Shifting storefronts final


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  • 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.
  • 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.
  • 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 HammacherSchlemmer, 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
  • The home shopping/electronic retailing industry was created in 1977, when small markettalk 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 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 contextRecent 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 changedCustomers 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 communitiesBy 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 moreBy 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.
  • August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.June 2007Dell joins TwitterWhy don’t we reach out and help bloggers with tech support issues?February 2008Twitter ExpandedStart experimenting with Twitter for business– another venue to help customers, but also thanking Dell customers. Outreach leads to some Twitters asking for help on purchases.May 2008Dell Outlet Achieves $0.5M in Sales via TwitterCommunity team active on TwitterJune 2009 $2M+ Sales via TwitterDell outlet on Twitter surpasses $2 million in sales with another $1 million dollars in sales at 2009Dell TechCenterA Collaborative Community for Datacenter pros grows by 400%December 2009Huffington Post BlogDell’s VP of Social Media and Community, Manish Mehta, begins blogging at Huffington PostJune 2009Global Twitter Revenues of $6.5 M Community across the social web =3.5 million direct customer connections
  • Imagine this kind of intimacy taking place across onlineThe new storefront is every part of business and everywhereSMEs 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.
  • Shifting storefronts final

    1. 1. Shifting StorefrontsRichard Margetic, Director, Global Social Media@ByJove
    2. 2. Early Shopping Global Marketing
    3. 3. Main Street Shopping 1920s Global Marketing
    4. 4. Interstate System Global Marketing
    5. 5. Suburban Shopping Mall Global Marketing
    6. 6. Mobile Today Global Marketing
    7. 7. Shopping atHome Global Marketing
    8. 8. Home Shopping: Catalogues Global Marketing
    9. 9. Home Shopping: TV Global Marketing
    10. 10. Home Shopping: eCommerce• Dell launches eCommerce in 1996. Hits $1 million a day in 1997. Global Marketing
    11. 11. Social Impact Global Marketing
    12. 12. Technology ischanging businessagain…the social webis the new storefront Global Marketing
    13. 13. Shopping HasAlways BeenSocial Global Marketing
    14. 14. Businessgrew andsucceededbased on wordof mouthand they still do… more so withthe social Web Global Marketing
    15. 15. Shopping Triangle Product / Brand Family/Friends Global Marketing
    16. 16. Surprising Sometimes!Where your fans are……and what they share Special Thanks to BlaM4C and Marshalus & more than 4000 customers before Dell was on Flickr Global Marketing
    17. 17. Social Speed Global Marketing
    18. 18. Social Growth Global Marketing
    19. 19. • Projected to hit 1 Billion in August• Asia has overtaken North America for second largest market, w/o China Global Marketing
    20. 20. Twitter• Tweets per day Global Marketing
    21. 21. Dell Social Growth 80% Global Marketing
    22. 22. Social’s Impact Global Marketing
    23. 23. 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 Global Marketing
    24. 24. Connecting social behavior to purchasing Weekly Weekly Revenue Visits
    25. 25. The Social Continuum>200K reviews globally66 countries, 15languages Global Marketing
    26. 26. Application Generates Business Benefit conversion & margin lift revenue/visitor is 3X higher in Japan; 134% higher in US 62 Countries 14 Languages Over 170,000 Reviews Submitted 14,461 Different Products Reviewed 75% of All Ratings 4 or 5 Stars Global Marketing27
    27. 27. Delivers Insights, Changes Behavior Five Star Program Brand Insights Messaging Global Marketing28
    28. 28. User generated Marketing Global Marketing
    29. 29. Global Marketing
    30. 30. ROI? Business Value across the full customer lifecycle31 Global Marketing
    31. 31. 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. Global Marketing
    32. 32. Social commerce transcends transactions • Insight: Social media improves Dell’s reach and share of voice • Insight: SM keeps customers • Insight: Established causality engaged, provides solutions between social media activity and improves loyalty. and purchase Our External Communities Communities• Insight: Social media based • Insight: Social Media provides support improves sentiment high Business Value and and correlates with higher contributes to demand gen revenue vehicle Global Marketing
    33. 33. The world around us is changing Control is not as successful as influence companies that embrace this the fastest will win • 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?34 Global Marketing
    34. 34. Dell’s Direct & Online Heritage: Critical Enablers Leader in online First to sell complex First company to frictionless configurable items hit $1M a day in commerce from online revenue order to delivery One of the first One of the first companies to Early adopter of to launch online social media discussion forums launch online support
    35. 35. Six years of experiments and experience December 2006 October 2007 May 2008 June 2009 Ratings and Michael Dell quote in Business Week Dell Outlet achieves Global Twitter Dell named #1 most February 2006 Jeff Jarvis story quote, “These conversations are social brand in Michael Dell Asks reviews on $0.5M in sales via Twitter revenues of $6.5 M going to occur whether you like it or not. Do you ranking of 100 top Why don’t we reach out and help want to be part of that or not? My argument is you Community team active on Twitter brands bloggers with tech support issues? absolutely do. You can learn from them. You can Small Business improve your reaction time. And you can be a blog launched better company by listening and being involved in that conversation.” August 2006 Blog outreach expands beyond tech support February 2007 March 2008 March 2010 Accepted Solutions China Micro- IdeaStorm Launched A voting based site allowing launched on Community January 2009 June 2009 Blogging customers and others to submit Dell France begins Online Dell Organizes in to $2M+ Sales ideas for Dell. Community Outreach 4 customer focused via Twitter business units Social Media Listening Command Center2006 2007 2008 2009 2010 2011 July 2006 Dell Social Media and Community University Direct2Dell launched June 2007 April 2008 2009 launched/5,000 team Today Direct2Dell exists in members trained by English, Spanish, Norwegian, Dell joins Twitter Inside IT launched Dell TechCenter Blog focused on business end of year Japanese and Chinese. January (Aug.) Dell launches 2008 customers, and Cloud Computing. EmployeeStorm Dell aligns Internal Blogs organization Spring 2009 December 2009 Altimeter recognizes Dell with Launched for for success Employees. Some Members of Huffington Post Blog “Open Leadership Award for Community and Innovation and Execution” Conversations (Oct.) deployed within each DellApril 2006 of the new Dell launches January 2007 B2B pagesTech support StudioDell launched Business units Facebookoutreach to blogs Dell’s video and podcast (Jun.) site, with helpful tips and February 2008 tricks. Eventually expanding this into the YouTube channel Twitter expanded November 2007 making sharing easier. DellShares launched The first investor relations blog by June 2008 a public company. Channel blog launched 36 Global Marketing
    36. 36. 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. Global Marketing
    37. 37. SlideshareGoogle+ LinkedIn Blog Twitter Global Marketing
    38. 38. Today’s Storefront Every where Global Marketing
    39. 39. Today’s Storefront Every where Every when Global Marketing
    40. 40. Today’s Storefront Every where Every time Every one Global Marketing
    41. 41. Are you mindingthe store? Global Marketing
    42. 42. Questions? Global Marketing