How people use social media to shop
96
use social media
                                 %


                   © 2011 Leo Burnett l Arc Worldwide
42
incorporate social media
into the shopping journey
                                   %


                     © 2011 Leo Burnett l Arc Worldwide
And they use social
                                                                           media to enhance
          In-store                                  On mobile phone        shopping beyond
                                                                           the desktop.
          54                     %                  23         %
          With Geolocation                          On Twitter/Real Time



          20                     %                  51         %



% for Heavy / Index Heavy vs. All Social Shoppers
Social media has
the power to grow
your customer
base exponentially




             © 2011 Leo Burnett l Arc Worldwide
So we asked…
          Why do people use
          social media to shop?


© Leo Burnett and Arc Worldwide 2011   © 2011 Leo Burnett l Arc Worldwide
Two waves of research




January 2011                 4th Quarter 2011
Quantitative                 Quantitative
1500 online shoppers         1500 online shoppers
700 social shoppers          700 social shoppers
Qualitative                  Qualitative
+100 heavy social shoppers   +100 Facebook shoppers


                                                      © 2011 Leo Burnett l Arc Worldwide
We learned…




Reasons people use social
media to shop – needs
Types of social media people
use for shopping – platforms
Variations in behavior across
categories – category
                                              © 2011 Leo Burnett l Arc Worldwide
Today we d like to
          share a framework
          that will help you
          use social media to
          influence shoppers

© Leo Burnett and Arc Worldwide 2011   © 2011 Leo Burnett l Arc Worldwide
Our study uncovered
8 social shopper needs
8 social shopper needs




                © 2011 Leo Burnett l Arc Worldwide
Not all shoppers
          have similar social
          shopping needs


© Leo Burnett and Arc Worldwide 2011   © 2011 Leo Burnett l Arc Worldwide
Our segmentation
                                                                                       revealed 6 shopper
                                                                                       archetypes

Light Social Shoppers                                                                                                Heavy Social Shoppers

dollar defaulter      efficient sprinter      quality devotee           strategic saver      opportunistic adventurer     savvy passionista




To find the cheaper   To buy most popular   For reviews and ratings    To comparison shop          To score fun,             For broadcasting
    alternatives.        or convenient.     to help validate choice.   and find savings on          unexpected             latest trends, brands
                                                                        brands she wants.        content or deals.             and retailers.



                                                                                                                           © 2011 Leo Burnett l Arc Worldwide
And each shopper uses
social media in different
ways to accomplish
different things.

                       © 2011 Leo Burnett l Arc Worldwide
Shoppers with more utilitarian needs
dollar defaulter                    efficient sprinter
To find the cheaper alternatives.   To buy most popular or convenient.




                                                                         © 2011 Leo Burnett l Arc Worldwide
Shoppers with more informational needs
quality devotee                                    strategic saver
For reviews and ratings to help validate choice.   To comparison shop and find savings on brands she wants.




                                                                                              © 2011 Leo Burnett l Arc Worldwide
Shoppers with more indulgent needs
savvy passionista
For broadcasting latest trends, brands and retailers.




                                                        © 2011 Leo Burnett l Arc Worldwide
Shoppers with more impulse needs
opportunistic adventurer
To score fun, unexpected content or deals.




                                             © 2011 Leo Burnett l Arc Worldwide
Address these shoppers
needs using social media
platforms
Each platform serves
          certain shopper needs
          better than others


© Leo Burnett and Arc Worldwide 2011   © 2011 Leo Burnett l Arc Worldwide
Each
platform
serves
shopper
needs
differently 




                © 2011 Leo Burnett l Arc Worldwide
Know which platform
best serves
shoppers needs




                      © 2011 Leo Burnett l Arc Worldwide
Know which social
shopper needs and
platforms to invest in
Deciding platforms
          depends on the shopper
          needs in your category


© Leo Burnett and Arc Worldwide 2011   © 2011 Leo Burnett l Arc Worldwide
Shoppers tell us their
                    needs change based
                    on the category
burden    passion   they are shopping




routine     fun


                                    © 2011 Leo Burnett l Arc Worldwide
burden                                    Regular Cars
                                                           SUV s
                                                                                     passion                         We ve mapped "
                                                             PDAs
 Video Game System

