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What's Next: Social Commerce - from transaction to truly social

Social is the most important contributor to e-commerce and a social commerce strategy should definitely be more than paid ads on social. Social, Messaging and E-Commerce platforms are all evolving to connect more deeply social interactions to commerce. Looking through the super rich Asia landscape what are all the different types of Social Commerce? How brands can develop, evolve their approach and capitalise on the real value of social.

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What’s Next:
Powered by
Social Commerce:
From Transaction
to Truly Social
Welcome
Dayoán Daumont
Consulting Partner
Ogilvy Consulting
Andreanne Leclerc
Regional Managing Partner
Head of Social Asia
Ogilvy
Jeremy Webb
Vice-President
Customer Engagement
& Commerce SEA
Ogilvy
Tell us
where you
are dialing
in from!
What’s the weather
like in your city?
Do you
want this
deck?
It will be available for download
shortly after the webinar on:
slideshare.net/socialogilvy
And the recording up on
facebook.com/OgilvyConsulting
Social Commerce:
From Transaction to Truly Social
Andreanne Leclerc
Jeremy Webb
A Point of View on
Social Commerce
What | Why | Where | How
Ad

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What's Next: Social Commerce - from transaction to truly social

  • 1. What’s Next: Powered by Social Commerce: From Transaction to Truly Social
  • 2. Welcome Dayoán Daumont Consulting Partner Ogilvy Consulting Andreanne Leclerc Regional Managing Partner Head of Social Asia Ogilvy Jeremy Webb Vice-President Customer Engagement & Commerce SEA Ogilvy
  • 3. Tell us where you are dialing in from! What’s the weather like in your city?
  • 4. Do you want this deck? It will be available for download shortly after the webinar on: slideshare.net/socialogilvy And the recording up on facebook.com/OgilvyConsulting
  • 5. Social Commerce: From Transaction to Truly Social Andreanne Leclerc Jeremy Webb
  • 6. A Point of View on Social Commerce What | Why | Where | How
  • 7. The industry cannot agree on the definition of “social commerce”
  • 8. Social Commerce is a subset of e-commerce - and more broadly, retail - that involves social media, online media that supports social interaction, and user contributions to assist online buying and selling of products and services. More succinctly, social commerce is the use of social networks and interactions between buyers in the context of e-commerce transactions. The closest we could get to a universal definition
  • 9. Yet with vastly different types of activity happening within this space, is a single definition helpful?
  • 10. Three distinct types of social commerce activity #3 Commerce-based Social Integrating social features into e-commerce platforms. This is commonly in the form of a “feed”, as seen on Tmall, Lazada and Shopee. Social Interaction mechanism such as advocating, liking, sharing, recommending, etc build in ecommerce platforms Humanizes the shopping experience Makes it more interactive #2 Social Referral Driving traffic from social platforms such as Facebook to ecommerce platforms such as Shopee or Tmall — usually involves influencers and specially-created social ad formats From social content to paid media to influencers, recommendations and partnerships. Using channels and people to drive to e- commerce #1 Social-based Commerce Transactions happening mostly within social platforms from discovery to selecting and sometimes paying in platforms such as Instagram, Line, Viber, Zalo, WeChat Content that inspire shopping, influence purchase decision. Seamless journey is key. API Connection with commerce platform.
