Social Commerce Presentation

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Social commerce overview, based on E-consultancy survey of online sellers and Figleaves case study.

Social commerce overview, based on E-consultancy survey of online sellers and Figleaves case study.

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  • 1. UK Social Commerce
  • 2. Overview
    • What is ‘social commerce’
    • Drivers of social commerce
    • E-consultancy’s survey
    • Figleaves case study
  • 3. User-Generated Content and Social Media Have Exploded Ratings and Reviews Wikis Social Networks Tagging Blogs Peer-2-peer Facebook
  • 4. The Next Explosion: Social Commerce
    • Put simply, social commerce is about customers having the means to interact with one another in order to make better buying decisions.
  • 5. Factors Driving Social Commerce
    • A shift in influence from traditional media and corporate speak to people listening to their peers.
      • Consumers are seen as communication channel
      • Consumers are authoring brand messages
      • In effect, working for the Marketing department and generating the message in addition to carrying it.
    • The consumers have a voice
      • Consumers now can not only influence purchase decisions, but they can also influence product design
    • Convergence of stakeholder roles
      • Consumers are more invested and therefore more loyal to companies and brands
  • 6. Social Commerce Report Research Methodology
    • Produced by E-consultancy in association with Bazaarvoice
    • Surveyed 800 respondents over a three week period (June – July 2007)
    • 360 respondents classified themselves as online sellers
    • 80% respondents were based in the UK
  • 7. The Current E-commerce Landscape
    • 50% of online sellers say they expect 20% or more online sales growth in 2008*
    • For multi-channel companies, online accounts for just under a third of all sales*
    • Online sales in the UK amounted to an estimated £46.6bn in 2007, up from £30.2bn last year, according to the IMRG.
      • Online sales will reach an estimated £78bn a year by 2010 .
      • * E-consultancy / Bazaarvoice Social Commerce Report 2007
  • 8. How are Companies Reacting?
    • 67% say that a social networking strategy is a high or medium priority
      • More than half of all online sellers (51%) consider UGC as either ‘extremely important’ or ‘very important’ to company strategy over the next year .
      • * E-consultancy / Bazaarvoice Social Commerce Report 2007
  • 9. Online Sellers’ Adoption and Consideration of Ratings and Reviews
    • * E-consultancy / Bazaarvoice Social Commerce Report 2007
      • * E-consultancy / Bazaarvoice Social Commerce Report 2007
    Online sellers that are using ratings & reviews Online Sellers that are considering the use of ratings & reviews Online retailers that rank ratings & reviews as a high or medium priority 28% 52% 80%
  • 10. What About Negative Reviews? 4.3 out of 5
  • 11. Importance of Ratings and Reviews to Consumers
    • * E-consultancy / Bazaarvoice Social Commerce Report 2007
    Source: UK Consumers, Vizu.com Polls, N=100+ How important are consumer reviews when making a purchasing decision? Would reviews impact the likelihood that you buy from that site? Do you find ratings and reviews helpful when making a purchase? 61% extremely or very important 55% “ Would be more likely to buy” 63% Yes
  • 12. Benefits of Ratings and Reviews Percentage of respondents rating as ‘major benefit’ (Social Commerce Report 2007)
  • 13. Case Study
    • Founded in 1998
    • World’s largest seller of branded intimate apparel
    • Carries over 200 brands of lingerie, swimwear, sleepwear and hosiery for women and men
    • figleaves.com offers a shopping experience that is highly personalised, engaging, fun and backed by an award winning level of service
    • figleaves.com puts the consumer at the centre of what they do
  • 14. Implementation of Ratings and Reviews on figleaves.com
    • Launches Ratings & Reviews Jan 2007
    • Drive reviews through dedicated landing pages, on-site offers and email campaigns
    • Customers are engaged – 73 reviews for Fantasie bra
    • Average rating of products is high – 4.5 out of 5
  • 15. The Results
    • Product Coverage
      • Shoppers on figleaves.com want Ratings & Reviews. figleaves.com has a significant 43.9% product coverage (and growing!)
    • Review Volume Growth
  • 16. The Results
    • The same products with reviews have a 35.27% higher overall session conversion rate.
    • Conversion was not negatively affected for products without reviews
    Overall Average Before Going Live Overall Average After Going Live
  • 17. The Results
    • The Look-to-Book ratio is 4X lower (better) for products with reviews compared to those without
    Look-to-Book ratio shows the percentage of people who visit a website compared to those who actually make a purchase. This ratio is an excellent measure of ratings and reviews ability to influence the consumer to make a buying decision . No Reviews 11-20 5-10 1-4 21+ 4X
  • 18. Social Commerce Context Examples
  • 19.
    • “ This 'social commerce' is creating new and more meaningful ways for retailers to interact with customers. Search, communication and community have the potential to have an even more powerful impact on commerce when closely tied together.”
    • ~Ken Goldstein, CEO of Shop.com
  • 20. Questions? Linus Gregoriadis, Head of Research E-consultancy.com Email: [email_address] Website: www.e-consultancy.com