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The Future Of Social Retail
 

The Future Of Social Retail

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I gave this presentation as the international keynote address at the ReTechCon conference June 2011 in Bombay . It examines best practices and trends in social shopping and the future of social ...

I gave this presentation as the international keynote address at the ReTechCon conference June 2011 in Bombay . It examines best practices and trends in social shopping and the future of social shopping for retailers.

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    The Future Of Social Retail The Future Of Social Retail Presentation Transcript

    • L E A D E R NETWORKS Social Media For Retail Best practices to aligning strategy with operations Presented at the Indian Retailers Association June 6, 2011, Mumbai Conference Center A Discussion with Vanessa DiMauro CEO Leader Networks @vdimauroCopyright © 2011 Leader Networks, LLC 1
    • L E A D E R NETWORKSRetailers + social media …. everywhereCopyright © 2011 Leader Networks, LLC 2
    • L E A D E R NETWORKSSocial retail hype abounds! Current wisdom is that social media is social media marketing …..and that social media marketing is the panacea for retailers Current wisdom is that every retailer needs a Facebook page or a Twitter stream in order to sell more stuff. But is social media marketing all that social media offers? Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSLets examine the complexity1. Everyone retailer is thinking about social media marketing2. The financial ROI on social media marketing is unclear3. Some powerful case studies and best practices are apparent4. The social business adoption trend is huge and growing5. There are patterns around social retail winners and losers that can be repeatedCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS FACT: In 2011, 72%, of retailers plan to spend more on marketing via social networks than in 2010…..(Yet) only 29% of respondents say social marketing has helped grow their businesses. Source: Annual State of Retailing Online survey conducted by Forrester Research Inc. for Shop.org, 2011Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS FACT: While 65% of retailers have a Facebook fan page, only 4% have an integrated shopping function within their fan pages. Source: Social shopping 2011 study, Oneiota.co.ukCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS FACT: Social media marketing rarely leads directly to purchases online ….less than 2% of orders were the result of shoppers coming from a social network. Source: The Purchase Path of Online Buyers report 2010, Forrester Research and GSI CommerceCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSBUT, there are many success stories that buck the trend Consider this example The DellOutlet Twitter account • has 1.5 million followers • About 50,000 views per tweet • About 500 clicks per tweet offer • Likely number of sales per offer 50 50 purchases x $500 computer = $25,000 in revenue per successful tweet In 2010 Dell reported making more than $3 million on sales from Twitter click- throughs alone. Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS And more success storiesJIMMY CHOO: Twitter account to geo-locate their new sneakers – +33% increase in sneaker sales, a 40% increase in positive mentions and 4,000 followers.WET SEAL: Online community for teens to talk and rate clothes and trends. – 21% increase in revenue, 10% increase in sales, 10% increase in the av. purchase per customer.PAMPERS: Social diaper promotion program -- 1,000 diapers sold in 11 hours on FacebookSEARS: Sears.com Shoe Experience Website, a 450-brand emporium -- Reports ROI of $10.00 for every $1.00 spentBURBURRY: At Burberry’s Art of the Trench, you can choose a coat, share it online & upload your photo. -- In the first 8 weeks, 330,000 visitors from 191 countries. 85% increase in sales during that time.STARBUCKS: Starbucks online community mystarbucksidea.com -- Over 100,000 customer suggestions, and it had implemented over 100 of those ideas. Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSWhy do some succeed And others fail?Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS The businesses that succeed skillfully leverage the information and relationships gathered through the social channel throughout the organization’s value chain.Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSWhich is why retailers need a social business strategybefore they need a social media marketing presence Customer Retention Thought Leadership On-line Unstructured Community Information B2C Twitter Wiki Blog B2B Facebook RSS Intranet LinkedIn YouTubeCopyright © 2011 Leader Networks, LLC 12
    • L E A D E R NETWORKSSocial success stories have integrated business processes And most organizations have Social Media Muddle  Customer Service Marketing monitors Facebook, Twitter  Marketing focuses on etc. for angry customers getting fans & followers Distribution to view its marketing  Customer Service Sales campaigns resolves customer issues  Marketing doesn’t  Customer Service doesn’t use Facebook, Twitter, share customer problems etc. to transact with internal stakeholders Customer Service Product  Marketing doesn’t  Customer Service doesn’t Development mine interactions to pass along pleased identify new customers customers to Sales or Product or feedback Marketing Groups Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSSocial business needs operational alignment to succeed Twitter RSS Thought Facebook External Leadership Social Media Marketing Activities Product Sales YouTube Development LinkedIn Social Internal Media Processes Strategy Customer Distribution / Service Partners B2B Blog Suppliers Web 2.0 Wiki On-line Communities Copyright © 2011 Leader Networks, LLC 14
