F-Commerce Turning Like into Buy (Part 2) Mesh 11


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Social commerce is gaining momentum. Analysts are predicting that commerce from Facebook stores will hit $30 billion by 2015. Businesses of all sizes are building and testing commerce solutions inside Facebook and are looking at how they can turn conversations into conversions. Coke, Barneys, Sears, Pampers, Dove, Sephora, Lands End and many others pages have built “Shopping” Tabs in their Facebook pages. Facebook is launching, local group buying with its Deal platform and going head to head with companies such as Groupon. Facebook Credits will become the mandatory currency for Facebook games and applications as of July 1 2011. Janice Diner takes a look at this growing F-Commerce trend and explores the different commerce models that are emerging in and around this category.

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F-Commerce Turning Like into Buy (Part 2) Mesh 11

  1. 1. Turning“Like to Buy” F-Commerce Mesh 11 May 27, 2011 @JaniceDiner
  2. 2. 2 A proven track record connecting brands to consumers in the social and emerging media space Huge MonsterAccelerating growth through social media
  3. 3. 3Cruising is a social thing
  4. 4. 4Integrated F-Commerce
  5. 5. 5“If I had to guess, socialcommerce is the next areato really blow up” Mark Zuckerberg, August 2010
  6. 6. 6 The Social Commerce market is growing Turning fast and estimated revenues are set to US “Like to Buy” $30 billion globally in the next 5 years* F-Commerce $1.2 Billion is the projected size of the US virtual goods market in 2011***Source: Booz and Company estimate size of Social Commerce Market in 2015**Source: Inside Social Games, Virtual Goods Market Study
  7. 7. 7"Social commerce is a subset of electroniccommerce that involves using social media,online media that supports social interaction anduser contributions, to assist in the online buyingand selling of products and services". Wikipedia
  8. 8. 8F-Commerce (Facebook Commerce)is a further subset of social commerce and e-commerce referring tocommerce that is executed on or influenced by the Facebook Platform andit is not just about e-commerceF-Commerce is also about content & engagementWe talk about what we buy... Before While After We Buy We Buy We Buy
  9. 9. F-Commerce F-Stores Ecosphere Facebook e-commerce Commerce on Facebook stores where shoppers can purchase real goods with real currency without leaving Facebook Commerce on Facebook Deals on Facebook This is commerce that happens inside Facebook, referring Facebook Credits specificallypay for purchase of real goods and real servicesfor games currency Consumers can to the Facebook Deals inside The mandatory used and in-app inside Facebook with a credit card or other valid monetary goods. Recently Facebook with a credit virtual card, with PayPal or with being used for real goods system. Facebook Credits. with Deals on Facebook Commerce off Facebook Facebook Facebook Commerce off Facebook (on other sites) In-Store Retail Open Graph This is Facebook to commerce that takes advantage of Facebooks Facebook influenced Bricks and mortar retailers integrating commerce on e-commerce Open Graph, allowing shoppers to sign into Facebook websites with Like, Share, offer customers a social Facebook experience Recommend and Facebook from any online site with a PC or mobile device. while shopping in-store Connect Facebook Check-in Deals Check-in on Facebook on a smart phone and see the special Deals from nearby businesses.© May 3, 2011, Janice Diner www.janicediner.com @janicediner
  10. 10. 10 Retailers Selling in Facebook J Lands’ End Max Factor JC PENNY603,637 Likes 130,686 Likes 1,463,994 Likes Coca Cola Store GameStop 16,308 Likes 2,216,373 Likes ASOS 621,015 Likes
  11. 11. 11Exclusive Product Sampling Chanel’s Facebook fans were offered the exclusive chance to be the first to buy the new sheer lip-shine for $32 before it was launched across the U.S. Heinz UK is selling Limited Edition Balsamic Vinegar Ketchup to consumers Pampers sold 1000 packs @ 9.99 in under an hour. F-Stores facebook.com/HeinzKetchupUK - 75,424 Likes facebook.com/chanel - 3,668,358 Likes facebook.com/pampers - 638,345 Likes
