Saatchi Wellness - Social Media Week 2011

Convergence:
How social commerce and mobile change the
way we make decisions and shop

Social Media Week NYC 2011
@saatchiwellness
#smwsaatchi

• If you scanned this QR code,
you just witnessed the power
of convergence

• Without event realizing it-
you’ve used multiple previously
distinguishable technologies

Converge:

To tend or move toward one point or one
another : come together

To come together and unite in a common interest or
focus
Merriam- Webster

Does Convergence look like this?

Jackson Pollock’s Convergence: Number 10; 1952

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

This is the way we used to look for directions

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

The availability and our access to information is immense
We are in fact becoming smarter because we are always
connected

Chris Anderson, Head of TED
conferences calls this “Crowd
Accelerated 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

Convergence can be understood in terms of the
following 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)

• 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

Video and social media continue to be some of our government’s
most important communication tools

The lines of communications are blurred–
it’s hard to tell where one ends and one begins

There is a growth in the interactivity and connectedness of
different networks, information platforms and devices

Our hardware today is smarter– Handheld Convergence

There is growing amount of overlap in the functions that can be
performed by different devices– iPhone is also a “business card”

• 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)

“…the pace of change of our human-created
technology is accelerating and its powers are
expanding at exponential pace.”
- Ray Kurzweil

talk to me I’ll make the
reservation
I just got
your email
It’s on the next
block
Friend me

I downloaded the
photos

We are living in a world where we are perpetually plugged in, which is
driving the development of new types of business models that take
advantage of the potential and new value created
21

Mobile Convergence
• Ubiquitous nature of
mobile devices
• New technologies

Unlocking a new type of
potential and value

Geo-location

Our 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

Geo-location

As a consequence, we become hyper-aware of our surroundings-
It’s the mashing of content and context

Shopping

According to the WSJ, 2010 was the year of the app-- fostering
a culture of now-ism, of instant gratification

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

Near Field Communications

Allows a device to collect data from another device or NFC tag at close range-- Opens up
huge potential for mobile payments

Mobile Payments
The number of mobile payment users worldwide
increased to 73.4 million in 2009, roughly a 70%
increase over 2008, and could breach 190 million
by 2012 (Forbes, December 2010)

“E-commerce is Over. Long Live Social
Commerce”
-Wired February 2011

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”

“If I had to guess, social commerce is the next
area to really blow up”
- Mark Zuckerberg

2010 saw an explosion of group shopping sites that relied on
the viral nature of crowd behavior

• 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

Convergence and Social Commerce
90% of purchases are
subject to some sort of social
influence
Value-expression function
of shopping
Make smarter shopping
decisions using their social
intelligence

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

“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

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

®

“Wireless branding”

@mobilematthews

“Happiness Hypothesis” by Jonathan Haidt, Univ. of Virginia

How to avoid
“Decision Paralysis”

Direct
The Rational Rider

Shape
The Path

How can
mobile
appeal to all three
to drive purchasing decisions?
Motivate
the Emotional Elephant

Loyal when
heard,
listened to
or understood

Begin with
symptoms

Virtually
delegates the
decision to the
brand. Combats
overanalyzing.

Ends with product
recommendation and
location

Direct product
information and
location

Direct
The Rational Rider

Shape
The Path

Mobile becomes the
“virtual heart &
brain”
of the consumer shopping
experience
Motivate
the Emotional Elephant

30%
more likely to buy online
or offline after highly satisﬁed
experience with retailer
mobile sites or apps

SHOPPING
O BRAND GAGEMENT
DRIVE CONSUMERS T BR AND TO CONSUMER EN

CONSUMER TO CONSUMER ENGAGEMENT EXTEND THE DIALOG
UE - CRM

D
TO BRAN
ONSUMERS
DRIVE C

24-hour access to
view, purchase and
share select high-
end shoes

BERGDORF GOODMAN:
“Brief buying”

QR code
scavenger hunt
around NYC

D
TO BRAN
ONSUMERS
DRIVE C

FORD FIESTA:
“Real-world gaming”

