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Saatchi Wellness - Social Media Week 2011


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During Social Media Week 2011, Saatchi & Saatchi Wellness hosted "Convergence: How Social Commerce and Mobile Change the Way We Make Decisions and Shop." The agency was joined by The Mobile Culture, 8th Bridge, Spa Week, and Haute Look to share this presentation.

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Saatchi Wellness - Social Media Week 2011

  1. 1. Convergence:How social commerce and mobile change theway we make decisions and shopSocial Media Week NYC 2011@saatchiwellness#smwsaatchi
  2. 2. • If you scanned this QR code, you just witnessed the power of convergence• Without event realizing it- you’ve used multiple previously distinguishable technologies
  3. 3. Converge:To tend or move toward one point or oneanother : come together To come together and unite in a common interest orfocus Merriam- Webster
  4. 4. Does Convergence look like this?Jackson Pollock’s Convergence: Number 10; 1952
  5. 5. The merging of distinct technologies, industries, or devices into a unified whole– there are examples all around us• Multiple sources of information , which align at different touch points• Information exchange is ongoing and happens in real time• The way we encounter information has changed- discovery through the newsfeed
  6. 6. This is the way we used to look for directions
  7. 7. Travel directions today…
  8. 8. We live in an increasingly more digitized world• eBook sales have more than doubled from 2009 to 2010• eBook sales grew 163% between January and August 2010, up from $89.8 million in 2009 to $263 million in 2010• eBooks now make up 9.03% of total consumer book sales - compared to 3.31% at the close of 2009• Since 1971, Project Gutenberg has been digitizing books and offering these online for free-- they have over 33,000 free books available today American Association of Publishers
  9. 9. The availability and our access to information is immenseWe are in fact becoming smarter because we are alwaysconnected
  10. 10. Chris Anderson, Head of TEDconferences calls this “CrowdAccelerated Innovation”• Bring enough people with a common interest together and they will start to share and compete and improve• He points to a dance video online which spurs other dancers to create videos that tops the first
  11. 11. Convergence can be understood in terms of thefollowing developments: The merging of multiple channels onto a single application, device or service (i.e. broadcasting, telephone, television, motion pictures, photography, printed text and money)
  12. 12. • 38MM people watched on TV, 70 MM watched online• Facebook averaged 8,500 FB updates/min during the inauguration•  At its peak, CNN served 1.3 million concurrent live streams 
  13. 13. Video and social media continue to be some of our government’s most important communication tools
  14. 14. The lines of communications are blurred–it’s hard to tell where one ends and one begins
  15. 15. There is a growth in the interactivity and connectedness of different networks, information platforms and devices
  16. 16. Our hardware today is smarter– Handheld Convergence
  17. 17. There is growing amount of overlap in the functions that can beperformed by different devices– iPhone is also a “business card”
  18. 18. • Convergence is redefining our expectations• Breaking the mold for information formats and the way we interact with information• We are in the midst of a “digital renaissance” (MIT Professor Henry Jenkins)
  19. 19. “…the pace of change of our human-created technology is accelerating and its powers are expanding at exponential pace.” - Ray Kurzweil
  20. 20. talk to me I’ll make the reservation I just got your email It’s on the next block Friend me I downloaded the photosWe are living in a world where we are perpetually plugged in, which isdriving the development of new types of business models that takeadvantage of the potential and new value created21
  21. 21. Mobile Convergence • Ubiquitous nature of mobile devices • New technologiesUnlocking a new type ofpotential and value
  22. 22. Geo-locationOur devices are so smart, that they know where we are• “Checking-in” draws on a competitive mentality• Leverages the social graph as a powerful promotional tool
  23. 23. Geo-locationAs a consequence, we become hyper-aware of our surroundings-It’s the mashing of content and context
  24. 24. ShoppingAccording to the WSJ, 2010 was the year of the app-- fostering a culture of now-ism, of instant gratification
  25. 25. Holiday Shopping 2010• 52% of U.S. Smartphone users planned to use their phone to compare prices during the holiday season – Google Blog• 40% planned to use their phones to read product reviews- Google Blog • eBay mobile sales reached $230M during the holiday, up 166%- eBay
