What's in Social Commerce?

1. THE SIX DIMENSIONS
OF SOCIAL COMMERCE
THE LATEST INTERNATIONAL DEVELOPMENTS IN DRIVING REVENUE
MARK ELLIS, MANAGING DIRECTOR, SYZYGY

3. 3

4. Definition: Social Commerce
“Selling with Social Media”
Social commerce is a subset of e-commerce that involves
using social media, online media that supports social
interaction and user contributions, to assist in the online
buying and selling of products and services.
Word-of-mouth,
applied to e-commerce.

6. AUGUST 11, 1994
NETMARKET.COM
FIRST-EVER INTERNET PURCHASE

7. 11.50 AM JULY 8, 2009
1-800-FLOWERS.COM
FIRST PURCHASE WITHIN FACEBOOK

8. Sharing your purchasing decisions
before, during and after buying

9. + = €/$
INCREASE TRAFFIC, SALES (CONVERSION)
AND AVERAGE ORDER VALUE

10. BRAND AMBASSADORS
“PEOPLE ARE MORE VALUABLE OWNING AND USING YOUR
PRODUCT/SERVICE THAN THINKING ABOUT BUYING IT”
Paul Srivorakul, Ensogo.com

12. 2 STRATEGIES
SOCIAL MEDIA ON E-COMMERCE ON
E-COMMERCE PLATFORMS SOCIAL MEDIA PLATFORMS
Helping people connect Helping people buy
where they buy where they connect

13. 6 x SOCIAL COMMERCE TOOLS

14. 1 RATINGS & REVIEWS
RECOMMENDATIONS &
2 REFERRALS
2
FORUMS &
3 COMMUNITIES

15. 4 SOCIAL SHOPPING
5 GROUP BUY
2
PURCHASE
6 SHARING

16. WHY NOW?
FOLLOW YOUR CONSUMERS

17. IT’S ABOUT
PEOPLE INFLUENCING PEOPLE
NOT TECHNOLOGY
1. BE HONEST
2. BE CONVERSATIONAL
3. BE REMARKABLE (LET GO)

18. THE SIX DIMENSIONS
TO SOCIAL COMMERCE SUCCESS
1. SCARCITY
2. AFFINITY
3. RECIPROCITY
4. POPULARITY
5. AUTHORITY
6. CONSISTENCY

19. #1. SCARCITY
LESS IS MORE (PERCEIVED VALUE)

20. Frederick the Great
PRUSSIA, 1774
Effectively re-branded the Potato by making it a ‘scarce’ Royal delicacy

21. Christian Louboutin
Limited Edition Barbie
Exclusive Collector’s Dolls

22. @DellOutlet
$6.5m Twitter Revenue
Exclusive Discounts and Snap Promotions

23. GROUPON
World’s largest ‘Group Buy’ Platform

24. POP-UP ONLINE STORES
Lucky Magazine and HSN create 48-hr exclusive Facebook shop

25. FACEBOOK DEALS (MOBILE)
Geo-located local deal promotions have huge expectations for 2011
Gap offered 10,000 free jeans to the first 10,000 check-ins (then 40% off)

26. #2. AFFINITY
SHOP WITH LIKE-MINDED PEOPLE

27. Dell Swarm
Group Buy for technology
Daily deals for Dell bargain hunters

28. Levi’s Friends Store
‘Shop Together’
Real-time Global Shared Shopping Functionality

29. Ping
Apple’s Social Network

30. Connecting 160m iTunes Customers
1m sign-ups in first 48-hrs

31. #3. RECIPROCITY
PAY BACK FAVOURS

32. Adidas Outlet Store
Member Get Member Social Coupons
Earn free shoes by inviting friends in

33. Fiesta Movement
Ford’s Social Commerce Experiment (2009)
100 free cars in return for monthly YouTube posts
11,000 videos, 15,000 tweets, 11m social visitors, 5m shares, 50,000 enquiries, 38% awareness (Gen-Y)

34. Starbucks foursquare
National ‘Mayor Offer’ (USA) Loyalty Programme
$1 off each drink for all Starbucks foursquare Mayors nationwide

35. Toys R Us
Toyologists
Consumer panel of (free) toy reviewers on Facebook, Twitter and YouTube

36. #4. POPULARITY
FOLLOW THE CROWD

37. P&G Amazon Facebook Store
Selling 1,000 products an hour (direct to consumers)
Top 29 brands from Always to Zest

38. The undisputed Kings (and Inventors) of Social Commerce
Leading the way since 1995 (£24.5bn turnover, 2009)

39. Burberry
Art of the Trench
Become a trench coat model (200,000 visitors week-1; 5m to date)

40. #5. AUTHORITY
FOLLOW THE LEADER (EXPERTS)

41. vente-privee.com
Exclusive private club for curated designer brand discounts
40,000 orders per day; $1.1bn Sales; $70m profit

42. Apple
Expert Discussion Forums
Hosting and feeding a platform for thousands of Apple ‘experts’

43. French Connection
Youtique (YouTube) – “Plinking”
Expert fashion videos with annotated ‘Buy’ buttons

44. #6. CONSISTENCY
ONE STEP AT A TIME

45. Blendtec
Will it Blend (YouTube)
Smiling is consistent with liking, liking is consistent with buying
130,000,000 videos viewed; Home blender sales increased +700% since 2006

46. Starbucks
my STARBUCKS IDEA
Feedback is consistent with caring, caring is consistent with loyalty
Consistent Customer Focus: using Social as an Ideas Platform to improve the product and service

47. f-commerce
Facebook Stores (and storefronts)
‘Get It First’ VIP Store, discounts and exclusives for Facebook Fans

48. f-commerce
Software suppliers creating integrated Facebook stores
E.g. Alvenda; Usablenet; Milyoni; Payvment;

49. SUMMARY
7 KEY POINTERS for 2011
1. EXPERIMENT - START SELLING ON SOCIAL PLATFORMS
2. ADD MOBILE (SHARING) INTO YOUR SOCIAL MIX
3. IMPLEMENT SOCIAL PLUG-INS e.g. FACEBOOK ‘LIKE’
4. UP-SELL WITH REVIEWS AND RECOMMENDATIONS
5. INTEGRATE ‘CHAT’ SO FRIENDS CAN SHOP TOGETHER
6. MAKE YOUR WEBSITE THE SOCIAL FLAGSHIP
7. BRING YOUR OFFLINE BRAND EXPERIENCE ONLINE

50. THANK YOU
m.ellis@syzygy.net
@mellis71