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1



Social
Commerce
for Luxury
Brands
From Conversation
to Conversion


Dr Paul Marsden
Social Media Strategist
Syzygy Group

p.marsden@syzygy.net
2




                                             Social Media              x

                                             Online media that supports
                                             social interaction and user
                                             contributions

                                             Social Commerce           x

                                             Social commerce is a subset
                                             of electronic commerce that
                                             involves using social media,
                                             online media that supports
                                             social interaction and user
                                             contributions, to assist in
                                             the online buying and
                                             selling of products and
                                             services




Social Commerce: Selling with Social Media
3




Social Commerce: Selling with Social Media
S
                                                                    4



 Social
 Media


                                            Offline Retail


                                                           Retail

     Store Tabs




          Newsfeed Stores
                                           Online Retail


Plugging Retail into Social + Social into Retail
5

                Facebook feed           YouTube
                 / plugins /store       channel




               
                              offline retail




                              online retail




                retail blog                   twitter feed




From Conversation to Conversion
6




     Retail                                   Sales




                   Social
     Retail   +    Media
                                             Sales + N
                             ↑ Footfall
                             ↑ Conversion
                             ↑ Order Value
                             ↑ Loyalty
                             ↑ Advocacy




Allows Measurement of Social Media ROI
7




      Social Media                  Luxury
              Inclusive               Exclusive
            Accessible              Inaccessible
               Popular                   Elite
         User Generated           Genius Generated
        Cult of the Amateur        Cult of Designer
               Let Go              Stay in Control




But Does Luxury Fit with Social Media?
8




                                       Luxury Brands Don’t
                                            Discount!
                 Overwhelming Reason   (or Don’t Want to be
                 Most People Connect    Seen to Discount)
                     With Brands:
                  Deals & Discounts



The Big Issue: Promotions
9




How Can Luxury Brands Shift Stock with Social Media
without Price Promotions & whilst Retaining Exclusivity?
10




Price Promotions 1. Offer Exclusive Access
11




Price Promotions 1. Offer Exclusive Access
12




Price Promotions 1. Offer Exclusive Access
13




Price Promotions 1. Offer Exclusive Access
14




Price Promotions 1. Offer Exclusive Access
15




Price Promotions 1. Offer Exclusive Access
16




Price Promotions 1. Offer Exclusive Access
17




Price Promotions 1. Offer Exclusive Access
18




Price Promotions 2. Offer Exclusive Information
19




Price Promotions 2. Offer Exclusive Information
20
                                                    Giving the
                                                  Inside Scoop
                                                     to Style
                                                    Bloggers

    Half Half




Price Promotions 2. Offer Exclusive Information
21

                                                   Daily Trainer
                                                  Sales Up 33%




Price Promotions 3. Offer Exclusive Experiences
22




Price Promotions 3. Offer Exclusive Experiences
23




Price Promotions 3. Offer Exclusive Experiences
24
                                                     Social
                                                   shopping
                                                    tools->
                                                  conversion
                                                   up 162%




Price Promotions 3. Offer Exclusive Experiences
25
                                                    Bringing
                                                  the Flagship
                                                     Store
                                                   Experience
                                                     Online




Price Promotions 3. Offer Exclusive Experiences
26




Price Promotions 3. Offer Exclusive Experiences
27




Price Promotions 3. Offer Exclusive Experiences
28




Social & Luxury Fashion
Use Social to Offer...

Price Promotions
                         ↑ Conversion (contra
                         Conversation)
Exclusive Access
                         ↑ Loyalty (Retention /
Exclusive Information                                ROI
                         Lifetime Value)
Exclusive Experiences
                         ↑ Advocacy (Acquisition /
                         Referral Value)
29




Thanks http://socialcommercetoday.com
30


Appendix
31

               PR (Reputation Management)   $? (Money Out)




$ (Money In)      Internal Collaboration    $? (Money Out)




                    HR (Recruitment)        $? (Money Out)

