Mobile & Social
Make the
Perfect Combo

                  50
Build Brand Awareness & Consideration
Expose your brand through social networking

      By checking-in users are directly (or indirectly)
      becoming brand advocates

      Leverage social connections to drive new
      business from people who didn’t even know they
      were looking for you




                                                          51
Connect & Engage with Customers
Connect with your customers on a more personal
level

      Respond and create a one-on-one dialogue

      Better understand your customers needs and
      wants




                                                   52
Maximize the Right Now Opportunity
Reach customers where they are with the most effective
messaging

   Communicate with customers who are close by…maybe
   even in your location right now
   Influence purchase behavior and drive sales
   Build and encourage brand loyalty




                                                    53
Social Networks
have Mobilized



                  54
Leverage the mobile platform and features of
existing social networks




                                               55
Augmented Reality creates a unique So’Mo experience


                                Mobile features have
                                evolved Yelp’s social
                             networking value proposition




                                                       56
Location Based Services offer engagement
opportunities for you and your customers

   Are Location Based Services right for you and your
   customers?
   Ensures accurate information is available – Claim your
   listings
   Low cost of entry to claim/own your business




                                                            57
LBS have evolved from game play to a fully
realized social experience
               Location                  Promotions &
             information                    Deals




                                          Branding
                                         opportunity

               User reviews




                                                        58
Best So’Mo
Practices



             59
#1: LISTEN & LEARN
It’s not about you…

  Who is your target audience?
 Where on the social web are your customers congregating?

  What devices are they using?

  What are your customers talking about?




                                                            60
# 2: PREPARE & PLAN
Get your house in order…
     Are your goals and budgets aligned?
     Do you have the right resources in place?
     Who will be responsible for your so’mo success?




                                                       61
#3: BE UNIQUELY YOU
Know who you are…
    What do you have to offer?
    o Deals, promotions, digital content, messaging?

    Are you able to take advantage of the specific features
    that mobile allows
    o Location features, built-in cameras/video, etc.




                                                              62
Social & Mobile Make the Perfect Combo

Online interaction is more social;
accessing the social web is more
mobile

Understanding the evolving
relationship between these
emerging platforms presents
unprecedented opportunities

Creating a so'mo strategy is
essential for brands looking to stay
connected to and build
relationships with its audience




                                          63
Thank you for your attention
…and do not hesitate to ask questions



Erica Schmidt, Global Search Director, iProspect
Zbigniew Nowicki, Managing Director, Bluerank



erica.schmidt@iprospect.com
zbigniew.nowicki@bluerank.pl




                                                   64

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Social Commerce - Real Shopping [R]evolution?

