From Social Media to Social Commerce & Connected Commerce
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Transcript of From Social Media to Social Commerce & Connected Commerce
From Social Media to Social Commerce & Connected Commerce
Periklis VanikiotisHead of Digital Publicis GroupeFounder eCommerceNews.gr
Social Commerce: How your
customers’social circles
influencewhat they dowhere they gowhat they buy
Really?
So what? Isn’t that what we’ve been hearing about for the past 10 years?Is this discussion about the present or is it yet another trend that’s on its way, like so many others?Isn’t that what promises sales through Social Media but at the end of the day you only generate leads? Am I missing something?Yes, I’ve heard about it, but are the changes that are brought along really that many? Oh well, brands always wanted to sell – what is it that’s changed now and we are talking about Social Commerce? Is there something I HAVE TO do? Is there something I CAN do?
2005
2007
2008
2009
2010
2011
2012
2013
2014
2015
Social Commerce Short Timeline
2005
Social Commerce Short Timeline
2009
BBSsAOLUsenet GroupsSixDegrees.com
Friendster (2002)LinkedIn (2003)MySpace (2003)Facebook (2004)YouTube (2005)
The Infant Years
Social Networking’s Adolescence
2005
November
The term Social Commerce introduced by Yahoo!*
* Describes a set of online collaborative shopping tools such as shared pick lists, user ratings and other user-generated content-sharing of online product information and advice
Social Commerce Short Timeline
Social Commerce Short Timeline
FebruaryVirtual Gifts Sold on Facebook (A $15 USD business before closing in August 2010)
May Apps Platform Launches – Market Place Opens on Facebook
November Facebook Pages is Launched leading to shop windows for brands
POLYVORE Launches200
7
2008
December DELL Claims 1 Million $USD in revenue via Twitter –
Sales Alert!
Social Commerce Short Timeline
July$34 Spent on Facebook’ s FIRST retail Transaction via 1800-Flowers
Sales Alert!
Social Commerce Short Timeline
2009
But…
Social Media = Communication
Social Media is the Fear of Brands
2010
Social Commerce Short Timeline
2012
The Biz Grows Up
March
PAMPER’ S FACEBOOK STORE does1000
Transaction per Hour
Social Commerce Short Timeline
2010
April
LEVI’ S Goes Social addingFACEBOOK plugin to their
Friends Store
Social Commerce Short Timeline
2010
April
DISNEY launches a group ticketing
Store on Facebook for its movies
Social Commerce Short Timeline
2010
GAP Groupon Offers a $50 Voucher for $25
Nets 441.000 CustomersGROUPON becomes the fastest growing company of all time
FACEBOOK introduces Places
FLY DELTA Buy your tickets on Facebook
2010
Social Commerce Short Timeline
August
August
Mark Zuckerberg says“If I had to guess, Social
Commerce is next to blow up”
Social Commerce Short Timeline
2010
November
WALMART IntroduceCrowdsaver
Social Commerce Short Timeline
2010
FACEBOOK launchesDeals
January
LIVING SOCIAL runs AMAZON’s$20 voucher for $10
Sells 1.378.938
Social Commerce Short Timeline
2011
GOOGLE enters the GroupBuy space with
Offers
April
$1.93 USD in FundingFor Social Commerce StartUps
In the First trimester of 2011
Social Commerce Short Timeline
2011
• 28% of Facebook Users have Purchased something online via
Facebook LINK• 35% of Consumers would buy
products on Facebook• 32% would so from Twitter (if
Possible)• 47% of consumers access customer reviews in-store via
mobile handsets
Now we are ready
2013
Social Commerce Short Timeline
2014
The Rise of Social Commerce
#1 Online Marketplaces and Auction Sites
Markets that are community – based where 2 individuals engage directly in buying and selling
Amazon.com (1994) – 22% Increase in Net Sales
eBay (1995) – $18,3 B Sold in Goods (ex Vehicles)
Etsy (2005) – 800.000 Online shops
TaskRabbit (2008) – 75% Users come by WoM
Getaround (2011) – 5 Cities, 10K Car Owners, $14M Funding
Social Commerce Short Timeline
2013
Source Startup.fm
Types of Social
Commerce
#2 Social Network Shops & Shopping Apps
Sales that are referral driven on established social platforms – ie Through a shop tab on Facebook
Facebook (2004) – 1M Advertisers
Twitter (2006) – 33% Follow a brand – 67% buy from brands they follow
Tumblr (2007) – 250.000 page views (a typical day)
Instagram (2010) – 25% More Engagement
Pinterest (2010) – 70M Users – takes 41% of eCommerce
Social Commerce Short Timeline
2013
Source Startup.fm
Types of Social
Commerce