                          HDTV
                                          Vacation Destinations
                      over 60 categories
Investment Brokerage Firms
                                  MP3 Players
                                            Luxury Cars
                                                                                 Fine Jewelry Stores
                                                                                                                     and channels
                 Cellular Service Providers
                                                                         Toys
Car Insurance
                               Bathroom 
                                 PC s 
    Sinks & Tubs
                                   Designer
                                                                Pet Supplies
                                  Electronic Stores
       Shampoo
                        Clothes
        Washing Machines
 Credit Cards
        Tires
 Banks
                                                     Designer Jeans




                   Cell Phone
                             Hardware Store
     Specialty Casual Clothing
                                   Airlines
                                           Makeup
              Shoes
    Fragrance
                                       OTC
                      Mass Merchandise
         Casual Sit Down
                                    Warehouse Clubs
                                         Restaurants
                                                              Greeting Cards
                                                                       Frozen Entrees
                Beer
                    Office Supply Stores
    Fem Care
                    Deodorant
                                                            Cereal
                        Coffee Shops

                                            Toothpaste
                              QSR s
                                                                     Yogurt
                                  Laundry
                                                                           Sports Drinks
                                 Detergent
                                                             Ice Cream
         Batteries
                         Gas
             Bottled Water
                                        Cookies

                     Light bulbs
                 Salt
                          Carbonated
   Plastic Trash Bags
                                       Bar Soap
                                                                                  Soft Drink
 routine                                                                                                fun                         © 2011 Leo Burnett l Arc Worldwide
burden    passion   We ve also mapped
                    social shoppers &
                    needs for categories




routine       fun                  © 2011 Leo Burnett l Arc Worldwide
burden    passion   Giving us some
                    direction on what
                    platforms to leverage
                    for each category need




routine       fun                  © 2011 Leo Burnett l Arc Worldwide
Three steps to
                                           developing a social
                                           shopping strategy


1   Diagnose your
    category mindset   2   Identify your
                           shopper needs        3   Select relevant
                                                    platforms


                                  passion                    passion




                                                               © 2011 Leo Burnett l Arc Worldwide
passion   Passion categories "
          like apparel should "
          help shoppers:
              stay up with trends
              share ideas
              get inspiration




                                © 2011 Leo Burnett l Arc Worldwide
burden   Burden categories "
         like electronics should
         help shoppers do: 
              comparative research
              digest complex
              information
              solicit input from friends
              and experts




                               © 2011 Leo Burnett l Arc Worldwide
Routine categories "
          like groceries should
          help shoppers: 
             source local deals

             do easy, on-the-spot
             product comparisons




routine                     © 2011 Leo Burnett l Arc Worldwide
Fun categories like
      sodas and books
      should give shoppers:
          tailored
          recommendations

          timely deals

          hot news and fun
          ideas
          reviews that are hard
          to pass up


fun                      © 2011 Leo Burnett l Arc Worldwide
Before you develop
your next social
shopper program
ask yourself . . .




             © 2011 Leo Burnett l Arc Worldwide
Thank You

To learn more about this study,
Please contact:

