Your SlideShare is downloading. ×
0
Social Commerce IQ™: Retail                    Retailers on Facebook                    September 7, 2011Social Commerce I...
Executive Summary                                                                                                        S...
Welcome Letter                                                                                                            ...
Foreword                                                                                               Social Commerce IQ™...
Social Commerce IQ™: Retail                                                                                               ...
1                          About ReportSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc.   contact@8thbridge.c...
About Report                                                                                Social Commerce IQ™: Retail Re...
About Report                                                                       Social Commerce IQ™: Retail Social Comm...
About Report                                                                                                         Socia...
About Report                                                                                                    Social Com...
About Report                                                                         Social Commerce IQ™: Retail Retailer ...
2                        Social Commerce Insights                             Top 10                             Social Co...
Social Commerce Insights                                                                                                  ...
Social Commerce Insights                                                                                             Socia...
Social Commerce Insights                                                                                           Social ...
Social Commerce Insights                                                                                       Social Comm...
Social Commerce Insights                                                                                                  ...
Social Commerce Insights                                                                                             Socia...
Social Commerce Insights                                                                         Social Commerce IQ™: Reta...
Social Commerce Insights                                                                      Social Commerce IQ™: Retail ...
Social Commerce Insights                                                                             Social Commerce IQ™: ...
Social Commerce Insights                                                                                      Social Comme...
Social Commerce Insights                                                                          Social Commerce IQ™: Ret...
Social Commerce Insights                                                                                                  ...
Social Commerce Insights                                                                                                  ...
3                        Social Commerce IQ™ Index                             Index of retailers on FacebookSocial Commer...
Social Commerce Index                                                                                                     ...
Social Commerce Index                                                                   Social Commerce IQ™: Retail Social...
Social Commerce Index                                                                  Social Commerce IQ™: Retail Social ...
Social Commerce Index                                                                Social Commerce IQ™: Retail Social Co...
Social Commerce Index                                                              Social Commerce IQ™: Retail Social Comm...
Social Commerce Index                                                                   Social Commerce IQ™: Retail Social...
Social Commerce Index                                                             Social Commerce IQ™: Retail Social Comme...
Social Commerce Index                                                                     Social Commerce IQ™: Retail Soci...
Social Commerce Index                                                                    Social Commerce IQ™: Retail Socia...
Social Commerce Index                                                                  Social Commerce IQ™: Retail Social ...
Social Commerce Index                                                                   Social Commerce IQ™: Retail Social...
Social Commerce Index                                                                Social Commerce IQ™: Retail Social Co...
Apparel Retailers                          48 apparel retailers on FacebookSocial Commerce IQ™: Retail - Copyright© 2011 8...
Social Commerce Index                                                                                                     ...
Social Commerce Index                                                                                              Social ...
Social Commerce Index                                                                                     Social Commerce ...
