42 percent of Americans are using social media to shop – this equates to nearly 95 million social shoppers in the U.S. – and that number continues to rise. In fact, when asked how often social media is used to shop today versus a year ago, almost 73 percent of people confirmed they are using it more. SocialShop – a national quantitative and qualitative research study – looks at social media usage from the eyes of a shopper to understand the influence each respective platform has on a person’s buying behavior. From Facebook and Twitter to YouTube and Groupon, people of all ages are using social networking sites and other user-generated content platforms as shopping tools. In fact, SocialShop found 42 percent of social shoppers are using Facebook more than they were a year ago, while 55 percent of shoppers are utilizing daily deals more and 46 percent of shoppers have increased engagement on review sites and forums. With rapid expansion of social channels and the frequent launch of new platforms, brands and marketers are trying to figure out how to successfully use social media to connect with shoppers. According to the research, success is not measured by visibility on all social media channels, but by leveraging the strengths of platforms that cater to your shoppers’ needs.

1. How people use social media to shop

2. 96
use social media
%
© 2011 Leo Burnett l Arc Worldwide

3. 42
incorporate social media
into the shopping journey
%
© 2011 Leo Burnett l Arc Worldwide

4. And they use social
media to enhance
In-store On mobile phone shopping beyond
the desktop.
54 % 23 %
With Geolocation On Twitter/Real Time
20 % 51 %
% for Heavy / Index Heavy vs. All Social Shoppers

5. Social media has
the power to grow
your customer
base exponentially
© 2011 Leo Burnett l Arc Worldwide

6. So we asked…
Why do people use
social media to shop?
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7. Two waves of research
January 2011 4th Quarter 2011
Quantitative Quantitative
1500 online shoppers 1500 online shoppers
700 social shoppers 700 social shoppers
Qualitative Qualitative
+100 heavy social shoppers +100 Facebook shoppers
© 2011 Leo Burnett l Arc Worldwide

8. We learned…
Reasons people use social
media to shop – needs
Types of social media people
use for shopping – platforms
Variations in behavior across
categories – category
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9. Today we d like to
share a framework
that will help you
use social media to
influence shoppers
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10. Our study uncovered
8 social shopper needs

11. 8 social shopper needs
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12. Not all shoppers
have similar social
shopping needs
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13. Our segmentation
revealed 6 shopper
archetypes
Light Social Shoppers Heavy Social Shoppers
dollar defaulter efficient sprinter quality devotee strategic saver opportunistic adventurer savvy passionista
To find the cheaper To buy most popular For reviews and ratings To comparison shop To score fun, For broadcasting
alternatives. or convenient. to help validate choice. and find savings on unexpected latest trends, brands
brands she wants. content or deals. and retailers.
© 2011 Leo Burnett l Arc Worldwide

14. And each shopper uses
social media in different
ways to accomplish
different things.
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15. Shoppers with more utilitarian needs
dollar defaulter efficient sprinter
To find the cheaper alternatives. To buy most popular or convenient.
© 2011 Leo Burnett l Arc Worldwide

16. Shoppers with more informational needs
quality devotee strategic saver
For reviews and ratings to help validate choice. To comparison shop and find savings on brands she wants.
© 2011 Leo Burnett l Arc Worldwide

17. Shoppers with more indulgent needs
savvy passionista
For broadcasting latest trends, brands and retailers.
© 2011 Leo Burnett l Arc Worldwide

18. Shoppers with more impulse needs
opportunistic adventurer
To score fun, unexpected content or deals.
© 2011 Leo Burnett l Arc Worldwide

19. Address these shoppers
needs using social media
platforms

20. Each platform serves
certain shopper needs
better than others
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21. Each
platform
serves
shopper
needs
differently
© 2011 Leo Burnett l Arc Worldwide

22. Know which platform
best serves
shoppers needs
© 2011 Leo Burnett l Arc Worldwide

23. Know which social
shopper needs and
platforms to invest in

24. Deciding platforms
depends on the shopper
needs in your category
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25. Shoppers tell us their
needs change based
on the category
burden passion they are shopping
routine fun
© 2011 Leo Burnett l Arc Worldwide

26. burden Regular Cars
SUV s
passion We ve mapped "
PDAs
Video Game System
HDTV
Vacation Destinations
over 60 categories
Investment Brokerage Firms
MP3 Players
Luxury Cars
Fine Jewelry Stores
and channels
Cellular Service Providers
Toys
Car Insurance
Bathroom
PC s
Sinks & Tubs
Designer
Pet Supplies
Electronic Stores
Shampoo
Clothes
Washing Machines
Credit Cards
Tires
Banks
Designer Jeans
Cell Phone
Hardware Store
Specialty Casual Clothing
Airlines
Makeup
Shoes
Fragrance
OTC
Mass Merchandise
Casual Sit Down
Warehouse Clubs
Restaurants
Greeting Cards
Frozen Entrees
Beer
Office Supply Stores
Fem Care
Deodorant
Cereal
Coffee Shops
Toothpaste
QSR s
Yogurt
Laundry
Sports Drinks
Detergent
Ice Cream
Batteries
Gas
Bottled Water
Cookies
Light bulbs
Salt
Carbonated
Plastic Trash Bags
Bar Soap
Soft Drink
routine fun © 2011 Leo Burnett l Arc Worldwide

27. burden passion We ve also mapped
social shoppers &
needs for categories
routine fun © 2011 Leo Burnett l Arc Worldwide

28. burden passion Giving us some
direction on what
platforms to leverage
for each category need
routine fun © 2011 Leo Burnett l Arc Worldwide

29. Three steps to
developing a social
shopping strategy
1 Diagnose your
category mindset 2 Identify your
shopper needs 3 Select relevant
platforms
passion passion
© 2011 Leo Burnett l Arc Worldwide

30. passion Passion categories "
like apparel should "
help shoppers:
stay up with trends
share ideas
get inspiration
© 2011 Leo Burnett l Arc Worldwide

31. burden Burden categories "
like electronics should
help shoppers do:
comparative research
digest complex
information
solicit input from friends
and experts
© 2011 Leo Burnett l Arc Worldwide

32. Routine categories "
like groceries should
help shoppers:
source local deals
do easy, on-the-spot
product comparisons
routine © 2011 Leo Burnett l Arc Worldwide

33. Fun categories like
sodas and books
should give shoppers:
tailored
recommendations
timely deals
hot news and fun
ideas
reviews that are hard
to pass up
fun © 2011 Leo Burnett l Arc Worldwide

34. Before you develop
your next social
shopper program
ask yourself . . .
© 2011 Leo Burnett l Arc Worldwide

35. Thank You
To learn more about this study,
Please contact:
Lynsey Roumell
Lynsey.roumell@leoburnett.com