  • 11. But one thing’s for sure, social is influencing online shopping behaviours Several studies have pointed out that online shoppers rely increasingly on social networks to help with their purchasing decisions. 55% of people bought a product online after discovering it on Social Source: eMarketer, USA, 2019
  • 12. And social media has become a growing driver of traffic to e-retailers, even if not the largest yet. Interestingly non paid ads are playing a big role. How valuable are the following networks in terms of driving non-paid online sales Source: Econsultancy The State of Social Commerce in South East Asia 2019
  • 13. Another thing’s for sure: Asia leads the world in social commerce innovation Asian social media platforms, and consumer more comfortable with mobile purchases, have accelerated the development of social commerce. Platforms built for Social Commerce: Little Red Book (China), Pinduoduo (China) Sophisticated linkages between Social and Commerce platforms E.g. Viber, Zalo, Tiktok/Shoppe etc Payment through mobile Social Platforms Common WeChat Pay etc
  • 15. Each form of social commerce requires a different approach, skillset and technology #3 Commerce-based Social Integrating social features into e- commerce platforms. This is commonly in the form of a “feed”, as seen on Tmall, Lazada and Shopee. #2 Social Referral Driving traffic from social platforms such as Facebook to ecommerce platforms such as Shopee or Tmall — usually involves influencers and specially-created social ad formats #1 Social-based Commerce Transactions happening mostly within social platforms from discovery to selecting and sometimes paying in platforms such as Instagram, Line, Viber, Zalo, WeChat
  • 16. #3 Commerce-based Social Integrating social features into e-commerce platforms. This is commonly in the form of a “feed”, as seen on Tmall, Lazada and Shopee. #2 Social Referral Driving traffic from social platforms such as Facebook to ecommerce platforms such as Shopee or Tmall — usually involves influencers and specially-created social ad formats #1 Social-based Commerce Transactions happening mostly within social platforms from discovery to selecting and sometimes paying in platforms such as Instagram, Line, Viber, Zalo, WeChat
  • 17. End to end shopping. Not yet for all. Inspiring Discovery Narrowing Closing Shoppable and swipe up stories Shoppable stickers #1 Commerce in social platforms Your Storefront on Instagram
  • 18. Facebook is introducing Facebook Pay, which will provide people with a convenient, secure and consistent payment experience across Facebook, Messenger, Instagram and WhatsApp. • Add your preferred payment method once then use Facebook Pay where available to make payments and purchases on their apps • Set up Facebook Pay app-by-app, or choose to set it up for use across apps (where available) • View payment history, manage payment methods and update your settings in one place • Get real-time customer support via live chat in the US (and in more places around the world in the future) • Social platform's digital wallets will open the internet up to the 'unbanked’ especially in SEA #1 Commerce in social platforms Facebook Pay will change the game
  • 19. Limited to items that have a sponsored hashtags. In partnership with four influencers, Kroger is encouraging college kids to post videos of their “cool and essential dorm room transformations” with the hashtag #TransformUrDorm. Users who choose to engage can also shop for Kroger products on a dedicated branded page. #1 Commerce in social platforms Everyone is getting at it. Catalogs are a mobile storefront for businesses to showcase and share their goods so people can easily browse and discover something they would like to buy. Previously businesses had to send product photos one at a time and repeatedly provide information — now customers can see their full catalog right within WhatsApp. For each item in its catalog, a business can add information including price, description and product code. It saves space both businesses and customers. Today available in Brazil, Germany, India, Indonesia, Mexico, the U.K. and the U.S. WhatsApp catalogs Tik Tok In-app purchases soon available
  • 20. #1 Commerce in social platforms Conversational commerce Zalo Store: Shop and Chat Shop on Social Zalo Network and order directly on Zalo app. Questions about product? Chat directly.
  • 21. #1 Commerce in social platforms Turning shopping into social experience Limited release Viber solved the lonely experience of e-commerce issue by bringing users an in-chat shopping experience that would allow them to shop online with the people they would otherwise go to the store with. Instant Shopping brings a catalog of brands and products to your chats.
