Shop.org Online Marketing Month NYC Workshop Presentation: Social Commerce Report from comScore and Social Shopping Labs

SOCIAL COMMERCE STUDY 2011 Tuesday, May 3, 2011 – Speakers:Jennifer Vlahavas, comScore Peter Leech, Social Shopping Labs

A Study On Social Media and Commerce• BACKGROUND: comScore, Shop.org and Social Shopping Labs have collaborated to conduct research on Social Media and how its impacting retailers – Provide a consumer perspective on the social media experience – Share insights about how consumers use and perceive social media for shopping• METHODOLOGY: Email surveys via comScore Panel – Email Survey: 1,787 comScore panelists• CRITERIA: Are 18 years of age or older• COMSCORE PANEL: Explicit permission to view the complete online behaviors of 1MM U.S. consumers, representative of the total U.S. online population

Social Media Raises a Ton of Questions… But what does the consumer think?

Are Consumers Following Retailers via Social Media? Total Online Population (n=1787) Members of Facebook, Twitter, Retailer Blog (n=1382) 77% Follow Retailer Opportunity!? (n=751) 42% of Total Online 54% Population Browsed, posted comments or purchased (n=607) 34% 81% of Total Online Population Follow 6.3 Retailers (average)comScore Survey, April 2011. Q1A: Are you a member of, or registered for any of the following social networking websites or blogs? Q6: Do youfollow your favorite retailers using any of the following websites listed below? Q9: Which activities, if any, have you done on each of the followingsocial networking websites or blogs?

Mobile is Accelerating Social Media Usage Visit once a day or more on… Any Device Mobile PhoneConsumers are heavily 69% 34%engaged with social (n=1353)media.Twitter encourages 52% 32% (n=519)regular mobile usage. 50% 42% (n=417) 39% 30% (n=457)comScore Survey, April 2011. Base=Member of social networking site Q2: How often do you visit each of the following social networkingwebsites or blogs on any device? Q3: How often do you visit each of the following social networking websites or blogs from your mobile phone?

Email is still strong… Social participation increases email usage for some. How Has Email Use Changed? Use less Dont know 7% 3% After joining a social networking site, more males than females Use more increase their use of a personal email. 31% a b Use the same 59% (n=1497) 34% 27% (n=767) (n=730)comScore Survey, April 2011. Base=Member of any social networking site Q4: How has your personal email usage changed since becoming amember of a social networking website(s)? Indicates significance at 95% confidence interval.

How Do Retailers Social Media Strategies Differ? (Retailer Unique Visitors and “Followers”) 80K 38K 128K 214K 16K 11K 53K 11K 65K 96K 1.8M 727K 5.3M 4.2M 2.8M 1.7M 499K 1.6M 4.3M 1.4M 12.6M 116K 60Unique Visitors (MM) 50 40 30 20 10 0 Source: comScore Media Metrix™- March 2011

Create an Emotional Connection With Consumers• 58% want Deals/Promotions• 49% seek out Product Information• Clearly consumers are hunting for deals, however….• Retailers are driving new fan acquisition and interaction by relating to consumers on a personal level.

How Are They Interacting With Retailers?? Facebook Twitter Retailer Blogs (n=736) (n=278) (n=63) Clicked through to website 56% 69% 91% Browsed/Researched product or service 51% 67% 89% Posted comments regarding products or 43% 54% 76% services Posted comments regarding in-store 38% 55% 76% customer service experiences Purchased product or service from 28% 34% 34% Facebook link c At a 95% confidence interval, Twitter is significantly higher than Facebook. c At a 95% confidence interval, Retailer Blogs are significantly higher than Twitter and Facebook.comScore Survey, April 2011. Base=Follow retailer via Facebook, Twitter or Blog Q9: Which activities, if any, have you done on each of thefollowing social networking websites or blogs?

Purchase Interest on Social Networking Sites Those who follow a retailer on Facebook or Twitter appear ready to purchase directly from these sites. But very few retailers offer the option to purchase.. How Likely Are You to Make a Purchase if Available on the Following…? (Top 2 Box Shown) 35% 32% (n=716) (n=151)comScore Survey, April 2011. Base=Follow a retailer onfacebook or twitter. Q14. If purchasing directly from aretailer’s social networking website were available, howlikely would you be to make a purchase from the following?Top 2 Box shown (very likely to purchase).