Social Media
                                              Brand Building      $? (Money Out)
                   Sales & Marketing
                                            Social Commerce       $ (Money Out)
                   Customer Service         $? (Money Out)




                 Market Research / R&D      $? (Money Out)
                                                                        ROI
                                                               ROI = Money Out - Money In

Why Social Commerce?
Social Media Marketing with ROI

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Social Commerce for luxury

  • 1. 1 Social Commerce for Luxury Brands From Conversation to Conversion Dr Paul Marsden Social Media Strategist Syzygy Group p.marsden@syzygy.net
  • 2. 2 Social Media x Online media that supports social interaction and user contributions Social Commerce x Social commerce is a subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services Social Commerce: Selling with Social Media
  • 3. 3 Social Commerce: Selling with Social Media
  • 4. S 4 Social Media Offline Retail Retail Store Tabs Newsfeed Stores Online Retail Plugging Retail into Social + Social into Retail
  • 5. 5 Facebook feed YouTube / plugins /store channel  offline retail online retail retail blog twitter feed From Conversation to Conversion
  • 6. 6 Retail Sales Social Retail + Media Sales + N ↑ Footfall ↑ Conversion ↑ Order Value ↑ Loyalty ↑ Advocacy Allows Measurement of Social Media ROI
  • 7. 7 Social Media Luxury Inclusive Exclusive Accessible Inaccessible Popular Elite User Generated Genius Generated Cult of the Amateur Cult of Designer Let Go Stay in Control But Does Luxury Fit with Social Media?
  • 8. 8 Luxury Brands Don’t Discount! Overwhelming Reason (or Don’t Want to be Most People Connect Seen to Discount) With Brands: Deals & Discounts The Big Issue: Promotions
  • 9. 9 How Can Luxury Brands Shift Stock with Social Media without Price Promotions & whilst Retaining Exclusivity?
  • 10. 10 Price Promotions 1. Offer Exclusive Access
  • 11. 11 Price Promotions 1. Offer Exclusive Access
  • 12. 12 Price Promotions 1. Offer Exclusive Access
  • 13. 13 Price Promotions 1. Offer Exclusive Access
  • 14. 14 Price Promotions 1. Offer Exclusive Access
  • 15. 15 Price Promotions 1. Offer Exclusive Access
  • 16. 16 Price Promotions 1. Offer Exclusive Access
  • 17. 17 Price Promotions 1. Offer Exclusive Access
  • 18. 18 Price Promotions 2. Offer Exclusive Information
  • 19. 19 Price Promotions 2. Offer Exclusive Information
  • 20. 20 Giving the Inside Scoop to Style Bloggers Half Half Price Promotions 2. Offer Exclusive Information
  • 21. 21 Daily Trainer Sales Up 33% Price Promotions 3. Offer Exclusive Experiences
  • 22. 22 Price Promotions 3. Offer Exclusive Experiences
  • 23. 23 Price Promotions 3. Offer Exclusive Experiences
  • 24. 24 Social shopping tools-> conversion up 162% Price Promotions 3. Offer Exclusive Experiences
  • 25. 25 Bringing the Flagship Store Experience Online Price Promotions 3. Offer Exclusive Experiences
  • 26. 26 Price Promotions 3. Offer Exclusive Experiences
  • 27. 27 Price Promotions 3. Offer Exclusive Experiences
  • 28. 28 Social & Luxury Fashion Use Social to Offer... Price Promotions ↑ Conversion (contra Conversation) Exclusive Access ↑ Loyalty (Retention / Exclusive Information ROI Lifetime Value) Exclusive Experiences ↑ Advocacy (Acquisition / Referral Value)
  • 31. 31 PR (Reputation Management) $? (Money Out) $ (Money In) Internal Collaboration $? (Money Out) HR (Recruitment) $? (Money Out) Social Media Brand Building $? (Money Out) Sales & Marketing Social Commerce $ (Money Out) Customer Service $? (Money Out) Market Research / R&D $? (Money Out) ROI ROI = Money Out - Money In Why Social Commerce? Social Media Marketing with ROI