Social Commerce presented @ Global Retail Congress 2011 in Berlin by Henrik von Scheel

Social Media Commerce 2011by Henrik von Scheel

Definition: Social Commerce

Selling with Social Media.

Social commerce is a subset of ecommerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services.

Word-of-mouth applied to ecommerce

The power of Social Commerce today

+1 million

+150 millionpeople engage with Facebook on external websites each month

Facebook 201190%of consumers trust recommendations from people they know

The Nelson Company

90%of all purchases are subject to social influenceWired Magazine

sites have implemented facebook’s social layer

Techcrunch

“If I had to guess, social commerce is next to blow up.”

Mark Zuckerberg

Social Commerce is next to blow up

$30 billionpredicted revenues for social commerce market in 2015

Booz & Company67%spend more online after recommendationsBazaarvoice

Social Commerce reality check

$ 11 millionin one-day sales for GAP

1000Pampers sold 1000 diapers in 1 hour on its Facebook store

3.25average sales generated through Facebook

50%Of online sales come from Facebook

April 2009 “The Future Of The Social Web”

Timing of the 5 overlapping eras

The six dimensions TO SOCIAL COMMERCE SUCCESS

# 1 ScarcityLess is more (perceived value)

# 2 Affinity Shop with likeminded people

# 3 Reciprocity Pay back favours

# 4 PopularityFollow the crowd

# 5 Authority

Follow the leaders

# 6 ConsistencyOne step at a time

16 Social Commerce mega trends

# 1. Audience will be in control

# 2. Monitoring gets even more important

# 3. Engaging customers will be a challenge

# 4. Community managementis important to engage people

# 5. Social media and personal communications will be mobile

# 6. One social network to rule them all

# 7. Integrating websites with social technology

# 8. Social Commerce is next to blow up

# 9. Location! Location! Location!

# 10. Measuring results! (ROI)

Return of Investment

# 11. Social media integrated with other marketing activities

# 12. Brand is customer experience

Your brand ambassadors

# 13. Marketing will hit mobiles big time

# 14. Personal messaging will move to social networks

# 15. Campaigns spanning from offline to social.

# 16. The home page will be a social network

Social commerce – things to watch

‘Socializing’Brick-and-Mortar

Facebook creditThe Social Graph

meets Virtual Closet Interest Graph

Apps that enable sharing while shopping

with egift and group couponWal-mart, IKEA &Tesco

pushes into social commerce

The cross road: 2 strategies

Social Media on a eCommerce platform

eCommerce on a Social Media platform

Helping people connect where they buy

Helping people buy where they connect

Social Commerce sweet-spot

Shopping with

Social Intelligence

Social Media ROI

Key Social Commerce toolso Brand managemento Social ROIo Precision marketing o Social mobile shoppingo Consumer feedback o Product ambassador

o Ratings & reviewso Recommendations & referralso Forums & communitieso Social shoppingo Group buy & coupono Purchase sharing

Social Commerce business models

Results in 90 Day

90

seedo0

growAlignMindsets

Invite Contribution

90 DayExecution

1

2 3

Summary Seven key pointers for 2011

1. Experiment – Start selling on social platforms

2. Add mobile (sharing) into your social mix

3. Implement social plug-ins e.g. like on facebook

4. Up-sell with review and recommendations

5. Integrate chat so friends can shop together

6. Make your website a social flagship

7. Bring your offline brand experience online

Request YOUR own 1-on-1 social commerce session@: h_scheel@yahoo.com

About the Author

Twitter: von_scheel

email: H_scheel@yahoo.com

LeadingAdvisor onStrategy

Investor

Social commerce

EXPERTMaking money with social

media ! ! !