FRANkademy: Social business for retail

Social media is like teen sex.Everyone wants to do it. Nobody knows how.When it’s finally done there is surprise it’s not better. - Avinash Kaushik, Analytics Evangelist at Google

“ A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favour by giving us an opportunity to do so.

Social business with a retail flavour • Social business introduction • Consumer and retail trends • Case Study: Best Buy & Sportsgirl Trials and Tribulations of Social Commerce • Twitter • Facebook • Pinterest • Foursquare • .. And others

1. Social business with a retail flavour • Social business introduction • Consumer and retail trends • Case Study: Best Buy & Sportsgirl

Current State of Social in Australia Only 42% of Australian organisations are embracing social media 48% have no presence in the space Only 16% feel it is important to have a clear social media strategy Only 2% prioritise dedicating funding KMPG 2011 SourceSource: KPMG report in B&T article: http://www.bandt.com.au/news/australian-businesses-lag-in-social-media-game

Traditional Media Approach

Social Business Approach

The new breed of consumersTraditional Media Approach Social Business Approach Listening to advertising Avoiding advertising Listening to peers on social networks 77% of online shoppers look for reviews to make a purchase decision 62% of online shoppers are brand loyal due to online satisfaction

You need both to succeedBRAND AWARENESS BRAND REPUTATION SALES

The relative importanceBought Owned Media Assets “Earned”

Nielsen study agreesEARNED TwitterOWNED Forums BOUGHT MEDIA Facebook Blogs

Consumers are social- brands aren’t 72% use social media to keep up with brands 80% say great service online keeps them loyal 74% use social media to recommend products to friends 51% share product advice and info on social media 40% want more engagement from brands onlinehttp://frankmedia.com.au/wp-content/upLoads/2011/12/FRANk-media-Lithium-the-Digital-Divide.jpg

Impact of Digital on Customer’s Lives Over 1/3 of us are Internet enabled Digital information using mobile TV’s will help me influences 50% of devices to buy shop online even my in-store sales products online # more # and will do so increasingly * Over 65% of in- store purchases 86% of us will are initiated on maintain or the web # increase our level of online expenditure # We spend nearly 2 hours/week shopping online + We spend an average of 9.3 hours/week with social media +Sources1. Harvard Business Review 2011*2. PwC 2011 “Australian & NZ online shopping market insights” #3. Nielsen 2012 +

How to Increase Consumer Loyalty Human Brandshttp://trendwatching.com/briefing/

The Future of Retail: Connected ConsumersBy 2020, we will see a verydifferent consumer – one whoco-creates & seeks personalisedproducts and services.Virtual networks will link theseconsumers and technology. It willchange how consumerscommunicate with each other andretailers. The Australian Centre for Retail Studies,

Retail today: Social is Driving Retail Polyvore Svpply Lookbook 15M UVs / month• 81% receive advice from friends & family relating to product purchase through a social media network• Almost 50% of shoppers have made a purchase based on a recommendation through a social media network• Social sharing and social shopping are driving awareness and sales to brands that were previously unknown

Example of social retail in store: Tweet Mirror • As customers try on clothing items they can use Tweet Mirror to send snapshots of themselves to friends via Twitter or e-mail. • For retailers it’s good brand exposure far beyond the store.http://www.youtube.com/watch?v=CU-DYKR4f8k&feature=player_detailpage

Most brands are socially inept.Share, talk, answer, engage, give something for free, have a personality, be different…

Social Media Best Practice Tactics/ Shop Front Strategyhttp://www.intersectionconsulting.com/blog/

Social Business has a knock on effect

The Benefits of Getting it Right Companies view social media as offering the most benefit in the upper stages of the purchase funnel.http://www.booz.com/media/file/BoozCo-Campaigns-to-Capabilities-Social-Media-and-Marketing-2011.pdf

Top 6 take outsSocial is no longer optional- integration is key Social Media has a knock-on effect beyond marketing Social Media requires a Social BusinessIt is not about the tools but how you use them Content & Context is the new marketing First mover advantage is there to be seized

Total Retail Sales in Australia = $216 billion Bricks & Mortar Sales $205.5bn 95.1% of total retail sales E-Commerce Retail Sales $10.5bn 4.9% of total retail sales 29% online retail sales growth 2011Source:NAB Study – Jan 2010- 2011

