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FRANkademy: Social business for retail

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http://frankmedia.com.au | This is the presentation of our March 2012 FRANkademy session which focused on social business and retail. In this session we demonstrated how social business and retail can work together to not only increase sales and consumer loyalty, but also facilitate customer service and aftersales service:

1) Introduction to social business: why we should care, implementation and ROI
1a) Best practice – retail case study Best Buy and Sportsgirl
2) Trials and tribulations of social commerce: do’s and don’ts of using Pinterest, Facebook, Twitter and Four Square

Thanks for everyone for attending the session!

If you have any questions or would like to attend the next FRANkademy session please contact us:

frank@frankmedia.com.au

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FRANkademy: Social business for retail

  1. 1. Social media is like teen sex.Everyone wants to do it. Nobody knows how.When it’s finally done there is surprise it’s not better. - Avinash Kaushik, Analytics Evangelist at Google
  2. 2. “ A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favour by giving us an opportunity to do so.
  3. 3. Social business with a retail flavour • Social business introduction • Consumer and retail trends • Case Study: Best Buy & Sportsgirl Trials and Tribulations of Social Commerce • Twitter • Facebook • Pinterest • Foursquare • .. And others
  4. 4. 1. Social business with a retail flavour • Social business introduction • Consumer and retail trends • Case Study: Best Buy & Sportsgirl
  5. 5. Current State of Social in Australia Only 42% of Australian organisations are embracing social media 48% have no presence in the space Only 16% feel it is important to have a clear social media strategy Only 2% prioritise dedicating funding KMPG 2011 SourceSource: KPMG report in B&T article: http://www.bandt.com.au/news/australian-businesses-lag-in-social-media-game
  6. 6. Traditional Media Approach
  7. 7. Social Business Approach
  8. 8. The new breed of consumersTraditional Media Approach Social Business Approach Listening to advertising Avoiding advertising Listening to peers on social networks 77% of online shoppers look for reviews to make a purchase decision 62% of online shoppers are brand loyal due to online satisfaction
  9. 9. You need both to succeedBRAND AWARENESS BRAND REPUTATION SALES
  10. 10. The relative importanceBought Owned Media Assets “Earned”
  11. 11. Nielsen study agreesEARNED TwitterOWNED Forums BOUGHT MEDIA Facebook Blogs
  12. 12. Consumers are social- brands aren’t 72% use social media to keep up with brands 80% say great service online keeps them loyal 74% use social media to recommend products to friends 51% share product advice and info on social media 40% want more engagement from brands onlinehttp://frankmedia.com.au/wp-content/upLoads/2011/12/FRANk-media-Lithium-the-Digital-Divide.jpg
  13. 13. Impact of Digital on Customer’s Lives Over 1/3 of us are Internet enabled Digital information using mobile TV’s will help me influences 50% of devices to buy shop online even my in-store sales products online # more # and will do so increasingly * Over 65% of in- store purchases 86% of us will are initiated on maintain or the web # increase our level of online expenditure # We spend nearly 2 hours/week shopping online + We spend an average of 9.3 hours/week with social media +Sources1. Harvard Business Review 2011*2. PwC 2011 “Australian & NZ online shopping market insights” #3. Nielsen 2012 +
  14. 14. How to Increase Consumer Loyalty Human Brandshttp://trendwatching.com/briefing/
  15. 15. The Future of Retail: Connected ConsumersBy 2020, we will see a verydifferent consumer – one whoco-creates & seeks personalisedproducts and services.Virtual networks will link theseconsumers and technology. It willchange how consumerscommunicate with each other andretailers. The Australian Centre for Retail Studies,
  16. 16. Retail today: Social is Driving Retail Polyvore Svpply Lookbook 15M UVs / month• 81% receive advice from friends & family relating to product purchase through a social media network• Almost 50% of shoppers have made a purchase based on a recommendation through a social media network• Social sharing and social shopping are driving awareness and sales to brands that were previously unknown
  17. 17. Example of social retail in store: Tweet Mirror • As customers try on clothing items they can use Tweet Mirror to send snapshots of themselves to friends via Twitter or e-mail. • For retailers it’s good brand exposure far beyond the store.http://www.youtube.com/watch?v=CU-DYKR4f8k&feature=player_detailpage
  18. 18. Most brands are socially inept.Share, talk, answer, engage, give something for free, have a personality, be different…
  19. 19. Social Media Best Practice Tactics/ Shop Front Strategyhttp://www.intersectionconsulting.com/blog/