Social Commerce Index                                                                                                     ...
Social Commerce Index                                                                                                     ...
Social Commerce Index                                                                                                     ...
Social Commerce Index                                                                                                     ...
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Social commerce IQ in eStore
Upcoming SlideShare
Loading in...5
×

Social commerce IQ in eStore

796

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
796
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
45
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Social commerce IQ in eStore"

  1. 1. Social Commerce IQ™: Retail Retailers on Facebook September 7, 2011Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 1
  2. 2. Executive Summary Social Commerce IQ™: Retail Report Highlights Sale Status Updates Have 30% 57% of Product Likes Are Higher Engagement Rates From Owners 2.37% +30% 57% 1.81% 29% 24% 24% Sale Status All Status I bought it I’ve heard I want to I want to tell Updates Updates and liked it good things buy it my friends about it Research conducted by 8thBridge 35 Million Facebook Users Have 35% of People Are More Likely to Shared a Product Buy Liked Items Do more Facebook Likes on a product page increase the likelihood that you will buy that product? 35mm 35% Yes Shared A Product Haven’t Shared A Product 65% No 103mm *Based on number of U.S. Facebook usersSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 2
  3. 3. Welcome Letter Social Commerce IQ™: Retail Hello, Social commerce is the new frontier for the retail industry. The space has grown tremendously in the two years since we launched the first store on Facebook for 1-800-Flowers. Analysts now expect social commerce to be a $10B industry by 2015. The bullish position many are taking on social commerce is based on a belief that shopping on the social web will deliver a fundamentally better experience for customers. 8thBridge has been on a mission to reshape ecommerce around people because we believe it too. Weve seen first hand how much fun people have discovering products from their friends on Facebook and how much more useful online shopping is when its personalized (by real people not math) to your likes and interests. In fact, social commerce experiences much more closely resemble the offline shopping experiences (minus the lines) that still drive 95% of total retail sales each year. We are in the early days of social commerce but many brands have launched very innovative initiatives to which others can learn from. Were thrilled to share this study with you. The Social Commerce IQ™ report ranks how effective brands have been at creating social shopping experiences for their customers. In this inaugural report, 8thBridge has analyzed 200 retailers on Facebook and ranked them based on their Social Commerce IQ™. We examine how these retailers use Facebook and what strategies are the most critical for success. We believe that retailers with a higher Social Commerce IQ™ create better experiences for their customers. This is a 115 page report so were certain to have made some mistakes!  Please reach out to us at contact@8thbridge.com if you have any feedback or suggestions. Warm regards, Wade Gerten Founder & CEO 8thBridge, Inc.Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 3
  4. 4. Foreword Social Commerce IQ™: Retail Whatʼs your Social Commerce IQ™? Smart Social In other words, how smart are you at using social media to When reading the report, it may be useful to consider the drive business growth?  In this report, social commerce findings in the context of three emerging trends in social specialist 8thBridge benchmarks the Social Commerce IQ™ of commerce. the top 200 retailers on Facebook. 1. Personalization: Using Facebookʼs social graph to provide Just as consumers use their social intelligence to shop personalized experiences and offers to customers. smarter by learning from the shared experience of others, so too can retailers use their Social Commerce IQ™ to sell 2. Tryvertising: Selling in social media to tryvertise your new smarter - learning from the experience of businesses that sell products with fans.  By getting your products into the hands smart with social media. When it comes to social commerce and on the lips of your fans first, they will repay you in kind by smarts, GameStop, Victorias Secret and Walmart lead the advertising your product by word of mouth to their friends. field, creatively combining reach, engagement and shopping activity in social media.  Look, Like and Learn. 3. Group-Buy: Its here to stay, customers clubbing together to buy in bulk with volume discounts - how could you use your Social Smarts social smarts to help customers buy from you in bulk? It will be insights from the Social Commerce IQ™ report that may make the most interesting reading; qualifying truths and Simply reading the Social Commerce IQ™: Retail report will debunking myths.  For example, it turns out that social media boost your own social commerce IQ, learning from the success is driven largely by post-purchase engagement - and successes and setbacks of others.  A wise man, it is said, thus may be better suited to customer loyalty, cross-selling learns from the experience of others - a fool by his own. But and up-selling, as opposed to customer acquisition. for your business to profit from selling smart in social media, Likewise, while Facebook fans Like coupons, they Like sales youll need to start applying your newfound social commerce more, and while social used to sit awkwardly with luxury, now smarts.  And 8thBridge is there to help. luxury retailers are trailblazers in the evolution of social commerce. Dr. Paul Marsden Social Psychologist & Market Researcher Social Commerce TodaySocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 4