Core Issues Facing Australian Retail Industry Consumers are saving more than ever (10.5% savings rate) Becoming used to price reductions Consumer confidence is low and Australians are prioritising reducing down debt. High Australian dollar is a double edged sword for Australian retailers. Cheaper for retailers to procure overseas goods, but also cheaper for Australian customers to buy from international online storesSource:PwC 2011 “Australian & NZ online shopping market insights” #

+ Digital + + Physical + • Instant access to products• Convenient & global shopping 24/7 • Edited product selection selection Consumers are immune• to the ‘battle’event and• Access to broadest product Shopping as an experience• Easy to research products and compare prices They want a seamless integrated experienceon or experience • Ability to test, try products from their desktop, to their smartphone, to the store itself.• Rich product information, • Personal help from caring customer reviews and tips associates• Editorial content and advice • Convenient returns• Social engagement and two-way • Help with initial setup or repairs dialogue • Instant gratification of all senses• Fast checkout

Call Social centre media Networked appliances SeamlessOnline Integratedstore Experience Mobile Helpful Internet staff enabled TV’s

In store customer ‘non-service’ Customer serviceHarder for bricks & assistants harder tomortar retailers to finddifferentiate from (online is always available) online They often lack(Kneejerk reaction makes the problem worse) product knowledge (web has product knowledge & customer reviews) Save $$$ by Customers reducing labourincreasingly focus on price & Service assistants are convenience too busy (both core on-line (50% in-store promotions are strengths) executed late or not at all) Less consumer tolerance to poor experience in-store (products stocked in wrong shelves)

Customer ‘non-service’: David Jones • David Jones realises that its profit losses are in part a result of poor customer service • As a result, 300 jobs are created to “deliver specialised services” to shoppers

Rise of Service • Customer priorities have shifted from “low price” to “service” • Retailers need to hire and train service staff to remain competitivehttp://cmosurvey.org/files/2012/02/The_CMO_Survey_Highlights_and_Insights_Feb-2012_Final.pdf

Social Service on the rise Consumers seek and prefer social service • 62% have used social media for customer service • 76% would use if they better understood the toolshttp://econsultancy.com/us/blog/9181-social-customer-service-a-best-practice-checklist

Group Buying: is it worth it for retailers? The reality is that many retailers don’t see repeat In 2011 $498 650% growth yr/yr * customers from online million sales * (off low base) promotions + (they don’t spend beyond the promotional offering) 22% Australians currently use group buying sites # Business model is that (core 35-40 females) discounts are loss leaders and loss leaders only work in the context that 30% haven’t heard of them consumers spend—or or don’t understand them # ( Males, Gen Y & baby boomers return and spend—above … untapped potential) the loss leader Restaurants, Group buying strength is providing accommodation and Retailers don’t have this deals for service businesses health & beauty use group luxury (they sell time & encompass higher profit buying the most margins)Sources1. TNS Research Group 2011*2. Nielsen 2012 #3. Rice University 2011 “How businesses fare with daily deals” +

Case Study The world’s largest multi-channel home electronics retailer Example of a brand finding value in atransparent, customer focused social business strategy

A Corporate in Transition“...focused on better solving the unmet needs of our customers — and we rely on our employees to solve those puzzles…”

Inevitable Shift CLOSED COLLABORATIVE OPEN CULTURE Silos, separate and Freely sharing Connecting internal andinformation hoarding information and external communities for knowledge internally mutual gain

Social Developments – (Include…Everyone!)

Concept into Practice “Be PART of the conversation customers tell about “Consumers are giving YOUR brand” us all kinds of information if we choose to listen” Best Buy CMO Barry Judge “Technology isn’t (vs. our competition) that interesting. “we have to BE MOREIt’s HOW IT COMES than just a business” TO LIFE”.

Best Buys – Key Learnings• Listen first, talk second• Its OK to fail• The same social values apply online as offline• You have to be ready to respond• Customers will tell you and everyone else where your organisation is broken…and expect a fix• People are forgiving Overall Best Buy is treating their social businessexperience as a journey and have learned the importance of listening instead of pushing.

