Social Commerce for Marketers -


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Social Commerce for Marketers -

  1. 1. June 1, 2011 Contact: Michael Fasciano, @Fasciano Social Commerce for Marketers Overview and POV
  2. 2. Agenda <ul><li>What is Social Commerce? </li></ul><ul><li>The Opportunity, Trends & Examples </li></ul>
  3. 3. What is social commerce? <ul><li>A subset of e-commerce that involves using social media contributions and interactions to assist in the online promotion, buying and selling of product in and beyond social platforms. </li></ul><ul><li>With HomeGoods making great strides in social media, the time may be right for HomeGoods leverage social investments and grab a greater piece of the digital commerce pie. </li></ul>
  4. 4. Social commerce is a significant driver behind online retail growth <ul><li>Social commerce is currently estimated at $5 billion annually </li></ul><ul><li>Expected to increase 600% by 2015 </li></ul>
  5. 5. Why pair commerce with social media? <ul><li>All generations exhibit social behaviors as they shop (right) </li></ul><ul><li>Social network users actively discuss promotions, ratings, and the final purchase: </li></ul><ul><ul><li>56% discuss product sales and promotions </li></ul></ul><ul><ul><li>50% give advice on what to purchase </li></ul></ul><ul><ul><li>49% talk about where to purchase products </li></ul></ul>
  6. 6. Facebook commerce is gaining momentum <ul><li>8% of brand Facebook pages are commerce enabled </li></ul><ul><li>50,000 retailers have opened an F-commerce store </li></ul><ul><li>F-Commerce can be executed as a </li></ul><ul><ul><li>full-service commerce experience </li></ul></ul><ul><ul><li>browser-driven experience that drives to alternate commerce enabled destinations </li></ul></ul><ul><li>Key benefits: </li></ul><ul><ul><li>Convenient experience </li></ul></ul><ul><ul><li>Instant sharing and discussion </li></ul></ul><ul><ul><li>Turn-key channel for engagement and promotional opportunities </li></ul></ul>AdAge, “ Facebook Commerce: A Brief History, ”
  8. 8. Conversation among friends impacts purchase decisions <ul><li>69% of online buyers find ratings and reviews helpful for making purchase decisions </li></ul><ul><li>67% of shoppers spend more online after receiving recommendations from their online friends </li></ul>eMarketer, “ US Retail Ecommerce Forecast, ” April 2011 Implication : Integrate commerce into conversation with friends of the brand
  9. 9. Transactions are moving closer to the conversation for convenience and engagement (i.e. up-funnel) <ul><li>Gillette ’ s extensive shop tab selection allows fans to purchase their favorite Gillette products without ever having to leave Facebook. </li></ul>Implication : Bring transactions closer to the conversation by initiating on social channels
  10. 10. Gift giving is a strong fit for engagement among community and friends 771,383 Likes Implication : Consider ways in which to make gifts a unique part of the community relationship
  11. 11. Commerce-primed social channels can deploy turn-key promotions that support revenue generation <ul><li>56% of online shoppers enter a retail-sponsored contest </li></ul><ul><li>Gap has given away 10,000 pairs of jeans through Facebook Places ’ check-in deals </li></ul>AdAge, “ Facebook Commerce: A Brief History, ” eMarketer, “ US Retai l eCommerce Forecast, ” April 2011 Implication : Use social promotions to increase consideration for featured social commerce
  12. 12. Sharing drives more traffic to point-of-purchase <ul><li>Levi ’s saw 40x increase in FB referral traffic after implementing the ‘Like’ button </li></ul><ul><li>Coca-Cola is getting 11% of unique site views from Facebook pages </li></ul>eMarketer, “ US Retail Ecommerce Forecast, ” April 2011 eMarketer, “ Social Commerce, ” January 2011 Mashable, “ Beginner ’ s Guide to F-Commerce, ” July 30: Implication : Make all transaction opportunities shareable with friends
  14. 14. Giving gifts to friends can go viral
  15. 15. The new behavioral targeting: Amex offers deals based on your Facebook Likes
  16. 16. An up-tick in collaborative shopping is already happening <ul><li>Wet Seal ’s ‘Shop with Friends’ tab increased sales by 20% due to shop tab referrals </li></ul>Mashable, “ The Beginner ’ s Guide to Facebook Commerce, ”
  17. 17. Social profiles can inform personalized shopping experiences <ul><li>36% of US online retailers are implementing social sign-on </li></ul><ul><li>41% of web users prefer social sign-in to traditional account logins </li></ul>eMarketer, “ Social Commerce, ” January 2011
  18. 18. Hybrid commerce hosts product browsing on Facebook, but drives traffic to established e-commerce channels Review / Discuss Products Make the Purchase On-Site
  19. 19. Models of F-Commerce to Consider <ul><li>Facebook initiated selling </li></ul><ul><ul><li>Set up a storefront on Facebook for browsing deals, giftcards, product, etc. </li></ul></ul><ul><ul><li>The vast majority of brand stores start the shopping process at FB but then jump over to an independent commerce page </li></ul></ul><ul><li>Complete selling via Facebook </li></ul><ul><ul><li>A transaction process that never takes users away from FB </li></ul></ul><ul><li>iFrames vs. Facebook Apps </li></ul><ul><ul><li>iFrames allow content hosting in the 520-pixel middle column. Advantage is simplicity </li></ul></ul><ul><ul><li>Apps require more development and the primary advantage is more real-estate </li></ul></ul>
  20. 20. APPENDIX
  21. 21. Retail e-commerce sales continue to expand rapidly in the US <ul><li>Online purchasing has become mainstream </li></ul><ul><li>In 2011, 179 million consumers 14+ will research products online </li></ul><ul><li>83% of them will make an online purchase </li></ul><ul><li>eCommerce will continue to grow significantly through 2015 and beyond </li></ul>