  • 22. 8 million Line Shopping platform users In Thailand (44% of Line users) It provides a wide assortment of items from 15 major online marketplaces. There are mini-applications to service business on the platform. For example, apps for managing things like coupons, reservations, and payments will now be a thing, meaning users can easily manage their business within one platform. Plus, LINE will also be collaborating with Akita Fulfilment and aCommerce to offer one-stop-service shopping experiences. Users and sellers can manage orders, payment methods, payment slips, and purchase confirmations via LINE chat. Taiwan Diageo A one-stop shop experience in Line Data collection, CRM & Loyalty Friends click label, registration information, recommend friends, etc #1 Commerce in social platforms Shopping central to Life on Line proposition
  • 23. Many brands bring commerce experience to WeChat via mini-programs – apps easily activated without leaving WeChat Links seamlessly to JD.com or other WeChat-friendly commerce platforms Nescafe sells accessories through WeChat and integrates Fan Club – their loyalty program. Social interactions are key to the loyalty programs and be used to earn points, redeemable for products or branded accessories #1 Commerce in social platforms Bringing commerce to WeChat through miniprograms
  • 24. #3 Commerce-based Social Integrating social features into e-commerce platforms. This is commonly in the form of a “feed”, as seen on Tmall, Lazada and Shopee. #1 Social-based Commerce Transactions happening mostly within social platforms from discovery to selecting and sometimes paying in platforms such as Instagram, Line, Viber, Zalo, WeChat #2 Social Referral Driving traffic from social platforms such as Facebook to ecommerce platforms such as Shopee or Tmall — usually involves influencers and specially-created social ad formats
  • 25. #2 Social referral Product Feature Content Content and post featuring products to inspire or tease. Paid Media Paid media ad driving to e- commerce site. Influencers Influencer featuring links on their organic posts or stories to product pages and websites. Recommendations / Referrals Partner or people recommending or referring brands and products via links to pages and websites
  • 26. #2 Social referral Dynamic display Stories Ad Video Ad Visually immersive videos that are up to 60 seconds long in landscape or square format. Collection AD You can use collection to visually inspire and help your audience discover, browse and purchase products. Tell an integrated story with a product or lifestyle focus, through video, images or both. Carrousel AD Add another layer of depth to campaigns, where people can swipe to view additional photos or videos in a single ad.
  • 27. Consumers are increasingly expecting influencer marketing to be more subtle and authentic, in order to not fall in the trap of endorsed product placement. Several initiatives and new formats were brought to life in order to maximise the influence of influencers. Today, Instagram is to let influencers use the app to tag and sell products directly on the grid; a move it claims will enrich the shopping experience for users. Expect a boom in influencer affiliate marketing through social as their sales figures become more trackable and transparent. #2 Social referral Authenticity vs Sales
  • 29. #2 Social Referral Driving traffic from social platforms such as Facebook to ecommerce platforms such as Shopee or Tmall — usually involves influencers and specially-created social ad formats #1 Social-based Commerce Transactions happening mostly within social platforms from discovery to selecting and sometimes paying in platforms such as Instagram, Line, Viber, Zalo, WeChat #3 Commerce-based Social Integrating social features into e-commerce platforms. This is commonly in the form of a “feed”, as seen on Tmall, Lazada and Shopee.
  • 30. #3 Commerce-based social China leading the innovation Platforms using content to encourage shoppers to “hang out” on Tmall as if they were on social media platform. Ali’s ecosystem: Taobao Headlines, Weitao, Livestream, influencers etc Are people really interested in socializing when shopping? Some features take off, others don’t – but Alibaba seems determined to make them stick.
  • 31. #3 Commerce-based social Southeast Asia, with its China-owned ecosystem, has increasingly similar opportunities
  • 32. #3 Commerce-based social Southeast Asia, with its China-owned ecosystem, has increasingly similar opportunities Social ”feeds” and other social functionality are being pushed heavily by Lazada, Shopee, etc If the platforms/usage develop in similar ways to China, we predict more value in livestream and social gamification
  • 33. #3 Commerce-based social Social engagement is increasingly expected as part of the explosion in shopping festivals
  • 34. As part of its 10.10 campaign, Wyeth took advantage of Lazada’s all-new social engagement opportunities to drive sales and position itself as the brand with “answers for every mom”
  • 35. CREATE REALIZE Engagement Segmentation 3P Idea Experience Blueprint Value Exchange Channel Metrics Business Rules VOUCHER COLLECTION GAME LIVESTREAM & INFLUENCERS X2 PAGE REVAMP & BANNERS X6 FACEBOOK & GDN X8 LAZADA FEED & EDM Realtime Measurement Dashboard & Reporting OPTIMIZE