    • L E A D E R NETWORKSYou need to know where you are going … in order to get there successfully Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS There are six ways retailers can benefit from a social business strategy To help customers get more value from their products and services Product Groups To improve the way they enhance To influence the products and social media Sales & Channel Product services conversations about their Partners Social Developmentcompany/ products Business Strategy To develop better new products and services Marketing Customer Service To market and sell more effectively: Extend buyer loyalty, Awareness and Identify future trends desire Copyright © 2011 Leader Networks, LLC 16
    • L E A D E R NETWORKSThe value chain is forever changed due to social business CRM system Cloud ERP System Marketing Manufacturing Wholesalers input Units Old Process Promotion or group buying experience Customers Retailers Customer Twitter reviews Twitter follower Twitter follower Twitter follower Twitter follower Twitter follower Twitter follower Twitter follower Twitter follower Twitter follower Twitter Copyright © 2011 Leader Networks, LLC follower follower
    • L E A D E R NETWORKSAnd, the traditional purchase funnel no longer exists Awareness Tools Blogs & comments Social Business Processes Consideration Social recommendations Twitter Youtube Online affinity groups Email Community forums Slideshare presio Preference Group buying experiences Facebook group Influencer relations Quora mention Traditional marketing WOM campaign Online advert Shopping PurchaseCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSWe can now differentiate messaging by demographics,interests, locations, history….. The Social Media Success Factor: The who dictates the where, when, why and how. Gen Y’s are more influenced by peer referral than any other generation before them…..Copyright © 2011 Leader Networks, LLC 19
    • L E A D E R NETWORKSAnd thread social business throughout the enterprise• Create influence campaigns from Press to Mommy bloggers• Extend customer loyalty efforts online• Increase product awareness & desire• Socially source new product ideas• Unleashing social shopping to reinforce the buyer decision• Extend the customer service to online, and• Seek cost reduction through improved core business process• And revenue by connecting social media marketing to social business processCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSThe benefit of online community for many retailers + = Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSWalmart’s “11 moms” communityCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSIKEA Fan’s communityCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSGucci Facebook communityCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS Social business maturity model framework “Socially Present” “Socially Integrated” Externally focused Design for marketing presence Design for leveraging on the social channel in order to information and relationships communicate information and gathered through the social ideas online and drive efforts in support of key awareness. business functions. “Socially Familiar” “Socially Enabled” Design for learning about cause Design for scale and best and effect online. If I do this, this practice using social as aInternally will happen…. common marketing andfocused customer care activity. - Organizational Complexity + Copyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS Strategic Strategic Social Maturity Performance Operations Operations Staffing Staffing Governance Governance Tool Use Tool Use Presence Integration Strategic Strategic Operations Operations Staffing Familiarization Enablement Staffing Governance Governance Tool Use Tool Use None Limited Moderate Healthy RobustCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKS The social business imperative Social business is the collaborative intersection of business needs and customer desires. For social business to be fruitful, it must solve a real business problem or make a business process easier using the online channel.Copyright © 2011 Leader Networks, LLC 27
    • L E A D E R NETWORKSSocial business = organizational changeStrapping new tools onto an old process won’t yield the desired resultsCopyright © 2011 Leader Networks, LLC 28
    • L E A D E R NETWORKSMeasuring successSTEP 1: Defining the customer experience and member value propositions that lead to metricsSTEP 2: Align the business definition of success and a customer versionSTEP 3: Determine quantifiable measuresCopyright © 2011 Leader Networks, LLC 29
    • L E A D E R NETWORKSSix sample success measures1. Did we increase customer engagement? If so, how?2. Did we see an increase in positive mentioning of our brand?3. Were we able to reduce customer service overhead because of our social media efforts?4. Were we able to reduce our PR costs because of our social outreach?5. Did our website engagements and goals increase?6. Did our overall sales revenue increase? !Forget about measuring fans and likes unless they are tied to specific business goalsCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSThe future of social media retailing – Social commerce • group buying • The importance of customer reviews – All things mobile Crystal ball • Social geo-location services (such as Foursquare) • Social mobile commerce – Online community • Brand affiliation/loyalty especially with niche brands • Hyper affinity/personalization – Ability to tap into passion and interests of people – The collaborative retail enterprise experience • Programs and process to enable the customer to directly influence the merchandising and inventoryCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSCopyright © 2011 Leader Networks, LLC
    • L E A D E R NETWORKSThank youVanessa DiMauroCEO, Leader Networks617-484-0778vdimauro@leadernetworks.comhttp://blog.leadernetworks.comhttp://www.leadernetworks.comCopyright © 2011 Leader Networks, LLC