  5. 5. Social Commerce IQ™: Retail Social Commerce IQ™: Retail Table of Contents 1. ABOUT REPORT........................................................................................................................................................................6 • Methodology & Research • Social Commerce IQ Calculation 2. SOCIAL COMMERCE INSIGHTS..............................................................................................................................................12 • Top 10 • Social Commerce IQ™ by Category • Social Commerce = Balanced Approach • Facebook Influences Purchases • Most Likes Come From Existing Customers • Type of Status Update Affects Engagement • Niche Markets Drive Engagement • Shopping Engagement > Total Engagement 3. SOCIAL COMMERCE IQ™ INDEX............................................................................................................................................26 • Social Commerce IQ™ Index Classes • Category Breakdown 4. ABOUT 8THBRIDGE...............................................................................................................................................................111Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 5
  6. 6. 1 About ReportSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 6
  7. 7. About Report Social Commerce IQ™: Retail Research 8thBridge conducted a survey and researched 200 retailersʼ Fan pages on Facebook. Survey: Category and Retailer Selection: 8thBridge surveyed 1,202 U.S. residents on their 8thBridge segmented the categories based on the Facebook usage and interest in social commerce. designation of categories by Internet Retailerʼs Top 500 Survey questions included: Guide. • Have you shared a product on Facebook? 8thBridgeʼs process to select the 200 retailers was as • Have you asked for product recommendations on follows: Facebook? 1. Selected the 10 retailer categories from IR Top 500 • Has a Facebook recommendation ever driven you to Guide make a purchase? 2. Selected the top 10-15 companies in each category • Do more Facebook Likes on a page increase the based on the 2011 Internet Retailer overall ranking likelihood that you will buy that product? • On a retailer’s website that has the Facebook Like 3. For each of these companies, 8thBridge selected button, why would you click the Like button? retailers that have a significant presence on Facebook. For example, each of these companies might own multiple retailers (EG GAP owns Old Navy and Banana Republic) - we selected the most well-known retailers. Research Time Period: July 1, 2011-July 28, 2011Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 7
  8. 8. About Report Social Commerce IQ™: Retail Social Commerce IQ™ Calculation Reach Engagement Shopping 20% + 40% + 40% = SCIQSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 8
  9. 9. About Report Social Commerce IQ™: Retail Social Commerce IQ™ Scoring Methodology Figure 1.0: Social Commerce IQ™ Methodology Reach Facebook Fans - Number of fans the brand reaches on Facebook 20% Total Status Updates - How often the brand publishes status updates Engagement Rate - Weighted fan engagement with all fan page status updates Engagement Landing Tab - Customized landing tab for non-fans Gaming Tab - Gaming applications for Facebook fans 40% Facebook Upstream Traffic - Percent of traffic that comes directly from Facebook Shopping Updates - How often the brand publishes shopping updates on Facebook. Includes coupon, sale, and product posts. Shopping Engagement - Weighted fan engagement with shopping fan page status updates Shopping Store on Facebook - Store offered to fans on fan page (Y/N) 40% Store Finder Tab - Store finder application offered to fan on fan page (Y/N) Customer Service Tab - Customer service offered to all fans on fan page (Y/N) Facebook integration on Website - Facebook integration on website. Includes Facebook Login, Facebook Like button on product pages, FB Share, Send, and Like Box plugins.Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 9
  10. 10. About Report Social Commerce IQ™: Retail Social Commerce IQ™ Scoring Figure 2.0: Breakdown of scoring Facebook Upstream Traffic Score Shopping Status Updates Score Range Score Range Score Calculating Engagement 2-5% 1 1-10 1 ( ) ) Total Interactions 5.01-8% 8.01-11% 2 3 11-25 26-50 2 3 ( Expected Fan Impression X 100 Status Updates 11.01%+ 4 51+ 4 Total Status Updates Score Total Engagement Score Range Score Range Score Total Interactions = Likes + Comments 1-20 1 .5-1% 1 Effective Fan Impressions = Number of 21-50 2 1.01-1.5% 2 Fans x % of fans seeing daily posts (see 51-100 3 1.51-2% 3 below) 101-125 4 2.01-2.5% 4 % of fans seeing daily 126+ 5 2.51%+ 5 No. of Fans posts Shopping Engagement Score 1k-10k 9.38% Range Score 10k-100k 6.02% .01-.5% 1 100k-1mm 6.11% .51-1% 2 1mm+ 2.79% 1.01-1.5% 3 Table Source: AllFacebook.com. Data Source: 1.51-2% 4 PageLever. http://www.allfacebook.com/ 2.01%+ 5 shocker-3-to-7-5-of-fans-see-your-pages- posts-2011-06Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 10
