Social Commerce Presentation

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Information about Social Commerce Presentation

Published on January 24, 2008

Author: LinusG

Source: slideshare.net

Description

Social commerce overview, based on E-consultancy survey of online sellers and Figleaves case study.

UK Social Commerce

Overview What is ‘social commerce’ Drivers of social commerce E-consultancy’s survey Figleaves case study

What is ‘social commerce’

Drivers of social commerce

E-consultancy’s survey

Figleaves case study

User-Generated Content and Social Media Have Exploded Ratings and Reviews Wikis Social Networks Tagging Blogs Peer-2-peer Facebook

The Next Explosion: Social Commerce Put simply, social commerce is about customers having the means to interact with one another in order to make better buying decisions.

Put simply, social commerce is about customers having the means to interact with one another in order to make better buying decisions.

Factors Driving Social Commerce A shift in influence from traditional media and corporate speak to people listening to their peers. Consumers are seen as communication channel Consumers are authoring brand messages In effect, working for the Marketing department and generating the message in addition to carrying it. The consumers have a voice Consumers now can not only influence purchase decisions, but they can also influence product design Convergence of stakeholder roles Consumers are more invested and therefore more loyal to companies and brands

A shift in influence from traditional media and corporate speak to people listening to their peers.

Consumers are seen as communication channel

Consumers are authoring brand messages

In effect, working for the Marketing department and generating the message in addition to carrying it.

The consumers have a voice

Consumers now can not only influence purchase decisions, but they can also influence product design

Convergence of stakeholder roles

Consumers are more invested and therefore more loyal to companies and brands

Social Commerce Report Research Methodology Produced by E-consultancy in association with Bazaarvoice Surveyed 800 respondents over a three week period (June – July 2007) 360 respondents classified themselves as online sellers 80% respondents were based in the UK

Produced by E-consultancy in association with Bazaarvoice

Surveyed 800 respondents over a three week period (June – July 2007)

360 respondents classified themselves as online sellers

80% respondents were based in the UK

The Current E-commerce Landscape 50% of online sellers say they expect 20% or more online sales growth in 2008* For multi-channel companies, online accounts for just under a third of all sales* Online sales in the UK amounted to an estimated £46.6bn in 2007, up from £30.2bn last year, according to the IMRG. Online sales will reach an estimated £78bn a year by 2010 . * E-consultancy / Bazaarvoice Social Commerce Report 2007

50% of online sellers say they expect 20% or more online sales growth in 2008*

For multi-channel companies, online accounts for just under a third of all sales*

Online sales in the UK amounted to an estimated £46.6bn in 2007, up from £30.2bn last year, according to the IMRG.

Online sales will reach an estimated £78bn a year by 2010 .

* E-consultancy / Bazaarvoice Social Commerce Report 2007

How are Companies Reacting? 67% say that a social networking strategy is a high or medium priority More than half of all online sellers (51%) consider UGC as either ‘extremely important’ or ‘very important’ to company strategy over the next year . * E-consultancy / Bazaarvoice Social Commerce Report 2007

67% say that a social networking strategy is a high or medium priority

More than half of all online sellers (51%) consider UGC as either ‘extremely important’ or ‘very important’ to company strategy over the next year .

* E-consultancy / Bazaarvoice Social Commerce Report 2007

Online Sellers’ Adoption and Consideration of Ratings and Reviews * E-consultancy / Bazaarvoice Social Commerce Report 2007 * E-consultancy / Bazaarvoice Social Commerce Report 2007 Online sellers that are using ratings & reviews Online Sellers that are considering the use of ratings & reviews Online retailers that rank ratings & reviews as a high or medium priority 28% 52% 80%

* E-consultancy / Bazaarvoice Social Commerce Report 2007

* E-consultancy / Bazaarvoice Social Commerce Report 2007

What About Negative Reviews? 4.3 out of 5

Importance of Ratings and Reviews to Consumers * E-consultancy / Bazaarvoice Social Commerce Report 2007 Source: UK Consumers, Vizu.com Polls, N=100+ How important are consumer reviews when making a purchasing decision? Would reviews impact the likelihood that you buy from that site? Do you find ratings and reviews helpful when making a purchase? 61% extremely or very important 55% “ Would be more likely to buy” 63% Yes

* E-consultancy / Bazaarvoice Social Commerce Report 2007

Benefits of Ratings and Reviews Percentage of respondents rating as ‘major benefit’ (Social Commerce Report 2007)

Case Study Founded in 1998 World’s largest seller of branded intimate apparel Carries over 200 brands of lingerie, swimwear, sleepwear and hosiery for women and men figleaves.com offers a shopping experience that is highly personalised, engaging, fun and backed by an award winning level of service figleaves.com puts the consumer at the centre of what they do

Founded in 1998

World’s largest seller of branded intimate apparel

Carries over 200 brands of lingerie, swimwear, sleepwear and hosiery for women and men

figleaves.com offers a shopping experience that is highly personalised, engaging, fun and backed by an award winning level of service

figleaves.com puts the consumer at the centre of what they do

Implementation of Ratings and Reviews on figleaves.com Launches Ratings & Reviews Jan 2007 Drive reviews through dedicated landing pages, on-site offers and email campaigns Customers are engaged – 73 reviews for Fantasie bra Average rating of products is high – 4.5 out of 5

Launches Ratings & Reviews Jan 2007

Drive reviews through dedicated landing pages, on-site offers and email campaigns

Customers are engaged – 73 reviews for Fantasie bra

Average rating of products is high – 4.5 out of 5

The Results Product Coverage Shoppers on figleaves.com want Ratings & Reviews. figleaves.com has a significant 43.9% product coverage (and growing!) Review Volume Growth

Product Coverage

Shoppers on figleaves.com want Ratings & Reviews. figleaves.com has a significant 43.9% product coverage (and growing!)

Review Volume Growth

The Results The same products with reviews have a 35.27% higher overall session conversion rate. Conversion was not negatively affected for products without reviews Overall Average Before Going Live Overall Average After Going Live

The same products with reviews have a 35.27% higher overall session conversion rate.

Conversion was not negatively affected for products without reviews

The Results The Look-to-Book ratio is 4X lower (better) for products with reviews compared to those without Look-to-Book ratio shows the percentage of people who visit a website compared to those who actually make a purchase. This ratio is an excellent measure of ratings and reviews ability to influence the consumer to make a buying decision . No Reviews 11-20 5-10 1-4 21+ 4X

The Look-to-Book ratio is 4X lower (better) for products with reviews compared to those without

Social Commerce Context Examples

“ This 'social commerce' is creating new and more meaningful ways for retailers to interact with customers. Search, communication and community have the potential to have an even more powerful impact on commerce when closely tied together.” ~Ken Goldstein, CEO of Shop.com

“ This 'social commerce' is creating new and more meaningful ways for retailers to interact with customers. Search, communication and community have the potential to have an even more powerful impact on commerce when closely tied together.”

~Ken Goldstein, CEO of Shop.com

Questions? Linus Gregoriadis, Head of Research E-consultancy.com Email: [email_address] Website: www.e-consultancy.com

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