future of social commerce mindshare

#MindshareSocial

2

“The Future of Social Commerce will take

place outside of social networks”

#MindshareSocial

3

Transactions on Facebook itself are unlikely to become a huge opportunity

_______

#MindshareSocial

4

The past 2 years have seen a number of retailers open Facebook Stores… and then close them

#MindshareSocial

5

The consumer experience has been underwhelming

#MindshareSocial

6

There are real concerns around security

10%

8%

28%

54%

How safe do you feel purchasing goods or

services through Facebook?

EXTREMELY SAFE

SOMEWHAT SAFE

NOT SAFE AT ALL

DON’T KNOW

SOURCE: CNBC May 2012 #MindshareSocial

7

There are real concerns around security

Hive Community Member

#MindshareSocialSOURCE: Mindshare / The Hive

8

Facebook is primarily for socialising

“ I like separation of my things, including my social networking & what I purchase”

“ I don’t want my newsfeed

transformed into some kind of

shopping channel”“ I’m not sure what

the advantages are…. Why not simply use the provider sites?”

#MindshareSocialSOURCE: Mindshare / The Hive

9

Successful examples of F-commerce generally do not have direct sales as main KPI

#MindshareSocial

10

F-commerce will attract certain categories

SMEs

#MindshareSocial

11

Transactions on Facebook itself are unlikely to become a huge opportunity

Integrating the social graph across platforms is a much more scalable opportunity than F-commerce

_______

#MindshareSocial

12 #MindshareSocial

Platform Integration complements existing technologies rather than disrupts them

#MindshareSocial

14

Consumers exhibit an appetite for social shopping

01 Trust

02 Expertise

#MindshareSocialSOURCE: Mindshare / The Hive

15

But too many products & not enough friends is seen as a problem

“What are the chances of my friend & myself both wanting a new baking tray at the same time? The chances of it happening are pretty remote”

#MindshareSocialSOURCE: Mindshare / The Hive

16

Social signals will become multi-dimensional

1st Generation Next Wave

#MindshareSocial

17

Moving from recommendation to customisation

#MindshareSocial

Social Recommendation Data Social Customisation Data

18

There are hurdles to overcome before the Social Graph revolutionises e-commerce

Willingness to share

Data control

Category Specific

#MindshareSocial

19

Transactions on Facebook itself are unlikely to become a huge opportunity

Integrating the social graph across platforms is a much more scalable opportunity than F-commerce

Social commerce will come to the High Street, but slowly

_______

#MindshareSocial

20

Mobile brings the social graph to bricks & mortar retailers

#MindshareSocial

21

Researching at point-of-sale

Validating a purchase decision

Solve a problem through social

Meet a social need

Successful services will need to provide genuine ‘social utility’

#MindshareSocialSOURCE: Mindshare / The Hive

22

Accessing friends’ recommendations at point-of-sale

IBM Researchprototype AR shopping app

#MindshareSocial

23

Validating a purchase

Selfridges ‘Next-Generation’

fitting rooms

#MindshareSocial

24

Gifting

Self-affirmation

Researching at point-of-sale

Validating a purchase decision

Solve a problem through social

Meet a social need

Successful services will need to provide genuine ‘social utility’

#MindshareSocialSOURCE: Mindshare / The Hive

25

Gifting

Pepsi Social Vending

Machine

#MindshareSocial

26

DieselQR Codes

placed in store

Self-Affirmation

#MindshareSocial

27

But there a number of challenges which will constrain the socialisation of the High St

ConsumerCategory

Technical

#MindshareSocial

28

Transactions on Facebook itself are unlikely to become a huge opportunity

Integrating the social graph across platforms is a much more scalable opportunity than F-commerce

Social commerce will come to the High Street, but slowly

The Interest Graph presents the real opportunity for social commerce

_______

#MindshareSocial

What is the Interest Graph?

#MindshareSocial

Content curation trend is helping to fuel the Interest Graph

#MindshareSocial

Social Graph Interest Graph

Who I am

Who I know

IMPLICIT indication of what I

may buy

How I see myself

What I like & want

EXPLICIT link to what I’ll buy

Interest Graph creates explicit ‘buy’ signals

#MindshareSocial

The Interest Graph is not dependent on scale of your social network

#MindshareSocial

… and the Interest Graph is a big opportunity for the future

Shallow signals of interest

Deeper signals of

interest

Larger reach

Smaller reach

#MindshareSocial

35

Transactions on Facebook itself are unlikely to become a huge opportunity

Integrating the social graph across platforms is a much more scalable opportunity than F-commerce

Social commerce will come to the High Street, but slowly

The Interest Graph presents the real opportunity for social commerce

_______

#MindshareSocial

36

How to harness these opportunities

#MindshareSocial

37

It is getting harder to achieve visibility on the Facebook Newsfeed with organic posts*

* SOURCE: Facebook / Mindshare / EdgerankChecker estimates of % of fans who have the opportunity to see a brand post

16%3%

#MindshareSocial

38

Brands need to evolve from retention to commercial- acquisition strategies in social

Retention / Protectionsocial strategies

Commercial / Acquisitionsocial strategies

+ Existing customers

+ Social as CRM

+ Reinforce brand values & loyalty

with existing customers

+ Increase spend amongst existing

customers

+ New customers+ Social for acquisition+ Use fans to acquire new

customers

#MindshareSocial

39

Key approaches for a more commercial / acquisition-driven social strategy

01 Use scarcity & exclusivitymechanics

03 Leverage social curation

04 Leverage interest-graphdata for paid media

02 Create social-referralprogrammes

Offer-driven

Interest-driven

#MindshareSocial

40

01 Scarcity and exclusivity mechanicsUsing fans to create desire with earned media amongst non-customers

Offer-driven

#MindshareSocial

30% of sales via social referral

Offer-driven

02 Social referral programmesCustomers become affiliates & can be used to acquire new customers

#MindshareSocial

Interests turned into shopping lists

Shoppable-images spread virally

Interest -driven03 Leverage social curation

“Earned Media” becomes shoppable

#MindshareSocial

04 Leverage Interest Graph data for paid mediaIncrease conversion rate by scaling up audiences using interest-data

Interest-graph data

=

Lookalikeaudiencebased oninterestsw/ higher

propensity to buy

Wider internet

+

Example: Retail brand

X

Loyalty / customer data

Interest -driven

#MindshareSocial

44

Our social commerce services

#MindshareSocial

Retention-based services

01 Community Managemento Conversation calendar, content calendar, content creationo Biddable media recommendationso Facebook EdgeRank optimisation

02 Social Engagement o PR-led campaigns, Influencer relations campaign

03 Facebook “SEO”#MindshareSocial

New acquisition-based services launching soon

01 Platform integration

o Facebook API evaluation (pages, ads, apps, insight etc.)

02 Social curation

03 Interest graph data retargetingo Facebook ad exchange / Xaxis

04 Social-based referral programs

#MindshareSocial

#MindshareSocial