  11. 11. About Report Social Commerce IQ™: Retail Retailer Categories The 200 retailers included in the report were segmented into 10 categories, as outlined below. Retailers in each category were chosen based on the Internet Retailer ranking of their parent company. Not all retailers studied have been included in the index listing. Apparel Toys/Hobbies Computers/Electronics Books/Music Videos Health/Beauty Flowers/Gifts Jewelry Mass Merchants Sporting Goods Food/DrugSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 11
  12. 12. 2 Social Commerce Insights Top 10 Social Commerce IQ™ by Category Social Commerce = Balanced Approach Facebook Influences Purchases Most Likes Come From Existing Customers Type of Status Update Affects Engagement Niche Markets Drive Engagement Shopping Engagement > Total EngagementSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 12
  13. 13. Social Commerce Insights Social Commerce IQ™: Retail Top 10 Retailers by Social Commerce IQ™ & Fans Figure 3.0: Top 10 retailers by Social Commerce IQ™ score Figure 3.1: Top 10 retailers by fan count Top 10 Retailers by Social Commerce IQ™ Top 10 Retailers by Fan Count GameStop 92 Victoria’s Secret 14,641,106 Victoria’s Secret 89 Victoria’s Secret Pink 10,080,947 Walmart 84 Walmart 7,954,246 Sephora 79 Hollister 5,750,883 Clinique 78 Kohl’s 5,496,927 Eastbay 77 Target 5,245,902 FragranceNet.com 76 Abercrombie & Fitch 5,205,378 Hallmark 76 American Eagle 5,022,294 American Eagle Outfitters 75 Ralph Lauren 3,766,380 Zales 74 Best Buy 3,393,128 0 25 50 75 100 0 3,750,000 7,500,000 11,250,000 15,000,000Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 13
  14. 14. Social Commerce Insights Social Commerce IQ™: Retail Top 10 Retailers by Engagement Rate Figure 4.0: Top 10 retailers by total engagement rate Figure 4.1: Top 10 retailers by shopping engagement rate Top 10 Retailers by Shopping Top 10 Retailers by Engagement Rate Engagement Rate MyJewelryBox.com 6.26% Tiffany & Co. 9.28% GiftTree 6.19% MyJewelryBox.com 7.13% American Girl 6.10% Fresh Direct 6.87% Fresh Direct 5.71% Amway US 6.04% Nutrisystem 5.64% Costco 5.70% Tiffany & Co. 5.48% Nutrilite 5.35% Amway US 5.36% Estee Lauder 5.11% Nutrilite US 5.07% Artistry US 5.08% 1-800 CONTACTS 4.70% 1-800 CONTACTS 4.81% Costco 4.59% Zales 3.98% 0 1 2 3 4 5 6 7 0 3 5 8 10Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 14
  15. 15. Social Commerce Insights Social Commerce IQ™: Retail Top 10 Retailers by Facebook Upstream Traffic Figure 5.0: Top 10 retailers by Facebook upstream traffic CoastalContacts.com 28.41% Upstream Traffic mark.girl 26.89% Free People 19.10% The average Facebook upstream traffic for all LeapFrog 16.04% retailers was 6.27%. The top 10 brands by Facebook Rugby Ralph Lauren 15.64% upstream traffic is comprised Weight Watchers 14.73% of 4 Apparel retailers, 3 Health/Beauty retailers, 1GourmetGiftBaskets.com 14.60% Toys/Hobbies retailer, 1 CCS Flowers/Gifts retailer, and 1 14.58% Food/Drug retailer. Smashbox Cosmetics 13.04% Gilly Hicks 12.62% 0 8 15 23 30 Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 15
  16. 16. Social Commerce Insights Social Commerce IQ™: Retail Top 10 Retailers by Status Updates Figure 6.0: Top 10 retailers by status updates vs. number of Likes generated Number of Status Updates Number of Likes Generated (Likes/Status Update) 248 CCS 16,477 66.4 137 Eastbay 15,120 110.4 137 Sam’s Club 6,014 43.9 119 VitaCost.com 2,299 / 19.3 117 Free People 6,038 51.6 111 QVC 15,765 142.0 105 HSN 5,214 49.7 104 Neiman Marcus 40,745 391.8 99 HauteLook 10,749 108.6 95 DermStore 362 / 3.8 CCS was the most active brand with 248 status updates. The average number of status updates was 37 or approximately 1.37 updates per day. Neiman Marcus was the most Status Updates successful generating Likes from posts, averaging 391.8 Likes/status update even though Eastbay and QVC had larger fan bases.Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 16
  17. 17. Social Commerce Insights Social Commerce IQ™: Retail Social Commerce IQ™ by Category Figure 7.0: Social Commerce IQ™ by category 100 92 92 Social 90 89 84 79 77 77 76Commerce 80 74 74 73 IQ™ 70 60 61 62 50 55 57 57 57 57 55 50 51 50 40 42 42 48 30 31 35 34 30 20 25 21 10 12 12 0 Apparel Computers/Electronics Health/Beauty Jewelry Sporting Goods Toys/Hobbies Books/Music/Videos Flowers/Gifts Mass Merchants Food/Drug Average Average: 55 Data Averages Median: 56Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 17