  20. 20. Social Business has a knock on effect
  21. 21. The Benefits of Getting it Right Companies view social media as offering the most benefit in the upper stages of the purchase funnel.http://www.booz.com/media/file/BoozCo-Campaigns-to-Capabilities-Social-Media-and-Marketing-2011.pdf
  22. 22. Top 6 take outsSocial is no longer optional- integration is key Social Media has a knock-on effect beyond marketing Social Media requires a Social BusinessIt is not about the tools but how you use them Content & Context is the new marketing First mover advantage is there to be seized
  23. 23. Total Retail Sales in Australia = $216 billion Bricks & Mortar Sales $205.5bn 95.1% of total retail sales E-Commerce Retail Sales $10.5bn 4.9% of total retail sales 29% online retail sales growth 2011Source:NAB Study – Jan 2010- 2011
  24. 24. Core Issues Facing Australian Retail Industry Consumers are saving more than ever (10.5% savings rate) Becoming used to price reductions Consumer confidence is low and Australians are prioritising reducing down debt. High Australian dollar is a double edged sword for Australian retailers. Cheaper for retailers to procure overseas goods, but also cheaper for Australian customers to buy from international online storesSource:PwC 2011 “Australian & NZ online shopping market insights” #
  25. 25. + Digital + + Physical + • Instant access to products• Convenient & global shopping 24/7 • Edited product selection selection Consumers are immune• to the ‘battle’event and• Access to broadest product Shopping as an experience• Easy to research products and compare prices They want a seamless integrated experienceon or experience • Ability to test, try products from their desktop, to their smartphone, to the store itself.• Rich product information, • Personal help from caring customer reviews and tips associates• Editorial content and advice • Convenient returns• Social engagement and two-way • Help with initial setup or repairs dialogue • Instant gratification of all senses• Fast checkout
  26. 26. Call Social centre media Networked appliances SeamlessOnline Integratedstore Experience Mobile Helpful Internet staff enabled TV’s
  27. 27. In store customer ‘non-service’ Customer serviceHarder for bricks & assistants harder tomortar retailers to finddifferentiate from (online is always available) online They often lack(Kneejerk reaction makes the problem worse) product knowledge (web has product knowledge & customer reviews) Save $$$ by Customers reducing labourincreasingly focus on price & Service assistants are convenience too busy (both core on-line (50% in-store promotions are strengths) executed late or not at all) Less consumer tolerance to poor experience in-store (products stocked in wrong shelves)
  28. 28. Customer ‘non-service’: David Jones • David Jones realises that its profit losses are in part a result of poor customer service • As a result, 300 jobs are created to “deliver specialised services” to shoppers
  29. 29. Rise of Service • Customer priorities have shifted from “low price” to “service” • Retailers need to hire and train service staff to remain competitivehttp://cmosurvey.org/files/2012/02/The_CMO_Survey_Highlights_and_Insights_Feb-2012_Final.pdf
  30. 30. Social Service on the rise Consumers seek and prefer social service • 62% have used social media for customer service • 76% would use if they better understood the toolshttp://econsultancy.com/us/blog/9181-social-customer-service-a-best-practice-checklist
  31. 31. Group Buying: is it worth it for retailers? The reality is that many retailers don’t see repeat In 2011 $498 650% growth yr/yr * customers from online million sales * (off low base) promotions + (they don’t spend beyond the promotional offering) 22% Australians currently use group buying sites # Business model is that (core 35-40 females) discounts are loss leaders and loss leaders only work in the context that 30% haven’t heard of them consumers spend—or or don’t understand them # ( Males, Gen Y & baby boomers return and spend—above … untapped potential) the loss leader Restaurants, Group buying strength is providing accommodation and Retailers don’t have this deals for service businesses health & beauty use group luxury (they sell time & encompass higher profit buying the most margins)Sources1. TNS Research Group 2011*2. Nielsen 2012 #3. Rice University 2011 “How businesses fare with daily deals” +
  32. 32. Case Study The world’s largest multi-channel home electronics retailer Example of a brand finding value in atransparent, customer focused social business strategy
  33. 33. A Corporate in Transition“...focused on better solving the unmet needs of our customers — and we rely on our employees to solve those puzzles…”
  34. 34. Inevitable Shift CLOSED COLLABORATIVE OPEN CULTURE Silos, separate and Freely sharing Connecting internal andinformation hoarding information and external communities for knowledge internally mutual gain
  35. 35. Social Developments – (Include…Everyone!)