Case Study

Sportsgirl – ORIA ‘Most Innovative Online Retailer’ 2011• With its 111 stores, Sportsgirl has worked to differentiate itself by being more than a retailer through a deeply integrated social media strategy.• With more international & online entrants to the category, Sportsgirl understand "youve just got to be better, savvier and more aligned with what your customer is wanting“• - CEO Elle Roseby

Sportsgirl Blog Regularly updated & rich in content• Regular Interviews• Guest bloggers @ LMFF• Style updates• Photography tips & tricks Various categories beyond fashion, including music festivals, travel, nightlife etc

Sportsgirl Facebook • 128,000+ Likes • 6,000+ talking about this Blog updates, newarrivals, Lookbooks, Style Snaps… 75 comments, 67 likes

Sportsgirl Twitter Blog updates On the ball with customer service Fun, personable brand voice Re-tweeting customer happiness

Sportsgirl Window Shopping Sportsgirl uses QR codes on all clothes in its shop window Customers could simply shop after hours by using the QR codes and their mobile phones  24/7 interactive shopping experiencehttp://www.proprint.com.au/News/291320,retailers-turn-to-large-format-print-and-qr-codes-to-replace-in-store-shopping.aspx

Digital In-store Experience For customers to make the most out of the QR codes, Sportsgirl held info sessions and put info on its bloghttp://www.sportsgirl.com.au/blog/post/2011/06/youre-invited-join-the-qr-code-instore-workshops/http://m.sportsgirl.com.au/mobile/blog/post/2011/06/qr-101/

It’s not about the tools. It’s how you use them.

2. Trials & Tribulations of Social Commerce

Why do people follow a brand on Twitter? 94% Discounts and Promos 88% Free Stuff 87% Fun & Entertainment 69% Company News 57% Related topic interest 56% Customer Servicehttp://econsultancy.com/us/blog/9410-a-guide-to-ad-targeting-on-twitter-infographic/

Trials and Tribulations of Twitter: Coles Latest Twitter campaign went belly up for Coles • After announcing price cuts of fruit and veg for all stores, Coles copped a lot of criticism from consumers • Consumers were concerned about Aussie farmers and how they could possibly receive a fair price for their products if it sells so cheap • Shortly after, Coles launched a Twitter campaign and asked to finish this sentence: “in my house it is a crime to buy____________” • The responses that followed possibly surprised Coles…http://www.smh.com.au/business/coles-twitter-campaign-goes-down-down-gurgler-20120307-1uj4c.html

Amex and Twitter partnership 50 American Express is turningTwitter content into commerce by connecting card holders to merchants and delivering real world value to both With the continued convergence of online and offline commerce, the closed loop continues to enable Amex to bring seamless, relevant ways to connect our card holders and merchants on the most powerful social and digital platformshttp://www.psfk.com/2012/03/twitter-brands-deals.html

Amex: How To Increase Loyalty • Amex and Twitter partnership allows Amex card holder to sync their purchases with their Twitter account • In return for tweeting about their purchases, card holders receive discounts at participating retailers • The result:http://socialcommercetoday.com/amex-tweet-for-dollars-campaign-garners-early-success/

Facebook is the most successful social network with 850m users worldwide, but: • Most brands use it as an isolated communication channel • Many talk about themselves 24/7 • Many don’t talk enough and think that thehttp://www.allfacebook.com “build it and they will come” approach is/facebook-page-consumers-2012-02 enough

It is not an easy gig for brands to be successful on Facebook • Study finds that customers expect brands to have a Facebook presence … but don’t want them to bother them with their content- ouch! • 53 % of respondents believe brands must maintain Facebook pages for relevancy, BUT • 64 % said they “hate” when they are targeted via their social network profiles • 58 % find marketing via social media to be invasivehttp://econsultancy.com/us/blog/9410-a-guide-to-ad-targeting-on-twitter-infographic/

Walmart local Facebook pages 54 Approx. 10M Facebook fans and 3,500 stores Designed to connect consumers with their nearest Wal-Mart stores aimed to delivershoppers store-specific information, such as in-store events and promotions, as well as region-specific products

Starbucks Facebook page• Almost 30M followers• Receive 10,000’s of Likes on each post• Recently attracted 15,000+ comments on fun questions such as “hot or iced”

Social ROI: You get out what you put in 2011 study shows that 95% of Facebook posts on brand pages are ignoredwww.allfacebook.com/facebook-wall-posts-brands-2011-10

F-commerce: Why it Fails to Deliver Most brands on Facebook offer no compelling value proposition to its customers • Most F- shops are simply clones of existing e-commerce sites • Most F- shops sell the same products for the same price with the same promotionshttp://socialcommercetoday.com/the-social-commerce-value-proposition-infographic/