  18. 18. Social Commerce Insights Social Commerce IQ™: Retail Social Commerce = Balanced Approach Figure 8.0: Comparing the top 10 retailers to other retailers (based on Social Commerce IQ™) Brands with the highest Social Commerce IQ™ had Top 10 All Other a balanced approach to reach, engagement, and Difference Retailers Retailers shopping. While the average Social Commerce IQ™ for the 200 retailers was 55, the top 10 retailers had Facebook Fans 3,616,062 584,865 +518% an average IQ of 81. The factors that separated the top retailers were: Store on Facebook 100% 26% +285% Product Status 1. Reach 21 12 +75% Updates The top 10 retailers invested in growing their fan Social Commerce IQ™ 81 53 +53% base. On average they had 6 times more fans (3.6m vs .6m) than other retailers and they posted status Total Shopping Status 28 19 +47% updates more often (48/mo vs. 36/mo). Updates (July) Shopping Status 2. Engagement 1.8% 1.3% +38% Engagement Rate The top 10 retailers had much higher engagement rates than the other retailers. The engagement rate Welcome Tab 90% 68% +32% for all status updates was 2.10% vs. 1.69%. The top Total Status Updates 47 36 +31% 10 retailers also generated 7.4 times more (July) comments per status update than the other retailers. Number of Facebook 13 10 +30% Tabs 3. Shopping The top 10 retailers shared more social shopping Status Update 2.1% 1.7% +24% Engagement Rate status updates and offered their fans a store directly on their Facebook fan page. The top brands talked Facebook Upstream 8.0% 6.6% +21% about products, not coupons. TrafficSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 18
  19. 19. Social Commerce Insights Social Commerce IQ™: Retail Facebook Influences Purchases Facebook has over 700 million users globally. The social Figure 9.0: Facebook influences consumer purchases network continues to add millions of members each month and users check Facebook numerous times each day. In addition, Conversion Funnel + Facebook to a brandʼs website, it is the most important destination on the Based on survey results applied to the population internet. Millions of users are being influenced by their of Facebook users in the United States Facebook friends when making purchasing decisions, as detailed below. Sharing a Product Facebook Users in U.S. 25% of poll respondents shared a product on Facebook. 138 Million* Asked for a Recommendation Shared a Product 19% of poll respondents asked for product recommendations 35 Million on Facebook Asked for Recommendation Driven to Purchase 26 Million 16% of poll respondents said that they were driven to make a purchase based on a Facebook recommendation Driven to Purchase 22 Million More Likes Equals More Purchases When asked if a Facebook page with more Likes increases the likelihood that you would buy the product, 35% of respondents said it does. *Data obtained from Facebook Ads Platform. 08.16.2011Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 19
  20. 20. Social Commerce Insights Social Commerce IQ™: Retail Facebook Influences Purchases Figure 10.0: Facebook friends influence a shopper’s decision Do more Facebook Likes on a product page increase Have you asked for product recommendations the likelihood that you will buy that product? on Facebook? 19% 35% Yes Yes No No 65% 81% Have you shared a product on Facebook? Has a Facebook recommendation ever driven you to make a purchase? 16% 25% Yes Yes No No 75% 84%Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 20
  21. 21. Social Commerce Insights Social Commerce IQ™: Retail Most Likes Come From Existing Customers Figure 11.0: Why users click on the Facebook Like button Facebook offers numerous resources for online retailers to integrate social features on their website. From Why Click The Like Button? seamless solutions such as the Facebook Like button to more custom integrations such as Facebook Login, 60% adding social features to a website influences shopper behavior. 57% Over 82% of retailers have integrated Facebook on their 45% website. One method of implementing Facebook is using the Like Button. As mentioned previously, 35% of poll respondents, or nearly 22 million Facebook users in 30% the U.S., are more likely to purchase a product if the 29% page has more Likes. 24% 24% But what do these Likes represent? Based on poll 15% responses, over 57% of Likes are customers that have bought the product and liked it. Another 30% of Likes are people who have heard good things about the product. 0% See Figure 11.0 for more details on why Facebook users I bought it I’ve heard I want to I want to click the Like button on a retailerʼs website. and liked good buy it tell my it things friends about itSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 21
  22. 22. Social Commerce Insights Social Commerce IQ™: Retail Type of Status Update Affects Engagement Figure 12.0: Engagement rate by type of status updateFacebook status updates serve as one of the maincommunication channels for a retailer. The type of Engagement Rate by Type ofstatus update a retailer shares will affect how fans Status Update*perceive the retailer and feel motivated to engage. 2.5%8thBridge analyzed 7,354 status updates for nearly200 retailers on Facebook. The type of status 2.37%updates are delineated as follow: 2%Non-Shopping 1.81%Overall - all status updates from a retailerʼs fan 1.5% 1.71%page. 1.55%Fan- status updates which mention a fanʼs name,such as contests. 1% 1.08%ShoppingSale - status updates which mention a sale or 0.5%campaign.Product - status updates that mention a specificproduct(s). Typically includes link and photo of 0% Sale All Fan Product Couponproduct. Status Status Status Status StatusCoupon - status updates which include a coupon Updates Updates Updates Updates Updatescode or printable coupon for a single product orproduct category. *These rates are derived using the Effective Fan Impression multiple explained on slide 10.Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 22
