From Social Media to Social Commerce & Connected Commerce · 2015-09-15 · WALMART Introduce...

From Social Media to

Social Commerce & Connected Commerce

Periklis Vanikiotis

Head of Digital Publicis Groupe

Founder eCommerceNews.gr

Social Commerce: How your customers’

social circles

influence

what they do

where they go

what they buy

Really?

So what? Isn’t that what we’ve been hearing about for the past 10 years?

Is this discussion about the present or is it yet another trend that’s on its

way, like so many others?

Isn’t that what promises sales through Social Media but at the end of the

day you only generate leads? Am I missing something?

Yes, I’ve heard about it, but are the changes that are brought along

really that many?

Oh well, brands always wanted to sell – what is it that’s changed now

and we are talking about Social Commerce?

Is there something I HAVE TO do?

Is there something I CAN do?

2005

2007

2008

2009

2010

2011

2012

2013

2014

2015

Social Commerce Short Timeline

2005


2009BBSs

AOL

Usenet Groups

SixDegrees.com

Friendster (2002)

LinkedIn (2003)

MySpace (2003)

Facebook (2004)

YouTube (2005)

The Infant Years

Social Networking’s Adolescence

2005 November

The term Social Commerce introduced

by Yahoo!*

* Describes a set of online collaborative shopping tools such as shared pick lists, user ratings and other user-generated content-sharing of online product information and advice



FebruaryVirtual Gifts Sold on Facebook (A $15

USD business before closing in August

2010)

May Apps Platform Launches – Market

Place Opens on Facebook

NovemberFacebook Pages is Launched leading

to shop windows for brands

POLYVORE

Launches2007

2008 DecemberDELL Claims 1 Million $USD in revenue

via Twitter –

Sales Alert!


July$34 Spent on Facebook’ s FIRST retail

Transaction via 1800-Flowers

Sales Alert!


2009

But…

Social Media = Communication

Social Media is the Fear of Brands

2010


2012

The Biz Grows Up

March

PAMPER’ S FACEBOOK STORE does

1000

Transaction per Hour


2010

April

LEVI’ S Goes Social adding

FACEBOOK plugin to their

Friends Store


2010

April

DISNEY launches a group ticketing

Store on Facebook for its movies


2010

GAP Groupon Offers a $50 Voucher for

$25

Nets 441.000 Customers

GROUPON becomes the fastest

growing company of all time

FACEBOOK introduces Places

FLY DELTA Buy your tickets on

Facebook

2010


August

August

Mark Zuckerberg says

“If I had to guess, Social Commerce is

next to blow up”


2010

November

WALMART Introduce

Crowdsaver


2010

FACEBOOK launches

Deals

January

LIVING SOCIAL runs AMAZON’s

$20 voucher for $10

Sells 1.378.938


2011

GOOGLE enters the Group

Buy space with

Offers

April

$1.93 USD in Funding

For Social Commerce StartUps

In the First trimester of 2011


2011• 28% of Facebook Users have

Purchased something online via

Facebook LINK• 35% of Consumers would buy

products on Facebook

• 32% would so from Twitter (if

Possible)

• 47% of consumers access customer

reviews in-store via mobile handsets

Now we are ready

2013


2014

The Rise of Social Commerce

#1 Online Marketplaces and Auction

SitesMarkets that are community – based where 2 individuals engage directly in buying and selling

Amazon.com (1994) – 22% Increase in Net Sales

eBay (1995) – $18,3 B Sold in Goods (ex Vehicles)

Etsy (2005) – 800.000 Online shops

TaskRabbit (2008) – 75% Users come by WoM

Getaround (2011) – 5 Cities, 10K Car Owners, $14M Funding


2013

Source Startup.fm

Types of

Social Commerce

#2 Social Network Shops & Shopping

AppsSales that are referral driven on established social platforms – ie Through a shop tab on Facebook

Facebook (2004) – 1M Advertisers

Twitter (2006) – 33% Follow a brand – 67% buy from brands they follow

Tumblr (2007) – 250.000 page views (a typical day)

Instagram (2010) – 25% More Engagement

Pinterest (2010) – 70M Users – takes 41% of eCommerce


2013

Source Startup.fm

Types of

Social Commerce

#3 Daily Deals and Group BuyingIf Enough number of people agree to purchase something, the products and services are offered at reduced price

