Social commerce leverages social media and user-generated content to transform online shopping experiences. It allows customers to interact with one another to make more informed purchasing decisions. While only 6% of customers trust online reviews, social commerce provides a way for companies to build relationships with customers and gain their trust over time. It also gives customers more control over the product selection and development process. The key is providing engaging content and communities where customers want to participate on a company's behalf. While commercial factors like product, price and promotion still apply, social commerce opens up new opportunities to drive sales through social connections and recommendations.

1. Social Shopping
Converting Conversations to Commerce
Andrew Gerrard
22nd November 2010
@andrewgerrard
andrew@d-marketing.co.uk

2. I’m sure we’ll be able to successfully market your
product, Mr. Ferguson. I’ve got one of my best
liars working on it right now.”
Charlos Gary, 2005

4. “...social context to the shopping experience.”
(Food and drink manufacturer)
“...earning the right to offer them the
opportunity to buy something.”
(Mass merchant retailer)
“...drive true relationship-based sales.”
(Pharmaceutical manufacturer)
“It is a new way to manage the long tail of
the value chain. Product selection by the
people for the people.”
(Clothing retailer)
What is Social Commerce?

5. Social Commerce is…
a transformation
“Just as e-commerce transformed retail,
social media transforms e-commerce
by changing people’s expectations.”
Mitch Joel - April 21, 2010 - Social Commerce Summit

6. “Social” UGC
Social
Marketing
“Commerce” ROI
Social commerce is about customers having
the means to interact with one another in
order to make better buying decisions.

10. “Technology can only
ever serve as a bridge,
never as a destination.”
Lord Puttnam, IAB Engage, 2005

11. Old rules?

12. New Model

13. Mass Audiences

14. Customer Segmentation
Market Fragmentation

15. Commercial realities still apply

16. 1. Product
2. Price
3. Promotion
4. Placement
5. People

18. “My network”

19. But - only 6% trust customer reviews.
Source: the e-tailing group, May 2010

20. “On a brighter note, sir, 3 percent of our
customers said they like our products.”
Charlos Gary, 2008

21. People powered R&D

22. Price driving
engagement

23. Group power

24. Multi-
channel
Social
connection
&
conversion

25. Using Geo-location to drive
footfall & in-store sales

26. “Does my bum look big in this?”
Instant Social Interaction

27. How much is a “Like” worth?

28. The social shopping experience

29. Social Commerce Framework
• Goals
• Community
• Content
– Create and deliver quality, timely, relevant
content
• Engage them
– Give your community things to do on your
behalf
• Empower them to take ownership
• Be prepared to “let go”(...just a little)
• Share success

30. “I’m not going to kid you, it’s a
volatile market.”

33. Thank you
http://www.slideshare.net/agerrard
Andrew Gerrard
22nd November 2010
@andrewgerrard
andrew@d-marketing.co.uk