  23. 23. Social Commerce Insights Social Commerce IQ™: Retail Niche Markets Drive Engagement Figure 13.0: Engagement rate compared to number of fans The size of a retailerʼs fan base will affect engagement rate. Typically, brands that serve niche Engagement vs. Fan Base markets (smaller fan bases) will have higher engagement rates. Bottom 20 Retailers Top 20 Retailers by Engagement by Engagement The graph at the right visually depicts the difference in engagement between fan base and engagement rate. The top 20 retailers by engagement averaged Average 247,000 fans. Whereas the bottom 20 retailers by 1.165mm Number 247k engagement average 1.165 million fans. of Fans The Flowers/Gifts category had the highest engagement across all categories at 3.7%. Some of this can be attributed to the fact that this category had an average fan base of only 113,000 compared to 807,000 for all retailers. Engagement 0.31% 6.72% RateSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 23
  24. 24. Social Commerce Insights Social Commerce IQ™: Retail Niche Markets Drive EngagementFigure 14.0: Fan engagement (Likes + Comments) for retailers’ status updates on Facebook vs. average fan count 113,508 232,039 4.0 Engagement Data 3.7% Average: 1.80% 289,843 3.4% 3.0 170,782 Range: 0% - 23.42% 359,267 Eng. 815,501 746,306 Standard Deviation: 2.42% Rate 2.5% 1,196,563 Total Status Updates: 7,386 1,201,017 2.0 411,128 1,682,581 2.1% 2.0% Total Likes: 2,282,385 1.8% 1.8% Total Comments: 598,066 1.0 1.2% 1.2% 1.1% 0.9% 0 Flowers/Gifts Books/Music/Video Food/Drug Jewelry Health/Beauty Toys/Hobbies Mass Merchant Sporting Goods Apparel Computers Average CategorySocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 24
  25. 25. Social Commerce Insights Social Commerce IQ™: Retail Shopping Engagement > Total Engagement Figure 15.0: Fan pages that saw the greatest increase in shopping engagement rates vs. total engagement rates 16,229,327 Brand Total Engagement Rate Shopping Engagement Rate Increase 14,641,106 Engagement rate for shopping Engagement rate for all status 10,784,682 Difference between two Facebook Fan Page (coupon, sale, product) status updates updates during July 2011 engagement rates during July 2011 10,080,947 Tiffany & Co. 5.48% 9.28% 69.43% 7,954,246 Bidz Auction 2.08% 3.39% 62.78% Saks Off 5th 1.41% 2.26% 60.38% Avon Products, Inc. 1.26% 2.00% 58.53% Blue Nile 2.58% 3.96% 53.50% CVS 0.81% 1.20% 48.31% Diamond Nexus Labs 2.35% 3.40% 44.75% Neiman Marcus 1.66% 2.35% 41.65% Victorias Secret 2.57% 3.51% 36.94% Dick’s Sporting Goods 0.14% 0.19% 35.00%Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 25
  26. 26. 3 Social Commerce IQ™ Index Index of retailers on FacebookSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 26
  27. 27. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 16.0: Explanation of Social Commerce IQ™ classes Social Commerce IQ™ Index Index Score Class Description Retailers (number and percent) Genius brands represent the most socially-advanced brands on Facebook. These brands typically have the highest 76-100 Genius engagement rates and offer relevant shopping offers in the 8 / 5% news feed. Superior was the largest category by number of brands represented - over 60% in total. These brands typically had 51-75 Superior fewer status updates and moderate engagement. 102 / 64% Challenged brands have few status updates, low engagement, and little to no social shopping status updates. They typically did not have any applications and had very few 26-50 Challenged tabs on their Facebook fan page. 45 / 28% Deficient brands were basically non-existent - they had no engagement, few fans, and rarely, if ever, sent updates to their 1-25 Deficient fans. 4 / 3%Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 27
  28. 28. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 17.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Genius 92 GameStop Genius 89 Victorias Secret Genius 84 Walmart Genius 79 Sephora Genius 78 Clinique Genius 77 Eastbay Genius 76 FragranceNet.com Genius 76 Hallmark Superior 75 American Eagle Outfitters Superior 74 Zales Superior 73 Horchow Superior 72 Omaha Steaks Superior 72 Ralph Lauren Superior 72 Blue Nile Superior 72 MyJewelrybox.comSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 28
  29. 29. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 18.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Superior 72 GiftTree Superior 72 Sams Club Superior 72 Peapod Delivers Superior 71 MAC Cosmetics Superior 70 Victorias Secret Pink Superior 70 Neiman Marcus Superior 70 TigerDirect.com Superior 70 Bidz Auction Superior 70 Egreetings Superior 69 Estee Lauder Superior 69 Tiffany & Co. Superior 68 jcpenney Superior 68 Harry & David Superior 67 Anthropologie Superior 67 77 KidsSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 29
  30. 30. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 19.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Superior 67 drugstore.com Superior 67 Green Mountain Coffee Superior 66 CCS Superior 66 Ross-Simons Superior 65 Aerie Superior 65 Cabelas Superior 64 CoastalContacts.com Superior 64 GNC Live Well Superior 64 Bobbi Brown Cosmetics Superior 64 American Greetings Superior 64 Sears Superior 64 Weight Watchers Superior 63 Sportsmans Guide Superior 63 Aveda Superior 62 Woman WithinSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 30
