rise of social commerce (webinar)

Rise of Social Commerce#rscwebinar

February 3, 2010

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Lora Cecere and Jeremiah OwyangAltimeter Group

© 2011 Altimeter Group

Read the report2

Rise of Social CommerceA Trail Guide for the Social Commerce Pioneer

Published November 1, 1010

Download at: slideshare.net/loracecere

© 2011 Altimeter Group

Qualitative: 54 interviews of social pioneers

Quantitative: 123 respondents from retail and consumer products

In vitro: 145 conference attendees

Our methodology3

© 2011 Altimeter Group

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“Social Commerce provides social context to the shopping experience. It is not B2C.”

“Social commerce is in development. It is less about cool widgets and more about the power of the digital relationship.”

“Engaging on topics that are important and earning the right to offer them the opportunity to buy. Earning attention and capturing intention to deliver a personalized response. “

“It is a new way to manage the long tail of the value chain. Product selection by the people for the people.”

What is Social Commerce?

© 2011 Altimeter Group

“The use of Social Technologies to anticipate, personalize and energize the

shopping experience.”

It is both a channel and a new way of doing business.

Our belief5

© 2011 Altimeter Group

The Potential of the Open Graph

Source: Gigya

© 2011 Altimeter Group

For Hallmark….8

© 2011 Altimeter Group

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There were many trails west….

© 2011 Altimeter Group

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Dell

Dell’s Key Social Media Milestones

© 2011 Altimeter Group

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The Rise of Social Commerce

Stage Goal Questions

Stage 1: Let’s Be Social

Awareness What are the best tactics to use? How do I influence the most influential?

Stage 2: Enlightened Engagement

Dialogue How do I make it easier for the shopper to engage? How do I effectively introduce the shopper to

enterprise processes? How do I use social technologies to improve

dialogue with the value chain?

Stage 3: Store of the Community

P2P How do I use shopper insights? Which shopper input best reflects market

opportunity? How do I engage trading partners to deliver against

the store of the community?

Stage 4: Frictionless Commerce

Redefinition How do I redesign the buying experience? How do I enrich enlightened engagement processes

without slowing buying cycles?

© 2011 Altimeter Group

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The Rise of Social Commerce

Stage Goal Questions

Stage 1: Let’s Be Social

Awareness What are the best tactics to use? How do I influence the most influential?

Stage 2: Enlightened Engagement

Dialogue How do I make it easier for the shopper to engage? How do I effectively introduce the shopper to

enterprise processes? How do I use social technologies to improve

dialogue with the value chain?

Stage 3: Store of the Community

P2P How do I use shopper insights? Which shopper input best reflects market

opportunity? How do I engage trading partners to deliver against

the store of the community?

Stage 4: Frictionless Commerce

Redefinition How do I redesign the buying experience? How do I enrich enlightened engagement processes

without slowing buying cycles?

© 2011 Altimeter Group

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Fans like You! Amazon partners with Facebook to show customers what their friends have bought

© 2011 Altimeter Group

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Brands post frequently, but few engage in two-way dialog

Source: “The 8 Success Criteria of Facebook Page Marketing,” Altimeter Group, 2010

Altimeter Group rated 30 top brands on 8 success criteria for Facebook fan page marketing.

© 2011 Altimeter Group

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Strategists want to have dialog, but not support

Source: “How Corporations Should Spend on Social Business,” Altimeter Group, 2011

We asked 140 corporate Social Strategists what their top external (go-to-market) objectives are in 2011.

© 2011 Altimeter Group

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The Rise of Social Commerce

Stage Goal Questions

Stage 1: Let’s Be Social

Awareness What are the best tactics to use? How do I influence the most influential?

Stage 2: Enlightened Engagement

Dialogue How do I make it easier for the shopper to engage? How do I effectively introduce the shopper to

enterprise processes? How do I use social technologies to improve

dialogue with the value chain?

Stage 3: Store of the Community

P2P How do I use shopper insights? Which shopper input best reflects market

opportunity? How do I engage trading partners to deliver against

the store of the community?

Stage 4: Frictionless Commerce

Redefinition How do I redesign the buying experience? How do I enrich enlightened engagement processes

without slowing buying cycles?