F-commerce: How To Make It Work 4 keys value propositions to focus on: • Something First Give social media followers access to new products first (Burberry’s Tryvertising) • Something Unique Give social media followers something different, only available to them (Oscar de la Renta) • Something More Give social media followers a bonus when they buy (EA) • Something For Less Give social media followers a discount when they buy (Zynga)http://socialcommercetoday.com/the-social-commerce-value-proposition-infographic/

F- commerce experience: Tesco’s virtual changing room Virtual fitting room via a Facebook app, allowing customers to create 3D digital versions of themselves and try on different outfits from a selected range.https://www.facebook.com/Clothingattesco?sk=app_261347243942251

F-commerce Success Story: Miishka • Miishka is a Melbourne designer selling her collection exclusively via Facebook • Over 47,000 fans and an engagement rate of 6.14% • Simple, but super effective solutionhttp://tribecount.com.au/online-retail/make-every-sale-on-your-facebook-create-extra-engagement/

Create virtual pin boards to share the things you love with one click 11.7 million UVs per month worldwide 360,000 per month in Australia and growing rapidly

Stuff I WantCute vases…

Trials and Tribulations of Pinterest Implications for Brands • Users post images that they do not own • While individuals get away with this copyright breach, brands need to be careful not to be sued Best Practice • Pin your own content • If pinning others’ work, pay attention to licensing limitations • All pins link back to the website where the image was uploaded - ensure you want to be associated with all the content of that website • No self promotion is allowed on the Terms – contribute to the community • Pin visually stunning images that others will want to share (Products I Love is the third most popular pinboard name)http://adage.com/article/digitalnext/brands-pinterest-breaking-law/233038/

How Brands are Using Pinterest Get discovered By sharing relevant and shareable content (products, coupons, etc.) Show core values and personalityBy sharing multiple facets of the brand Micro-target customers Several boards allow brands to separate and classify content for customers Drive referral trafficBy encourage visitors on-site to “Pin it” Run competitions

“Pinterest is very much aligned with our brand values, in that we’re both passionate about helping people organise ideas and inspiration in style.Pinterest has given us the chance to inspire our customers in a unique way through sharing creative and inspiring content” – Kristina Karlsson, kikki.K founder

25 million users worldwideWorld’s largest mobile-only social network: 1 in 12iOS devices

4 Ways to use Instagram for your brand BurberryKookai Australia Show exclusive behindDisplay new products the scenes imagesThe Hungry WorkshopMelbourneShow brand Tiffany & Co.personality Branded Instagram app + filters + hashtag competition

Ted Baker and Instagram Ted Baker used Facebook and Instagram platforms to drive shoppers into stores • Built app that allowed stores to send gorgeous pictures of their customers straight to their Facebook page • Thousands of people had their photos taken. The pictures that gathered the most Likes on Facebook won a prize • Result: Drove hundreds of Likes and engagement to content + raised awarenesshttp://wewillraakyou.com/2011/11/in-store-instagram-studio-right-onto-facebook-for-ted-baker/

Turns offline brand interaction into online word of mouth with super-social users Geolocation service Gamified check-ins Recommendations“What can I do/eat/visit/buy Reward patronage - check-in Users leave tips, make lists in this area?” deals and points e.g. Melbourne’s best op shopsEnables your business to be Reward loyalty - mayorships discovered WOM through Twitter, Facebook Offer hyperlocal deals Awareness, sales and customer loyalty

How Retailers can Use FoursquareOffers to first-time customers toget them through the doors Awareness SalesShow some love to your top Customer loyaltycustomers Being a social businessContribute to the community byleaving your own tips Adding value to consumers’ lives

Louis Vuitton: A Social Brand on FoursquarePerfect for their positioningas a luxury brand with astrong culture and heritagefocus – all around theworld!