  31. 31. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 20.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Superior 62 Crutchfield Superior 62 Vitacost.com Superior 62 American Girl Superior 62 Costco Superior 61 Banana Republic Superior 61 Dell Superior 61 Beachbody Superior 61 Hayneedle Superior 61 Fresh Direct Superior 61 Nutrisystem Superior 60 Rugby Ralph Lauren Superior 60 Gilly Hicks Superior 60 Free People Superior 60 Smashbox Cosmetics Superior 60 Diamond Nexus LabsSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 31
  32. 32. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 21.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Superior 60 Jewelry Television Superior 60 QVC Superior 59 Hollister Superior 59 Bergdorf Goodman Superior 59 Kmart Superior 59 Safeway Superior 59 Urban Outfitters Superior 58 HauteLook Superior 58 Jessica London Superior 58 Avon Products, Inc. Superior 58 Gordons Jewelers Superior 58 Golfsmith Superior 58 LEGO Superior 58 LeapFrog Superior 58 1-800-Flowers.comSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 32
  33. 33. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 22.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Superior 58 HSN Superior 57 Best Buy Superior 57 Amway US Superior 57 1-800-BASKETS.COM Superior 57 BlueMountain.com Superior 56 Old Navy Superior 56 Nordstrom Superior 56 Roamans Superior 56 Amazon.com Superior 55 Target Superior 55 Walgreens Superior 54 Abercrombie Superior 54 L.L. Bean Superior 54 Yoox Superior 54 SonySocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 33
  34. 34. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 23.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Superior 54 Bass Pro Shops Superior 54 Jo-Ann Fabric and Craft Stores Superior 54 Toys "R" Us Superior 53 Origins Superior 53 GourmetGiftBaskets.com Superior 53 Macys Superior 52 Athleta Superior 52 Gilt Man Superior 52 Gilt Children Superior 52 OneStopPlus .com Superior 52 Ice.com Superior 52 CVS Superior 51 Gilt Groupe Superior 51 HP Superior 51 mark.girlSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 34
  35. 35. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 24.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Superior 51 1-800 CONTACTS Superior 51 Nutrilite US Superior 51 Pagoda Superior 51 The Yankee Candle Company Superior 51 Kohls Challenged 50 Microsoft Challenged 50 REI Challenged 50 Chapters Indigo Books & Music Inc. Challenged 49 CUSP Challenged 49 Scholastic Challenged 48 Abercrombie Kids Challenged 48 Foot Locker Challenged 48 PC Mall Challenged 48 Sony Electronics Challenged 48 J&RSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 35
  36. 36. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 25.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Challenged 48 Artistry US Challenged 48 Dicks Sporting Goods Challenged 47 LEGO Games Challenged 47 Vermont Teddy Bear Challenged 47 Things Remembered Challenged 46 The Vitamin Shoppe Challenged 46 LifeWay Christian Stores Challenged 46 Barnes & Noble Challenged 46 FTD Flowers Challenged 46 O.co Challenged 45 Gilt Home Challenged 45 Gap Challenged 44 Made Well Challenged 44 Babies "R" Us Challenged 43 SaksSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 36
  37. 37. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 26.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Challenged 43 Scholastic Book Clubs Challenged 43 Buy.com Challenged 43 Audible.com Challenged 42 DermStore Challenged 42 GameFly Challenged 41 Basics Challenged 40 Sports Authority Challenged 39 Champs Sport Challenged 39 CDW Small Business Challenged 37 DeepDiscount.com Challenged 35 Last Call by Neiman Marcus Challenged 35 CDW Corporation Challenged 34 J. Crew Challenged 33 Lady Foot Locker Challenged 33 Newegg.comSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 37
  38. 38. Social Commerce Index Social Commerce IQ™: Retail Social Commerce IQ™ Index Classes Figure 27.0: List of retailers in each Social Commerce IQ™ class Class IQ Retailer Challenged 32 Nordstrom Rack Challenged 31 Saks Off 5th Challenged 31 Piperlime Challenged 30 Gander Mountain Challenged 29 HP for Home - US Deficient 25 PC Connection Deficient 22 Ashford Deficient 21 Jomashop.com Deficient 12 RentATextSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 38
  39. 39. Apparel Retailers 48 apparel retailers on FacebookSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 39
  40. 40. Social Commerce Index Social Commerce IQ™: Retail Top 10 Apparel Retailers Based on SCIQ™/Fans Figure 28.0: Top 10 apparel retailers by Social Commerce IQ™ score Figure 28.1: Top 10 apparel retailers by fan count Top 10 Apparel Retailers by Social Top 10 Apparel Retailers by Fan Count Commerce IQ™ Score Victoria’s Secret 89 Victoria’s Secret 14,641,106 Eastbay 77 Victoria’s Secret Pink 10,080,947 American Eagle Outfitters 75 Hollister 5,750,883 Horchow 73 Abercrombie & Fitch 5,205,378 Ralph Lauren 72 American Eagle 5,022,294 Victoria’s Secret Pink 70 Ralph Lauren 3,766,380 Neiman Marcus 70 Old Navy 2,358,356 Anthropologie 67 Gap 1,585,665 77 Kids 67 Foot Locker 1,347,809 CCS 66 Nordstrom 904,706 0 30 60 90 0 3,750,000 7,500,000 11,250,000 15,000,000Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 40
