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This presentation shows how retail could benefit from social commerce strategies and provides concrete examples of solutions retailers can implement in order to grow customer referrals. It was first given at the Daily Deal Summit in NY on April 18, 2012.
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Social Shopping: Friends Don’t Let Friends Buy Alone
Veronika Sonsev, CEO of inSparq
Marketing landscape has changed
2
So what should you do?
Go social!
Cost effective marketing
Engages your most loyal customers
Delivers immediate results
Fab.com Success Story
~ 15% of Fab’s daily traffic comes from Facebook
~ 5% comes from sites like Twitter and Pinterest
Source: WSJ. February 2012
Eventbrite Success Story
Every link shared on Facebook generates $2.52 in ticket sales
Facebook sends more traffic than any other source, including Google
Tech Crunch October 2010
Source: TechCrunch. October 2010
Research confirms social works
23% of shoppers share over half the time
23%
Even more want to share
“83% of online shoppers say they want to share information about their purchases”
Source: Digital Buzz, March 2010
They share because they think their friends would like it
94% bought a product recommended last year
94%
Customers are 71% more likely to purchase a product if referred by a social media channel
Organically customers are only 7% likely to purchase a productSource: Hubspot, January 2010
Recommendations increase likelihood to buy
“Word of mouth
is the ‘primary
factor’ behind
between 20%
and 50% of
purchases”
Source: McKinsey, April 2010
Word of mouth drives sales
64% would share more if they were incentivized to do so
The Power of Social Referrals
Top rewards that motivate
#1 Cash Back – 84%
#2 Discounts – 72%
#3 Free Shipping – 65%
So how do you get started?
Sharing Widget & Tell-a-Friend
User Reviews
Loyalty Programs
Social Media Sweepstakes
Your social commerce toolbox
18Fully integrated with the social media avenues customers most!
Tool #1: Your Sharing Widget
Sharing Widget Results
300% uplift in shares
Over 50% CTR on shares
Built database of top 5% most influential customers
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Goal: newsletter sign ups
Action: created a contest to spread the word
Tell-a-Friend Product
Tool #2: User Reviews
The Stats: 70% of Americans say they look at reviews before taking the next step to conversion
The Action:Bazaarvoice installed reviews on the website and deemed loyal reviewers as ‘Black Book Insiders’
User Reviews Results
200% in conversion among customers who engage with reviews
300% in revenue per visitor
250% in average order value
Tool #3: Loyalty Programs
The Thwipster Loyalty Program:
Thwipster incentivized behaviors that would lead to increase traffic, email acquisition and sales
Customers could trade points for:
• discounts• free shipping • $ off orders
Loyalty Program Results
Increase traffic 60% M/M
45% of email subscriptions convert to loyalty program
Loyalty members viewed pages 16X more than non-rewarded users
50% buy every month
Like, Tweet, +1 2000X more Source: Punchtab, 3 months
Tool #4: Social Media Sweepstakes
The Contest: ‘Instant-win’ coupon promotion to engage fans and attract more users
The Action:• Instant-win promotion
on their Facebook Fan Page
• Users needed to become a fan in order to redeem their instant-win coupon
Social Media Sweepstakes Results
21% coupon redemption
4,000 new Facebook fans
Generated $30,000 in revenue
250% ROI net of all campaign and marketing costs
Source: Hautelook, 7 days
Empower your customers…
…and see your business grow! It’s that simple.
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Thank You!