This document discusses the rise of social shopping and how it is evolving through three phases. Social Shopping 1.0 involved the growth of social networks and user reviews. Social Shopping 2.0 saw the rise of user-generated content and crowdsourcing platforms like YouTube, blogs, and Yelp. Social Shopping 3.0 focuses on leveraging the crowd to drive revenue by putting the crowd to work, enabling social shopping with friends, creating influencers, using location data, and bringing products to social media sites.

1. Social Shopping 3.0Beyond the Like Button

2. 51% considered information shared on their networks when making a purchase decision--eMarketerThe average consumer mentions specific brands over 90 times per week-Keller Fay, WOMMA81% received advice from friends related to a product purchase through a social site --Click ZTHE BANDWAGON HAS OFFICIALLY ARRIVEDBy 2014, 53% of total retail sales will be affected by the Web--Forrester74% who received such advice found it to be influential in their decision --Click Z

3. Loss of Brand Control Negative Comments Greater CompetitionSOCIAL SHOPPING CAN POSE THREATS…

4. Customer Insight Acquisition Engagement Trend Spotting…BUT ALSO REPRESENT GREAT OPORTUNITY

5. Jeff BezosMark ZuckerbergMark PincusSEVERAL “INFLUENTIAL” INVESTORS AGREE

6. Social Shopping 1.0THE CROWD HAS SPOKEN

7. HUGE SOCIAL NETWORKS CHANGE ONLINE BEHAVIOR

8. USER REVIEWS TAKE HOLD

9. DEEP DAILY DISCOUNTS GO VIRAL

10. THE “LIKE BUTTON” BECOMES UBIQUITOUS

11. Over 350,000sites have already installed Facebook like button.ABC News traffic from Facebook rose 250% after Like button.86% of United States online retailers have Facebook fan pages.41% of people ‘like’ pages to show friends brands they support.Facebook users spend over 700 Billion minutes per month there.30 Billion pieces of content are shared on Facebook per month.The average Facebook fan is worth $136.38 to a brand annually.The top 10 brands on Facebook added 115 Million fans in 2010.Facebook added 7.9 new accounts every second in 2010.P&G: 1,000 transactions/hour on the Pampers’ Facebook page.Facebook shoppers have 7%-10% larger shopping carts.THE FACEBOOK EFFECT

12. Over 350,000sites have already installed Facebook like button.ABC News traffic from Facebook rose 250% after Like button.86% of United States online retailers have Facebook fan pages.41% of people ‘like’ pages to show friends brands they support.Facebook users spend over 700 Billion minutes per month there.30 Billion pieces of content are shared on Facebook per month.The average Facebook fan is worth $136.38 to a brand annually.The top 10 brands on Facebook added 115 Million fans in 2010.Facebook added 7.9 new accounts every second in 2010.P&G: 1,000 transactions/hour on the Pampers’ Facebook page.Facebook shoppers have 7%-10% larger shopping carts.Source: comScore 06/2010THE FACEBOOK EFFECTSource: comScore 06/2010Heavy users spend2.5x morethan non users

13. 23,000%53%Monty Python DVD sales growth after launching YouTube Click to BuyTweeters recommend companies and/or productsIT ISN’T ALL ABOUT FACEBOOKSource: comScore 06/201018,000$3.24BFoursquare users checked in at Target stores on Black FridaySpent on virtual merchandise in Second Life in 2010

14. Social Shopping 2.0USER-GENERATED CONTENT TAKES CENTER STAGE

15. YOUTUBE EXPLODES

16. BLOGGERS BECOME “JOURNALISTS”

17. YELP: CROWDSOURCING GOES MAINSTREAM

18. LOCATION AS USER GENERATED CONTENT

19. $$$$$Social Shopping 3.0LEVERAGING THE CROWD TO DRIVE REVENUE

20. PUT THE CROWD TO WORK FOR YOU

21. What can I say? I love to rock. My music taste is eclectic, but mainly rock. I want my store to reflect that. I love everything from Slipknot to Joni Mitchell.

23. -6 million unique visitors a month -400,000 likes added daily -30,000 new sets are created daily

24. MAKE IT EASY FOR FRIENDS TO SHOP TOGETHER

27. CREATE YOUR OWNPOWER INFLUENCERS

29. Blippy users have now shared 2.6 million purchases totaling more than $65 million in sales

31. LEVERAGE LOCATION SHARING

34. Whenever a player is near an H&M location, virtual goods from the new Blues collection will appear in the game

35. Players can review the product details of the items, and if they check in an item, they earn game bonus points.

36. Players also receive discounts and promotions for real goods available in nearby stores, and points for scanning in-store product bar codes.

37. -10.6M Branded Impressions-700,000 Online Check-ins-350,000 In-store Check-ins

38. BRING YOUR PRODUCTS TO SOCIAL SITES

41. 31,913 Fans Added Every Month1,000 TransactionsEvery Day

42. NURTURE THE CHANNEL AS A DESTINATION

44. BRING SOCIAL GRAPHS TO YOUR PRODUCTS

46. Quick TipsGETTING STARTED

47. 1. Assign an owner (with executive sponsorship)2. Understand your customers’ (current or targeted) affinity for/adoption of technology, social networks, etc.3. Measure your organization’s tolerance for trial (and error)4. Evaluate your commerce platform and your ability to extend and adopt to new devices, platforms, networks5. Stay true to – and complement – your core brand values

48. All-Channel CommerceCall CenterClientelingStore PortalStore KioskDigital Signagem-Commerce Pocket KioskSocial ShoppingTweet DeskBrand_A.comBrand_B.comB2B.comPayment ProcessingTax Address ValidationFraud CheckWMSMerchandisingCustomerCatalog & ContentPricing & PromotionsOrdersInventoryGift RegistryIntegratedSystems/ServicesPartners andAffiliatesBlue Martini Commerce PlatformBlue Martini Order Processor·· CONNECTEDEVERYWHEREADAPTIVEWarehousesSuppliers & 3PLStores

49. David.Bruno@RedPrairie.comTHANK YOU!