  36. 36. Concept into Practice “Be PART of the conversation customers tell about “Consumers are giving YOUR brand” us all kinds of information if we choose to listen” Best Buy CMO Barry Judge “Technology isn’t (vs. our competition) that interesting. “we have to BE MOREIt’s HOW IT COMES than just a business” TO LIFE”.
  37. 37. Best Buys – Key Learnings• Listen first, talk second• Its OK to fail• The same social values apply online as offline• You have to be ready to respond• Customers will tell you and everyone else where your organisation is broken…and expect a fix• People are forgiving Overall Best Buy is treating their social businessexperience as a journey and have learned the importance of listening instead of pushing.
  38. 38. Case Study
  39. 39. Sportsgirl – ORIA ‘Most Innovative Online Retailer’ 2011• With its 111 stores, Sportsgirl has worked to differentiate itself by being more than a retailer through a deeply integrated social media strategy.• With more international & online entrants to the category, Sportsgirl understand "youve just got to be better, savvier and more aligned with what your customer is wanting“• - CEO Elle Roseby
  40. 40. Sportsgirl Blog Regularly updated & rich in content• Regular Interviews• Guest bloggers @ LMFF• Style updates• Photography tips & tricks Various categories beyond fashion, including music festivals, travel, nightlife etc
  41. 41. Sportsgirl Facebook • 128,000+ Likes • 6,000+ talking about this Blog updates, newarrivals, Lookbooks, Style Snaps… 75 comments, 67 likes
  42. 42. Sportsgirl Twitter Blog updates On the ball with customer service Fun, personable brand voice Re-tweeting customer happiness
  43. 43. Sportsgirl Window Shopping Sportsgirl uses QR codes on all clothes in its shop window Customers could simply shop after hours by using the QR codes and their mobile phones  24/7 interactive shopping experiencehttp://www.proprint.com.au/News/291320,retailers-turn-to-large-format-print-and-qr-codes-to-replace-in-store-shopping.aspx
  44. 44. Digital In-store Experience For customers to make the most out of the QR codes, Sportsgirl held info sessions and put info on its bloghttp://www.sportsgirl.com.au/blog/post/2011/06/youre-invited-join-the-qr-code-instore-workshops/http://m.sportsgirl.com.au/mobile/blog/post/2011/06/qr-101/
  45. 45. It’s not about the tools. It’s how you use them.