#3 Daily Deals and Group BuyingIf Enough number of people agree to purchase something, the products and services are offered at reduced price
Livingsocial (2007) – Record Breaking Deal (Amazon Gift Card)
Groupon (2008) – 50M download Mobile App
ScoutMob (2010) – 13 Cities -$5M backed
Google Offers (2011) – Most Popular Deal was $20 worth of Powell’ s Books
Social Commerce Short Timeline
2013
Source Startup.fm
Types of Social
Commerce
#4 User Review SitesSales are driven through product reviews by other purchasers, service reviews, and or rewarding individuals for sharing the same on their social profiles
Amazon (1994) – 209 Million Active Users
Yelp (2004) – 90% Users Say Positive Reviews impact their company buying choices
JustBought.it (2012) – Social Sharing Gives 3% of friends spent value in points – 500 points = 5 pounds
Social Commerce Short Timeline
2013
Source Startup.fm
Types of Social
Commerce
#5 User – Curated Pick ListsSites Focusing only on shopping; users create lists of product and services for other people to shop from
Fancy (2009) – Valued at Aprox $600M
List (2010) – 1M + Monthly Unique Visitors - $1M in sales every month
Styloko (2012) – 700.000 Products from UK Retailers
Social Commerce Short Timeline
2013
Source Startup.fm
Types of Social
Commerce
#6 Crowdfunding / Crowdsourcing
Consumers became an active part in the production process through voting, funding and collaborative design
ModCloth (2007) – $100 M in Revenue
Indiegogo (2008) – 44.000 Campaigns - $99M Successful Dollars
Kickstarter (2009) – $788M Pledged – 48.606 Successfully Funded
Social Commerce Short Timeline
2013
Source Startup.fm
Types of Social
Commerce
#7 Social ShoppingShopping that includes chat and forum features for people to discuss, exchange advices and opinions. It almost like an offline shopping
Listia (2009) – Over 5.000.000 Items exchanged
Motilo (2011) – Takes Social Shopping to next level
Fab (2011) – 10M Members “live feed” to share what they buy
Social Commerce Short Timeline
2013
Source Startup.fm
Types of Social
Commerce
Now: Social Commerce is a Social Utility
Helps people solve problems socially using their social intelligence (ability to learn from each other and profit from social situations – e.g. collective buying) (Mercedes)Helps people solve the social problem of standing out, by helping them manage their social status by expressing themselves (e.g. fan-first offers that ‘sell’ bragging rights (Burberry)Helps people solve the social problem of fitting in by facilitating social bonding (e.g. social media gift stores (Starbucks, Anton Berg)
Social commerce, it’s still a catchall phrase that describes a number of different ways of using social platforms to conduct commerce.
Increase brand awareness Increase leads and sales Improve online reputation Retain clients
Community memberships Engagement with content ReputationSocial Conversions
The top 500 retailers earned $3.3 billion from
social shopping in 2014, up 26% from
2013, according to the Internet Retailer's Social Media 500.
Social Commerce Short Timeline
2014
Some Great Examples
Social Commerce Short Timeline
2014
The influence of reviews on a user’s decision to purchase is well documented, and it’s refreshing to see AO.com acknowledge this by making ‘Reviews’ the default tab on the product details page
Ratings & Reviews on AO.com
Ask a Facebook Friend on Fashion ID
On the Product Details Page a link invites me to ‘Ask a Friend’ (“Freunde Fragen”) about a product. This connects me to my Facebook account, and the Facebook chat stream appears in a panel on the right-hand side, showing me which of my nearest and dearest is online at that moment. From that point, all I have to do is select which friend I want to talk to, drag the product over to the panel and chat away about the item in question
ModCloth’s Virtual Fashion Buyer
In the ‘Be the Buyer’ section of the site, users cycle through a selection of samples that have been put to the community vote, with options to ‘Pick’ or ‘Skip.’ User feedback is also encouraged, with good and bad comments about each sample displayed in equal measure. This allows the community (and, of course, the business) to see what changes would make the sample more desirable to the fashion-loving audience.
Nordstrom takes social commerce
in store
US department store Nordstrom has been testing how to use its social data to enhance the in store experience, by adding a Pinterest swing ticket to products that have been most-pinned online.