Case Study: Amazon Embraces Social Commerce But Retains Control

Case Study: Amazon Provides a Seamless & Personalized Experience for Consumers

Do Consumers Value Ratings and Reviews? Most consumers read ratings and reviews and roughly half think they are an important part of their purchase decision. How Important Are Customer Ratings and Reviews? (n=1787) Not important 4% Credibility is Key! 93% of respondents read Neutral 50% customer ratings and reviews Very Important 46%comScore Survey, April 2011. Base=Total respondents Q15: Have you ever read customer ratings or reviews when shopping for products?Q16: How important are customer ratings and reviews to you when deciding which products to purchase?

Mobile Bridges the Gap Between Online and Offline …yet Women Lag Behind in Adoption. Mobile Internet usage (browsing, apps, and email) skew male—most likely driven by more barriers to data plans. Accessed Customer Ratings and Smartphone Share: Men vs. Women Reviews via Smartphone U.S. 55% 41% 40% 39% 59% 60% Jan-09 Jan-10 Male Female Males (n=903) Females (n=884) comScore MobiLens U.S. 3 months average ending April 2009 to 3 months average ending April 2010comScore Survey, April 2011. Base=Total respondents Q19: When shopping in a physical store, how often do you access customer ratings andreviews through your mobile phone/smartphone or other device? Indicates significance at 95% confidence interval.

Group Buying As Part Of Your Social Strategy Awareness 82% 49% 30% Have made a purchase 19% 10% 5% (in past 3 months) Not surprisingly, the significant discounts offered via group buying sites are not appealing to most retailers. However, integrating the group buying concept into your social media presence is a natural extension of establishing a community.comScore Survey, April 2011. Base=Total respondents (n=1787). Q20. Prior to today, please indicate your familiarity with each of the followinggroup buying websites. Base=Purchased from a group buying Indicates significance at 95% confidence interval.

Awareness and Adoption Are Low – But How Will Facebook Deals Change The Landscape? Location based apps have not yet gained the popularity of other social networking mediums. But…these consumers are the “elite” among social media users so they are an influential group. Awareness 16% 10% 6% Usage 8% 4% 3% comScore Survey, April 2011. Base=Total respondents (n=1787). Q24: Are you aware of the following location-based social applications for your mobile phone/Smartphone? Q24a: How often do you use the following location-based social applications on your mobile phone/Smartphone?

Next Steps from a Retailer Perspective1. Consumers are ready and willing to shop “socially”.2. Consumers are liking and following retailers NOW with low opt-out rates. Build your fanbase now and focus on genuine connection and interaction.3. Consider a “VIP” execution whereby the proven tools of promotion and product info are given a unique and valuable spin for your social fans.4. Project your product stories on Facebook and Twitter and provide a clear link path to purchase. Track it. The power is in the consumer’s “feed” or “stream”.5. As you expand into Mobile executions, consider how Facebook and Twitter interaction can be built in. Mobile is driver of social frequency.6. Make a strategic call. Will you have a community on your site (blog, etc.) or drive your community using Facebook or other tools?7. Blogs have very low usage and are better for other goals than community (excluding some of the larger brands or lifestyle brands).8. Consumers would like to have access to what their friends think about products on your site. Consider Facebook Connect tools as a way to bring the friends along.9. Consumers want easy access to reviews in-store. Capitalize on their natural inclination with easy apps.10. Ask yourself: Why would someone “like” you on Facebook?

Thank YouJennifer Vlahavas, comScore Peter Leech, Social Shopping Labsjvlahavas@comscore.com peter.leech@socialshoppinglabs.com

Shop.org Online Marketing Month NYC Workshop Presentation: Social Commerce Report from comScore and Social Shopping Labs

by Shop.org on May 06, 2011

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Shop.org Online Marketing Month NYC Workshop Presentation: Social Commerce Report from comScore and Social Shopping Labs — Presentation Transcript