© 2011 Altimeter Group

Organize for social business

© 2011 Altimeter Group

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- One department controls all efforts- Consistent- May not be as authentic- e.g. Ford

CENTRALIZED

© 2011 Altimeter Group

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ORGANIC

- Organic growth- Authentic- Experimental- Not coordinated- e.g. Sun

© 2011 Altimeter Group

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COORDINATED

- One hub sets rules and procedures- Business units undertake own efforts- Spreads widely around the org- Takes time- e.g. Red Cross

© 2011 Altimeter Group

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MULTIPLE HUB AND SPOKE OR “DANEDELION”

- Similar to Coordinated but across multiple brands and units

- e.g. HP

© 2011 Altimeter Group

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HOLISTIC OR “HONEYCOMB”

- Each employee is empowered- Unlike Organic, employees are organized- e.g. Dell, Zappos ©

© 2011 Altimeter Group

Customers Like products on Levi’s pages

© 2011 Altimeter Group

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Levi’s auto-populates a shopping cart based on friends’ Likes

© 2011 Altimeter Group

Review aggregation: Pros, cons and best uses

© 2011 Altimeter Group

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Listening and learning in new product launch: Produce Saver Response

#Future15SB @bwdumars

© 2011 Altimeter Group

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Listening and learning in new product launch: Produce Saver Response

#Future15SB @bwdumars

© 2011 Altimeter Group

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The Rise of Social Commerce

Stage Goal Questions

Stage 1: Let’s Be Social

Awareness What are the best tactics to use? How do I influence the most influential?

Stage 2: Enlightened Engagement

Dialogue How do I make it easier for the shopper to engage? How do I effectively introduce the shopper to

enterprise processes? How do I use social technologies to improve

dialogue with the value chain?

Stage 3: Store of the Community

P2P How do I use shopper insights? Which shopper input best reflects market

opportunity? How do I engage trading partners to deliver against

the store of the community?

Stage 4: Frictionless Commerce

Redefinition How do I redesign the buying experience? How do I enrich enlightened engagement processes

without slowing buying cycles?

© 2011 Altimeter Group

Diapers.com: Conversation precedes Commerce

Your baby becomes the social face of Diapers.com

Questions, suggestions and humor around being a parent

Twitter parties

Mommy clubs

© 2011 Altimeter Group

Diapers.com: Conversation precedes Commerce

75% orders from repeat customers

45-day return metric

50% of Facebook users are engaged

for an hour/day

© 2011 Altimeter Group

Dove: Launches Facebook Store in 201132

• 32 Brands• Engaged Consumers• Less Channel Tension

with Retailers than eCommerce

© 2011 Altimeter Group

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Customers choose which designs get created in ModCloth’s Be The Buyer Program

© 2011 Altimeter Group

Wet Seal: Social Strategy

Social Network Engagement Cross Channel Mobile

User Generated Content

© 2011 Altimeter Group

Facebook Virtual Runway – Dec 2009

App Generates3X CustomerFan News Feed PostsThan from Fan PageInteraction

© 2011 Altimeter Group

Shop with Friends – Dec 2009

© 2011 Altimeter Group

Wet Seal Social Network Game – August 2010

© 2011 Altimeter Group

Cross Channel Mobile – Oct 2009

Outfit Views500K+ per week

© 2011 Altimeter Group

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The Rise of Social Commerce

Stage Goal Questions

Stage 1: Let’s Be Social

Awareness What are the best tactics to use? How do I influence the most influential?

Stage 2: Enlightened Engagement

Dialogue How do I make it easier for the shopper to engage? How do I effectively introduce the shopper to

enterprise processes? How do I use social technologies to improve

dialogue with the value chain?

Stage 3: Store of the Community

P2P How do I use shopper insights? Which shopper input best reflects market

opportunity? How do I engage trading partners to deliver against

the store of the community?

Stage 4: Frictionless Commerce

Redefinition How do I redesign the buying experience? How do I enrich enlightened engagement processes

without slowing buying cycles?

© 2011 Altimeter Group

Delta

© 2011 Altimeter Group

Other ideas:

Groups

International

Facebook rewards

Leverage partnerships

Rethinking Travel

© 2011 Altimeter Group

Universal ID

Intersection of Interest and Social Graphs

Like Button tied to Open Innovation Networks

2-D Barcodes

Social Search

Virtual Currency

Trends we are following44

© 2011 Altimeter Group

We don’t know what “west” looks like

Find a Scout: Customer advocate to help navigate the trail

Lighten your load as you go….

Preparing for the journey45

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Jeremiah Owyangjeremiah@altimetergroup.com

web-strategist.com/blog

Twitter: jowyang

THANK YOU

Lora Cecerelora@altimetergroup.com

supplychainshaman.com

Twitter: lcecere

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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage. We have four areas of focus:

Leadership and Management, Customer Strategy,

Enterprise Strategy, and Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

info@altimetergroup.com.

ABOUT US