2. The 6 Dimensions of Social Commerce - Mark Ellis, Syzygy
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Presentation given at the Like Minds Social Commerce Immersive, London, Weds. 9th Feb. 2011. Part of the Like Minds series of events for Social Media Week London
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2. The 6 Dimensions of Social Commerce - Mark Ellis, Syzygy
- 1. THE SIX DIMENSIONS OF SOCIAL COMMERCE THE LATEST INTERNATIONAL DEVELOPMENTS IN DRIVING REVENUE MARK ELLIS, MANAGING DIRECTOR, SYZYGY
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- 4. Definition: Social Commerce “Selling with Social Media” Social commerce is a subset of e-commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services. Word-of-mouth, applied to e-commerce.
- 6. AUGUST 11, 1994 NETMARKET.COM FIRST-EVER INTERNET PURCHASE
- 7. 11.50 AM JULY 8, 2009 1-800-FLOWERS.COM FIRST PURCHASE WITHIN FACEBOOK
- 8. Sharing your purchasing decisions before, during and after buying
- 9. + = €/$ INCREASE TRAFFIC, SALES (CONVERSION) AND AVERAGE ORDER VALUE
- 10. BRAND AMBASSADORS “PEOPLE ARE MORE VALUABLE OWNING AND USING YOUR PRODUCT/SERVICE THAN THINKING ABOUT BUYING IT” Paul Srivorakul, Ensogo.com
- 12. 2 STRATEGIES SOCIAL MEDIA ON E-COMMERCE ON E-COMMERCE PLATFORMS SOCIAL MEDIA PLATFORMS Helping people connect Helping people buy where they buy where they connect
- 13. 6 x SOCIAL COMMERCE TOOLS
- 14. 1 RATINGS & REVIEWS RECOMMENDATIONS & 2 REFERRALS 2 FORUMS & 3 COMMUNITIES
- 15. 4 SOCIAL SHOPPING 5 GROUP BUY 2 PURCHASE 6 SHARING
- 16. WHY NOW? FOLLOW YOUR CONSUMERS
- 17. IT’S ABOUT PEOPLE INFLUENCING PEOPLE NOT TECHNOLOGY 1. BE HONEST 2. BE CONVERSATIONAL 3. BE REMARKABLE (LET GO)
- 18. THE SIX DIMENSIONS TO SOCIAL COMMERCE SUCCESS 1. SCARCITY 2. AFFINITY 3. RECIPROCITY 4. POPULARITY 5. AUTHORITY 6. CONSISTENCY
- 19. #1. SCARCITY LESS IS MORE (PERCEIVED VALUE)
- 20. Frederick the Great PRUSSIA, 1774 Effectively re-branded the Potato by making it a ‘scarce’ Royal delicacy
- 21. Christian Louboutin Limited Edition Barbie Exclusive Collector’s Dolls
- 22. @DellOutlet $6.5m Twitter Revenue Exclusive Discounts and Snap Promotions
- 23. GROUPON World’s largest ‘Group Buy’ Platform
- 24. POP-UP ONLINE STORES Lucky Magazine and HSN create 48-hr exclusive Facebook shop
- 25. FACEBOOK DEALS (MOBILE) Geo-located local deal promotions have huge expectations for 2011 Gap offered 10,000 free jeans to the first 10,000 check-ins (then 40% off)
- 26. #2. AFFINITY SHOP WITH LIKE-MINDED PEOPLE
- 27. Dell Swarm Group Buy for technology Daily deals for Dell bargain hunters
- 28. Levi’s Friends Store ‘Shop Together’ Real-time Global Shared Shopping Functionality
- 30. Connecting 160m iTunes Customers 1m sign-ups in first 48-hrs
- 31. #3. RECIPROCITY PAY BACK FAVOURS
- 32. Adidas Outlet Store Member Get Member Social Coupons Earn free shoes by inviting friends in
- 33. Fiesta Movement Ford’s Social Commerce Experiment (2009) 100 free cars in return for monthly YouTube posts 11,000 videos, 15,000 tweets, 11m social visitors, 5m shares, 50,000 enquiries, 38% awareness (Gen-Y)
- 34. Starbucks foursquare National ‘Mayor Offer’ (USA) Loyalty Programme $1 off each drink for all Starbucks foursquare Mayors nationwide
- 35. Toys R Us Toyologists Consumer panel of (free) toy reviewers on Facebook, Twitter and YouTube
- 36. #4. POPULARITY FOLLOW THE CROWD
- 37. P&G Amazon Facebook Store Selling 1,000 products an hour (direct to consumers) Top 29 brands from Always to Zest
- 38. The undisputed Kings (and Inventors) of Social Commerce Leading the way since 1995 (£24.5bn turnover, 2009)
- 39. Burberry Art of the Trench Become a trench coat model (200,000 visitors week-1; 5m to date)
- 40. #5. AUTHORITY FOLLOW THE LEADER (EXPERTS)
- 41. vente-privee.com Exclusive private club for curated designer brand discounts 40,000 orders per day; $1.1bn Sales; $70m profit
- 42. Apple Expert Discussion Forums Hosting and feeding a platform for thousands of Apple ‘experts’
- 43. French Connection Youtique (YouTube) – “Plinking” Expert fashion videos with annotated ‘Buy’ buttons
- 44. #6. CONSISTENCY ONE STEP AT A TIME
- 45. Blendtec Will it Blend (YouTube) Smiling is consistent with liking, liking is consistent with buying 130,000,000 videos viewed; Home blender sales increased +700% since 2006
- 46. Starbucks my STARBUCKS IDEA Feedback is consistent with caring, caring is consistent with loyalty Consistent Customer Focus: using Social as an Ideas Platform to improve the product and service
- 47. f-commerce Facebook Stores (and storefronts) ‘Get It First’ VIP Store, discounts and exclusives for Facebook Fans
- 48. f-commerce Software suppliers creating integrated Facebook stores E.g. Alvenda; Usablenet; Milyoni; Payvment;
- 49. SUMMARY 7 KEY POINTERS for 2011 1. EXPERIMENT - START SELLING ON SOCIAL PLATFORMS 2. ADD MOBILE (SHARING) INTO YOUR SOCIAL MIX 3. IMPLEMENT SOCIAL PLUG-INS e.g. FACEBOOK ‘LIKE’ 4. UP-SELL WITH REVIEWS AND RECOMMENDATIONS 5. INTEGRATE ‘CHAT’ SO FRIENDS CAN SHOP TOGETHER 6. MAKE YOUR WEBSITE THE SOCIAL FLAGSHIP 7. BRING YOUR OFFLINE BRAND EXPERIENCE ONLINE
- 50. THANK YOU m.ellis@syzygy.net @mellis71