  12. 12. 12Retail Gift CardsGive a gift instantly to afriend on Facebook andyour friend can redeem itonline or in store F-COMMERCE facebook.com/sears - 388,690 Likes facebook.com/americaneagle - 4,496,170 Likes facebook.com/victoriasecret - 13,193,628 Photo Credit: Sears , American Eagle and Victoria Secret Facebook pages
  13. 13. 13Invite a Friend to the MoviesDisney Facebook fans boughtadvance tickets to Toy Story 3and invited their friends to jointhem F-COMMERCE facebook.com/toystory - 20,265,048 Likes Photo Credit: Disney Pixar Toy Story 3 Facebook page
  14. 14. 14F-Commerce with a CauseFacebook gets its firstnon-profit gift catalogue WWF’s has a full Gift Center on Facebook that allows supporters to purchase gifts, make donations and select a symbolic animal adoption from a list of more than 100 species. F-COMMERCE facebook.com/worldwildlifefund - 641,542 Likes facebook.com/breastcancer - 291,737 Likes Photo Credit: World Wildlife Fund Facebook page
  15. 15. 15Loyalty, Sharing and MonetizingYour Starbucks Cardcan now be managedinside Facebook Loyalty translates into a 21% increase in how much money was loaded onto cards last year with that number hitting $1.5 Billion F-COMMERCE facebook.com/starbucks - 22,149,644 Likes Photo Credit: Starbucks Facebook page
  16. 16. 16 F-Commerce - Booking EngineDelta was the first airline tooffer a flight booking enginewithin Facebook Flight Network, Virgin UK Trains, Malaysia Airlines, Carnival Cruises enable booking direct in Facebook F-COMMERCE facebook.com/delta - 140,704 Likes Photo Credit: Delta Facebook page
  17. 17. 17 OPEN GRAPH Helping customers connect where they buy Facebook Open Graph Facebook influenced commerce on e-commerce websites with Like, Share, Recommend and Facebook ConnectPhoto Credit: Levis.com
  18. 18. 18 • 10,000 websites integrate with Facebook each day The Like button shares the page • More than 2.5 million websites have integrated with you are viewing with all your Facebook friends on Facebook. In Over half of 2.5 million websites integrate the Like Button • 1 year the 25 fastest growing Comscore U.S. retail sites use Facebook • On average, media sites using the Like button see The Send button is more a 3x increase in referral traffic from Facebook private. It works more like an email to share content with specific friends or groups.The Social Layer - Extending Beyond Facebook.com
  19. 19. 19 People who click Facebook “Like’s” are more engaged, active and connected then the average Facebook user Looking at data from 12 weeks in aggregate, Eventbrite found that each social media share equates to $1.78 in ticket salesFANS CONSUME VALUE OF A FACEBOOK USERS INCREASEDMORE PRODUCT SHARE BOUGHT MORE SALESA Coca-Cola Fan consumes A share on... Over Black Friday weekend, American Eagle added thetwo times more product than Facebook equals $2.52 20% of transactions came “Like” button to every producta non-fan and purchase intent Twitter equals $0.43 from the Facebook store and on their site and found,of a fan is ten times higher linkedIn equals $0.90 the transactions were 7-10% Facebook referred visitorsthen that of a non-fan e-mail equals $2.34 bigger than on site shopping spent 57% more money than non-Facebook referred visitors
  20. 20. 20 My Facebook InfoInstant PersonalizationPermission screen to access 1. About Meyour personal Facebook Info 2. Activities 3. Birthday 4. Check-Ins 5. Education 6. Events 7. Groups 8. Hometown 9. Interests 10. Likes 11. Location 12. Notes 13. Photos 14. Photos Tags 15. relationships 16. Website 18. Work History 19. Contact Info
  21. 21. 21Connect with Facebook IntegrationThe power of personal recommendations By using Facebooks social data into its own Amazon recommendation algorithm, Amazon can make even better personal and friend recommendations The Social Graph - more incentive to buy Facebook Connect enables consumers to bring their friends and their friend’s information into the Amazon experience. Amazon give’s consumers more reasons to buyAmazon - Facebook Connect
  22. 22. 22Connect with Facebook Integration Plan the best trip of your life with help from your friends When you visit TripAdvisor while logged into Facebook, the site will act like your “personalized travel planner, complete with friends’ reviews, a map showing places friends have visited, and a list of their most popular destinations.”TripAdvisor - Instant personalization