Foursquare: Granata Pet Dog food business launched 10 billboards in the US with Foursquare IDs • When people walking their dog noticed the billboard, they could check-in using Foursquare & the billboard dispensed the dog food. • Outcome: Pet stores sold 28% more product than the previous period, store requests for product increase by38%. • They have since launched over 100 billboards across Europe.http://www.youtube.com/watch?v=YekTIVcXf60

ShopKick: Mobile Shopping Rewards The app lets stores “influence their behavior,” said Mikael Thygesen, who is the chief marketing officer at the Simon Property Group and the president of its Simon Brand Ventures division. 3 million users RECEIVE KICKBUCKS REWARDS CUSTOMERS FOR WALKING INTO SELECTED STORES & IN-STORE BEHAVIOUR Real time customer data • location • social networks • mobile apps RESULT: > $110 million in-store revenue for ABILITY TO DELIVER INTUITIVE, • blogs partner retailers and brands in 2011 (source • tweets RELEVANT & TAILORED OFFERS TechCrunch) • purchasing history ” Conversion rates of walk-ins to sales can be measured directly by counting specific shopkick offers in the basket at retailers, by rewards for purchases through POS integrations, and ShopKick users can now unlock • Store gift cards conversion rates of product scans to product exclusive deals when they use their • Movie tickets sales can be measured through in-app app during certain commercials. • Facebook game credits questionnaires and POS integrations. “ Founder Cyriac RoedingSources: iTunes, TechCrunch

ShopKick: Mobile Shopping Rewards

Kakku: Connecting Shops & Shoppershttp://kakku.co/

Trend: Mobile Point-Know-Buyhttp://trendwatching.com/trends/pointknowbuy/

Mobile: growing trend in Australia • Australian mobile sales tripled to almost 10% of sales in December 2011 • Mobile sales are expected to reach 50% of sales in the next three years • 1 in 4 retail searches over Christmas 2011 came from a mobile phone • More than 1 in 4 consumers have made a purchase via mobile phoneSource: Google Study 2011 in Australia

Mobile shopping: Tesco South Korea • Mobile shopping in South Korean subway station • Each product has a QR code which adds the product into shopping basket • Convenient, fast and hassle freehttp://www.designboom.com/weblog/cat/16/view/15557/tesco-virtual-supermarket-in-a-subway-station.htmlhttp://www.theage.com.au/small-business/trends/mobile-shoppers-put-on-an-appy-face-20120206-1r0l9.html

Mobile shopping with Augmented Reality Apps Swivel Zugara Users try on clothes, accessories, hair “See how it looks” function activates web colours, and even cosmetic surgery by cam and essentially acts like a dressing simply uploading their image room mirror Typical conversion rate of online shoppers is 2-3% These apps aim to help users feel more informed and comfortable with their online retail purchasing decisions.http://blog.modernmobileapps.com/post/2011/03/06/New-in-Augmented-Reality.aspx

Mobile Payment Technology: Google Wallethttp://www.google.com/wallet/what-is-google-wallet.html

Digital In Store Experience: Starbucks Mobile Payments • A digital reader in Starbucks • Users load the card with $$$ stores scans a bar code displayed form a credit card or other on the user’s smartphone screen. account • The bar code is linked to a phone • 26 million smartphone app backed by the user’s transactions were made since Starbucks card its launch less than a year agohttp://www.computerworld.com/s/article/9222481/Starbucks_mobile_payments_perk_past_26M_transactions_http://www.readwriteweb.com/archives/starbucks_launches_smartphone_payments_nationwide.php

Retail Social Business Best Practice DEPARTMENT HR OPERATIONS INTEGRATIONMARKETING MERCHANDISING • INSIGHTS • BUSINESS GOALS • SHARED PASSION • RELEVANT CONTENT STORES PRODUCTS EVENTS/ CAMPAIGNS STAFF BRAND INTEGRATION

FRANk Process: 4 steps to a social business 4 ROI metrics & • Detailed quarterly reporting on agreed key KPIs Constant monitoring of chatter reporting • 3 Community • Community Manager recruitment & • FRANkademy workshops, training and • Editorial calendar training support Management • Knowledge sharing • Response flow chart • Employee engagement 2 Social Business • • Resource management Strategy implementation • • Budget recommendation Measurement of success Strategy • Content planning • Marketing as a Service • Social policies and guidelines • Plan to become a social brand • Internal- all stakeholders1 Listen & Learn • • External- consumers industry, trends, competitors, strengths, opportunities, weaknesses, … Analysis of online chatter and buzz- agile and dynamic approach

At what stage is your business? “We are nowhere” “We’ve made a start” “We get it!” We have Facebook and We have a communityWe’re not sure where Twitter but no one manager who regularly to start or whether wants to be our friend engages with our we need to? or talk to us. growing community. 90% + of brands

FRANkademy: Social business for retail

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