SHOP SOCIAL Emerging Social Media Trends & Their Effects on Consumer Behaviors

Never Shop AloneSocial shopping involves using social media tools to

enhance the shopping experience. It’s a leading trend

among consumers, and it’s multi-platform, multi-cultural,

and multi-functional. It occurs at all stages of the buying

cycle and happens during online and in-store shopping

excursions.

This phenomenon is poised to change significantly the

way people consume. “Behind every purchase is an

experience that creates a brand advocate or enemy, and

social media is now the battleground where shoppers

take sides,” said Geoff Galat, Vice President of Worldwide

Marketing for Tealeaf Technology, Inc. Share mechanisms

make recommendations easily accessible and influence

purchase decisions. Pre- and post-purchase sharing,

via photo/video uploads and text updates, creates

community hubs around personal shopping behaviors

and preferences. Friendships form over similar purchase

interests, and shoppers support each other’s consumer

lifestyle in likes, tweets, and comments. So naturally, the

question emerges: Where does your brand fit in?

But before we jump ahead, there are some really

important people we’d like you to meet…

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The New ‘Social’ ConsumersSocial shopping introduces a bold new way to shop and

an equally bold and new consumer. At present, Millenials

and Gen Xers are the most active social shoppers, but

they are also the earliest adopters and most prolific users

of social media: Facebook, Twitter, YouTube, Location-

Based Applications, etc. As a larger and more diverse

audience adopts these platforms, social shopping culture

will likely spread throughout all age groups.

Understanding social media platforms and how they

are used during the purchase cycle is the first step to

becoming the social brand social shoppers are seeking.

Armed with the right knowledge and digital-social skills,

brands can effectively reach, engage, and build genuine

relationships with social shoppers.

This report explores the emerging trends of social

shopping, examining the most active platforms and taking

an elemental look at the users that make them chatter and

buzz. Get ready for a crash course in social shopping and

walk away knowing how to shop, shout, find, and support

like a seasoned social shopper.

“Why wouldn’t you share a good deal?”

“Picture sharing isa big deal for me.”

“When I get a good deal, I feel GREAT.”

“I kinda feel entitled to deals online at this point.”

“I share the information probably more than not.”

“I’m an impulse shopper & with social media I’m shopping even more...”

“Should I get it, or should I get it in a different color?”

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The Experiment On Cyber Monday, November 29, 2010, Flightpath

launched a multi-media research project called

ShopSocial 2010. We interviewed a handful of social

shoppers and asked them to tell us how social media

tools and trends influence their shopping behaviors.

We created a microsite, a YouTube channel, and ran a

contest to encourage user-generated submissions.

The goal of our research project was simply exploration.

We isolated an emerging consumer and wanted to take a

closer, more intimate look at their lifestyle. The following

sections present the qualitative and quantitative data

gathered from the experiment and present analysis,

theories, and predictions garnered from the research

project.

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Jerry Groupon devoteeActively recommends deal/products to friends

“I’m shopping or looking for a deal, everyday.”

The ShoppersLeveraging our own internal social networks led us

to four candidates who live and work in New York City.

Arie Author of KMPblog.com

Shops on recommendation

“I actually put my trust on Twitter.”

Christine Author Tineey.comPurchase sharer via photos & videos

“Shopping is a daily routine.”

Kelly Editor of MASQUE Magazine Reputable source of content & recommendations

“I’m a Twitter girl.”

“Deals and sales are coming to me now…”

“When I think of social shopping, I think of me.”

“I kinda feel entitled to deals online at this point.”

“I’ll see how many I can get and buy it right there.”

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The SetupFlightpath asked each social shopper to come in for a

video interview. The shoppers knew ahead of time that

they’d be filmed talking about social media and shopping,

but they did not know what questions they’d be asked.

We asked each candidate a series of ten questions and

some additional questions based on their responses.

The interviews lasted between 15 – 30 minutes, and

Flightpath edited each one down to a short montage

of the highlights. We posted the videos on the YouTube

channel, http://www.youtube.com/shopsocial, with a call

to action for other social shoppers to submit their videos

and join the conversation.

Flightpath added three additional video interviews to

the playlist throughout the campaign from internal staff

members noted for their social shopping.

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RESULTS

Popularity among the videos varied:*Views recorded on 1/3/2011.

The YouTube channel received traffic and content views:

Quantitative

148

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76 46 39

59

102

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ShopSocial 2010 resulted in a surplus of qualitative data about new consumer habits and behaviors growing from social media tools and platforms:

- How social media influences online shopping

- What/how platforms are used to shop socially

- How social shopping affects purchases

- What do consumers expect from brands in social media

- How shoppers bond/interact over shared consumers interests

- How consumers define “social shopping”

1,963 564YouTube

Channel ViewsYouTube

Upload Views

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DiscoveriesSocial shoppers expect a fast response on Twitter, whether

it’s from their own followers, using hashtags to connect

with the larger Twitterverse, or communicating directly

with brands. They actively seek out recommendations,

and they aren’t shy about voicing their own opinions

about shopping experiences.

People really enjoy the interaction they receive from a

brand or business, and they reported that this kind of

attention makes them feel appreciated and increases

brand affinity.