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”

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”

CONSUMER TO
CONSUMER ENGAGEMENT

User selects item,
captures pic, shares
on Facebook and
receives 10%
discount

H&M:
“Virtual ﬁtting”

THE
EXTEND - CRM
UE
DIALOG

1. Equalize the
consultation
conversation
1. Take control of
the uncontrollable

MERCK ONCOLOGY:
“Diary tracker”

THE
EXTEND - CRM
UE
DIALOG

Re-creates the casino
experience. Gaming
rewards tied to 15-brand
hotel beneﬁts and
drive
exclusive offers to
repeat visits

MGM RESORTS:
“Loyalty program”

TIP # 1

TECHNOLOGY
SHOULD NEVER
TRUMP BRAND

TIP # 4 PREACH “VALUE OF
ENGAGEMENT”

Mike Matthews
Founder & Managing Director
The Mobile Culture

mike@themobileculture.com
M 646.957.6282
W themobileculture.com
@mobilematthews

Feb 8, 2011

First in Social Commerce

Robert Tuttle
SVP Field Operations
bob@8thbridge.com

social shopping then

Copyright© 2010 8th Bridge, Inc.

social shopping now


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, 2010

Copyright© 2010 8th Bridge, Inc. 67

1/3 Online Time on Facebook

A brand’s customers are
Facebook spending far more time
on Facebook vs. their
All Other site.
Websites

Source: Morpace “Omnibus Report” June 10, 2010.


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

69
Copyright© 2010 8th Bridge, Inc. * Pew Internet: Generations Online 2009

The Rise of Facebook Messages


8thBridge-Enabled Brands


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.com


Facebook Home
Page Shopping

18.4X Lift in
Interaction Rates
vs.
http://www.link.com


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 Airlines


Q1 Release:
Group Travel

Plan and book trips
with your friends


First $100K Sold
on Facebook
November 2010

“Getting out of the inbox
was a strategic goal for
HauteLook.”

Adam Bernhard
CEO
HauteLook


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 - Mark


Amanda Jean Modi


Amanda Jean Modi

Amanda Jean Modi


Advocacy Drives Social Commerce

Sales Rewards
Spontaneous
Commissions Program


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.


Pricing Model

Enablement
Fee

+
Monthly
Subscription

+
Transaction
Fees

15

Pricing Model 8 Week Enablement

Enablement Set Goals &
Fee Strategy

+
Monthly
Design, Conﬁgure,
Subscription
Integrate
+
Transaction
Fees Launch

15

Thank You!

Robert Tuttle
SVP Field Operations
bob@8thbridge.com

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.

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!

SPA WEEK®ʼS FACEBOOK AFFILIATE PROGRAM

Powered by


Shared on Facebook

Shared on Twitter

Powered by

View your earnings…

257 58 $613.50

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

Laura A. Campbell, COO
Spa Week Media Group, Ltd.
89 Fifth Avenue, Suite 500
New York, NY 10003
(p) 212-352-8098 X118
(c) 917-821-1157
Laura@spaweekmedia.com

2011 Social Media Week
February 2011

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”

Case Study: Facebook Flash Sales

Case Study: Shoppable Posts

User presses play on post image
to open product catalog in
newsfeed

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

Thank You

david@hautelook.com

facebook.com/hautelook

@hautelook

101

THANK YOU
Social Media Week NYC 2011
@saatchiwellness

William Martino
SVP, Director of Digital Strategy
V 212.463.2524
william.martino@saatchiwellness.com

Sharon Mandler
Sr. Digital Strategist
V 212.463.4746
Sharon.Mandler@saatchiwellness.com

Saatchi Wellness - Social Media Week 2011

Recommended

Recommended

More Related Content

What's hot

What's hot (16)

Viewers also liked

Viewers also liked (6)

Similar to Saatchi Wellness - Social Media Week 2011

Similar to Saatchi Wellness - Social Media Week 2011 (20)

Recently uploaded

Recently uploaded (20)

Saatchi Wellness - Social Media Week 2011