The Social Shopper

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The slides from our November 13, 2012, webinar with Scott Bishop and Stephen Leu from our Strategy group.

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The Social Shopper

  1. 1. ©2012 PHENOMBLUE LLC.
  2. 2. SCOTT BISHOPVP, STRATEGY FOR PHENOMBLUE@THESCOTTBISHOPSTEPHEN LEUDIRECTOR, STRATEGY FOR PHENOMBLUE LA@STEPHLEU
  3. 3. Phenomblue is a brandexperience agency.We are an agency of strategists,designers and engineersusing technology to connect peopleand brands.
  4. 4. The brands we work with.
  5. 5. WTF IS SOCIAL COMMERCE?
  6. 6. buying stuffonline It is not limited to a specific platform or network digitalcoupons
  7. 7. Social commerce is the introductionof social aspects traditionally associatedwith brick-and-mortar shopping intothe digital realm
  8. 8. Much of the time spent iswith experts and getting their advicebefore purchase
  9. 9. Social interaction withfriends and peers to receivefeedback
  10. 10. WHY IS THIS HAPPENING?!
  11. 11. Whats driving social commerce?
  12. 12. Whats driving social commerce? new interaction mediums• Online Video: 22hr viewed per month by individual user• Social Media: 1 in 5 of all minute spent online• Mobile: 4 in 5 smartphone owners purchase on their devices Comscore 2011
  13. 13. Whats driving social commerce? new interaction mediums digitally-connected consumers• 52% of laptop owners also own smartphones• 31% of smartphone owners also own tablet devices• 13% of american that own multiple devices own all three Pew Research 2012
  14. 14. Whats driving social commerce? new interaction mediums digitally-connected consumers on-demand culture• 2 billion hours spent by Netflix streaming customers• 4 billion hours of video watched monthly on YouTube• Wikipedia ranks in the first page results for 90%of Google searches Comscore 2011
  15. 15. Whats driving social commerce?new interaction mediumsdigitally-connected consumerson-demand cultureGeneration C
  16. 16. WHATS GENERATION C?I THOUGHT I WAS TALKING TO MILLENNIALS
  17. 17. Generation Caged 18-34Americanmore female than male
  18. 18. Generation Caged 18-34Americanmore female than maleThey are not a standalone demographicdefined by age, geographic location,gender or affluence
  19. 19. Generation C, the ConnectedGeneration, are those who integrateWeb usage and digital devices as partof their everyday lifeThese are the social shoppers
  20. 20. GENERATION C84% of millennials rely on UGR and UGCfrom strangers in making their purchase.70% of boomers does the sameUsers of age 50+ are the fastest growingadopters of social media, at a rate of 49%year over yearUsers of age 45 – 50 are the fastestgrowing adopters of smart devices, at a rateof 5% year over yearBazaar Voice 2012, Pew Research 2011, Nielsens 2012
  21. 21. Generation CThey are a psychographic defined bytheir interests, attitudes, values andbehaviors
  22. 22. FACEBOOK IS WHERE I BRAG TOGeneration C MY FRIENDS TWITTER IS WHERE I CONNECT WITH STRANGERSThey derive their social status bywhat they shareThey exhibit bee-like swarm behaviorThey thrive on “social oxygen”
  23. 23. Generation CThe Web, and the digitaldevices that provide access to it,let people define themselveshowever they want
  24. 24. Generation CConsumers have never before had somuch power to shape a brand
  25. 25. THE SHOPPERS And it works both ways THE COMPANYS INFLUENCE INFLUENCE
  26. 26. FOLLOW THESE TENETS FORSUCCESSFUL SOCIAL COMMERCE (OR RISK A SLOW, INGLORIOUS DEATH)
  27. 27. 1. Personalize the experience2. Let consumers influence their friends3. Be a thought leader
  28. 28. 1. PERSONALIZE: TOOLSFacebook-Connect, Twitter OAuthFACEBOOK-CONNECTED USERS ARE NINE TIMES MORELIKELY TO SHARE THEIR EXPEIRENCESGeolocationCREATE A CUSTOMIZED EXPERIENCE AND IMMEDIATE CALLTO ACTION BASED ON THE USER’S PHYSICAL LOCATION