TwitterThe majority of participants in ShopSocial 2010 indicated

that Twitter was their favorite platform for social shopping.

Speed of response time emerged as the most attractive

feature of using Twitter as a shopping tool.

Get real-time recommendations from friends about purchases- Does this color look good on me?

- Should I eat here?

- Is this deal really worth it?

Share recommendations with friends Participate in promotions - RT special deals/offers

- Enter contests

- Special offers from companies

Interact with brands on a one-on-one level- Praise/complain about a product or service

- Ask questions about product or service

- Offer suggestions for improvement

- Create a social “human” connection

SOCIAL SHOPPERS USE TWITTER TO

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DiscoveriesFacebook connections tend to be close: family, friends,

colleagues, classmates, etc. This cultivates a more

intimate environment that influences social shopping

behaviors and interactions. People will wait longer for

purchase feedback from their network on Facebook.

Brand promotions on Facebook were less popular

because they were usually more time-consuming and

took longer to conclude. People were more cautious

about “spamming” friends and family with share posts

associated with contests.

Facebook Holiday Trend: People dropped their gift

wish-lists hints via Facebook status updates for friends

and family to see. Several social-savvy retailers took

note of this behavior and encouraged customers to

check Facebook feeds and or make those wishes visible.

FacebookFacebook proved to be a stronger medium to find

purchase recommendations. Since Facebook is not as

fast-paced as Twitter, the value of an intended purchase

tends to be higher. Social shoppers reported that it’s

typical to ask for something like a car recommendation

and patiently wait for feedback from their network.

Sharing purchases and purchase aspirations- Photos of recent purchases

- Links to products one wants to buy or is going to buy

Asking for after-purchase opinions- What do you think of this?

- Does this look good on me?

Joining brand communities- Responding to brand updates

- Engaging in conversations with other community members

- Using @username to mention brand/ person and start conversations

SHOPPING BEHAVIORS THAT OCCUR ON FACEBOOK TEND TO BE OUTGOING AND OPEN

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DiscoveriesSocial shoppers will forward daily deals, even if they don’t

purchase them, if they think they’re relevant to a friend.

This type of recommendation is a critical part of social

shopping and one of the most influential. The majority

of the candidates reported that a direct forward from a

friend significantly increased their likelihood to purchase

if they liked the product/service. Social-network forwards

often lead to group-buying coupon purchases. Friends

are highly likely to purchase a daily deal just to share

the experience. Our shoppers voiced appreciation of the

Groupon one-click purchasing model on mobile devices:

iPhone, Android, Blackberry, etc.

GrouponThe pioneer of group-buying websites, Groupon, offers

large discounts (typically 50% or more) on goods and

services through geo-targeted, daily emails. Groupon

and other similar sites, LivingSocial, Gilt City, etc., were

a significant part of our candidates social shopping

routines.

Reviewing daily deals- Usually local business product/ services offerings

Purchasing deals that interest them Forwarding/recommending deals to friends Researching new companies

SOCIAL SHOPPERS SPEND TIME DAILY ON GROUP-BUYING/COUPONING SITES

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DiscoveriesLocation-based apps were the least popular form of

social shopping among the candidates. However, they

spoke of positive experiences when using the apps and

receiving discount codes, coupons, and other offers.

Remembering to check in at a location was one of the

most difficult tasks for our shoppers, and some reported

discouragement at checking in for a deal that had recently

sold out. On the positive side, shoppers reported feeling

special or appreciated when they received a discount

offer for frequenting a business location.

Location-Based AppsMobile, location-based applications like Foursquare,

Scvngr, Shopkick, and Facebook Places offer yet another

opportunity for social shopping. Checking in at various

physical locations in a city is a key ritual in a digital native’s

lifestyle. Most location-based apps offer incentive for

checking in at check-out—discount on purchase, points,

and other rewards:

Social shoppers adjust behaviors to take advantage of location-based offers- Checking in at certain locations

- Shopping at a store to take advantage of special sale or promotion

Social shoppers are privy to certain deals because they are “regulars”- Frequent check-ins result in special deals/savings

Social shoppers spread the word to their social network about savings, deals, sales, etc., when they check in

LOCATION-BASED APPS

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Who Are Social Shoppers?

ResourcefulSocial shoppers are extremely resourceful consumers.

They scour the vast corners of the internet to unearth cool

new products and special deals. They hop on social plat-

forms to shop by following other users and friends’ links

to products of interest. They interact with brands through

their social media feeds, influencing when and how they

shop with that brand. And they shop the old-fashioned

way—going to the brick-and-mortar stores in their area,

often after getting wind of a good deal or sale online.

OutgoingSocial shoppers are not shy. They make their voices

heard when it comes to customer service issues. They of-

ten have one-on-one contact with brands via social media

conversations. They broadcast the latest discount infor-

mation to their network.

SocialSocial shoppers love to share the experience of shop-

ing, and they form friendships, online and offline, based

on this hobby. They support each other by engaging in

shopping-related conversations: product recommenda-

tions, feedback, opinions, reviews, suggestions, etc. They

pass on personal recommendations to their friends, and

they wait to get a good deal and support their friends’

purchase decisions. We broke down the habits of social shoppers based on their collective responses to our interview questions.