Livingsocial (2007) – Record Breaking Deal (Amazon Gift Card)

Groupon (2008) – 50M download Mobile App

ScoutMob (2010) – 13 Cities -$5M backed

Google Offers (2011) – Most Popular Deal was $20 worth of Powell’ s Books


2013

Source Startup.fm

Types of

Social Commerce

#4 User Review SitesSales are driven through product reviews by other purchasers, service reviews, and or rewarding individuals for sharing the same on their social profiles

Amazon (1994) – 209 Million Active Users

Yelp (2004) – 90% Users Say Positive Reviews impact their company buying choices

JustBought.it (2012) – Social Sharing Gives 3% of friends spent value in points – 500 points = 5 pounds


2013

Source Startup.fm

Types of

Social Commerce

#5 User – Curated Pick ListsSites Focusing only on shopping; users create lists of product and services for other people to shop from

Fancy (2009) – Valued at Aprox $600M

List (2010) – 1M + Monthly Unique Visitors - $1M in sales every month

Styloko (2012) – 700.000 Products from UK Retailers


2013

Source Startup.fm

Types of

Social Commerce

#6 Crowdfunding / CrowdsourcingConsumers became an active part in the production process through voting, funding and collaborative design

ModCloth (2007) – $100 M in Revenue

Indiegogo (2008) – 44.000 Campaigns - $99M Successful Dollars

Kickstarter (2009) – $788M Pledged – 48.606 Successfully Funded


2013

Source Startup.fm

Types of

Social Commerce

#7 Social ShoppingShopping that includes chat and forum features for people to discuss, exchange advices and opinions. It almost like an offline shopping

Listia (2009) – Over 5.000.000 Items exchanged

Motilo (2011) – Takes Social Shopping to next level

Fab (2011) – 10M Members “live feed” to share what they buy


2013

Source Startup.fm

Types of

Social Commerce

Now: Social Commerce is a Social Utility

Helps people solve problems socially using their social intelligence (ability

to learn from each other and profit from social situations – e.g. collective

buying) (Mercedes)

Helps people solve the social problem of standing out, by helping them

manage their social status by expressing themselves (e.g. fan-first offers

that ‘sell’ bragging rights (Burberry)

Helps people solve the social problem of fitting in by facilitating social

bonding (e.g. social media gift stores (Starbucks, Anton Berg)

Social commerce, it’s still a catchall phrase that describes a number of

different ways of using social platforms to conduct commerce.

Increase brand awareness Increase leads and sales Improve online reputation Retain clients

Community memberships Engagement with content ReputationSocial Conversions

The top 500 retailers

earned $3.3 billion from

social shopping in 2014,

up 26% from 2013,

according to the

Internet Retailer's Social

Media 500.


2014

Some Great

Examples


2014

The influence of reviews

on a user’s decision to

purchase is well

documented, and it’s

refreshing to see

AO.com acknowledge

this by making ‘Reviews’

the default tab on the

product details page

Ratings & Reviews

on AO.com

Ask a Facebook Friend on

Fashion ID

On the Product Details Page a link invites me to ‘Ask a Friend’ (“Freunde Fragen”) about a product. This connects me to my Facebook account, and the Facebook chat stream appears in a panel on the right-hand side, showing me which of my nearest and dearest is online at that moment. From that point, all I have

to do is select which friend I want to talk to, drag the product over to the panel and chat away about the item in question

ModCloth’s Virtual

Fashion Buyer

In the ‘Be the Buyer’ section of the site, users cycle through a selection of samples that have been put to the community vote, with options to ‘Pick’ or ‘Skip.’ User feedback is also encouraged, with good and

bad comments about each sample displayed in equal measure. This allows the community (and, of course, the business) to see what changes would make the sample more desirable to the fashion-loving audience.

Nordstrom takes social commerce

in store

US department store Nordstrom has been testing how to use its social data to enhance the in store experience, by adding a Pinterest swing ticket to products that have been most-pinned

online.

This social commerce example is truly elegant multichannel marketing, and to my mind is the in-store equivalent of a ‘Most Popular’ or ‘Trending’ list on an ecommerce site.