  46. 46. 2. Trials & Tribulations of Social Commerce
  47. 47. Why do people follow a brand on Twitter? 94% Discounts and Promos 88% Free Stuff 87% Fun & Entertainment 69% Company News 57% Related topic interest 56% Customer Servicehttp://econsultancy.com/us/blog/9410-a-guide-to-ad-targeting-on-twitter-infographic/
  48. 48. Trials and Tribulations of Twitter: Coles Latest Twitter campaign went belly up for Coles • After announcing price cuts of fruit and veg for all stores, Coles copped a lot of criticism from consumers • Consumers were concerned about Aussie farmers and how they could possibly receive a fair price for their products if it sells so cheap • Shortly after, Coles launched a Twitter campaign and asked to finish this sentence: “in my house it is a crime to buy____________” • The responses that followed possibly surprised Coles…http://www.smh.com.au/business/coles-twitter-campaign-goes-down-down-gurgler-20120307-1uj4c.html
  49. 49. Amex and Twitter partnership 50 American Express is turningTwitter content into commerce by connecting card holders to merchants and delivering real world value to both With the continued convergence of online and offline commerce, the closed loop continues to enable Amex to bring seamless, relevant ways to connect our card holders and merchants on the most powerful social and digital platformshttp://www.psfk.com/2012/03/twitter-brands-deals.html
  50. 50. Amex: How To Increase Loyalty • Amex and Twitter partnership allows Amex card holder to sync their purchases with their Twitter account • In return for tweeting about their purchases, card holders receive discounts at participating retailers • The result:http://socialcommercetoday.com/amex-tweet-for-dollars-campaign-garners-early-success/
  51. 51. Facebook is the most successful social network with 850m users worldwide, but: • Most brands use it as an isolated communication channel • Many talk about themselves 24/7 • Many don’t talk enough and think that thehttp://www.allfacebook.com “build it and they will come” approach is/facebook-page-consumers-2012-02 enough
  52. 52. It is not an easy gig for brands to be successful on Facebook • Study finds that customers expect brands to have a Facebook presence … but don’t want them to bother them with their content- ouch! • 53 % of respondents believe brands must maintain Facebook pages for relevancy, BUT • 64 % said they “hate” when they are targeted via their social network profiles • 58 % find marketing via social media to be invasivehttp://econsultancy.com/us/blog/9410-a-guide-to-ad-targeting-on-twitter-infographic/
  53. 53. Walmart local Facebook pages 54 Approx. 10M Facebook fans and 3,500 stores Designed to connect consumers with their nearest Wal-Mart stores aimed to delivershoppers store-specific information, such as in-store events and promotions, as well as region-specific products
  54. 54. Starbucks Facebook page• Almost 30M followers• Receive 10,000’s of Likes on each post• Recently attracted 15,000+ comments on fun questions such as “hot or iced”
  55. 55. Social ROI: You get out what you put in 2011 study shows that 95% of Facebook posts on brand pages are ignoredwww.allfacebook.com/facebook-wall-posts-brands-2011-10
  56. 56. F-commerce: Why it Fails to Deliver Most brands on Facebook offer no compelling value proposition to its customers • Most F- shops are simply clones of existing e-commerce sites • Most F- shops sell the same products for the same price with the same promotionshttp://socialcommercetoday.com/the-social-commerce-value-proposition-infographic/
  57. 57. F-commerce: How To Make It Work 4 keys value propositions to focus on: • Something First Give social media followers access to new products first (Burberry’s Tryvertising) • Something Unique Give social media followers something different, only available to them (Oscar de la Renta) • Something More Give social media followers a bonus when they buy (EA) • Something For Less Give social media followers a discount when they buy (Zynga)http://socialcommercetoday.com/the-social-commerce-value-proposition-infographic/