  26. 26. Near Field CommunicationsAllows a device to collect data from another device or NFC tag at close range-- Opens up huge potential for mobile payments
  27. 27. Mobile PaymentsThe number of mobile payment users worldwideincreased to 73.4 million in 2009, roughly a 70%increase over 2008, and could breach 190 millionby 2012 (Forbes, December 2010)
  28. 28. “E-commerce is Over. Long Live Social Commerce” -Wired February 2011
  29. 29. Social Commerce• The selling with social media• There are generally two type of social commerce: – Shopping on a social media page (i.e. Facebook tab) – Social media incorporated into an e-commerce page (product reviews)• Product discovery and purchase decisions are informed by the collective and distributed social intelligence of peoples’ social graphs• Transaction as communication – “shop-and-tell”
  30. 30. “If I had to guess, social commerce is the nextarea to really blow up” - Mark Zuckerberg
  31. 31. 2010 saw an explosion of group shopping sites that relied on the viral nature of crowd behavior
  32. 32. • Social commerce helps people realize the value expression of shopping— what psychologists call ‘impression- management’ – aka bragging rights, ego-tripping• We discover brands and products through our online social network—not dissimilar from how we would discover these offline
  33. 33. Convergence and Social Commerce90% of purchases aresubject to some sort of socialinfluenceValue-expression functionof shoppingMake smarter shoppingdecisions using their socialintelligence 
  34. 34. Source: Oracle Retailing Blog
  35. 35. Convergence Smarter hardware and software On-demand consumerism Greater access to Crowd accelerated information innovation Constantly connected Info discovery Smarter People Culture of Now-ism
  36. 36. “Welcome to convergence culture, where old and new media collide, where grassroots and corporate media intersect, where the power of the media producer and the power of the media consumer interact in unpredictable ways” – Henry Jenkins
  37. 37. Today’s Agenda Mike Matthews- Mobile Convergence – The Mobile Culture Bob Tuttle- Social Commerce – 8th Bridge Laura Campbell- Case Study – Spa Week David Sobie- Case Study – Haute Look
  38. 38. Today’s Agenda Mike Matthews- Mobile Convergence – The Mobile Culture Bob Tuttle- Social Commerce – 8th Bridge Laura Campbell- Case Study – Spa Week David Sobie- Case Study – Haute Look
  39. 39. ®“Wireless branding” @mobilematthews
  40. 40. “Happiness Hypothesis” by Jonathan Haidt, Univ. of Virginia How to avoid “Decision Paralysis”
  41. 41. Direct The Rational Rider Shape The Path How can mobile appeal to all three to drive purchasing decisions? Motivatethe Emotional Elephant
  42. 42. Loyal when heard, listened to or understoodBegin withsymptoms
  43. 43. Virtually delegates thedecision to thebrand. Combats overanalyzing. Ends with product recommendation and location
  44. 44. Direct productinformation and location
  45. 45. Direct The Rational Rider Shape The Path Mobile becomes the “virtual heart & brain” of the consumer shopping experience Motivatethe Emotional Elephant
  46. 46. 30% more likely to buy onlineor offline after highly satisfied experience with retailer mobile sites or apps
  49. 49. D TO BRAN ONSUMERS DRIVE C 24-hour access to view, purchase and share select high- end shoesBERGDORF GOODMAN:“Brief buying”
  50. 50. QR code scavenger hunt around NYC D TO BRAN ONSUMERS DRIVE CFORD FIESTA:“Real-world gaming”
  51. 51. BRAN D TO CONS ENGA UMER GEME NT 61% of moms let children play with mobile devices Moms say it’s most handy for: Restaurants 70% Retail Stores 53% Car 51%J&J - BABY CENTER:“Life utility”
  52. 52. BRAN D TO ENGA CO GEME NSUMER NT/SA LES In-app barcode linked to Starbucks Card. Currently available in 6,800 stores nationwide.STARBUCKS:“Mobile payments”
  53. 53. CONSUMER TO CONSUMER ENGAGEMENT User selects item, captures pic, shares on Facebook and receives 10% discountH&M:“Virtual fitting”
  54. 54. THE EXTEND - CRM UE DIALOG1. Equalize the consultation conversation1. Take control of the uncontrollableMERCK ONCOLOGY:“Diary tracker”
  55. 55. THE EXTEND - CRM UE DIALOG Re-creates the casino experience. Gaming rewards tied to 15-brand hotel benefits and drive exclusive offers to repeat visitsMGM RESORTS:“Loyalty program”
  58. 58. TIP # 3 INTEGRATE & MARKET
  60. 60. 4 MAIN SERVICES
  61. 61. Mike MatthewsFounder & Managing DirectorThe Mobile Culturemike@themobileculture.comM 646.957.6282W
  62. 62. Today’s Agenda Mike Matthews- Mobile Convergence – The Mobile Culture Bob Tuttle- Social Commerce – 8th Bridge Laura Campbell- Case Study – Spa Week David Sobie- Case Study – Haute Look
  63. 63. Feb 8, 2011First in Social Commerce Robert Tuttle SVP Field Operations
  64. 64. social shopping thenCopyright© 2010 8th Bridge, Inc.
