Rise of Social Commerce (Webinar)


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Webinar based on research by Altimeter Group's Lora Cecere (Supply Chain Management, eCommerce, Social Commerce) and Jeremiah Owyang (Customer Strategy)

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Rise of Social Commerce (Webinar)

  1. Rise of Social Commerce<br />#rscwebinar<br />February 3, 2010<br />1<br />Lora Cecere and Jeremiah Owyang<br />Altimeter Group<br />
  2. Read the report<br />2<br />Rise of Social Commerce<br />A Trail Guide for the Social Commerce Pioneer<br />Published November 1, 1010<br />Download at: <br />slideshare.net/loracecere<br />
  3. Qualitative: 54 interviews of social pioneers<br />Quantitative: 123 respondents from retail and consumer products<br />In vitro: 145 conference attendees <br />Our methodology<br />3<br />
  4. “Social Commerce provides social context to the shopping experience. It is not B2C.”<br />“Social commerce is in development. It is less about cool widgets and more about the power of the digital relationship.”<br />“Engaging on topics that are important and earning the right to offer them the opportunity to buy. Earning attention and capturing intention to deliver a personalized response. “<br />“It is a new way to manage the long tail of the value chain. Product selection by the people for the people.”<br />What is Social Commerce?<br />4<br />
  5. “The use of Social Technologies to anticipate, personalize and energize the shopping experience.”<br />It is both a channel and a new way of doing business.<br />Our belief<br />5<br />
  6. The Potential of the Open Graph<br />Source: Gigya<br />
  7. For Hallmark….<br />8<br />
  8. 9<br />There were many trails west….<br />
  9. 10<br />Dell<br />Dell’s Key Social Media Milestones<br />
  10. The Rise of Social Commerce<br />11<br />
  11. The Rise of Social Commerce<br />12<br />
  12. 13<br />Fans like You! Amazon partners with Facebook to show customers what their friends have bought<br />
  13. Brands post frequently, but few engage in two-way dialog<br />Source: “The 8 Success Criteria of Facebook Page Marketing,” Altimeter Group, 2010<br />14<br />Altimeter Group rated 30 top brands on 8 success criteria for Facebook fan page marketing.<br />
  14. 15<br />Strategists want to have dialog, but not support<br />We asked 140 corporate Social Strategists what their top external (go-to-market) objectives are in 2011.<br />Source: “How Corporations Should Spend on Social Business,” Altimeter Group, 2011<br />
  15. The Rise of Social Commerce<br />16<br />
  16. Organize for social business<br />
  17. CENTRALIZED<br /><ul><li>One department controls all efforts
  18. Consistent
  19. May not be as authentic
  20. e.g. Ford</li></ul>19<br />
  21. ORGANIC<br /><ul><li>Organic growth
  22. Authentic
  23. Experimental
  24. Not coordinated
  25. e.g. Sun</li></ul>20<br />
  26. COORDINATED<br /><ul><li>One hub sets rules and procedures
  27. Business units undertake own efforts
  28. Spreads widely around the org
  29. Takes time
  30. e.g. Red Cross</li></ul>21<br />
  31. MULTIPLE HUB AND SPOKE <br />OR “DANEDELION”<br /><ul><li>Similar to Coordinated but across multiple brands and units
  32. e.g. HP</li></ul>22<br />
  33. HOLISTIC OR “HONEYCOMB”<br /><ul><li>Each employee is empowered
  34. Unlike Organic, employees are organized
  35. e.g. Dell, Zappos ©</li></ul>23<br />
  36. Customers Like products on Levi’s pages<br />
  37. 25<br />Levi’s auto-populates a shopping cart based on friends’ Likes<br />
  38. Review aggregation: Pros, cons and best uses<br />
  39. 27<br />Listening and learning in new product launch: Produce Saver Response<br />#Future15SB @bwdumars<br />
  40. 28<br />Listening and learning in new product launch: Produce Saver Response<br />#Future15SB @bwdumars<br />
  41. The Rise of Social Commerce<br />29<br />
  42. Diapers.com: Conversation precedes Commerce<br /><ul><li>Your baby becomes the social face ofDiapers.com
  43. Questions, suggestions and humor around being a parent
  44. Twitter parties
  45. Mommy clubs</li></li></ul><li>Diapers.com: Conversation precedes Commerce<br /><ul><li>75% orders from repeat customers
  46. 45-day return metric
  47. 50% of Facebook users are engaged for an hour/day</li></li></ul><li>Dove: Launches Facebook Store in 2011<br />32<br /><ul><li>32 Brands
  48. Engaged Consumers
  49. Less Channel Tension with Retailers than eCommerce</li></li></ul><li>33<br />Customers choose which designs get created in ModCloth’s Be The Buyer Program<br />
  50. Wet Seal: Social Strategy<br />User Generated Content<br />Social Network Engagement<br />Cross Channel Mobile<br />
  51. Facebook Virtual Runway – Dec 2009<br />App Generates<br />3X Customer<br />Fan News Feed Posts<br />Than from Fan Page<br />Interaction<br />
  52. Shop with Friends – Dec 2009<br />
  53. Wet Seal Social Network Game – August 2010<br />
  54. Cross Channel Mobile – Oct 2009<br />Outfit Views<br />500K+ per week<br />
  55. The Rise of Social Commerce<br />40<br />
  56. Delta<br />
  57. Other ideas:<br />Groups<br />International<br />Facebook rewards<br />Leverage partnerships<br />Rethinking Travel<br />
  58. Universal ID<br />Intersection of Interest and Social Graphs<br />Like Button tied to Open Innovation Networks<br />2-D Barcodes<br />Social Search<br />Virtual Currency<br />Trends we are following<br />44<br />
  59. We don’t know what “west” looks like<br />Find a Scout: Customer advocate to help navigate the trail<br />Lighten your load as you go….<br />Preparing for the journey<br />45<br />
  60. 47<br />THANK YOU<br />Lora Cecere<br />lora@altimetergroup.com<br />supplychainshaman.com<br />Twitter: lcecere<br />Jeremiah Owyang<br />jeremiah@altimetergroup.com<br />web-strategist.com/blog<br />Twitter: jowyang<br />
  61. 48<br />ABOUT US<br />Altimeter Group is a research-based advisory firm that helps companies and industries leverage disruption to their advantage. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design.<br />Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.<br />