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?

Social Commerce Short Timeline

BBSsAOLUsenet GroupsSixDegrees.com

Friendster (2002)LinkedIn (2003)MySpace (2003)Facebook (2004)YouTube (2005)

The Infant Years

Social Networking’s Adolescence

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

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

December DELL Claims 1 Million $USD in revenue via Twitter –

Sales Alert!

July$34 Spent on Facebook’ s FIRST retail Transaction via 1800-Flowers

Sales Alert!

But…

Social Media = Communication

Social Media is the Fear of Brands

The Biz Grows Up

PAMPER’ S FACEBOOK STORE does1000

Transaction per Hour

LEVI’ S Goes Social addingFACEBOOK plugin to their

Friends Store

DISNEY launches a group ticketing

Store on Facebook for its movies

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

August

Mark Zuckerberg says“If I had to guess, Social

Commerce is next to blow up”

November

WALMART IntroduceCrowdsaver

FACEBOOK launchesDeals

January

LIVING SOCIAL runs AMAZON’s$20 voucher for $10

Sells 1.378.938

GOOGLE enters the GroupBuy space with

Offers

$1.93 USD in FundingFor Social Commerce StartUps

In the First trimester of 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

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

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

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

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

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

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

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

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.

Some Great Examples

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

North America

SouthAmerica

Europe

Africa

Oceania

72%Source: internetworldstats.com

Total Internet Penetration: 42%

North America

SouthAmerica

WestEurope

Africa

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)

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

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

The growing use of mobile among consumers

Social and Mobile micro-conversions will become an active and successful strategy with every business in 2015.

Direct Buying Becomes Mainstream

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

Retailtainment is Here

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

www.linkedin.com/in/periklisvanikiotis@Uroboruswww.uroborus.grperiklis.vanikiotis@publicis.gr

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