  65. 65. Copyright© 2010 8th Bridge, Inc.
  66. 66. social shopping nowCopyright© 2010 8th Bridge, Inc.
  67. 67. social shopping nowCopyright© 2010 8th Bridge, Inc.
  68. 68. Top 3 Reasons Customers Connect to a Brand on Facebook To stay current on available new products 35% To receive coupons and discount offers 37% To let my friends know what products I support 41% Source: Morpace “Omnibus Report” April, 2010Copyright© 2010 8th Bridge, Inc. 67
  69. 69. 1/3 Online Time on Facebook A brand’s customers are Facebook spending far more time on Facebook vs. their All Other site. WebsitesSource: Morpace “Omnibus Report” June 10, 2010.Copyright© 2010 8th Bridge, Inc. 68
  70. 70. The Decline of Email Marketing Customers no longer use +43% -28% email to keep in touch now that they’ve moved Email to Facebook... Social Media ** Time Spent Online June 2010 vs. June 2009 The Nielsen Company August 2010 69Copyright© 2010 8th Bridge, Inc. * Pew Internet: Generations Online 2009
  71. 71. The Rise of Facebook MessagesCopyright© 2010 8th Bridge, Inc. 70
  72. 72. 8thBridge-Enabled BrandsCopyright© 2010 8th Bridge, Inc. 71
  73. 73. First Retail Store on Facebook July 2009 “Through our collaboration with 8thBridge, we have now opened millions of stores.” Jim McCann CEO 1-800-Flowers.comCopyright© 2010 8th Bridge, Inc. 72
  74. 74. Facebook Home Page Shopping 18.4X Lift in Interaction Rates vs.© 2010 8th Bridge, Inc. 73
  75. 75. Facebook Home Page Shopping 18.4X Lift in Interaction Rates vs.© 2010 8th Bridge, Inc. 73
  76. 76. Facebook Home Page Shopping 18.4X Lift in Interaction Rates vs.© 2010 8th Bridge, Inc. 73
  77. 77. Facebook Home Page Shopping 18.4X Lift in Interaction Rates vs.© 2010 8th Bridge, Inc. 73
  78. 78. Facebook Home Page Shopping 18.4X Lift in Interaction Rates vs.© 2010 8th Bridge, Inc. 73
  79. 79. First Travel Store on Facebook August 2010 “We are now bringing Delta to our customers rather than the other way around.” Bob Kupbins VP Ecommerce Delta AirlinesCopyright© 2010 8th Bridge, Inc. 74
  80. 80. Q1 Release: Group Travel Plan and book trips with your friendsCopyright© 2010 8th Bridge, Inc. 75
  81. 81. First $100K Sold on Facebook November 2010 “Getting out of the inbox was a strategic goal for HauteLook.” Adam Bernhard CEO HauteLookCopyright© 2010 8th Bridge, Inc. 76
  82. 82. First Facebook User Sales Force August 2010 “We have transformed social network selling from door-to-door to wall-to-wall.” Claudia Poccia Global President Avon - MarkCopyright© 2010 8th Bridge, Inc. 77
  83. 83. Amanda Jean ModiCopyright© 2010 8th Bridge, Inc. 78
  84. 84. Amanda Jean ModiCopyright© 2010 8th Bridge, Inc. 79
  85. 85. Amanda Jean Modi Amanda Jean ModiCopyright© 2010 8th Bridge, Inc. 80
  86. 86. Advocacy Drives Social Commerce Sales Rewards Spontaneous Commissions ProgramCopyright© 2010 8th Bridge, Inc. 81
  87. 87. Advocacy Drives Social Commerce Sales Rewards Spontaneous Commissions Program Amanda Modi just shared her favorite lip shades for winter with you in the attached Mark store. Amanda’s favorite winter lip shades: 20% off exclusive discount here in this news feed store for my Facebook friends.Copyright© 2010 8th Bridge, Inc. 81
  88. 88. Pricing Model Enablement Fee + Monthly Subscription + Transaction FeesCopyright© 2010 8th Bridge, Inc. 82 15
