istrategy london - social commerce: do consumers trust your brand? steve semelsberger, pluck (demand...
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In a world of increasing consumer expectations for transparency and quality, is your brand trusted? How can you tell? And how might you use social commerce technologies like reviews and discussions to glean insights and provide consumer assurance? Follow case studies on leading global brands like Kraft, Whole Foods and the NFL to see how marketers and e-commerce executives are working to foster trust.TRANSCRIPT
Social Commerce Perspectives
Do Consumers Trust Your Brand?
Steve Semelsberger
SVP & GM
Social Products Group
Integrated Customer Engagement
Division of Demand Media (NYSE: DMD) Customer Engagement Platform Used by 600+ leading global brands Enables them to: • Solicit feedback (ratings, reviews, polls, etc.) • Foster communication (shares, messages, etc.) • Gain contributions (journals, galleries, etc.) • Encourage identity (SSO, profiles, badges, etc.)
About Pluck
• The State of Consumer Trust
– Current landscape of perspectives
• Strategic Trust Considerations
– Key thoughts and success drivers
• Concrete Social Commerce Tactics
– Focused on integrating social to commerce
Today’s Session
Source: Edelman Global Trust Barometer, 2012
Consumer Distrust Growing Globally
80% of corporate executives say their company delivers a superior customer experience
Just 8% of consumers report they received one
Source: Bain and Company
The Customer Experience Gap
Drop of CEO Credibility, Rise of People Like Me
Source: Edelman Global Trust Barometer, 2012
New Services Hone in On Trustability
New Services Hone in On Trustability
New Services Hone in On Trustability
New Services Hone in On Trustability
Trustability Varies by Source
Nielsen asked 28,000 consumers about Trust and Research
Nielsen, 2012
92% 8%
70% 30%
58% 42%
58% 42%
50% 50%
16% 84%
15% 85%
Recommendations from people I know
Consumer opinions posted online
Editorial content e.g., newspaper article
Branded websites
Emails I signed up for
Display ads
Mobile text ads
Trust completely/ somewhat
Don’t trust much/ at all
Yet 26% of Consumers Still Turn to Brands First
Customer reviews
14%
Product experts
12%
Manufacturer
16%
Retailer
10%
Family/Friends
48%
IBM Institute for Business Value, 2012
IBM asked consumers who they trust most to provide honest feedback and suggestions about products
Traditional Marketing Mental Model
Source: Google ZMOT Presentation, 2012
14
Consumer Research Explodes:
10.4 Sources Per Purchase ~2x increase YoY
Source: Google ZMOT Presentation, 2012
New “Four Moments” Mental Model
Source: Google ZMOT Presentation, 2012
Source: Google ZMOT Presentation, 2012
Consumers Commit to Research Across Verticals
Brands Realize Trust Matters
1to1 Media Survey of Brands, 2011
84%
of marketers agree that building consumer trust will become their primary objective
“Four pillars of the grownup web are trust, authenticity, engagement and purpose.” Ariana Huffington
“It all started when Tony Hsieh decided to be completely open and transparent.” Zappos Insights
“Transparency is the new marketing.” Clay Shirky
“Consumers will trust a company they believe is run really well.” Jim Farley, CMO Ford
“In the world of branding, trust is the most perishable of assets.” Business Week
"Trust and transparency [are] more important to us than ever.“ Mary Dillon, CMO McDonalds
“Sharing is the new giving, participation is the new engagement, recommendations are the new advertising.” Antonio Lucio, CMO Visa
The Trust Zeitgeist
TRAFFIC
ENGAGEMENT
CONVERSION
LOYALTY
Trust is Important at Every Stage
New consumers are more attracted to your brand by trusted connections and content
Trust that comes from consuming useful content in the company of likeminded people creates emotional bonds
Direct and detailed product experiences, tied to known, credible sources, inspires more and bigger transactions
Rewarding contributors who are credible and helpful surfaces your most trustworthy customers
Three
Requirements For
Growing Trust
Intention
Do the right thing
Competence Do things right
Proactively
Without Prompt
Source: Peppers & Rogers, 2012
Source: Edelman Global Trust Barometer, 2012
Skepticism Requires Repetition Majority Require 3-5x Message Repeat to Believe
22
Admitting one’s own vulnerability is the first step in earning someone else’s trust.
The world isn’t perfect; brands that maintain they are perfect are simply not trustable
Source: Peppers & Rogers, 2012
Your Website: Best Engagement (Forrester)
Three Game Changers
Commit to Responsibility
Communicate Transparently
Offer Visibility
Five Social Commerce Pillars
Specify product and participant
details.
Attributes
Showcase skills and relevancy
Experience
Verify purchases
Ownership
Highlight connections
Relationship
Use real names
Identity
5 Drivers of Social Commerce Trustability
Use Real Identities
Encouraging
Social Sign On
leads to social
experiences that
are built upon real,
trustable display
names from
Facebook and
other services
Highlight Relationships
Display Verified Ownership
Showcase Experience
Award points and badges. Highlight users who have significant expertise. Nestlé awards “brownie points” to valuable contributors.
Specify Attributes
Eight More Things You Can Do Today
Ingredients of Trusted
Social Commerce
Reward Sharing
Canadian e-tailer Shop.ca rewards shoppers who share
their product discoveries with friends. They understand
the effect on traffic of trusted friends’ invitations.
Sky News built a popular tribute to Steve Jobs using Comments
Offer Comments
Enable Discussions
Nike invites golf enthusiasts to upload videos of their swing, and then compare their form with friends’ or even pros’
Invite Media
40
Content Scoring provides a
path to credible and
authoritative content on
your site.
The NFL gives fans easy ways to record their mood about their team’s Draft, and to rate players and games in real time
Leverage Ratings & Scoring
NBA fans enjoy robust profiles that highlight all activities, while letting them find, befriend and message each other.
Integrate Member Profiles
Use Badges/Gamification
Confidential and Proprietary
Kraft First Taste’s million members get exclusives on
new products.
Showcase Community
Pages
Source: Edelman Global Trust Barometer, 2012
Future Company Trust Depends on Societal Work
Company trust is challenged
Consumer expectations are rising
Brands realize they must strive for high trustability
Key requirements include:
• Intent
• Competence
• Proactivity
Social Commerce tactics include:
• Embrace Identity
• Highlight Relationships
• Understand Attributes
• Showcase Ownership
• Foster Expertise
Leverage these tactics in:
• Ratings & Reviews
• Forums
• Sharing
• Social Sign-On
• Gamification
• More
Summary
twitter.com/Pluck
www.pluck.com
(+1) 512 457 5220
Thank You Come by Our Booth And:
twitter.com/semels
(+1) 512 519 3214
Steve Semelsberger SVP & GM, Social Products