*Data gathered from the ShopSocial 2010 interview candidates

50%shopping for& finding a deal

25%shouting about

25%supporting their network through shares/comments

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Endorsers are quieter in the social media space. Their

social networks are usually smaller and they spend less

time producing content. They are much less likely to

have a blog and do much less “shouting” in the space.

They spend a significant amount of time shopping, al-

though less than Initiators, and their primary focus is rec-

ommending products and asking for recommendations

from their social group. Endorsers tend to be on more

intimate terms with their online networks and, typically,

have an offline relationship with many members of their

online networks.

Initiators are highly influential within the social media

space. Four of our seven participants were Initiators.

They are typically content producers and may have

blogs, large social networks, and are likely to maintain

active profiles on many different social media platforms.

They spend more time shopping and finding deals and

follow up by sharing promotions via their social media

feeds.

Initiators a part of a larger group called “Influencers,” but

what sets them apart is a stronger focus on shopping. An

Initiator’s audience is primarily interested in their product

opinions and endorsements. They possess considerable

sway over the purchase decisions of their network and

are often a lifestyle leader, setting consumer trends that

others willingly follow.

Types of Social Shoppers

Initiators

Endorsers

I’m hanging out with @Initiator and we’re trying @brand’s new product/service.

Hi @entirenetwork check out my new pictures/video of a product I just bought. Tell me what you think.

@brand I had a really great/poor experience at your place of business.

@entirenetwork looks like @brand is running a deal/sale/promo! Here’s for the exclusive info http://short.url

Hey @network do you think I should buy this @brand’s product or service? Why or why not?

Dear @localfriends, check out this deal and buy one, too! Then we can go together & hang out.

Thanks @friend for the great recommendation. I took your advice and purchased the upgraded model.

Tweets:

SHOP SOCIAL

The Need for SpeedSocial shoppers place value on the speed at which they

can communicate to one another during the shopping

cycle. Twitter is the platform favorite right now, due to its

immediacy, but other platforms may evolve or new ones

may spring up to better suit the need for speed within

social shopping communities.

Share, Share EverywhereAs more retailers become hip to the social shopping

trend, they will respond by making their products more

readily shareable across social networks, including

mechanisms like Facebook Connect, Tweet This

functionality, and more. Retail trendsetters will continue

to explore the world of location-based apps to provide

incentives for consumers, collaborating with leaders like

Foursquare and Facebook Places.

Aggregation NationSocial shoppers, particularly Initiators, will continually

look for simple ways to aggregate their content and

updates. They are using services like Tumblr and

Hootsuite currently to update multiple profiles in one

place and will continue to try new technologies that make

that process simpler and more efficient. Aggregators

primed for retail “share” functionality with the option to

make simultaneous, multi-platform updates and personal

recommendations would be best suited for the needs of

an influential social shopper.

The New BreedThe earliest adopters of social shopping tend to be tech-

savvy influencers, but that, too, will likely change with

time. As the numbers on all social media platforms grow,

more and more people will, in turn, become exposed to

social shopping culture. New social shoppers and social

shopping communities will evolve with users of varying

age groups, technological aptitude, and income levels.

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SOCIAL SHOPPING 2010 & BEYOND

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SummaryIt’s 2011, social shopping is big and

poised to get bigger and bigger.

Consumers like it. It’s FUN, entertaining,

social, and allows them to connect with

the people in their lives, and even those

they don’t know, over shared interests,

and products.

This new kind of shopping with some

rudimentary rules: 1. Consumers

are friends with each other, and 2.

Consumers expect friendships plus

benefits with brands. But brands get

benefits for their contributions too,

namely being appreciated out in the digital-

social open where everyone can see and

other consumers are keeping score.

About Flightpath

Flightpath provides digital imperatives—web design and mobile apps, SEM, SEO, social media—with full-service creative

and production capabilities. Our team members are a group of truly talented professionals and really cool people, who

discover and mine emotional currency to create real business value.

We create campaigns that forge a connection through a range of compelling visual language, artful messaging, and

charm. It isn’t rocket science, but it is emotional sensitivity.

Connect with Us to Learn More:

36 W 25th Street, 9th Floor, New York, NY 10010 | 212.674.5600

facebook.com/flightpathny

twitter.com/flightpathny

flightpath.com/insights

www.flightpath.com

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twitter-share-online-experiences>.

“Bazaarvoice Data Indicates Dramatic Change in How People Shop and Buy - CRM Magazine.” DestinationCRM.com

- The Leading Resource for Customer Relationship Management - from the Editors of CRM Magazine. 6 Dec. 2010.

<http://www.destinationcrm.com/Articles/ReadArticle.aspx?ArticleID=72214>.

“Fluent: The Razorfish Social Influence Marketing Report Fluent: The Razorfish Social Influence Marketing Report.”

<http://fluent.razorfish.com/publication/?m=6540&l=1>.

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& Demographics - EMarketer. 11 Jan. 2011. <http://www.emarketer.com/Article.aspx?R=1008162>.

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