Lynsey Roumell
Lynsey.roumell@leoburnett.com

Social Shop Research Overview

  • 1.
    How people usesocial media to shop
  • 2.
    96 use social media % © 2011 Leo Burnett l Arc Worldwide
  • 3.
    42 incorporate social media intothe shopping journey % © 2011 Leo Burnett l Arc Worldwide
  • 4.
    And they usesocial media to enhance In-store On mobile phone shopping beyond the desktop. 54 % 23 % With Geolocation On Twitter/Real Time 20 % 51 % % for Heavy / Index Heavy vs. All Social Shoppers
  • 5.
    Social media has thepower to grow your customer base exponentially © 2011 Leo Burnett l Arc Worldwide
  • 6.
    So we asked… Why do people use social media to shop? © Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide
  • 7.
    Two waves ofresearch January 2011 4th Quarter 2011 Quantitative Quantitative 1500 online shoppers 1500 online shoppers 700 social shoppers 700 social shoppers Qualitative Qualitative +100 heavy social shoppers +100 Facebook shoppers © 2011 Leo Burnett l Arc Worldwide
  • 8.
    We learned… Reasons peopleuse social media to shop – needs Types of social media people use for shopping – platforms Variations in behavior across categories – category © 2011 Leo Burnett l Arc Worldwide
  • 9.
    Today we dlike to share a framework that will help you use social media to influence shoppers © Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide
  • 10.
    Our study uncovered 8social shopper needs
  • 11.
    8 social shopperneeds © 2011 Leo Burnett l Arc Worldwide
  • 12.
    Not all shoppers have similar social shopping needs © Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide
  • 13.
    Our segmentation revealed 6 shopper archetypes Light Social Shoppers Heavy Social Shoppers dollar defaulter efficient sprinter quality devotee strategic saver opportunistic adventurer savvy passionista To find the cheaper To buy most popular For reviews and ratings To comparison shop To score fun, For broadcasting alternatives. or convenient. to help validate choice. and find savings on unexpected latest trends, brands brands she wants. content or deals. and retailers. © 2011 Leo Burnett l Arc Worldwide
  • 14.
    And each shopperuses social media in different ways to accomplish different things. © 2011 Leo Burnett l Arc Worldwide
  • 15.
    Shoppers with moreutilitarian needs dollar defaulter efficient sprinter To find the cheaper alternatives. To buy most popular or convenient. © 2011 Leo Burnett l Arc Worldwide
  • 16.
    Shoppers with moreinformational needs quality devotee strategic saver For reviews and ratings to help validate choice. To comparison shop and find savings on brands she wants. © 2011 Leo Burnett l Arc Worldwide
  • 17.
    Shoppers with moreindulgent needs savvy passionista For broadcasting latest trends, brands and retailers. © 2011 Leo Burnett l Arc Worldwide
  • 18.
    Shoppers with moreimpulse needs opportunistic adventurer To score fun, unexpected content or deals. © 2011 Leo Burnett l Arc Worldwide
  • 19.
    Address these shoppers needsusing social media platforms
  • 20.
    Each platform serves certain shopper needs better than others © Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide
  • 21.
    Each platform serves shopper needs differently © 2011 Leo Burnett l Arc Worldwide
  • 22.
    Know which platform bestserves shoppers needs © 2011 Leo Burnett l Arc Worldwide
  • 23.
    Know which social shopperneeds and platforms to invest in
  • 24.
    Deciding platforms depends on the shopper needs in your category © Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide
  • 25.
    Shoppers tell ustheir needs change based on the category burden passion they are shopping routine fun © 2011 Leo Burnett l Arc Worldwide
  • 26.
    burden Regular Cars SUV s passion We ve mapped " PDAs Video Game System HDTV Vacation Destinations over 60 categories Investment Brokerage Firms MP3 Players Luxury Cars Fine Jewelry Stores and channels Cellular Service Providers Toys Car Insurance Bathroom PC s Sinks & Tubs Designer Pet Supplies Electronic Stores Shampoo Clothes Washing Machines Credit Cards Tires Banks Designer Jeans Cell Phone Hardware Store Specialty Casual Clothing Airlines Makeup Shoes Fragrance OTC Mass Merchandise Casual Sit Down Warehouse Clubs Restaurants Greeting Cards Frozen Entrees Beer Office Supply Stores Fem Care Deodorant Cereal Coffee Shops Toothpaste QSR s Yogurt Laundry Sports Drinks Detergent Ice Cream Batteries Gas Bottled Water Cookies Light bulbs Salt Carbonated Plastic Trash Bags Bar Soap Soft Drink routine fun © 2011 Leo Burnett l Arc Worldwide
  • 27.
    burden passion We ve also mapped social shoppers & needs for categories routine fun © 2011 Leo Burnett l Arc Worldwide
  • 28.
    burden passion Giving us some direction on what platforms to leverage for each category need routine fun © 2011 Leo Burnett l Arc Worldwide
  • 29.
    Three steps to developing a social shopping strategy 1 Diagnose your category mindset 2 Identify your shopper needs 3 Select relevant platforms passion passion © 2011 Leo Burnett l Arc Worldwide
  • 30.
    passion Passion categories " like apparel should " help shoppers: stay up with trends share ideas get inspiration © 2011 Leo Burnett l Arc Worldwide
  • 31.
    burden Burden categories " like electronics should help shoppers do: comparative research digest complex information solicit input from friends and experts © 2011 Leo Burnett l Arc Worldwide
  • 32.
    Routine categories " like groceries should help shoppers: source local deals do easy, on-the-spot product comparisons routine © 2011 Leo Burnett l Arc Worldwide
  • 33.
    Fun categories like sodas and books should give shoppers: tailored recommendations timely deals hot news and fun ideas reviews that are hard to pass up fun © 2011 Leo Burnett l Arc Worldwide
  • 34.
    Before you develop yournext social shopper program ask yourself . . . © 2011 Leo Burnett l Arc Worldwide
  • 35.
    Thank You To learnmore about this study, Please contact: Lynsey Roumell Lynsey.roumell@leoburnett.com