Peter Farrell

PREPARED FOR SMP 11/6/11

Connecting people to the things they love

It’s a matter of time-within the next five or so years-before more business will be done on Facebook than Amazon.” CMEA

Capital

Overview-Who we are

WHO WE AREA global multimedia shopping community•$7.8B worldwide•US, UK, Germany, Japan, Italy•200M homes•$2.2B web business•well over 1B packages all time•10M+ customers worldwide•new platforms accelerating growth•Rapidly growing buy anytime business

US UKDE

IT JN

‘08‘87 ‘88 ‘89 ‘90‘9192 ‘93‘94‘95‘96‘97‘98 ‘99‘00‘01 ‘02‘03 ‘04‘05 ‘06 ‘07

$7B

$6B

$5B

$4B

$3B

$2B

$1B

‘09

QVC, INC. REVENUE (US$)

INTLUS

‘10

In its first two decades, QVC shipped more than a billion orders to over 45million customers on three continents. With global sales of $7.8 billion,QVC is three times the size of its next largest competitor, and in the U.S.now ranks second only to CBS among all American TV networks in termsof revenues. With over $2 billion in internet sales, QVC is now among theworld’s largest dotcoms. But QVC is more than a TV network or dotcom.At its heart, QVC is a retailer. And like any good retailer, it succeeds notby selling items, but by continually pleasing its customers.

A Global Business

A Retail/Media Hybrid

5,000-15,000 QVC orders/hour

0 500,000 1,000,000 1,500,000

~500,000-1,500,000 QVC viewers/hour

Source: QVC MR&SA

Q: Is QVC “sales” or “marketing”? A :yes.QVC typically generates 5,000-15,000 orders per hour. Meanwhile, QVC will reach up to 1.5 million viewers for at least some portion of that same hour. Figuratively speaking, for every thousand orders that QVC takes, hundreds of thousands more consumers are being predisposed to look for the brand at retail.

QVC.com Traffic (U.S.)

August Monthly Visits (millions)

Sources: Experian/Hitwise, Coremetrics

estim

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mon

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QVC.com Traffic

Our Most Revealing Statistics

overall satisfaction

ease of doing business

intention to reorder

Top Box Rating 20087 out of 7

% of revenues derived from repeat customers

Connecting people to the things they love

It’s a pretty simple concept really…

FavorableDemographic Growth

WOMEN AGED35-44

20.6MPROJECTED

GROWTH:

+0.5%

WOMEN AGED25-34

20.6MPROJECTED

GROWTH:

+1.0%

WOMEN AGED45-5422.7MPROJECTEDGROWTH:

-0.9%

WOMEN AGED55+41.7MPROJECTEDGROWTH:

+2.4%

SOURCE: Population Division, US Census Bureau Aug 2008

It’s all about her

She is a passionate shopper

Sees shopping as a way of engaging with the world

It’s more than just buying “stuff”

It’s new ideas for everyday life

It’s inspiration

It’s creating a community of experts, inventors, owners, dreamers, customers, employees together

It’s about everyone sharing their life experiences

So who are we?

QVC is a Global shopping community that offers an experience that is as much about entertainment and enrichment as it is about buying.

We’re here to make genuine connections—really!

Connecting her to the people and the products she loves

On our platforms

And off our platforms

affinity.

Anywhere and anyway she prefers

personal.

Making her feel special

nurtured.

Connecting her to the cause she loves to support

These videos sold 3 pairs of shoes exclusively on Facebook prior to the Broadcast. All proceeds go to Breast Cancer.

FFANY Presents Shoes on Sales for Breast Cancer Awareness

proud.

Giving her an experience of a lifetime

Red Carpet Ready, LA Getaway Flyaway Contest

Winners, fresh off the red carpet at the Four Seasons, after their VIP Hollywood makeover with Mike George, President and CEO

important.

Giving her access to the events she can only dream of…

relevant.

Giving her the tools, tips, and shortcuts

inspired.

affinity

personal

nurture

proud

inspired

important And the grows…

We don’t feel like a typical retailer.

relevant

Trending video on YouTubeHomepage on 6/25

Trending Topic on Twittertwice in one week.

Khloe Kardashian + GreysonChance appearances

And she wants to express it…

Over 90k new likes @ under .37 cents per like

Who Loved Easy Does It Day…?

And when she does…

Her 140+ friends can see it

For us… that means 79M friends of fans

79M friends that listen to their friends

Social endorsement (seeing that my friend likes a brand) drives a 2x increase in brand awareness and 4x increase in purchase intent-Nielsen

79M friends that listen to their friends

Social endorsement (seeing that my friend likes a brand) drives a 2x increase in brand awareness and 4x increase in purchase intent-Nielsen

Fan love to share…68% indicate they are

verylikely to recommend aproduct

Fans spend more…Fans of CPG brandsreported spending

$71.84more per year than nonFans“51% of users who like a Page are more likely to buy from that brand”

Who is our QVC Facebook Customer?

$75 incremental lift

Convert 1% of 79,000,000 = 790k new cust

More

Results

Tagged 7 day Sales YTD up 198%

Avg conversion @ 4+%, Wall @ 5%

Give people what they love and……….

Challenges-What’s The Story?

1.Educating the company is key to get support for delivering Social Commerce goals

-Bigger than our Fan Page

-social plug-ins, integrating social features into email etc

-Social goals are company wide ….everyone wins

-ROI Skeptics Abound….like early days of .com

2. . Metrics & Innovation--Hard to justify IT support to fully leverage social plug-ins in the purchase

path-To scale social commerce we need IT & other business units to help

3. Fan Counting vs importance of Engagement levels-you can buy your way to oblivion and have 90% “hide” your page

What’s your story?

WHAT DO YOU HAVE TO OFFER?

HOW CAN YOUR COMPANY MAKE PEOPLE FEEL LIKE THEY ARE AN INTEGRAL PART OF THE COMMUNITY/BRAND WHERE THEIR IDEAS MATTER?

Ask them…

The Future: some staggering quotes

• 4 Billion “shares” on Facebook daily

• 52% of Facebook users use the site daily

• Facebook Motivates 1 in 5 purchase decisions –Compete

• 1 New Facebook Fan produces 20 website hits- Hitwise

• More than 200 million FB users access FB thru mobil e devices

• More Americans own a smartphone than hold a bachelors degree!..-PEW

In 3-5 years 10-15% of total consumer spending in developed countries may go thru sites such as Facebook-Mike Fauscette, IDC Consulting

Q + A