This document discusses how shopping and storefronts have changed over time, from early 20th century main street shopping to modern e-commerce and social media. It notes that Dell was an early pioneer of e-commerce in the 1990s. More recently, social media has become the new digital storefront, with customers increasingly influenced by word-of-mouth on social platforms. The document examines Dell's social media growth and examples of how social engagement correlates with higher revenues and customer satisfaction. It argues that social media allows companies to better understand customers and that those who most effectively engage audiences across social will be most successful going forward.
24. Global Marketing
Proof Points
• We found that customers who engage with companies over
social media spend 20 percent to 40 percent more
money with those companies than other customers. They
also demonstrate a deeper emotional commitment to the
companies, granting them an average 33 points higher Net
Promoter® score (NPS®)
Bain
• More than 60 percent of
Internet-connected indi-
viduals in the US now en-
gage on social media
platforms every day. IBID
27. Global Marketing
62 Countries
14 Languages
Over 170,000 Reviews Submitted
14,461 Different Products Reviewed
75% of All Ratings 4 or 5 Stars
conversion & margin lift revenue/visitor is 3X higher in Japan; 134% higher in US
Application Generates Business Benefit
27
32. Global Marketing
Social Media Conversations: Not Just Marketing.
• People are speaking to each other in a powerful new way
• These networked conversations are enabling powerful
new forms of social organization and knowledge
exchange to emerge.
• As a result, markets are getting smarter, more informed,
more organized.
• Participation in a networked market changes people
fundamentally.
33. Global Marketing
Social commerce transcends transactions
• Insight: Social media improves
Dell’s reach and share of voice
• Insight: Social Media provides
high Business Value and
contributes to demand gen
vehicle
• Insight: SM keeps customers
engaged, provides solutions
and improves loyalty.
• Insight: Social media based
support improves sentiment
and correlates with higher
revenue
• Insight: Established causality
between social media activity
and purchase
Dell.com
External
Communities
Our
Communities
34. Global Marketing
The world around us is changing
34
• Disintermediation between the customer and the expert is happening already
• Users spending more time across the web engaging – beyond company’s website
• Customers trust their peers more than anyone else
• Traditional methods are not scaling; Does Social Media?
companies that embrace this the fastest will win
Control
is not as successful
as influence
35. First company to
hit $1M a day in
online revenue
One of the first
companies to
launch online
support
First to sell complex
configurable items
Leader in online
frictionless
commerce from
order to delivery
Dell’s Direct & Online Heritage: Critical Enablers
One of the first
to launch online
discussion forums
Early adopter of
social media
36. Global Marketing36
Six years of experiments and experience
April 2006
Tech support
outreach to blogs
August 2006
Blog outreach
expands beyond
tech support
December 2006
Ratings and
reviews on
Dell.com
July 2006
Direct2Dell launched
Today Direct2Dell exists in
English, Spanish, Norwegian,
Japanese and Chinese.
February 2006
Michael Dell Asks
Why don’t we reach out and help
bloggers with tech support issues?
January 2007
StudioDell launched
Dell’s video and podcast site,
with helpful tips and tricks.
Eventually expanding this into
the YouTube channel making
sharing easier.
February 2007
IdeaStorm Launched
A voting based site allowing
customers and others to submit
ideas for Dell.
June 2007
Dell joins Twitter
Dell launches
EmployeeStorm
Internal Blogs
Launched for
Employees.
October 2007
Michael Dell quote in Business Week
Jeff Jarvis story quote, “These conversations are
going to occur whether you like it or not. Do you
want to be part of that or not? My argument is you
absolutely do. You can learn from them. You can
improve your reaction time. And you can be a
better company by listening and being involved in
that conversation.”
November 2007
DellShares launched
The first investor relations blog by
a public company.
January
2008
Dell aligns
organization
for success
February 2008
Twitter expanded
March 2008
Accepted Solutions
launched on Community
Dell France begins Online
Community Outreach
May 2008
Dell Outlet achieves
$0.5M in sales via Twitter
Community team active on Twitter
Small Business
blog launched
April 2008
Inside IT launched
Blog focused on business
customers, and Cloud
Computing.
June 2008
Channel blog
launched
January 2009
Dell Organizes in to
4 customer focused
business units
Spring 2009
Some Members of
Community and
Conversations
deployed within each
of the new Dell
Business units
June 2009
$2M+ Sales
via Twitter
2009
Dell TechCenter
June 2009
Global Twitter
revenues of $6.5 M
December 2009
Huffington Post Blog
March 2010
China Micro-
Blogging
2006 2007 2008 2009 2010 2011
Altimeter recognizes Dell with
“Open Leadership Award for
Innovation and Execution”
(Oct.)