  • 1. Social Commerce – real shopping [r]evolution? Erica Schmidt, Global Search Director, iProspect Zbigniew Nowicki, Managing Director, Bluerank
  • 2. Social is a long way story We have performed Social Things since our ancestors sat around a fire and said, "Ugh!" and developed language what allowed them to talk. Just the tools and speed have been upgraded so far. Also the talk evolved into shared communication. 2
  • 3. Does a good product make social commerce easy? 3
  • 4. Actually selling with social media may be far more tricky than equation FB + product + review 4
  • 5. Because social commerce is about influencing people and influencing is a very sensitive case if beside shopping we aim to keep positive experience 5
  • 6. Influencing people requires right place and time Allow customers to buy ...and connect with customers in places where they connect... where they commerce 6
  • 7. What is so special about social? 7
  • 8. First: it is big, visits, traffic, pageviews, time InternetStandard: raport social media 2010 8
  • 9. Second: locally it is even bigger InternetStandard: raport social media 2010 9
  • 10. Third: it makes you a friend with brands InternetStandard: raport social media 2010 10
  • 11. And the ROPO is also based in social principle 11
  • 13. November 2008: Founded 3000 employees 250 markets worldwide 35 million registered users $500 million: Projected revenue in 2010 $6 billion: Google’s bid to acquire Groupon November 2010 $15 billion: Possible IPO in 2011 13
  • 14. Much better logo – collective buying power 14
  • 15. What is Groupon interconnecting together? Online range Offline offer and and decision brick&mortar speed business Two worlds that more or less were strongly separated so far. And moreover that it adds social experience to the whole deal making a win-win deal for customers and vendors. 15
  • 16. What is Groupon mechanics? 16
  • 17. How does Groupon shapes our shopping behavior? Need Deal • You want sth and you go for it, can be sth • There is sth and you go for it, because you were preparing for a longer time others go and it is perhaps cheap • Price at the beginning is a secondary issue • Reduced price and super conditions are • You select from many, and pick up the one the most important deal factors you really like • You get what you are offered to buy • Usually is not an impact or accidental • The deal is time limited so little time make is shopping, more rational approach more emotional decision • You more likely become ambassador • Less likely to be a fan, just another deal 17
  • 18. Who looks into Groupon deals? • Deal driven approach Online reputation Deal Hunters • Do not spend much at the place beside the deal • Not loyal, follow the deal not brand Smart • Inspect terms and conditions carefully • Discount or/and upgrade current status Selectors • Could be loyal Occasional • Registered by accident • Rare buyers, resistant to deal advertising Shoppers • Typical opt-in –> opt-out example • Most valuable, but also most critical to your service Wise Advisors • Can spend more than the deal • Loyal and returning if satisfied 18
  • 19. What are objectives of groupon vendors? • Train staff Hotel/SPA Advertise locally • Get the thing running • Compensate low season • Train new staff Barber Shop • Introduce the service • Fish and catch valuable clients • Replace traditional local adverts Fitness Center • Sale non occupied hours • Experiment with effectiveness • Sale, sale, and sale eFoto Service • Become more popular among others • Build customer database • Get rid of unbelievable service Lipo-supo-dupo • Compensate the investment • Catch losers who believe 19
  • 20. With Groupon everybody wins Customers • Get deals to SPA, cinemas, theaters, restaurants, ect • Trusted guide to local most visited places • Inspirational social maker Groupon Vendors • Provision on the • Effective and targeted discount coupons advertising • Large and opt-in • Clients who spent behavioral customer more than the coupon database on additional services • Deal ambassadors • Viral aspects and among customers financial results 20
  • 22. 1 3 Current deal draws 2 customer attention and promotes the hottest deal of the day. Page layout is very coherent and consists of 3 main sections: 1. Deal of the day definition 2. Call to action purchase module 3. Supplementary deals 22
  • 23. 1 3 1 2 Deal of the day definition Editors and web-designers compose unique deal • Top line deal summary with super price • Deal definition and benefits • Important add-ons and conditions • Deal details and reviews • Link to vendor’s deal website • Google Map Position • Offline contact info 23
  • 24. 1 3 2 2 Call to action module Attention converted into direct sale with new customers within 24h • Big „Buy now” 3D button • Time urgent deal • Different messages: discount – saving • Time expire count down clock • Deal count down counter • Recommend to your friends feature 24
  • 25. 1 3 3 2 Supplementary deals System presents additional deals that fit into previous user behavior • Short deal definition • Picture support to draw attention • Deal price details • Call to action button • Title links to deal landing page 25
  • 26. It gets poular very fast Daily traffic level is bitting businesses with 5 and 10 years online presence and strong brand recognition 26
  • 27. It gets poular very fast However it is young and weak as a brand in search 27
  • 28. It gets poular very fast But it is more popular as a domain [pure online] brand and also visited more frequently 28
  • 29. High popularity means lot of business and also lot of trouble Huge Long visit interest time So many The WatchMouse monitored the deals highest availability (uptime) and and performance (page load speed) downtime users of the most popular social shopping sites from November 22 through December 22, 2010. 29
  • 30. Online reputation management A famous No limit barber deal Around Local 1600 reputation purchases destroyed 30
  • 32. SEO for social channels consists of two distinct areas: Making a social presence (Facebook, Twitter, etc.) more visible in search results, and how to leverage social media channels for SEO value elsewhere. 32
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  • 36. The clasical search gets modified accoriding to social How your inventory [ROBOT] Gogole PageRank is indexed? • Select from different Product page Checkout/Payment • Manage selected categories products • Search within • See product in • Upsale with • Select delivery particular criteria details accessories method • Compare products • Read specs • Suggest promos • Choose payment • Get familiar with add- option ons and similar staff • Survey about service Inventory Shopping Cart What other people [FRIENDS] Web PeopleRank think about product? 36
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  • 45. Keynoir- the premier Groupon 45
  • 46. 46
  • 47. Yes, and they also have mobile version too! APP or WEB, what would you like to use today? 47
  • 48. The combination of social and mobile provides unprecedented opportunity to connect and engage with consumers while driving key business goals. 48
  • 49. The Power Triumvirate It must be local, nearby offer Local Others must desire, so you want to aspire the crowd demand It must be easy to get Mobile Social on the way, anytime. 49
  • 50. 3 reasons Mobile & Social Make the Perfect Combo 50
  • 51. Build Brand Awareness & Consideration Expose your brand through social networking By checking-in users are directly (or indirectly) becoming brand advocates Leverage social connections to drive new business from people who didn’t even know they were looking for you 51
  • 52. Connect & Engage with Customers Connect with your customers on a more personal level Respond and create a one-on-one dialogue Better understand your customers needs and wants 52
  • 53. Maximize the Right Now Opportunity Reach customers where they are with the most effective messaging Communicate with customers who are close by…maybe even in your location right now Influence purchase behavior and drive sales Build and encourage brand loyalty 53
  • 55. Leverage the mobile platform and features of existing social networks 55
  • 56. Augmented Reality creates a unique So’Mo experience Mobile features have evolved Yelp’s social networking value proposition 56
  • 57. Location Based Services offer engagement opportunities for you and your customers Are Location Based Services right for you and your customers? Ensures accurate information is available – Claim your listings Low cost of entry to claim/own your business 57
  • 58. LBS have evolved from game play to a fully realized social experience Location Promotions & information Deals Branding opportunity User reviews 58
  • 60. #1: LISTEN & LEARN It’s not about you… Who is your target audience? Where on the social web are your customers congregating? What devices are they using? What are your customers talking about? 60
  • 61. # 2: PREPARE & PLAN Get your house in order… Are your goals and budgets aligned? Do you have the right resources in place? Who will be responsible for your so’mo success? 61
  • 62. #3: BE UNIQUELY YOU Know who you are… What do you have to offer? o Deals, promotions, digital content, messaging? Are you able to take advantage of the specific features that mobile allows o Location features, built-in cameras/video, etc. 62
  • 63. Social & Mobile Make the Perfect Combo Online interaction is more social; accessing the social web is more mobile Understanding the evolving relationship between these emerging platforms presents unprecedented opportunities Creating a so'mo strategy is essential for brands looking to stay connected to and build relationships with its audience 63
  • 64. Thank you for your attention …and do not hesitate to ask questions Erica Schmidt, Global Search Director, iProspect Zbigniew Nowicki, Managing Director, Bluerank erica.schmidt@iprospect.com zbigniew.nowicki@bluerank.pl 64