QVC is a global multimedia shopping community that generates $7.8 billion in annual sales across multiple platforms. It has over 200 million homes and 10 million customers worldwide. QVC succeeds by continually pleasing its customers, with over 70% of revenues coming from repeat customers. It aims to connect people to the things they love through a personalized shopping experience.

1. PREPARED FOR SMP 11/6/11 Connecting people to the things they love It’s a matter of time-within the next five or so years-before more business will be done on Facebook than Amazon.” CMEA Capital

2. Overview-Who we are

3. WHO WE ARE A global multimedia shopping community $7.8B worldwide US, UK, Germany, Japan, Italy 200M homes $2.2B web business well over 1B packages all time 10M+ customers worldwide new platforms accelerating growth Rapidly growing buy anytime business

4. UK DE IT JN ‘ 08 ‘ 87 ‘ 88 ‘ 89 ‘ 90 ‘ 91 92 ‘ 93 ‘ 94 ‘ 95 ‘ 96 ‘ 97 ‘ 98 ‘ 99 ‘ 00 ‘ 01 ‘ 02 ‘ 03 ‘ 04 ‘ 05 ‘ 06 ‘ 07 $7B $6B $5B $4B $3B $2B $1B ‘ 09 QVC, INC. REVENUE (US$) INTL US ‘ 10 In its first two decades, QVC shipped more than a billion orders to over 45 million customers on three continents. With global sales of $7.8 billion, QVC is three times the size of its next largest competitor, and in the U.S. now ranks second only to CBS among all American TV networks in terms of revenues. With over $2 billion in internet sales, QVC is now among the world’s largest dotcoms. But QVC is more than a TV network or dotcom. At its heart, QVC is a retailer. And like any good retailer, it succeeds not by selling items, but by continually pleasing its customers. A Global Business US

5. A Retail/Media Hybrid 5,000-15,000 QVC orders/hour 0 500,000 1,000,000 1,500,000 ~500,000-1,500,000 QVC viewers/hour Source: QVC MR&SA Q : Is QVC “sales” or “marketing”? A : yes. QVC typically generates 5,000-15,000 orders per hour. Meanwhile, QVC will reach up to 1.5 million viewers for at least some portion of that same hour. Figuratively speaking, for every thousand orders that QVC takes, hundreds of thousands more consumers are being predisposed to look for the brand at retail.

6. QVC.com Traffic (U.S.) August Monthly Visits (millions) Sources: Experian/Hitwise, Coremetrics estimated monthly visits (millions) QVC.com Traffic

7. Our Most Revealing Statistics overall satisfaction ease of doing business intention to reorder Top Box Rating 2008 7 out of 7 % of revenues derived from repeat customers

8. Connecting people to the things they love

9. It’s a pretty simple concept really…

10. Favorable Demographic Growth WOMEN AGED 35-44 20.6M PROJECTED GROWTH: +0.5% WOMEN AGED 25-34 20.6M PROJECTED GROWTH: +1.0% WOMEN AGED 45-54 22.7M PROJECTED GROWTH: -0.9% WOMEN AGED 55+ 41.7M PROJECTED GROWTH: +2.4% SOURCE: Population Division, US Census Bureau Aug 2008 It’s all about her

11. She is a passionate shopper Sees shopping as a way of engaging with the world It’s more than just buying “stuff” It’s new ideas for everyday life It’s inspiration It’s creating a community of experts, inventors, owners, dreamers, customers, employees together It’s about everyone sharing their life experiences

12. So who are we? QVC is a Global shopping community that offers an experience that is as much about entertainment and enrichment as it is about buying. We’re here to make genuine connections—really!

13. Connecting her to the people and the products she loves

14. On our platforms

15. And off our platforms

16. affinity.

17. Anywhere and anyway she prefers

19. personal.

20. Making her feel special

22. nurtured.

23. Connecting her to the cause she loves to support

24. These videos sold 3 pairs of shoes exclusively on Facebook prior to the Broadcast. All proceeds go to Breast Cancer. FFANY Presents Shoes on Sales for Breast Cancer Awareness

25. VIRAL MARKERTING

26. proud.

27. Giving her an experience of a lifetime

28. Red Carpet Ready, LA Getaway Flyaway Contest Winners, fresh off the red carpet at the Four Seasons, after their VIP Hollywood makeover with Mike George, President and CEO

29. important.

30. Giving her access to the events she can only dream of…

32. relevant.

33. Giving her the tools, tips, and shortcuts

35. inspired.

36. affinity personal nurture proud inspired important We don’t feel like a typical retailer. relevant And the grows…

37. Trending video on YouTube Homepage on 6/25 Trending Topic on Twitter twice in one week. Khloe Kardashian + Greyson Chance appearances

38. And she wants to express it…

39. Over 90k new likes @ under .37 cents per like

40. Who Loved Easy Does It Day…?

41. And when she does… Her 140+ friends can see it

42. For us… that means 79M friends of fans

46. 79M friends that listen to their friends Social endorsement (seeing that my friend likes a brand) drives a 2x increase in brand awareness and 4x increase in purchase intent -Nielsen

47. 79M friends that listen to their friends Social endorsement (seeing that my friend likes a brand) drives a 2x increase in brand awareness and 4x increase in purchase intent -Nielsen

48. Fan love to share… 68% indicate they are very likely to recommend a product Fans spend more… Fans of CPG brands reported spending $71.84 more per year than non Fans “ 51% of users who like a Page are more likely to buy from that brand”

49. Who is our QVC Facebook Customer? $75 incremental lift

50. Convert 1% of 79,000,000 = 790k new cust More

51. Results

54. Tagged 7 day Sales YTD up 198% Avg conversion @ 4+%, Wall @ 5% Give people what they love and……….

55. Challenges-What’s The Story? 1.Educating the company is key to get support for delivering Social Commerce goals Bigger than our Fan Page social plug-ins, integrating social features into email etc Social goals are company wide ….everyone wins -ROI Skeptics Abound….like early days of .com 2. . Metrics & Innovation --Hard to justify IT support to fully leverage social plug-ins in the purchase path -To scale social commerce we need IT & other business units to help 3. Fan Counting vs importance of Engagement levels -you can buy your way to oblivion and have 90% “hide” your page

56. What’s your story?

57. WHAT DO YOU HAVE TO OFFER? HOW CAN YOUR COMPANY MAKE PEOPLE FEEL LIKE THEY ARE AN INTEGRAL PART OF THE COMMUNITY/BRAND WHERE THEIR IDEAS MATTER?

58. Ask them…

59. The Future: some staggering quotes 4 Billion “shares” on Facebook daily 52% of Facebook users use the site daily Facebook Motivates 1 in 5 purchase decisions –Compete 1 New Facebook Fan produces 20 website hits- Hitwise More than 200 million FB users access FB thru mobil e devices More Americans own a smartphone than hold a bachelors degree!..-PEW In 3-5 years 10-15% of total consumer spending in developed countries may go thru sites such as Facebook-Mike Fauscette, IDC Consulting

60. Q + A