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

Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.Page 2

Agenda

Framing the problem: why user-generated content

Social Commerce as part of an online strategy

A Capability Maturity Model for Social Commerce


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


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


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


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


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


What this all comes down to

… know your customers better

… advise your customers

… let your customers advise each other

… build lasting relationships


Online Capability Maturity: Where does Social Commerce fit?

ProductCatalog

Integrated Search and Navigation



ProductCatalog

Margins, Revenue,Pageviews, Conversions

Dynamic Merchandising



ProductCatalog


Product Info,Lifestyle guides,Other Content

Content Sells Product



ProductCatalog


Ratings,Reviews,Tags


Social Commerce



ProductCatalog




StoreInventory

Multi-Channel Navigation



ProductCatalog




StoreInventory

User Profiles,OrderHistories

Personalization


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


Copyright©2007 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.

Social Commerce (2): Help users find relevant reviews

Tag Clouds

GuidedNavigationTM

Sorting

Dynamic Charting


Copyright©2007 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.

Pivot between related

products and

reviews

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

…Or whomever they are buying for


Social Commerce (4): Deep Insight Into Reviews

Integrated reviews content

Relationship Discovery

Concept Clustering

Guided Navigation

Text snippets

Rich UI


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


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


Thank you

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

Documents

endeca technologies

social commerce slide

sales slide

buying experience slide

robust slide

customers customers

average order size slide

traffic increase