  58. 58. F- commerce experience: Tesco’s virtual changing room Virtual fitting room via a Facebook app, allowing customers to create 3D digital versions of themselves and try on different outfits from a selected range.https://www.facebook.com/Clothingattesco?sk=app_261347243942251
  59. 59. F-commerce Success Story: Miishka • Miishka is a Melbourne designer selling her collection exclusively via Facebook • Over 47,000 fans and an engagement rate of 6.14% • Simple, but super effective solutionhttp://tribecount.com.au/online-retail/make-every-sale-on-your-facebook-create-extra-engagement/
  60. 60. Create virtual pin boards to share the things you love with one click 11.7 million UVs per month worldwide 360,000 per month in Australia and growing rapidly
  61. 61. Stuff I WantCute vases…
  62. 62. Trials and Tribulations of Pinterest Implications for Brands • Users post images that they do not own • While individuals get away with this copyright breach, brands need to be careful not to be sued Best Practice • Pin your own content • If pinning others’ work, pay attention to licensing limitations • All pins link back to the website where the image was uploaded - ensure you want to be associated with all the content of that website • No self promotion is allowed on the Terms – contribute to the community • Pin visually stunning images that others will want to share (Products I Love is the third most popular pinboard name)http://adage.com/article/digitalnext/brands-pinterest-breaking-law/233038/
  63. 63. How Brands are Using Pinterest Get discovered By sharing relevant and shareable content (products, coupons, etc.) Show core values and personalityBy sharing multiple facets of the brand Micro-target customers Several boards allow brands to separate and classify content for customers Drive referral trafficBy encourage visitors on-site to “Pin it” Run competitions
  64. 64. “Pinterest is very much aligned with our brand values, in that we’re both passionate about helping people organise ideas and inspiration in style.Pinterest has given us the chance to inspire our customers in a unique way through sharing creative and inspiring content” – Kristina Karlsson, kikki.K founder
  65. 65. 25 million users worldwideWorld’s largest mobile-only social network: 1 in 12iOS devices
  66. 66. 4 Ways to use Instagram for your brand BurberryKookai Australia Show exclusive behindDisplay new products the scenes imagesThe Hungry WorkshopMelbourneShow brand Tiffany & Co.personality Branded Instagram app + filters + hashtag competition
  67. 67. Ted Baker and Instagram Ted Baker used Facebook and Instagram platforms to drive shoppers into stores • Built app that allowed stores to send gorgeous pictures of their customers straight to their Facebook page • Thousands of people had their photos taken. The pictures that gathered the most Likes on Facebook won a prize • Result: Drove hundreds of Likes and engagement to content + raised awarenesshttp://wewillraakyou.com/2011/11/in-store-instagram-studio-right-onto-facebook-for-ted-baker/
  68. 68. Turns offline brand interaction into online word of mouth with super-social users Geolocation service Gamified check-ins Recommendations“What can I do/eat/visit/buy Reward patronage - check-in Users leave tips, make lists in this area?” deals and points e.g. Melbourne’s best op shopsEnables your business to be Reward loyalty - mayorships discovered WOM through Twitter, Facebook Offer hyperlocal deals Awareness, sales and customer loyalty
  69. 69. How Retailers can Use FoursquareOffers to first-time customers toget them through the doors Awareness SalesShow some love to your top Customer loyaltycustomers Being a social businessContribute to the community byleaving your own tips Adding value to consumers’ lives
  70. 70. Louis Vuitton: A Social Brand on FoursquarePerfect for their positioningas a luxury brand with astrong culture and heritagefocus – all around theworld!
