Phenomblue is a brand experience agency. The document discusses the rise of social commerce, defined as introducing social aspects of shopping into online retail. Generation C consumers, aged 18-34, are driving this change through their digital connectivity and influence over friends. The document outlines tenets for successful social commerce, including personalizing experiences, letting consumers influence friends, and being a thought leader. Social recommendations have tangible marketing value in driving awareness, engagement, consideration and decisions. The future of social commerce involves expanded mobile shopping, technologies like NFC, and improved logistics.
12. What's driving social commerce?
new interaction mediums
• Online Video: 22hr viewed per
month by individual user
• Social Media: 1 in 5 of all minute
spent online
• Mobile: 4 in 5 smartphone owners
purchase on their devices
Comscore 2011
13. What's driving social commerce?
new interaction mediums
digitally-connected consumers
• 52% of laptop owners also own
smartphones
• 31% of smartphone owners also
own tablet devices
• 13% of american that own multiple
devices own all three
Pew Research 2012
14. What's driving social commerce?
new interaction mediums
digitally-connected consumers
on-demand culture
• 2 billion hours spent by Netflix
streaming customers
• 4 billion hours of video watched
monthly on YouTube
• Wikipedia ranks in the first page
results for 90%of Google searches
Comscore 2011
15. What's driving social commerce?
new interaction mediums
digitally-connected consumers
on-demand culture
Generation C
19. Generation C, the Connected
Generation, are those who integrate
Web usage and digital devices as part
of their everyday life
These are the social shoppers
20. GENERATION C
84% of millennials rely on UGR and UGC
from strangers in making their purchase.
70% of boomers does the same
Users of age 50+ are the fastest growing
adopters of social media, at a rate of 49%
year over year
Users of age 45 – 50 are the fastest
growing adopters of smart devices, at a rate
of 5% year over year
Bazaar Voice 2012, Pew Research 2011, Nielsens 2012
21. Generation C
They are a psychographic defined by
their interests, attitudes, values and
behaviors
22. FACEBOOK IS
WHERE I BRAG TO
Generation C MY FRIENDS
TWITTER IS WHERE
I CONNECT WITH
STRANGERS
They derive their social status by
what they share
They exhibit bee-like swarm behavior
They thrive on “social oxygen”
23. Generation C
The Web, and the digital
devices that provide access to it,
let people define themselves
however they want
25. THE SHOPPER'S And it works both ways THE COMPANY'S
INFLUENCE INFLUENCE
26. FOLLOW THESE TENETS FOR
SUCCESSFUL SOCIAL COMMERCE
(OR RISK A SLOW, INGLORIOUS DEATH)
27. 1. Personalize the experience
2. Let consumers influence their friends
3. Be a thought leader
29. 1. PERSONALIZE: TOOLS
Facebook-Connect, Twitter OAuth
FACEBOOK-CONNECTED USERS ARE NINE TIMES MORE
LIKELY TO SHARE THEIR EXPEIRENCES
Geolocation
CREATE A CUSTOMIZED EXPERIENCE AND IMMEDIATE CALL
TO ACTION BASED ON THE USER’S PHYSICAL LOCATION
30. 1. PERSONALIZE: EXAMPLE
Beyond user info
gathered from its own
site, Amazon.com utilizes
Facebook Connect to
recommend products that
match the interests of
users and their friends
32. 2. INFLUENCE
FRIEND
Provide the digital means for
natural social habits LIKE
TRAVEL
LISTEN
WATCH
FRIEND
34. 2. INFLUENCE EXAMPLE
Macy’s Magic Fitting room bridges the gap between brick
and mortar and digital, and provides a unique experience
35. 2. INFLUENCE EXAMPLE
Spotify’s open graph app broadcasts the customer’s
engagement through multiple points of distribution
36. 3. LEAD
When your brand is a trusted expert
and advisor, consumers willingly share
their own experience and testimonials
37. 3. LEAD: TOOLS
Expertise
SHARE YOUR KNOWLEDGE WITH CUSTOMERS
TO ENABLE THEM TO MAKE INFORMED DECISIONS ABOUT
YOUR BRAND
Personality
PROVIDE A DISTINCT IDENTITY AND VOICE THAT APPEALS TO
CONSUMER'S EMOTIONS
38. 3. LEAD: EXAMPLE
64% of shoppers look for
reviews before making a
purchase
By providing sound advice,
they may buy your product
or share the value they’ve
received – or both
39. 3. LEAD: EXAMPLE
Though the actual content
is not directly related to
the product, the brand
personality and value
delivered helps the viewer
to remember the brand
40. Brands must provide an
experience worth sharing, and foster
an environment where they can
facilitate conversation
42. AWARENESS
ENGAGEMENT
Traditionally-accepted
purchasing process CONSIDERATION
DECISION
43. AWARENESS
SOCIAL
How the RECOMMENDATION
ENGAGEMENT
purchasing process
actually works
DECISION CONSIDERATION
44. SOCIAL COMMERCE - THE BOTTOM LINE
Online conversation has a tangible value
that are measured by DPS (dollar per
share) and VPS (visits per share)
The average dollar per share increased by
85% from $1.78 to $3.23
The average visits per share increased
from 7 to 17 visits
17% of social media users have purchased
a product/service based on a friend’s post
Eventbrite 2012, Forrester Research 2012
45. Be a part of guiding that social
recommendation
46. Speaking to your audience
companies and brands revolve
around them
“we”—not “me”
create conversations consumers can
swarm to
join conversations within and
across communities
49. MOBILE SHOPPING
As of Q2 2012, purchases made
through a mobile device now account
for 15.1% of all online purchases
Technologies and advanced devices
enable social behaviors to take place
online, providing such interactions with
scale, speed and convenience
Mergers and acquisitions are already
taking place to support this trend
Source: IBM 2012
50. NFC (NEAR FIELD COMMUNICATION)
Enriches the mobile shopping
experience
Provides consumers the option to freely
share their personal information
Other emerging technology will
allow for seamless connectivity with
consumer devices
51. LOGISTICS
If prominent e-commerce players are
able to execute this change, big-box
retailers will be forced to adapt
Addresses a core customer value
(convenience) in a new way
The importance of marketers
encouraging social discussion and
recommendation of their product/
service will become paramount
53. Takeaways
“Social commerce” is not a turnkey
solution and not a channel
Social commerce is a conduit for
discovery and discussion that bridges
the social divide between brands and
consumers shopping online
Marketers should integrate
time-tested methods of tracking and
adjusting to social consumer
behavior with technology optimized
for multiple platforms