This social commerce example is truly elegant multichannel marketing, and to my mind is the in-store equivalent of a ‘Most Popular’ or ‘Trending’ list on an ecommerce site.
The Scandinavian Way -sweet real-life social commerce activation
2015
North America
87%
SouthAmerica
52%
Europe
70%
Africa
27%
Asia
38%
Oceania
72%Source: internetworldstats.com
Total Internet Penetration: 42%
North America
58%
SouthAmerica
48%
WestEurope
47%
Africa
9%
Asia
21%
Oceania
45%Source: wearesocial.com
Total Social Media Penetration: 29%
Central &Eastern Europe
45%East 43%
M.East 17%Central 4%South 9%
S/East 32%
Source: brandingandbuzzing.com
The Buy button would allow Pinterest users to order and pay for some of the products they discover on Pinterest without leaving the company’s website or app
Buyable Pins start rolling out today!
(29 June 2015)
Shopping was one of the top activities during which users liked to access Pinterest
So You Can Shop From Tweets
Twitter Introduces “Buy” Buttons
It’s worth noting that the buttons don’t take you away from Instagram completely. Instead, they open a mini-browser within the app, so once you’re done buying or downloading or what have you, you’ll be returned to Instagram
Instagram Beefs Up Ads With App
Install And Buy Buttons, Interest
Targeting, API
Just type a dollar amount into the subject line of an email and send cash to friends!
Snapchat Introducing Snapcash
Facebook is rolling out a new way to sell things. It's letting certain stores sell their products directly through the social network via a "buy" button on their Pages
Facebook Adds ‘Buy’ Button For Online
Purchases
Facebook's just testing its so-called "shop section," the move makes sense, given its recent introduction of peer-to-peer payments capabilities, new ways to let stores communicate with people via messages, and its increasing dedication to keeping people within the Facebook ecosystem as much as possible
Facebook's "shop section"
Facebook announced that a new payment feature is now available for Facebook Messenger users in the U.S. Now you can make person-to-person payments by adding your debit card through Facebook Messenger in just a few taps.
Facebook Messenger Rolls Out Payment Service
The social networking giant is making a bigger push into selling goods online by buying a shopping search enginFacebook has acquired shopping search engine TheFind.com, signaling the social networking giant’s continued aspirations in two of the Internet’s biggest money-makers: search and e-commerce
Facebook acquires its way into e-commerce by buying
TheFind
Polyvore deal gets Yahoo closer to a 'buy button'
Yahoo Snags Social Commerce Site Polyvore
Pinterest taps IFTTT and Polyvore as the first two services to
integrate its APIs
Google’s next commerce effort will be a “buy button” to help people purchase products featured in its shopping ads
Google Confirms ‘Buy Button’
A Huge Social Shopping Mall
* Source: Lemon Stand (eMarketer, InternetRetailer)Global eCommerce Market Size
* Source: Lemon Stand (eMarketer, InternetRetailer)Global eCommerce Market Size
* Source: Lemon Stand (eMarketer, InternetRetailer)
Social is driving much bigger increases in retail traffic than any other online channel.
Social media increased its share of e-commerce referrals nearly 200% between the first quarters of 2014 and 2015
Source: DigitasLBI Connected Commerce 2015
Source: DigitasLBI Connected Commerce 2015
The latest technology trends and consumer habits that are transforming how, where, and why we buy
Digital Environment, Social Media and the Global Retail Ecosystem
Source: DigitasLBI Connected Commerce 2015
The growing use of mobile among consumers
Source: DigitasLBI Connected Commerce 2015
Social and Mobile micro-conversions will become an active and successful strategy with every business in 2015.
Direct Buying Becomes Mainstream
Source: DigitasLBI Connected Commerce 2015
Retailers fight discounting with a focus on merchandise
Retailers adjusting store formats and merchandise to target urban customers
Brick-and-mortar is becoming more of an experience
Retailers investing more and more in e-commerce
Source: DigitasLBI Connected Commerce 2015
Source: DigitasLBI Connected Commerce 2015
Retailtainment is Here
Source: DigitasLBI Connected Commerce 2015
Omnichannel is not an option for retailers anymore — 'it is just business'
Commerce is coming to social media
Social Commerce is Not a Revolution
Social Commerce is a Key Factor on Shaping the future of retail
We talk about Modern Shopper
We talk about Connected Consumer
We talk about Connected Commerce
We aim to better prepare brands for the future of retail*Now*
Thank You
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