Dell Social Media and
Community University
launched/5,000 team
members trained by
end of year
(Aug.)
Dell
launches
B2B pages
Facebook
(Jun.)
Dell named #1 most
social brand in
ranking of 100 top
brands
Social Media Listening
Command Center
37. Global Marketing
B2B Storefront
• Social media has a huge impact on Dell’s sales funnel, from
SMB to Enterprise. Just as consumers are spending more time
in social channels, so are B2B customers.
Analyst firm
SiriusDecisions
estimates that by
2015, more than
75% of leads will
be sourced
through inbound
channels like social
media. This chart
shows where
social platforms
and content types
typically reside in
the sales funnel.
At Dell, we are keenly aware of storefronts shifting in time. The digital rise that resulted in the shift to ecommerce is now being impacted by a shift to social, returning an element of human intimacy to what had become electronic transactions. The personal relationships built by mom and pop stores are now in reach of the largest online organizations, bringing a new element to what ‘direct’ means. This presentation explores the online ecosystem and its importance to social commerce strategies.
Shopping behavior has changed dramatically in the past century. In horse and buggy days, purchases happened close to home in the general stores.
In the mid-1920s, with the growing popularity of the automobile and mass transit, the lowered cost of travel allowed consumers to be more mobile. Going into the big city to shop, especially for higher ticket items, became common.
http://www.rootsweb.ancestry.com/~arbradle/places/warren_1920s.html
After WWII, the interstate roadway system diminished transportation costs to the suburbs and by the mid-1940s, large department stores were building outside the central business district for the first time.
In 1956, the first “enclosed shopping center”, read “mall”, was opened near Minneapolis. Two rival merchants made the decision and discovered, to their surprise, that placing the two stores together increased business for both of them. Central Place theory was born.
http://media.photobucket.com/image/recent/micechat/SAMLAND/2011/malls/pic1.jpg
According to The National Mail Order Association, Benjamin Franklin is believed to have been the first cataloguer in the United States. In 1744, he formulated the basic mail order concept when he produced the first catalogue, which sold scientific and academic books. He is also credited with offering the first mail order guarantee: "Those persons who live remote, by sending their orders and money to B. Franklin may depend on the same justice as if present". The earliest surviving mail-order business, now known as Hammacher Schlemmer, was established by Alfred Hammacher in New York City in 1848. Offering mechanic's tools and builder's hardware, its first catalogue was published in 1881.[3] Now known for offering an eclectic assortment of items, it is America's longest running mail-order business.
Catalogues removed an element of intimacy and personality, the loss increased with the phone and eCommerce
http://www.wishbookweb.com/
The home shopping/electronic retailing industry was created in 1977, when small market talk radio show host Bob Circosta was asked to sell avocado-green-colored can openers live on the air by station owner Bud Paxson, when an advertiser traded 112 units of product instead of paying his advertising bill. Hesitant at first, Circosta reluctantly obliged – and to both men's great surprise, all 112 avocado green can openers sold out within the hour. Paxson sensed the vast sales potential of home-based commerce, and founded the world's first shopping channel on cable television, later launching nationwide with the Home Shopping Network (rebranded as HSN). Bob Circosta was America's first ever TV home shopping host. The Home Shopping Club launched on local cable in June 1982. Two years later, sales were $11 million. In 1985, the Home Shopping Network (HSN) was born.
1979: Michael Aldrich invented online shopping[2] Aldrich invented online shopping by connecting a modified domestic TV to a real-time transaction processing computer via a domestic telephone line. The intellectual basis for his system was his view that videotex, the modified domestic TV technology with a very simple menu-driven human–computer interface, was a 'new, universally applicable, participative communication medium-the first since the invention of the telephone.' This enabled 'closed' corporate information systems to be opened to 'outside' correspondents not just for transaction processing but also for messaging [e-mail] and information retrieval and dissemination [later known as e-business.][5]
1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.[3]
1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer. It opened for commercial use in 1991.
In 1994 other advances took place, such as online banking and the opening of an online pizza shop by Pizza Hut.[1] During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. Also in 1994 the German company Intershop introduced its first online shopping system.
1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.
In 1995 Amazon launched its online shopping site, and in 1996 eBay appeared.[1]
1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.
