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© 2010 Milyoni, Inc. All rights reserved. Milyoni Confidential 1
500 Million People and Growing: The Facebook Conversation Turns to Commerce
Socially-Acceptable Selling on Facebook
Selling in Social Networks DMA Social Spotlight: October 27, 2010 Presented by John Corpus, CEO
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© 2010 Milyoni, Inc. All rights reserved. Milyoni Confidential 2
Agenda
Why online merchants should consider selling within Facebook
Options for social commerce
Social commerce is not about shopping
Unique dynamics about selling within Facebook
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Social Commerce The marriage of Social Networking and eCommerce
Social Networking $6B Channel Opportunity
Growing 2X Search
1B Members Worldwide
Spending to Grow 17%
Virtual Goods $35M - Facebook
eCommerce $230B Sales 2009
9% growth projected 2008 to 2013
1 Million Ecommerce Sites
63 Million US Households
Social Commerce
500 Million People and Growing…. …the Conversation turns to Commerce.
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Facebook: The Place to Be
• Facebook is the leading online social network
• #1 most visited website surpassing Google this year
• More than 500 million active users - worldwide
• Grows at a rate of 5 to 6 million new users per week
• More than 50% log on at least once a day
• Average user spends 55 minutes per day
Sources: Facebook.com and PersoanlizeMedia.com
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Facebook: Already a Commerce Platform
• 1.5 million businesses on Facebook
• 100 million+ active users via mobile apps
• $76,373,905 spent on Facebook gifts annually
• $630,084,720 made in advertising revenue on Facebook
• The most active platform for social commerce
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Social Commerce Options
1. Promote Brand Loyalty Starbucks, Oreo Cookies, Skittles, etc
2. Drive Fans to Website Majority of online merchants use this approach
3. Reshape the buying experience Uncover new opportunities and new customers
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1. Promote Brand Loyalty
Facebook fans spend an
additional $71.84 annually
on consumer products than
non-fans. They are also 41
percent more likely to
recommend them and 28
percent more likely to
continue using them.*
*Forbes
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2. Drive Fans to Website
Facebook to …
….the Web
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3. Reshape the Buying Experience
Lakers win! Get Championship
Pack Here
Lakers Rule! I am getting it now
Kobe Rocks! I am getting one too
It’s not about Shopping, ���It’s all about the Conversation
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Key Social Commerce Ingredients
• Contextual Mix • Profile Driven
Social Product Catalog
• Merchant Post • Viral Fan
Promotion
Social Merchandising
• Instant Buy • All Facebook
Process
Secure Order Processing
Order Fulfillment Pick * Pack * Ship
Reshaping the Buying Experience
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© 2010 Milyoni, Inc. All rights reserved. Milyoni Confidential 11
Viral, Instant, Contextual
Viral, Instant and Contextual 2,789 Likes, 256 Comments
Sold Out in Less than 2 Hours
We make buying on Facebook Easy and Fun
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“Social” Product Catalog
• Ideally, within Facebook
• Not everything in your catalog – be selective
• Contextual – profile-driven storefront
• Embedded Viral or Sharing Services
• Use of “LIKE” button and other recommendation tools
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Example: Social Product Catalogs
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Social Merchandising
• Merchants - initiate great conversations, promote relevant products, reward participation
• Fans/Customers – extend the conversation, recommend what you like (note: not all fans are equal)
• Software providers – make it easy, make it natural
WORD OF MOUTH The ultimate form of merchandising
The activity of promoting the sale of goods
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Social Merchandising – Merchant Role
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Social Merchandising - Fan’s role
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Social Merchandising – Wall Buys
Taking your Products to the Wall
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Social Commerce - Barriers
• Questions about Security & Privacy
• Questions about ROI - Return on Investment
• Competing Priorities
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Social Commerce – Security Layers
Facebook Commerce Payment
Security’s Compromise is Convenience
Each layer has its own rules on privacy and security
Social Profile • Name • Gender • Geo • Other…
Commerce Profile • Log-On/Password • Product Selection • Billing/Shipping
Payment Profile - Credit Card #
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Social Commerce Barriers
Simple ROI Model • Passionate Fan Base* 5000
• Monthly Conversion Rate .01 (50 customers)
• Average Sale Price $30
• Total Monthly Sales $1500
Cost • Time & Tools
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Key Take-a-ways
• Social Commerce is already here
• Privacy & Security can be effectively managed
• Think differently about Facebook – its not about shopping
• Learn by doing – now is the time to jump in
Contact Milyoni for a Full Product Demo Go to www.milyoni.com
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© 2010 Milyoni, Inc. All rights reserved. Milyoni Confidential 23
Q&A
John Corpus"CEO"Milyoni, Inc."[email protected] "