Social Commerce Perspectives

Do Consumers Trust Your Brand?

Steve Semelsberger

SVP & GM

Social Products Group

Integrated Customer Engagement

Division of Demand Media (NYSE: DMD) Customer Engagement Platform Used by 600+ leading global brands Enables them to: • Solicit feedback (ratings, reviews, polls, etc.) • Foster communication (shares, messages, etc.) • Gain contributions (journals, galleries, etc.) • Encourage identity (SSO, profiles, badges, etc.)

About Pluck

• The State of Consumer Trust

– Current landscape of perspectives

• Strategic Trust Considerations

– Key thoughts and success drivers

• Concrete Social Commerce Tactics

– Focused on integrating social to commerce

Today’s Session

Source: Edelman Global Trust Barometer, 2012

Consumer Distrust Growing Globally

80% of corporate executives say their company delivers a superior customer experience

Just 8% of consumers report they received one

Source: Bain and Company

The Customer Experience Gap

Drop of CEO Credibility, Rise of People Like Me

Source: Edelman Global Trust Barometer, 2012

New Services Hone in On Trustability

New Services Hone in On Trustability

New Services Hone in On Trustability

New Services Hone in On Trustability

Trustability Varies by Source

Nielsen asked 28,000 consumers about Trust and Research

Nielsen, 2012

92% 8%

70% 30%

58% 42%

58% 42%

50% 50%

16% 84%

15% 85%

Recommendations from people I know

Consumer opinions posted online

Editorial content e.g., newspaper article

Branded websites

Emails I signed up for

Display ads

Mobile text ads

Trust completely/ somewhat

Don’t trust much/ at all

Yet 26% of Consumers Still Turn to Brands First

Customer reviews

14%

Product experts

12%

Manufacturer

16%

Retailer

10%

Family/Friends

48%

IBM Institute for Business Value, 2012

IBM asked consumers who they trust most to provide honest feedback and suggestions about products

Traditional Marketing Mental Model

Source: Google ZMOT Presentation, 2012

14

Consumer Research Explodes:

10.4 Sources Per Purchase ~2x increase YoY

Source: Google ZMOT Presentation, 2012

New “Four Moments” Mental Model

Source: Google ZMOT Presentation, 2012

Source: Google ZMOT Presentation, 2012

Consumers Commit to Research Across Verticals

Brands Realize Trust Matters

1to1 Media Survey of Brands, 2011

84%

of marketers agree that building consumer trust will become their primary objective

“Four pillars of the grownup web are trust, authenticity, engagement and purpose.” Ariana Huffington

“It all started when Tony Hsieh decided to be completely open and transparent.” Zappos Insights

“Transparency is the new marketing.” Clay Shirky

“Consumers will trust a company they believe is run really well.” Jim Farley, CMO Ford

“In the world of branding, trust is the most perishable of assets.” Business Week

"Trust and transparency [are] more important to us than ever.“ Mary Dillon, CMO McDonalds

“Sharing is the new giving, participation is the new engagement, recommendations are the new advertising.” Antonio Lucio, CMO Visa

The Trust Zeitgeist

TRAFFIC

ENGAGEMENT

CONVERSION

LOYALTY

Trust is Important at Every Stage

New consumers are more attracted to your brand by trusted connections and content

Trust that comes from consuming useful content in the company of likeminded people creates emotional bonds

Direct and detailed product experiences, tied to known, credible sources, inspires more and bigger transactions

Rewarding contributors who are credible and helpful surfaces your most trustworthy customers

Three

Requirements For

Growing Trust

Intention

Do the right thing

Competence Do things right

Proactively

Without Prompt

Source: Peppers & Rogers, 2012

Source: Edelman Global Trust Barometer, 2012

Skepticism Requires Repetition Majority Require 3-5x Message Repeat to Believe

22

Admitting one’s own vulnerability is the first step in earning someone else’s trust.

The world isn’t perfect; brands that maintain they are perfect are simply not trustable

Source: Peppers & Rogers, 2012

Your Website: Best Engagement (Forrester)

Three Game Changers

Commit to Responsibility

Communicate Transparently

Offer Visibility

Five Social Commerce Pillars

Specify product and participant

details.

Attributes

Showcase skills and relevancy

Experience

Verify purchases

Ownership

Highlight connections

Relationship

Use real names

Identity

5 Drivers of Social Commerce Trustability

Use Real Identities

Encouraging

Social Sign On

leads to social

experiences that

are built upon real,

trustable display

names from

Facebook and

other services

Highlight Relationships

Display Verified Ownership

Showcase Experience

Award points and badges. Highlight users who have significant expertise. Nestlé awards “brownie points” to valuable contributors.

Specify Attributes

Eight More Things You Can Do Today

Ingredients of Trusted

Social Commerce

Reward Sharing

Canadian e-tailer Shop.ca rewards shoppers who share

their product discoveries with friends. They understand

the effect on traffic of trusted friends’ invitations.

Sky News built a popular tribute to Steve Jobs using Comments

Offer Comments

Enable Discussions

Nike invites golf enthusiasts to upload videos of their swing, and then compare their form with friends’ or even pros’

Invite Media

40

Content Scoring provides a

path to credible and

authoritative content on

your site.

The NFL gives fans easy ways to record their mood about their team’s Draft, and to rate players and games in real time

Leverage Ratings & Scoring

NBA fans enjoy robust profiles that highlight all activities, while letting them find, befriend and message each other.

Integrate Member Profiles

Use Badges/Gamification

Confidential and Proprietary

Kraft First Taste’s million members get exclusives on

new products.

Showcase Community

Pages

Source: Edelman Global Trust Barometer, 2012

Future Company Trust Depends on Societal Work

Company trust is challenged

Consumer expectations are rising

Brands realize they must strive for high trustability

Key requirements include:

• Intent

• Competence

• Proactivity

Social Commerce tactics include:

• Embrace Identity

• Highlight Relationships

• Understand Attributes

• Showcase Ownership

• Foster Expertise

Leverage these tactics in:

• Ratings & Reviews

• Forums

• Sharing

• Social Sign-On

• Gamification

• More

Summary

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Steve Semelsberger SVP & GM, Social Products