  • 36. We believe social commerce can make brands matter in 3 time horizons
  • 37. across time and every idea PLATFORM PROGRAM PULSE Mattering for years Mattering each quarter Mattering right now It should not be an afterthought
  • 38. making social commerce matter At the right moments every day: dynamic push and pull content around timely and relevant products At moments of business opportunity: use social as a push to stimulate demand and conversations Content and creative alignedd with brand platform. A E-Commerce strategy which social is part of. PLATFORM PROGRAM PULSE
  • 40. Effective social commerce must be planned and executed around 5 key dimensions
  • 41. New prospect Attract Already Customers Upsell / cross sell People interest by the brand Incite, persuade From content to paid media strategy we cannot sell the same way to all. A solution: Dynamic assets which can be optimized by audience. #1 Current Customers vs Acquisition
  • 42. Brand platform and guidelines apply in the context of social commerce as well. It’s should not feel different. However can have integrate ways to highlight new product, limited offer or promotion. Codification everywhere is key. It helps to create awareness, recognition and memorization. When one prospect is reached at the Sales stage, he easily makes the connection with the awareness post he saw previously. #2 Creative Consistency Awareness Consideration Conversion
  • 43. IN-DEPTH UNDERSTANDING OUR TARGET AUDIENCES LIFESTAGES ATTITUDES MINDSETS BEHAVIOURS INTERESTS TRENDS KEY TRIGGERS FOR HYPER RELEVANT & PERSONALISED CONTENT Thanks to data analytics, audience segmentation, retargeting strategies and personalized creative, social platforms offer all the necessary ingredients to build powerful customer-centric campaigns. Qualify based on previous engagements or look-a-like Personalised marketing will get more personal as social media platforms track previous purchases and begin to recommend the perfect accompaniments. Watch outs Remove choice Complicating Comparison Hiding Social Proof #3 Personalized experience
  • 44. #4 Evolution Continuous testing and optimization on the ecosystem and the go-to- market content and offers. 2-3 times a years at: • Platforms • Partners • Tools Constantly: • Audience • Creative • Copies • Frequency • Placement
  • 45. The holy grail Swipable Conversions Brands are trying to find new immersive and interactive ways to generate conversions without even leaving the social apps. Fuelled by improvements in augmented reality and camera detection technologies the distance between inspiration and purchase will continue to shorten upending the path to purchase funnel. Everything we see will be instantly shoppable both on and offline wherever we are in the world. #5 Immersive and interactive experiences (1) Adidas swipe up leading to gaming experience where users could buy cleats (2) Premium tequila Patron becoming the first alcoholic drinks brand that you can order via Instagram by swiping up the ad.
  • 46. But we believe that to truly win on social commerce, brands must be truly social
  • 47. In many cases there’s nothing social about the transaction — it just happens to be taking place in a social app While there’s nothing wrong with this, we believe that to make the most of social commerce, we need to find a meaningful role for buyer-buyer interactions as part of the transaction
  • 48. 4 design principles to make sure your social commerce is truly social #1 Social Proof: Are social interactions, especially comments, visible to other buyers? Are buyers able to see whether their friends have bought the same product? #2 Social Advocacy: Are we making it easy for consumers to share about their experience? Is our content engaging to the point people are compelled to share it with friends? Are we incentivising it as part of a loyalty program? #3 Social Cause/Topic: Is our content, or even the product SKU/bundle, tapping into important causes or hot topics? If what we’re selling, or its content, tap into societal conversation it will get more exposure through e-commerce platform algorithms etc. #4 Social Conversation: Are we creating spaces for people to talk about their preferences, experiences and to ask questions?
  • 49. Recap & learnings It’s more than a paid ad Types of Commerce 1. Commerce in Social Platform 2. Social Referral 3. Commerce-based Social Matter Across Time Horizon • Your overall strategy (e-commerce linked to brand) • Your program (campaigns) • Your Pulses every day Dimensions to plan and execute 1. Current Customer vs acquisition 2. Creative Consistency 3. Personalisation 4. Evolution 2 level optimisation 5. Immersive and Interactive experiences Social Design principles 1. Proof 2. Advocacy 3. Reach 4. Cause / Topic 5. Conversation
  • 50. Now ask yourself: Where are your users? What kind of experience you want to create? Who do you want to partner with? What technology do you need?
  • 51. Questions? Dayoán Daumont Consulting Partner Ogilvy Consulting Andreanne Leclerc Regional Managing Partner Head of Social Asia Ogilvy Jeremy Webb Vice-President Customer Engagement & Commerce SEA Ogilvy