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THE SIX DIMENSIONS
  OF SOCIAL COMMERCE
  THE LATEST INTERNATIONAL DEVELOPMENTS IN DRIVING REVENUE




MARK ELLIS, MANAGING DIRECTOR, SYZYGY
2. The 6 Dimensions of Social Commerce - Mark Ellis, Syzygy
3
Definition: Social Commerce


               “Selling with Social Media”

               Social commerce is a subset of e-commerce that involves
               using social media, online media that supports social
               interaction and user contributions, to assist in the online
               buying and selling of products and services.




  Word-of-mouth,
  applied to e-commerce.
2. The 6 Dimensions of Social Commerce - Mark Ellis, Syzygy
AUGUST 11, 1994
NETMARKET.COM
FIRST-EVER INTERNET PURCHASE
11.50 AM JULY 8, 2009
1-800-FLOWERS.COM
FIRST PURCHASE WITHIN FACEBOOK
Sharing your purchasing decisions
  before, during and after buying
+                        =     €/$
    INCREASE TRAFFIC, SALES (CONVERSION)
    AND AVERAGE ORDER VALUE
BRAND AMBASSADORS
“PEOPLE ARE MORE VALUABLE OWNING AND USING YOUR
 PRODUCT/SERVICE THAN THINKING ABOUT BUYING IT”
              Paul Srivorakul, Ensogo.com
2. The 6 Dimensions of Social Commerce - Mark Ellis, Syzygy
2 STRATEGIES




    SOCIAL MEDIA ON          E-COMMERCE ON
E-COMMERCE PLATFORMS     SOCIAL MEDIA PLATFORMS

Helping people connect     Helping people buy
    where they buy         where they connect
6 x SOCIAL COMMERCE TOOLS
1    RATINGS & REVIEWS

                             RECOMMENDATIONS &
                         2   REFERRALS




2




    FORUMS &
3   COMMUNITIES
4   SOCIAL SHOPPING


                      5   GROUP BUY




2




    PURCHASE
6   SHARING
WHY NOW?
     FOLLOW YOUR CONSUMERS
IT’S ABOUT

PEOPLE INFLUENCING PEOPLE
          NOT TECHNOLOGY


            1. BE HONEST
        2. BE CONVERSATIONAL
      3. BE REMARKABLE (LET GO)
THE SIX DIMENSIONS
    TO SOCIAL COMMERCE SUCCESS


           1. SCARCITY
           2. AFFINITY
         3. RECIPROCITY
         4. POPULARITY
          5. AUTHORITY
         6. CONSISTENCY
#1. SCARCITY
 LESS IS MORE (PERCEIVED VALUE)
Frederick the Great
PRUSSIA, 1774
Effectively re-branded the Potato by making it a ‘scarce’ Royal delicacy
Christian Louboutin
Limited Edition Barbie
Exclusive Collector’s Dolls
@DellOutlet
$6.5m Twitter Revenue
Exclusive Discounts and Snap Promotions
GROUPON
World’s largest ‘Group Buy’ Platform
POP-UP ONLINE STORES
Lucky Magazine and HSN create 48-hr exclusive Facebook shop
FACEBOOK DEALS (MOBILE)
Geo-located local deal promotions have huge expectations for 2011
Gap offered 10,000 free jeans to the first 10,000 check-ins (then 40% off)
#2. AFFINITY
 SHOP WITH LIKE-MINDED PEOPLE
Dell Swarm
Group Buy for technology
Daily deals for Dell bargain hunters
Levi’s Friends Store
‘Shop Together’
Real-time Global Shared Shopping Functionality
Ping
Apple’s Social Network
Connecting 160m iTunes Customers
1m sign-ups in first 48-hrs
#3. RECIPROCITY
     PAY BACK FAVOURS
Adidas Outlet Store
Member Get Member Social Coupons
Earn free shoes by inviting friends in
Fiesta Movement
Ford’s Social Commerce Experiment (2009)
100 free cars in return for monthly YouTube posts
11,000 videos, 15,000 tweets, 11m social visitors, 5m shares, 50,000 enquiries, 38% awareness (Gen-Y)
Starbucks foursquare
National ‘Mayor Offer’ (USA) Loyalty Programme
$1 off each drink for all Starbucks foursquare Mayors nationwide
Toys R Us
Toyologists
Consumer panel of (free) toy reviewers on Facebook, Twitter and YouTube
#4. POPULARITY
    FOLLOW THE CROWD
P&G Amazon Facebook Store
Selling 1,000 products an hour (direct to consumers)
Top 29 brands from Always to Zest
The undisputed Kings (and Inventors) of Social Commerce
Leading the way since 1995 (£24.5bn turnover, 2009)
Burberry
Art of the Trench
Become a trench coat model (200,000 visitors week-1; 5m to date)
#5. AUTHORITY
  FOLLOW THE LEADER (EXPERTS)
vente-privee.com
Exclusive private club for curated designer brand discounts
40,000 orders per day; $1.1bn Sales; $70m profit
Apple
Expert Discussion Forums
Hosting and feeding a platform for thousands of Apple ‘experts’
French Connection
Youtique (YouTube) – “Plinking”
Expert fashion videos with annotated ‘Buy’ buttons
#6. CONSISTENCY
     ONE STEP AT A TIME
Blendtec
Will it Blend (YouTube)
Smiling is consistent with liking, liking is consistent with buying
130,000,000 videos viewed; Home blender sales increased +700% since 2006
Starbucks
my STARBUCKS IDEA
Feedback is consistent with caring, caring is consistent with loyalty
Consistent Customer Focus: using Social as an Ideas Platform to improve the product and service
f-commerce
Facebook Stores (and storefronts)
‘Get It First’ VIP Store, discounts and exclusives for Facebook Fans
f-commerce
Software suppliers creating integrated Facebook stores
E.g. Alvenda; Usablenet; Milyoni; Payvment;
SUMMARY
7 KEY POINTERS for 2011


     1.   EXPERIMENT - START SELLING ON SOCIAL PLATFORMS
     2.   ADD MOBILE (SHARING) INTO YOUR SOCIAL MIX
     3.   IMPLEMENT SOCIAL PLUG-INS e.g. FACEBOOK ‘LIKE’
     4.   UP-SELL WITH REVIEWS AND RECOMMENDATIONS
     5.   INTEGRATE ‘CHAT’ SO FRIENDS CAN SHOP TOGETHER
     6.   MAKE YOUR WEBSITE THE SOCIAL FLAGSHIP
     7.   BRING YOUR OFFLINE BRAND EXPERIENCE ONLINE
THANK YOU
  m.ellis@syzygy.net
      @mellis71

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