Internet Retailer Magazine Zak Stambor Presentation - BDI 11/11/10 Social Commerce Leadership Forum


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Presentation by: Zak Stambor, Associate Editor, Internet Retailer Magazine

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Internet Retailer Magazine Zak Stambor Presentation - BDI 11/11/10 Social Commerce Leadership Forum

  1. 1. Making e-retail social How online retailers are leveraging Facebook’s API to spur sales
  2. 2. First, a brief plug
  3. 3. A brief profile of Vertical Web Media • Vertical Web Media LLC is a premier provider of information to online retail and mobile commerce executives. – Our best known brands are: • Internet Retailer, an award-winning, 11-year-old monthly publication that boasts the largest circulation of any retail business magazine with more than 44,000 subscribers.more than 44,000 subscribers. • The Internet Retailer Conference & Exhibition, the industry’s largest annual gathering attracted more than 6,400 attendees in June 2010. Named the fastest-growing trade show in North America by Tradeshow Week. • The Internet Retailer Top 500 Guide annually ranks the leading North American retailers by online sales. • We have four weekly IRNewsLink e-newsletters—NewsMakers, IRNewsLink, Top 500 Watch and Focus—as well as our newest newsletter Mobile Commerce Report.
  4. 4. A quick primer • In a typical month, 66% of online adults visit a social networking site, like Facebook or Twitter. – Nearly half of those consumers visit at least one of those sites multiple times a day. Another 17% visit the site(s) daily. – 68% of those consumers who regularly visit social– 68% of those consumers who regularly visit social networking sites have shown support for products, brands, artists, etc. by following or clicking that they Like them, up from 57% in 2008. – Roughly one in five social network visitors say they search their social network(s) for information before making a purchase, up from 17% a year ago. * Experian Marketing Services
  5. 5. The basics of the Like button • Facebook launched the Like button plug-in in April. – The plug-in is a single line of HTML code that a retailer can add to its site (in one of two ways) in order to feature the Facebook Like button.feature the Facebook Like button. – When a user clicks the Like button, that information appears in the News Feed with a link back to the retailer’s web site. – If a retailer adds the Like box, another line of HTML code, users can also see who has already clicked that they Like the product.
  6. 6. What it looks like
  7. 7. The uptake • In less than five months, more than 2 million web sites have added social plug-ins.web sites have added social plug-ins.
  8. 8. The Benefits • The average consumer who has clicked that he Liked a product has 2.4x the number of friends than that of the typical Facebook user. • Consumers who click that they Like products• Consumers who click that they Like products click on 5.3x more links to external sites than the typical Facebook user.
  9. 9. Weaving Like throughout: • In April, launched a revamped site• In April, launched a revamped site that leveraged Facebook’s social plug-ins.
  10. 10. The results • More than 1.9 million have clicked that they Like Levi’s. • Allowing consumers to click that Like a product allows Levi's to highlight its most fashionableallows Levi's to highlight its most fashionable styles, and to do so with an authoritative voice— the voice of the consumer. • The Like button integration may also provide other direct benefits, such as allowing Levi’s to alter its future lines based on consumers' likes.
  11. 11. The deep, dark secret • Measuring the payoff in terms of sales isn't simple.simple.
  12. 12. Even more social: • Outdoor gear and apparel retailer launched in May with launched in May with the intention of differentiating itself by offering consumers a variety of ways to socialize around its brand.
  13. 13. Above the fold
  14. 14. At launch • The site featured the Powered By Love community where consumers can post comments, engage in discussions, post reviews and ask questions. • Each product page allowed consumers to pose questions on every product page.questions on every product page. • To entice consumers to take part in the Powered By Love community, the retailer offers GiantNerd Rewards to shoppers who review products, ask and answer questions, upload photos, join groups, share products on social networks such as Facebook and Twitter or who start, or comment on, a conversation.
  15. 15. But how to attract new shoppers? • In August, GiantNerd added the Like button to each of its product pages.each of its product pages.
  16. 16. The results • Since adding the button, GiantNerd has increased traffic coming from Facebook 100%. • The number of those consumers who place an order has jumped 30%.order has jumped 30%. • The average order value from those orders has risen 50%.
  17. 17. And now… • GiantNerd plans to introduce other initiatives that build Facebook’s application programming interfaces, or APIs. • For instance, the retailer last month launched• For instance, the retailer last month launched an application that allows a consumer who asks a question on to post the query on Facebook, Twitter, LinkedIn and other social networks.
  18. 18. Creating a viral loop: Tea Collection • Tea Collection is a high-end children’s clothing retailer. • The site added the Like button in May.• The site added the Like button in May.
  19. 19. The Like enticement • Tea Collection launched a promotion before the end of the summer season.the end of the summer season. – Presented various dresses and said the one with the most Likes at the end of the day would go on sale.
  20. 20. The results • More than 3,000 Likes in about 12 hours. • Site visits were 300% above average.• Site visits were 300% above average. • 10x increase in revenue over the previous day.
  21. 21. ‘It makes more sense’: • is a comparison shopping site that uses a cost-per-acquisition model, rather than pay-per-click. – That approach applies only to retailers that feed data to TheFind via affiliate networks like Commission Junction and LinkShare. to TheFind via affiliate networks like Commission Junction and LinkShare. • Some retailers get free clicks from as the site crawls 500,000 retail sites, collecting product data and prices. – About 65% of consumers’ clicks on the site generate no revenue for the site.
  22. 22. How to woo shoppers • Since its launch TheFind has aimed to engage with the site by adding features, like product reviews. • The goal? Personalization• The goal? Personalization
  23. 23. • The site wanted to better understand who was visiting its site. But building personalization features on its own would be difficult. • Enter the OpenGraph. – Allows consumers to sign in via Facebook account.– Allows consumers to sign in via Facebook account. – Opt in to allow TheFind to access the brands the consumer and her friends have clicked that they Like.
  24. 24. The Benefits • The Shop Like Friends or Shop Like Me enable TheFind to offer a simple personalization tool without having to ask users to take extra steps.steps. • Helps consumer zero in from the more than 500 million products on the site. • Helps brands accrue traffic.
  25. 25. The nut graf • Cost • Benefits • Downside?
  26. 26. Zak Stambor Thank you!