future of social commerce mindshare
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TRANSCRIPT
#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
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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
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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
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Validating a purchase
Selfridges ‘Next-Generation’
fitting rooms
#MindshareSocial
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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
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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
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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
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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