  89. 89. Pricing Model 8 Week Enablement Enablement Set Goals & Fee Strategy + Monthly Design, Configure, Subscription Integrate + Transaction Fees LaunchCopyright© 2010 8th Bridge, Inc. 82 15
  90. 90. Thank You! Robert TuttleSVP Field
  91. 91. Today’s Agenda Mike Matthews- Mobile Convergence – The Mobile Culture Bob Tuttle- Social Commerce – 8th Bridge Laura Campbell- Case Study – Spa Week David Sobie- Case Study – Haute Look
  92. 92. WHO WE ARE?• Founded in 2004, to make the healthy benefits of the spa lifestyle available to the masses• Spa Week®, a bi-annual, trademarked event, offers consumers $50 treatments at participating spas nationwide• Database of over 1.2 million opt-in email consumers• Outstanding media coverage, through thousands of print, television and online platforms• Social media leader in our industry with 25,000+ Facebook “Likes” and 10,000+ Twitter followers• Recently released Spa. - The Official SpaWeek® Gift Card, valid year-round at thousands of spas across the U.S.
  93. 93. WHY A SOCIAL COMMERCE PROGRAM? • To provide real value to our members (cash being the best value to our audience) • To engage and re-engage our fans • To create ambassadors of our gift cards and overall brand • And, of course, to sell more cards!
  96. 96. SPA WEEK®ʼS FACEBOOK AFFILIATE PROGRAM Shared on Facebook Shared on Twitter Powered by
  97. 97. SPA WEEK®ʼS FACEBOOK AFFILIATE PROGRAM View your earnings… 257 58 $613.50
  98. 98. WHAT WE DISCOVERED… Results Key Learning• We increased our “Likes” by 5 • Challenging to explain “affiliate” to percent a broad audience• Conversions to purchase were • We budgeted for the build of the 3 times better than our application, but not enough for the website marketing• Over 60 percent of registrants • Could have had even bigger opted-into receive our conversion by having the newsletter e-commerce within our Facebook page
  99. 99. Laura A. Campbell, COOSpa Week Media Group, Ltd. 89 Fifth Avenue, Suite 500 New York, NY 10003 (p) 212-352-8098 X118 (c)
  100. 100. Today’s Agenda Mike Matthews- Mobile Convergence – The Mobile Culture Bob Tuttle- Social Commerce – 8th Bridge Laura Campbell- Case Study – Spa Week David Sobie- Case Study – Haute Look
  101. 101. 2011 Social Media Week February 2011
  102. 102. Introducing HauteLook96
  103. 103. Social Media Strategy Overview Crawl Walk Run • Build best in class • Engage audience • Create compelling fan page via promotions reason to like and follow • Establish brand • Create dialogue voice (versus monologue) • Refine, through practice, f Commerce • Push/pull sale • Enable “liking” on calendar in social HauteLook • Integrate social plugins environments and “social shopping”
  104. 104. Case Study: Facebook Flash Sales
  105. 105. Case Study: Shoppable Posts User presses play on post image to open product catalog in newsfeed
  106. 106. Case Study: Product Detail On Facebook More than… • 30,000 new fans • 22,000 store launches • ~4% conversion rate Consumers are willing to buy on Facebook
  107. 107. Thank You @hautelook101
  108. 108. THANK YOUSocial Media Week NYC 2011@saatchiwellnessWilliam MartinoSVP, Director of Digital StrategyV 212.463.2524william.martino@saatchiwellness.comSharon MandlerSr. Digital StrategistV