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Brian Smith
        US Director
Useful Social Media
       @BSmithUSM
Huh?
What’s social commerce?
Some said NOTHING

 • “The worst thing someone can say about your brand
   on social media is NOTHING” – Tom Hoehn, Director
   of Digital Media, Formerly of Kodak
   DR. PAUL MARSDEN, EDITOR IN CHIEF OF SOCIAL
    COMMERCE TODAY
     The use of social technology in the context of commerce.
      Selling with social media.

   SUDHA JAMTHE, SOCIAL MEDIA SPECIALIST, SOCIAL
    COMMERCE AT EBAY:
     Facilitating purchases using social media and social
      behavior data

    @BSmithUSM:

     The core of social commerce starts with understanding
      consumer perception
      Principal reasons consumers connect with businesses on social
       sites are for deals and purchases
   Social commerce is on the rise
    ◦ 1.93 Billion USD in funding for social commerce
      startups in 1st trimester 2011

   Social commerce is more than just sales
    ◦ April 2010: Levi’s Friends Store
    ◦ October 2010: Macy’s Magic Fitting Room,
    ◦ March 2011: Heinz’s Tryvertising campaign

   Create unique forms of engagement:
    ◦ Gamification
    ◦ Rewards, loyalty programs, exclusive offers
   We shared purchases with friends, gave reviews and
    made recommendations
   Thanks to social media, customers are a click
    away from sharing their purchasing behavior
    with their personal communities

   The SoLoMo customer
    ◦ Access reviews, instant shopping advice, locate
      deals while on the go

   Social shopping sites/communities
    Kaboodle, ThisNext, Pinterest
     Kaboodle: 14 million monthly visitors, Over 900,000
      registered users, 10 million+ products on the site
   Fastest site to 10 million monthly uniques
   Drives more referral web traffic than
    Google+, Youtube, and LinkedIn combined
   Visual search drives commerce
   Why?
    ◦ Shopping is a social activity
    ◦ Thanks to social media, shopping and sharing is easier than
      ever

   As of Dec 2011: The 3 top brands by fans were
    selling on Facebook:
    ◦ Coca-Cola (34m)
    ◦ Walt Disney (28m)
    ◦ Starbucks (25m)

   More and more brands continue higher levels of
    engagement with their customers and are becoming
    more comfortable using social media as a sales
    channel
   The importance of Social Data for commerce
    ◦ Customers use social media to discuss their
      desires, future plans, purchasing decisions, and
      opinions

    ◦ Brands can spot trends in consumer data to
      become more customer-centric:
      Drive sales
      Decrease returns and support costs
      Inspire product innovation
   Social commerce goes far deeper than having a
    Facebook store
    ◦ It’s about discovery, sharing and innovation as much as
      it is sales

   Privacy issues are still the #1 concern
    ◦ 89% of people age 20-33 worry about the privacy
      implications of shopping on Facebook

   Brands must minimize the perception gap for
    why consumers connect with them socially prior
    to implementing a social commerce strategy

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Social Commerce Landscape SMW eBay

  • 1. Brian Smith US Director Useful Social Media @BSmithUSM
  • 4. Some said NOTHING • “The worst thing someone can say about your brand on social media is NOTHING” – Tom Hoehn, Director of Digital Media, Formerly of Kodak
  • 5. DR. PAUL MARSDEN, EDITOR IN CHIEF OF SOCIAL COMMERCE TODAY  The use of social technology in the context of commerce. Selling with social media.  SUDHA JAMTHE, SOCIAL MEDIA SPECIALIST, SOCIAL COMMERCE AT EBAY:  Facilitating purchases using social media and social behavior data @BSmithUSM:  The core of social commerce starts with understanding consumer perception  Principal reasons consumers connect with businesses on social sites are for deals and purchases
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  • 11. Social commerce is on the rise ◦ 1.93 Billion USD in funding for social commerce startups in 1st trimester 2011  Social commerce is more than just sales ◦ April 2010: Levi’s Friends Store ◦ October 2010: Macy’s Magic Fitting Room, ◦ March 2011: Heinz’s Tryvertising campaign  Create unique forms of engagement: ◦ Gamification ◦ Rewards, loyalty programs, exclusive offers
  • 12. We shared purchases with friends, gave reviews and made recommendations
  • 13. Thanks to social media, customers are a click away from sharing their purchasing behavior with their personal communities  The SoLoMo customer ◦ Access reviews, instant shopping advice, locate deals while on the go  Social shopping sites/communities Kaboodle, ThisNext, Pinterest Kaboodle: 14 million monthly visitors, Over 900,000 registered users, 10 million+ products on the site
  • 14. Fastest site to 10 million monthly uniques  Drives more referral web traffic than Google+, Youtube, and LinkedIn combined  Visual search drives commerce
  • 15. Why? ◦ Shopping is a social activity ◦ Thanks to social media, shopping and sharing is easier than ever  As of Dec 2011: The 3 top brands by fans were selling on Facebook: ◦ Coca-Cola (34m) ◦ Walt Disney (28m) ◦ Starbucks (25m)  More and more brands continue higher levels of engagement with their customers and are becoming more comfortable using social media as a sales channel
  • 16. The importance of Social Data for commerce ◦ Customers use social media to discuss their desires, future plans, purchasing decisions, and opinions ◦ Brands can spot trends in consumer data to become more customer-centric:  Drive sales  Decrease returns and support costs  Inspire product innovation
  • 17. Social commerce goes far deeper than having a Facebook store ◦ It’s about discovery, sharing and innovation as much as it is sales  Privacy issues are still the #1 concern ◦ 89% of people age 20-33 worry about the privacy implications of shopping on Facebook  Brands must minimize the perception gap for why consumers connect with them socially prior to implementing a social commerce strategy