In 1997, Dell sells $1million a day.
Entering another period of rapid innovation and change in the role technology plays in how we run our business; the products and services we offer and how we communicate, collaborate and respond to our customers – in a b2c or b2b context
Recent report released by Dell and Intel – entitled the Evolving Workforce we have explored some of the ways technology is changing the workplace again. And some of the social, technological and economic factors that are influencing that – gen Y entering our workforces (the first fully Internet generation); consumerisation of business technology; expectations of corporate transparency in the social era etc.
Focus here on how we have changed as a business with the emergence of the social web – or social media. But this is just one of the ways our relationships and dialogue with customers of all types have changed
Customers are using the social web throughout their personal and business life. They increasingly expect their financial service provider to engage directly with them or provide services and information there too. Clearly in retail banking but increasingly in the b2b world too.
Transparency/access and online reputaiton is a dominant factor in who we choose to buy from or work with.
We also expect to be asked for feedback and to see the company respond with improvements or new products and services.
We turn to the social web to assess the quality not just of the company’s products and services; but to see what customers think of them – and to ask for advice.
We have too much choice so we turn to trusted intermediaries to help us navigate – and we don’t need deep relationships with these ‘advisors’ to trust what they say.
Your brand exists not on your website or in your advertising alone – it is not only defined (and certainly not controlled) by you…it is defined by what comes up on a search engine or is said in Twitter.
It is not within your 100% control…but this is not always a bad thing.
As well as helping your run your businesses more efficiently – the change technology is bringing and developments like social media have the ability to turn that heavy investment to your commercial advantage.
Even in regulated sectors like finance the same opportunities and threats hold true. A bad rating for service on an influential blog or a recommendation for a product on an online financial community can make the difference between success or failure.
Companies or brands that ‘get it’ or embrace social web will succeed. Those that don’t – won’t.
While technology has taken personality and intimacy out of the experience, social elements continued to play a role.
Social is already part of your commerce, whether you are aware of it or not
And those commerce conversations are happening at an increasingly rapid pace
Globally
Social behavior patterns foretell purchase decisions. Identifying those patterns and optimizing for them increases conversion, margin and speed to decision.
Social commerce is not putting a buy button in Facebook.
Perhaps the strongest sign of our moving from merely exploring or settling new lands, is that we have also established the value and place for the general store in our communities
By delighting and connecting to customers, they are coming back for more and we are able to focus more on exactly what it is that enables them to do more
By our work in measuring what matters, we now know that social media is a decision factor in both the consumer and b2b space; that social media is not simply about awareness or brand sentiment…it is that; but it is also about every aspect of the customer lifecycle and impacts the complete customer lifecycle….
It impacts loyalty, and the amount returning customers purchase from Dell.
This work is not done, but we are well on our way and we know where we are going
Improves Dell’s reach and share of voice;
we know there is causality between social media activity and purchase,
it provides high business value and contributes to demand generation,
Social media based support improves sentiment and correlates with higher revenue
Engaged social media customers improve loyalty
Source: Cluetrain Manifesto Global Marketing
Ongoing commerce is about customer relationships and the ongoing experience. Transaction is one point on a continuum. People think social commerce is social conversion. Social commerce has a different timeline than eCommerce.
36
Imagine this kind of intimacy taking place across online
The new storefront is every part of business and everywhere
SMEs and Customers are your new sales force
Social patterns leading to sales
Creating a social continuum puts the storefront everywhere. Paid, Owned and Earned should also be a continuum. Avoid thinking in silos.
Social is an always-on activity, so the new storefront never closes. To optimize, shoot for real time engagement.
Your customers have become your extended sales and marketing team. So the new storefront is, potentially, everyone. This includes your employees, who should be the face of the company.
Creating a social continuum puts the storefront everywhere. Paid, Owned and Earned should also be a continuum. Avoid thinking in silos.
Social is an always-on activity, so the new storefront never closes. To optimize, shoot for real time engagement.
Your customers have become your extended sales and marketing team. So the new storefront is, potentially, everyone. This includes your employees, who should be the face of the company.
Creating a social continuum puts the storefront everywhere. Paid, Owned and Earned should also be a continuum. Avoid thinking in silos.
Social is an always-on activity, so the new storefront never closes. To optimize, shoot for real time engagement.
Your customers have become your extended sales and marketing team. So the new storefront is, potentially, everyone. This includes your employees, who should be the face of the company.