The Scandinavian Way -sweet real-life social

commerce activation

North

America

87%

South

America

52%

Europe

70%

Africa

27%

Asia

38%

Oceania

72%Source: internetworldstats.com

Total Internet Penetration: 42%

North

America

58%

South

America

48%

West

Europe

47%

Africa

9%

Asia

21%

Oceania

45%Source: wearesocial.com

Total Social Media Penetration: 29%

Central &Eastern Europe

45%

East 43%M.East 17%Central 4%South 9%

S/East 32%

Source: brandingandbuzzing.com

The Buy button would

allow Pinterest users to

order and pay for some of

the products they

discover on Pinterest

without leaving the

company’s website or

app

Buyable Pins start rolling

out today! (29 June

2015)

Shopping was one of the top activities during which users liked to access

Pinterest

So You Can Shop From

Tweets

Twitter Introduces

“Buy” Buttons

It’s worth noting that the

buttons don’t take you away

from Instagram completely.

Instead, they open a mini-

browser within the app, so

once you’re done buying or

downloading or what have

you, you’ll be returned to

Instagram

Instagram Beefs Up

Ads With App Install

And Buy Buttons, Interest Targeting, API

Just type a dollar amount into the

subject line of an email and send cash

to friends!

Snapchat Introducing Snapcash

Facebook is rolling out a new way to sell

things. It's letting certain stores sell their

products directly through the social network

via a "buy" button on their Pages

Facebook Adds ‘Buy’ Button

For Online Purchases

Facebook's just testing its so-called

"shop section," the move makes

sense, given its recent introduction

of peer-to-peer payments

capabilities, new ways to let stores

communicate with people via

messages, and its increasing

dedication to keeping people

within the Facebook ecosystem as

much as possible

Facebook's "shop section"

Facebook announced that a new

payment feature is now available

for Facebook Messenger users in

the U.S. Now you can make

person-to-person payments by

adding your debit card through

Facebook Messenger in just a few

taps.

Facebook Messenger Rolls Out

Payment Service

The social networking giant is making a

bigger push into selling goods online by

buying a shopping search engin

Facebook has acquired shopping search

engine TheFind.com, signaling the social

networking giant’s continued aspirations in

two of the Internet’s biggest money-makers:

search and e-commerce

Facebook acquires its way into e-commerce by buying TheFind

Polyvore deal gets Yahoo

closer to a 'buy button'

Yahoo Snags Social Commerce

Site Polyvore

Pinterest taps IFTTT and

Polyvore as the first two services to integrate its

APIs

Google’s next commerce

effort will be a “buy button”

to help people purchase

products featured in its

shopping ads

Google Confirms

‘Buy Button’

A Huge Social Shopping Mall

* Source: Lemon Stand (eMarketer, InternetRetailer)

Global eCommerce Market Size

* Source: Lemon Stand (eMarketer, InternetRetailer)

Social is driving much bigger increases in retail traffic than any other online

channel.

Social media increased its share of e-commerce referrals nearly 200% between

the first quarters of 2014 and 2015

Source: DigitasLBI Connected Commerce 2015

The latest technology trends and consumer habits that are transforming how,

where, and why we buy

Digital Environment, Social Media and the Global Retail

Ecosystem

The growing use of mobile among consumers

Social and Mobile micro-conversions will become an active and successful strategy with every business in 2015.

Direct Buying Becomes Mainstream

Retailers fight discounting with a focus

on merchandise

Retailers adjusting store formats and

merchandise to target urban customers

Brick-and-mortar is becoming more of

an experience

Retailers investing more and more in e-

commerce

Retailtainment is Here

Omnichannel is not an option for

retailers anymore — 'it is just business'

Commerce is coming to social media

Social Commerce is Not a Revolution

Social Commerce is a Key Factor on Shaping the future of retail

We talk about Modern Shopper

We talk about Connected Consumer

We talk about Connected Commerce

We aim to better prepare brands for the future of retail*

Now*

Thank You

www.linkedin.com/in/periklisvanikiotis

@Uroborus

www.uroborus.gr

[email protected]

From Social Media to Social Commerce & Connected Commerce · 2015-09-15 · WALMART Introduce...

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