Social Commerce Presentation(2).ppt
UK Social Commerce,Overview,What is social commerceDrivers of social commerceE-consultancys surveyFigleaves case study,3,Ratings and Reviews,Wikis,Social Networks,Tagging,Blogs,Peer-2-peer,Facebook,User-Generated Content and Social Media Have Exploded,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.,4,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 channelConsumers are authoring brand messagesIn effect,working for the Marketing department and generating the message in addition to carrying it.The consumers have a voiceConsumers now can not only influence purchase decisions,but they can also influence product designConvergence of stakeholder rolesConsumers are more invested and therefore more loyal to companies and brands,Social Commerce Report Research Methodology,Produced by E-consultancy in association with BazaarvoiceSurveyed 800 respondents over a three week period(June July 2007)360 respondents classified themselves as online sellers80%respondents were based in the UK,7,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 UKamounted 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 priorityMore 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 2007,9,*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 2007,11,Source:UK Consumers,V Polls,N=100+,Benefits of Ratings and Reviews,12,Percentage of respondents rating as major benefit(Social Commerce Report 2007),Case Study,Founded in 1998Worlds largest seller of branded intimate apparelCarries over 200 brands of lingerie,swimwear,sleepwear and hosiery for women and offers a shopping experience that is highly personalised,engaging,fun and backed by an award winning level of puts the consumer at the centre of what they do,Implementation of Ratings and Reviews on,Launches Ratings&Reviews Jan 2007Drive reviews through dedicated landing pages,on-site offers and email campaignsCustomers are engaged 73 reviews for Fantasie braAverage rating of products is high 4.5 out of 5,The Results,Product CoverageShoppers on want Ratings&Reviews.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 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.,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 S,Questions?Linus Gregoriadis,Head of ResearchE-Email:linuse-Website:www.e-,