  23. 23. 23FACEBOOK CREDITS• 53% of Facebook users play games• Facebook takes 30% on all Facebook Credit transactions within Game applications• $1.2 Billion is the projected size of the US virtual goods market in 2011*Facebook Credits Mandatory for Game Developers *Source: Inside Virtual Goods: The US Virtual Goods Market 2010 - 2011
  24. 24. Facebook’s Global Currency - Facebook CreditsIn-Game Virtual Goods Digital & Real-World Goods Facebook Credits Facebook Credits Virtual Goods For Movies z Facebook Credits Facebook Credits Gift Cards Real-World Goods DEALS What is next for ? Facebook Credits Facebook Credits? Purchase Incentives © May 30, 2011, Janice Diner www.janicediner.com @janicediner
  25. 25. 25 Facebook Credits with marketers Facebook Credits for a CauseCityVille game players raised 2.5 million for Japan In-Game Branded Virtual Gifts In-Game Branded Virtual City Watch product videos in-game for Facebook Credits Lady Gaga launches news songs first to FarmVille players inEarn 1 Facebook Credit for watching a video inside GagaVillethe Facebook games like Happy Aquarium
  26. 26. 26 Facebook Credits as Incentives for Shoppers pre-paid Gift Cards that can be purchased at major retailers in the U.S., Canada and the U.K.Earn FacebookCredits for checking-inat retail locations, atparticipating retailerslike BestBuy, Macy’s,American Eagle ifeelgoods is the first platform to allow retailers to offer Facebook Credits as an incentive in their online stores
  27. 27. 27 Use your Facebook Credits to Watch a Movie Warner Bros, the first Hollywood studio to offer movies direct on Facebook 30 Credits = 1 Movie = $3 40 Credits = 1 Movie = $4Millions of Facebook users areusing Credits to pay for virtualgoods inside games like CityVilleand Mafia Wars, it seems like alogical step to use the Facebook’scurrency to pay for movies Facebook Credits http://www.facebook.com/darkknight - 6,495,505 Likes
  28. 28. 28 Deals launched April 26 in five cities with the focus on shared experiences as opposed to just discounts.Facebook DEALS - Buy Real-World Goods
  29. 29. 29 Deals launched April 26 in Consumers pay for Facebook five cities with the focus on Deals inside Facebook with a shared experiences as credit card, with PayPal, or with opposed to just discounts. Facebook Credits, Facebooks own currency that, for the first time, is being used to buy real-world goods.Facebook DEALS - Buy Real-World Goods
  30. 30. 30 Individual Deals Loyalty Deals Friend Deals Charity DealsThe race to the future of location-based services
  31. 31. 31 250 million+ mobile Mazda sold 100 cars with Facebook Facebook users Mazda offered a 20 percent discount on all Mazda MX-5s and the chance to win a Mazda MX-5 Miyako special edition for five months through Facebook Check-in Deals, as part of Facebook Places launch in the UK.Check-in at the Gap for 10,000 FREE pairs of jeans
  32. 32. 32Facebook in-store retail - Macy’s Magic Mirror
  33. 33. F-Commerce F-Stores Ecosphere Facebook e-commerceCommerce on Facebook stores where shoppers can purchase real goods with real currency without leaving Facebook Deals on Facebook Facebook Credits Consumers can pay for The mandatory currency Facebook Deals inside used for games and in-app Facebook with a credit virtual goods. Recently card, with PayPal or with being used for real goods Facebook Credits. with Deals on FacebookCommerce off Facebook Facebook Facebook in-Store Retail Open Graph Bricks and mortar retailers Facebook influenced integrating Facebook to commerce on e-commerce offer customers a social websites with Like, Share, Facebook experience Recommend and Facebook while shopping in-store Connect Facebook Check-in Deals Check-in on Facebook on a smart phone and see the special Deals from nearby businesses. © May 3, 2011, Janice Diner www.janicediner.com @janicediner
  34. 34. 34Every industry and vertical is going tobe rethought in a social way.The real opportunity is about peopleredesigning these spaces.
  35. 35. 35Thank youOn twitter - @janicedinerEmail me - janice@janicediner.comPresentations - slideshare.net/jdinerMonthly ClickZ article - Social Commercewww.horizon-studios.comwww.janicediner.com