  71. 71. Foursquare: Granata Pet Dog food business launched 10 billboards in the US with Foursquare IDs • When people walking their dog noticed the billboard, they could check-in using Foursquare & the billboard dispensed the dog food. • Outcome: Pet stores sold 28% more product than the previous period, store requests for product increase by38%. • They have since launched over 100 billboards across Europe.http://www.youtube.com/watch?v=YekTIVcXf60
  72. 72. ShopKick: Mobile Shopping Rewards The app lets stores “influence their behavior,” said Mikael Thygesen, who is the chief marketing officer at the Simon Property Group and the president of its Simon Brand Ventures division. 3 million users RECEIVE KICKBUCKS REWARDS CUSTOMERS FOR WALKING INTO SELECTED STORES & IN-STORE BEHAVIOUR Real time customer data • location • social networks • mobile apps RESULT: > $110 million in-store revenue for ABILITY TO DELIVER INTUITIVE, • blogs partner retailers and brands in 2011 (source • tweets RELEVANT & TAILORED OFFERS TechCrunch) • purchasing history ” Conversion rates of walk-ins to sales can be measured directly by counting specific shopkick offers in the basket at retailers, by rewards for purchases through POS integrations, and ShopKick users can now unlock • Store gift cards conversion rates of product scans to product exclusive deals when they use their • Movie tickets sales can be measured through in-app app during certain commercials. • Facebook game credits questionnaires and POS integrations. “ Founder Cyriac RoedingSources: iTunes, TechCrunch
  73. 73. ShopKick: Mobile Shopping Rewards
  74. 74. Kakku: Connecting Shops & Shoppershttp://kakku.co/
  75. 75. Trend: Mobile Point-Know-Buyhttp://trendwatching.com/trends/pointknowbuy/
  76. 76. Mobile: growing trend in Australia • Australian mobile sales tripled to almost 10% of sales in December 2011 • Mobile sales are expected to reach 50% of sales in the next three years • 1 in 4 retail searches over Christmas 2011 came from a mobile phone • More than 1 in 4 consumers have made a purchase via mobile phoneSource: Google Study 2011 in Australia
  77. 77. Mobile shopping: Tesco South Korea • Mobile shopping in South Korean subway station • Each product has a QR code which adds the product into shopping basket • Convenient, fast and hassle freehttp://www.designboom.com/weblog/cat/16/view/15557/tesco-virtual-supermarket-in-a-subway-station.htmlhttp://www.theage.com.au/small-business/trends/mobile-shoppers-put-on-an-appy-face-20120206-1r0l9.html
  78. 78. Mobile shopping with Augmented Reality Apps Swivel Zugara Users try on clothes, accessories, hair “See how it looks” function activates web colours, and even cosmetic surgery by cam and essentially acts like a dressing simply uploading their image room mirror Typical conversion rate of online shoppers is 2-3% These apps aim to help users feel more informed and comfortable with their online retail purchasing decisions.http://blog.modernmobileapps.com/post/2011/03/06/New-in-Augmented-Reality.aspx
  79. 79. Mobile Payment Technology: Google Wallethttp://www.google.com/wallet/what-is-google-wallet.html
  80. 80. Digital In Store Experience: Starbucks Mobile Payments • A digital reader in Starbucks • Users load the card with $$$ stores scans a bar code displayed form a credit card or other on the user’s smartphone screen. account • The bar code is linked to a phone • 26 million smartphone app backed by the user’s transactions were made since Starbucks card its launch less than a year agohttp://www.computerworld.com/s/article/9222481/Starbucks_mobile_payments_perk_past_26M_transactions_http://www.readwriteweb.com/archives/starbucks_launches_smartphone_payments_nationwide.php
  81. 81. Retail Social Business Best Practice DEPARTMENT HR OPERATIONS INTEGRATIONMARKETING MERCHANDISING • INSIGHTS • BUSINESS GOALS • SHARED PASSION • RELEVANT CONTENT STORES PRODUCTS EVENTS/ CAMPAIGNS STAFF BRAND INTEGRATION
  82. 82. FRANk Process: 4 steps to a social business 4 ROI metrics & • Detailed quarterly reporting on agreed key KPIs Constant monitoring of chatter reporting • 3 Community • Community Manager recruitment & • FRANkademy workshops, training and • Editorial calendar training support Management • Knowledge sharing • Response flow chart • Employee engagement 2 Social Business • • Resource management Strategy implementation • • Budget recommendation Measurement of success Strategy • Content planning • Marketing as a Service • Social policies and guidelines • Plan to become a social brand • Internal- all stakeholders1 Listen & Learn • • External- consumers industry, trends, competitors, strengths, opportunities, weaknesses, … Analysis of online chatter and buzz- agile and dynamic approach
  83. 83. At what stage is your business? “We are nowhere” “We’ve made a start” “We get it!” We have Facebook and We have a communityWe’re not sure where Twitter but no one manager who regularly to start or whether wants to be our friend engages with our we need to? or talk to us. growing community. 90% + of brands

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