Presentation Given by Natalie Malaszenko, PETCO's Director of Social Media & Commerce, at the Lavacon Conference in San Diego, CA, 2010.

1. Social Media In Business
America
Natalie Malaszenko
Director, Social Media & Commerce

2. Our World is Changing…

3. People - the online population will double in 4-5
years from 1bn to 2bn

4. Content – it is exploding
Six-fold increase in digital data in four years
Amount Of Digital Data Online
2010:
988 Exabytes
• 95% of data unstructured
2006: • Average F1000 company has
161 Exabytes 1 petabyte (50x increase
in 3 years)
2006 2007 2008 2009 2010

5. GROWTH EVERY SECOND
2 Million
2 New Blogs Created 7 PCs Sold e-mails Sent
7 People Logon For 1,157 Videos
the First Time Viewed on YouTube 34,000 Searches

6. Social networks and blogs are the 4th most popular online
activities, including beating personal email*
*2009 Social Media Marketing Statistics, Nielson Online

7. The number of text messages sent and received every
day ……exceeds the population of the planet

8. 1 in 3 Internet users state that social
networks have influenced their
purchase decisions*
*ComScore

9. 78% RANK
CONSUMER
RECOMMENDATIONS
AS THE
MOST CREDIBLE
FORM OF ADVERTISING
-NIELSEN

10. SO HOW SHOULD A COMPANY OPERATE?
Listening to…
Talking with…
Supporting… CUSTOMERS
Acting on ideas of....

11. Business Leaders will enter
& become relevant in
conversations that occur EVERY
DAY about their product or
company.
Companies that cling to the past may not realize it, but
they WILL LOSE RELEVANCE

12. Top 5 Observations of Effective
Social Media in Business
1. ROI is in the eye of the beholder.

13. Bring Community to the Purchase Path
• Customers who use
Answer Den have 100%
more orders per session
• Over 1000% Increase in
Conversion
• 12% Increase in AOV
• 10% of all Orders
impacted by Answer
Den

14. Social Contests Sell Product
Annual Halloween
Photo Contest
• Added Twist to Campaign
• Required Users to Submit
Story along with Photos
• The “pet” had to explain
why they selected their
costume
• Over 1,400 entries
• Over 80,000 Views
• Over 25% of Stories
Recommended Products!

15. Stories Drives Measurable Results
• Over 1,000 Stories
Submitted
• Users Visit 4.6x More
Frequently
• Items per Order 35% Higher
• Avg Session Length 86%
Longer
• AOV 6.7% Higher
• Over 25% of Stories
Recommended Products!
• Vendor Sponsored
Campaign

16. Top 5 Observations of Effective
Social Media in Business
2. Knowing Your Demographic is Key.

17. Cancer Awareness Month
Cause Driven Campaign
• National Support by
PETCO and Vendor
• Virtual Wall will „live‟ on
PETCO.com as ongoing
campaign
• Expect Significant Social
Sharing due to Emotional
Aspect
• Personally Tie to E-Com
Team with 2 Cancer Dogs
in our Team
• One Survivor
• One Fighter

18. Driving Awareness for Social Properties
Scavenger Hunt
• Encouraged participation on all PETCO
social properties
• Included other online marketing vehicles
to message Contest
• Drove 36% increase in PETCO
Facebook Fan count
• First clue on Facebook garnered 3,500
comments
• Landing Page with Contest information
was 2nd most visited page on petco.com
during contest
• Generated incremental sales and email
opt-in‟s

19. Top 5 Observations of Effective
Social Media in Business
3. Embrace negativity, but be prepared to change.

20. Largest Battery Recall In History at Dell
“We believe that the video Dell produced, as well as other creative
notification measures companies have pursued, are a positive for
consumers and for the impression customers have of a recalling firm”
– Scott Wolfson, Consumer Product Safety Commission
20

21. United Airlines & The Broken Guitar
• Passenger Made Viral Video (8Mil+Views)
• Song in Video Becomes Frequently Downloaded
Song
• Limited and Delayed Response from United
• Guitar Company saw it as opportunity to sell more
guitars
• CEO/Founder produces a video about how their
cases help save guitars and more info on their
warranty
• Gave this passenger a new guitar

22. Top 5 Observations of Effective
Social Media in Business
4. When you have fun, they have fun.

23. Sharing the Fun through Social
2010 Rose Bowl Parade
• World‟s Largest Float
• Blogging
• Facebook
• Twitter
• Press Releases
• Paid Search
• PETCO.com
• Television – New Year‟s
Rose Bowl Parade

24. Sharing the fun through Social
• Shared Photos and Updates Live
• 1000‟s of Tweets before, during and
after the event
• Strong affiliation of the Natural
Balance Float to PETCO
• Customer won 1 year of Natural
Balance by bringing sign to the
parade with “Tillman Shops at
PETCO” and their Twitter Name
• Over 400 Facebook Comments During
Event.
• Tillman Related Searches resulted in
136.36% increase in visits to petco.com
• Natural Balance search terms showed
an 28.31% increase in sales over the
average weekly sales
• Paid placements generated an
incremental 47,000 impressions and
clicks to petco.com

25. Top 5 Observations of Effective
Social Media in Business
5. Meet your new business partner. Your Customer.

26. Empower Your Community to Influence Others
• Viral campaign sent to PETCO
email subscribers
• Test of how email affected social
• 40% of purchasers new to PETCO

27. Partner with Your Customer on a Common Cause
For every fan who joined Generation
Natural Pet between Ellen DeGeneres
donated 1 meal to a shelter. There was
a 23% increase in fan count over
previous month in just one weekend!
YouTube Video featuring David from
Halo & Natalie from PETCO

28. Top Observations
1. ROI is in the eye of the beholder.
2. Knowing your demographic is key.
3. Embrace negativity, but be prepared to change.
4. When you have fun, they have fun.
5. Meet your new business partner. Your Customer.
6. If you don‟t know where to begin, just listen.
7. Tools & platforms aren‟t the always the answer.
8. Shock and Awe can Convince the Top.
9. Messages are co-created. You can start it, but you won‟t finish it.
10. Best Social Teams expand beyond social team. Hub and Spoke.

29. Natalie Malaszenko
Director, Social Media &
Commerce
Questions?
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petcoscoop.com
Twitter
@petco
@GenNaturalPet
@petcofoundation
@PETCOdeals
@NatalieatPETCO
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