  29. 29. 1. PERSONALIZE: EXAMPLEBeyond user infogathered from its ownsite, Amazon.com utilizesFacebook Connect torecommend products thatmatch the interests ofusers and their friends
  30. 30. 1. PERSONALIZE: EXAMPLETicketmaster’s customized app recommendsproducts based on user activities
  31. 31. 2. INFLUENCE FRIENDProvide the digital means fornatural social habits LIKE TRAVEL LISTEN WATCH FRIEND
  32. 32. 2. INFLUENCE EXAMPLEMacy’s Magic Fitting room bridges the gap between brickand mortar and digital, and provides a unique experience
  33. 33. 2. INFLUENCE EXAMPLE Spotify’s open graph app broadcasts the customer’s engagement through multiple points of distribution
  34. 34. 3. LEADWhen your brand is a trusted expertand advisor, consumers willingly sharetheir own experience and testimonials
  35. 35. 3. LEAD: TOOLSExpertiseSHARE YOUR KNOWLEDGE WITH CUSTOMERSTO ENABLE THEM TO MAKE INFORMED DECISIONS ABOUTYOUR BRANDPersonalityPROVIDE A DISTINCT IDENTITY AND VOICE THAT APPEALS TOCONSUMERS EMOTIONS
  36. 36. 3. LEAD: EXAMPLE64% of shoppers look forreviews before making apurchaseBy providing sound advice,they may buy your productor share the value they’vereceived – or both
  37. 37. 3. LEAD: EXAMPLEThough the actual contentis not directly related tothe product, the brandpersonality and valuedelivered helps the viewerto remember the brand
  38. 38. Brands must provide anexperience worth sharing, and fosteran environment where they canfacilitate conversation
  39. 39. BUT HOW DOES ITGET ME $$$$$$?
  40. 40. AWARENESS ENGAGEMENTTraditionally-acceptedpurchasing process CONSIDERATION DECISION
  41. 41. AWARENESS SOCIALHow the RECOMMENDATION ENGAGEMENTpurchasing processactually works DECISION CONSIDERATION
  42. 42. SOCIAL COMMERCE - THE BOTTOM LINEOnline conversation has a tangible valuethat are measured by DPS (dollar pershare) and VPS (visits per share)The average dollar per share increased by85% from $1.78 to $3.23The average visits per share increasedfrom 7 to 17 visits17% of social media users have purchaseda product/service based on a friend’s postEventbrite 2012, Forrester Research 2012
  43. 43. Be a part of guiding that socialrecommendation
  44. 44. Speaking to your audiencecompanies and brands revolvearound them“we”—not “me”create conversations consumers canswarm tojoin conversations within andacross communities
  45. 45. THE PROGRESSIVE COURSE OF SOCIAL COMMERCE
  46. 46. Mobile ShoppingNFC (Near Field Communication)Logistics
  47. 47. MOBILE SHOPPINGAs of Q2 2012, purchases madethrough a mobile device now accountfor 15.1% of all online purchasesTechnologies and advanced devicesenable social behaviors to take placeonline, providing such interactions withscale, speed and convenienceMergers and acquisitions are alreadytaking place to support this trendSource: IBM 2012
  48. 48. NFC (NEAR FIELD COMMUNICATION)Enriches the mobile shoppingexperienceProvides consumers the option to freelyshare their personal informationOther emerging technology willallow for seamless connectivity withconsumer devices
  49. 49. LOGISTICSIf prominent e-commerce players areable to execute this change, big-boxretailers will be forced to adaptAddresses a core customer value(convenience) in a new wayThe importance of marketersencouraging social discussion andrecommendation of their product/service will become paramount
  50. 50. THE SOCIAL COMMERCEREVOLUTION HAS JUST BEGUN
  51. 51. Takeaways“Social commerce” is not a turnkeysolution and not a channelSocial commerce is a conduit fordiscovery and discussion that bridgesthe social divide between brands andconsumers shopping onlineMarketers should integratetime-tested methods of tracking andadjusting to social consumerbehavior with technology optimizedfor multiple platforms
  52. 52. Thanks.
  53. 53. SCOTT BISHOP VP, STRATEGY FOR PHENOMBLUE @THESCOTTBISHOP STEPHEN LEU DIRECTOR, STRATEGY FOR PHENOMBLUE LAPHENOMBLUE.COM @STEPHLEU©2012 PHENOMBLUE LLC.

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