Social Commerce: Disruptive Potential of Social Media in Ecommerce and Classifieds Thad Eby, UK Director.

Social Commerce: Disruptive Potential of Social Media in Ecommerce and Classifieds

Thad Eby, UK Director

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Agenda

Framing the problem: why user-generated content

Social Commerce as part of an online strategy

A Capability Maturity Model for Social Commerce

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What happens when Social Commerce is Applied Successfully?

Web 2.0 Told Us Community was Important

• The Product Catalogue Becomes Richer• From 5 to 58 Searchable Attributes

• Additional “Sort By” Capabilities• 41% Higher Order Value

• Consumers Define “Top Products”• 63% Higher Order Value

• Returns go Down

• 20.4% Higher Return Rate w/o Reviews

• Better eCommerce• 49% Higher Conversion Rate• 22% Increase in Average Order Size

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Browsing

Direct to site

Organic search

Onlineadvertising

Affiliates

Email marketing

View of the Online Buying Process

Search

Traffic Conversions Margins

GuidanceTraffic

Paid search

SEO Ranking

Landing pagerelevance

Relevantpromotions

Million resultsor none

Dependenceon relevance

Unfamiliartaxonomy

Limitedrefinement

Relevancecontrol

Staticmerchandising

“Which is thebest product?”

Staticmerchandising

“Can’t find what I need”

“Can’t find fitfor my requirements today”

Leave website

Call customer service

Sub-Optimal Purchase

Purchase Fewer Items

Lower Margin Purchase

%Trafficincrease

%Conversion increase

%Order size increase

%Sales

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Framing the Problem

Online sales and customer loyalty are driven by a better user experience– Dialogue– Advise

User experience is informed by a variety of factors– Design– Technology– Data

Customers are playing an increasingly pivotal role in the buying experience

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Push & Pull: How to Get the Most from User-Generated Content

What do your customers want to do today?

Who are they buying for today?

We can advise customers Customers can advise each other

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Contemporary Structured Approach

Email TargetingSearch Engine

BrandSite UtilityEase of ExplorationRelevant Guidance

Product SelectionPersonalizationCross-sellingPromotionsSocial InformationProduct Availability

1. Attract users 2. Provide optimal user experience3. Boost conversion4. Provide powerful business analytics

Reporting, Analysis & KM Infrastructure

Traffic Sources Page Views Conversions

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What this all comes down to

… know your customers better

… advise your customers

… let your customers advise each other

… build lasting relationships

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Online Capability Maturity: Where does Social Commerce fit?

ProductCatalog

Integrated Search and Navigation

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Online Capability Maturity: Where does Social Commerce fit?

ProductCatalog

Margins, Revenue,Pageviews, Conversions

Dynamic Merchandising

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Online Capability Maturity: Where does Social Commerce fit?

ProductCatalog

Margins, Revenue,Pageviews, Conversions

Product Info,Lifestyle guides,Other Content

Content Sells Product

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Online Capability Maturity: Where does Social Commerce fit?

ProductCatalog

Margins, Revenue,Pageviews, Conversions

Ratings,Reviews,Tags

Product Info,Lifestyle guides,Other Content

Social Commerce

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Online Capability Maturity: Where does Social Commerce fit?

ProductCatalog

Margins, Revenue,Pageviews, Conversions

Ratings,Reviews,Tags

Product Info,Lifestyle guides,Other Content

StoreInventory

Multi-Channel Navigation

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Online Capability Maturity: Where does Social Commerce fit?

ProductCatalog

Margins, Revenue,Pageviews, Conversions

Ratings,Reviews,Tags

Product Info,Lifestyle guides,Other Content

StoreInventory

User Profiles,OrderHistories

Personalization

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Social Commerce (1)

Guided Navigation® RefinementsAllow users to refine based on objective product attributes

SocialBrowsingLeverages Guided Navigation® to generate a dynamic taxonomy based on user reviews

Requires a dynamic taxonomy which updates at the speed at which your users generate content

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Social Commerce (2): Help users find relevant reviews

Tag Clouds

GuidedNavigationTM

Sorting

Dynamic Charting

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Pivot between related

products and

reviews

Social Commerce (3): Guide users to the products right for them…

…Or whomever they are buying for

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Social Commerce (4): Deep Insight Into Reviews

Integrated reviews content

Relationship Discovery

Concept Clustering

Guided Navigation

Text snippets

Rich UI

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Technology as an Enabler

Product DataUnstructured

(manuals, data spec sheets, etc.)

Expert Reviews and Ratings

Data Sources

POS, Purchase History,Accessories, Profitability, etc.

Cater to individual use-cases through integrated information access capabilities

Ability to integrate content from across the enterprise Scalable infrastructure Flexible & extensible infrastructure

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Summary

User-generated is critical in a comprehensive online strategy

User-generated content must be seamlessly integrated into the customer experience

Drive results by doing more with user-generated content

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Thank you