  41. 41. Social Commerce Index Social Commerce IQ™: Retail Top 10 Apparel Retailers Based on Engagement Rate Figure 29.1: Top 10 apparel retailers by social shopping Figure 29.0: Top 10 apparel retailers by total engagement rate engagement rate Top 10 Apparel Retailers by Total Top 10 Apparel Retailers by Social Engagement Rate Shopping Engagement Rate Horchow 3.33% Victoria’s Secret 3.51% Ralph Lauren 3.17% Horchow 3.51% Victoria’s Secret 2.57% Ralph Lauren 3.26% Athleta 2.08% Neiman Marcus 2.35% Yoox 1.71% Saks Off 5th 2.26% L.L. Bean 1.67% L.L. Bean 2.08% Neiman Marcus 1.66% Athleta 2.03% Jessica London 1.57% Rugby Ralph Lauren 1.75% Rugby Ralph Lauren 1.50% Yoox 1.68% Saks Off 5th 1.41% Victoria’s Secret Pink 1.34% 0 1 2 3 4 0 1 2 3 4Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 41
  42. 42. Social Commerce Index Social Commerce IQ™: Retail Apparel Overview Figure 30.0: Apparel category vs. overall Figure 30.1: Apparel social shopping status updates Metric Category Overall Breakdown of Apparel Social Avg. Social Commerce IQ™ 55 55 Shopping Status Updates Avg. Facebook Likes 1,201,017 815,501 Fan Pages with Stores 40% 28% 4% Avg. Facebook Upstream Traffic 7.62% 6.27% Avg. Engagement Rate 1.07% 1.81% Avg. Status Updates/Month 42 37 28% Coupon Sale Product 68%Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 42
  43. 43. Social Commerce Index Social Commerce IQ™: Retail Case Study: American Eagle Outfitters Figure 31.0: Become a Fan tab Social Commerce IQ™ 75 Ranking Overall Rank 13 Apparel Rank 3 Fan Count 5,022,294 Status Updates (July) 41 Total Likes for Status Updates 24,785 Data Total Comments for Status 1,615 Updates Total Engagement Rate 0.46% Shopping Engagement Rate 0.56% Facebook Upstream Traffic 11.77% American Eagle Outfitter’s fan page has a Become a Fan tab that makes Facebook Downstream Traffic 14.57% Facebook users aware that they will get exclusive offers and special promos if they become fans of AEO on Facebook. This tab also shows other places they Facebook Integration on Website: can get exclusive offers. AEO “Likes” foursquare and shows the number of Like button for company and Like and Send buttons check-ins under its number of page Likes. The Music tab allows fans to view playlists (linking to a separate fan page) and then listen to the radio stations on for individual products. Facebook Login. Pandora. Fans can purchase gift cards on Facebook on the Buy Gift Cards tab.Social Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 43
  44. 44. Social Commerce Index Social Commerce IQ™: Retail Social Commerce Index: Apparel FACEBOOK TOTAL SHOPPING TOTAL SHOPPING STORE FACEBOOK/ BRAND FACEBOOK UPSTREAM STATUS STATUS LANDING GAMING CUSTOMER STORE ONRANK SCIQ™ ENGAGEMENT ENGAGEMENT FINDER WEBSITE PAGE FANS TRAFFIC UPDATES UPDATES TAB TAB SERVICE TAB FACEBOOK SCORE SCORE TAB INTEGRATION SCORE SCORE SCORE Victorias 1 89 14,641,106 4 2 2 5 5 Y Y N N Y N Secret 2 77 Eastbay 590,790 3 5 4 1 1 Y Y N N Y Y American 3 75 Eagle 5,022,294 4 2 2 0 2 Y Y Y N Y Y Outfitters 4 73 Horchow 35,046 1 1 2 5 5 N N N N Y Y Ralph 5 72 3,766,380 2 1 1 5 5 N N Y N Y N Lauren Victorias 6 70 10,080,947 4 2 2 2 3 Y N N N Y N Secret Pink Neiman 6 70 412,316 1 4 4 3 5 Y N N N N Y Marcus 8 67 Anthropologie 407,120 3 2 2 1 3 Y N N N Y Y 8 67 77 Kids 134,655 4 2 2 0 1 Y Y Y N Y YSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 44
  45. 45. Social Commerce Index Social Commerce IQ™: Retail Social Commerce Index: Apparel FACEBOOK TOTAL SHOPPING TOTAL SHOPPING STORE FACEBOOK/ BRAND FACEBOOK UPSTREAM STATUS STATUS LANDING GAMING CUSTOMER STORE ONRANK SCIQ™ ENGAGEMENT ENGAGEMENT FINDER WEBSITE PAGE FANS TRAFFIC UPDATES UPDATES TAB TAB SERVICE TAB FACEBOOK SCORE SCORE TAB INTEGRATION SCORE SCORE SCORE 10 66 CCS 281,849 4 5 4 1 1 Y N N N N Y 11 65 Aerie 625,113 4 2 2 0 1 Y N Y N Y Y Sportsmans 12 63 79,472 1 2 2 2 3 Y Y N N Y Y Guide Woman 13 62 72,871 2 2 1 2 2 Y Y N N Y Y Within Banana 14 61 344,323 1 1 1 2 3 Y N Y N Y Y Republic Rugby 15 60 Ralph 114,142 4 1 1 2 4 N N Y N N Y Lauren 15 60 Gilly Hicks 137,704 4 2 1 2 3 Y N N N N Y Free 15 60 319,156 4 4 4 0 1 Y N N N N Y People 18 59 Hollister 5,750,883 4 2 2 1 2 N N N N N YSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 45
  46. 46. Social Commerce Index Social Commerce IQ™: Retail Social Commerce Index: Apparel FACEBOOK TOTAL SHOPPING TOTAL SHOPPING STORE FACEBOOK/ BRAND FACEBOOK UPSTREAM STATUS STATUS LANDING GAMING CUSTOMER STORE ONRANK SCIQ™ ENGAGEMENT ENGAGEMENT FINDER WEBSITE PAGE FANS TRAFFIC UPDATES UPDATES TAB TAB SERVICE TAB FACEBOOK SCORE SCORE TAB INTEGRATION SCORE SCORE SCORE Bergdorf 18 59 120,637 2 3 3 2 2 Y Y N N N Y Goodman Urban 18 59 769,981 4 2 2 1 2 N N Y N Y N Outfitters 58 20 HauteLook 326,870 2 3 4 1 2 Y N N N Y N Jessica 20 58 29,746 0 2 2 3 2 Y N N N Y Y London 21 56 Old Navy 2,358,356 2 1 1 2 2 Y Y Y N Y N 21 56 Nordstrom 904,706 2 3 4 1 2 N Y N N N Y 21 56 Roamans 74,702 1 1 1 2 3 Y N N N Y Y 24 54 Abercrombie 5,205,378 3 2 1 1 2 Y N N N N Y 24 54 L.L. Bean 69,464 1 2 1 3 5 Y N N N N YSocial Commerce IQ™: Retail - Copyright© 2011 8thBridge, Inc. contact@8thbridge.com 46
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×