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THE SIX DIMENSIONS OF SOCIAL COMMERCE

THE LATEST INTERNATIONAL DEVELOPMENTS IN DRIVING REVENUE

MARK ELLIS, MANAGING DIRECTOR, SYZYGY

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Definition: Social Commerce
“Selling with Social Media”
Social commerce is a subset of e-commerce 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 e-commerce.

AUGUST 11. 1994 NETMARKET.COM FIRST-EVER INTERNET PURCHASE .

11.COM FIRST PURCHASE WITHIN FACEBOOK . 2009 1-800-FLOWERS.50 AM JULY 8.

during and after buying .Sharing your purchasing decisions before.

SALES (CONVERSION) AND AVERAGE ORDER VALUE .+ = €/$ INCREASE TRAFFIC.

Ensogo.BRAND AMBASSADORS “PEOPLE ARE MORE VALUABLE OWNING AND USING YOUR PRODUCT/SERVICE THAN THINKING ABOUT BUYING IT” Paul Srivorakul.com .

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2 STRATEGIES SOCIAL MEDIA ON E-COMMERCE PLATFORMS Helping people connect where they buy E-COMMERCE ON SOCIAL MEDIA PLATFORMS Helping people buy where they connect .

6 x SOCIAL COMMERCE TOOLS .

1 RATINGS & REVIEWS 2 RECOMMENDATIONS & REFERRALS 2 3 FORUMS & COMMUNITIES .

4 SOCIAL SHOPPING 5 GROUP BUY 2 6 PURCHASE SHARING .

WHY NOW? FOLLOW YOUR CONSUMERS .

BE CONVERSATIONAL 3.PEOPLE INFLUENCING PEOPLE NOT TECHNOLOGY 1. BE REMARKABLE (LET GO) IT’S ABOUT . BE HONEST 2.

RECIPROCITY 4. AUTHORITY 6. AFFINITY 3. POPULARITY 5. CONSISTENCY .THE SIX DIMENSIONS TO SOCIAL COMMERCE SUCCESS 1. SCARCITY 2.

SCARCITY LESS IS MORE (PERCEIVED VALUE) .#1.

1774 Effectively re-branded the Potato by making it a ‘scarce’ Royal delicacy .Frederick the Great PRUSSIA.

Christian Louboutin Limited Edition Barbie Exclusive Collector’s Dolls .

5m Twitter Revenue Exclusive Discounts and Snap Promotions .@DellOutlet $6.

GROUPON World’s largest ‘Group Buy’ Platform .

POP-UP ONLINE STORES Lucky Magazine and HSN create 48-hr exclusive Facebook shop .

000 check-ins (then 40% off) .000 free jeans to the first 10.FACEBOOK DEALS (MOBILE) Geo-located local deal promotions have huge expectations for 2011 Gap offered 10.

#2. AFFINITY SHOP WITH LIKE-MINDED PEOPLE .

Dell Swarm Group Buy for technology Daily deals for Dell bargain hunters .

Levi’s Friends Store ‘Shop Together’ Real-time Global Shared Shopping Functionality .

Ping Apple’s Social Network .

Connecting 160m iTunes Customers 1m sign-ups in first 48-hrs .

#3. RECIPROCITY PAY BACK FAVOURS .

Adidas Outlet Store Earn free shoes by inviting friends in Member Get Member Social Coupons .

Fiesta Movement Ford’s Social Commerce Experiment (2009) 100 free cars in return for monthly YouTube posts 11. 38% awareness (Gen-Y) . 11m social visitors.000 videos. 5m shares. 50.000 enquiries. 15.000 tweets.

Starbucks foursquare National ‘Mayor Offer’ (USA) Loyalty Programme $1 off each drink for all Starbucks foursquare Mayors nationwide .

Toys R Us Toyologists Consumer panel of (free) toy reviewers on Facebook. Twitter and YouTube .

POPULARITY FOLLOW THE CROWD .#4.

P&G Amazon Facebook Store Top 29 brands from Always to Zest Selling 1.000 products an hour (direct to consumers) .

2009) .The undisputed Kings (and Inventors) of Social Commerce Leading the way since 1995 (£24.5bn turnover.

5m to date) .Burberry Art of the Trench Become a trench coat model (200.000 visitors week-1.

AUTHORITY FOLLOW THE LEADER (EXPERTS) .#5.

vente-privee. $1.1bn Sales.com Exclusive private club for curated designer brand discounts 40.000 orders per day. $70m profit .

Apple Expert Discussion Forums Hosting and feeding a platform for thousands of Apple ‘experts’ .

French Connection Youtique (YouTube) – “Plinking” Expert fashion videos with annotated ‘Buy’ buttons .

CONSISTENCY ONE STEP AT A TIME .#6.

000.Blendtec Will it Blend (YouTube) Smiling is consistent with liking.000 videos viewed. Home blender sales increased +700% since 2006 . liking is consistent with buying 130.

Starbucks my STARBUCKS IDEA Feedback is consistent with caring. caring is consistent with loyalty Consistent Customer Focus: using Social as an Ideas Platform to improve the product and service .

discounts and exclusives for Facebook Fans .f-commerce Facebook Stores (and storefronts) ‘Get It First’ VIP Store.

Milyoni. Alvenda. Payvment.g.f-commerce Software suppliers creating integrated Facebook stores E. . Usablenet.

g. 6. EXPERIMENT .START SELLING ON SOCIAL PLATFORMS ADD MOBILE (SHARING) INTO YOUR SOCIAL MIX IMPLEMENT SOCIAL PLUG-INS e. 2. 7. 3.SUMMARY 7 KEY POINTERS for 2011 1. 5. FACEBOOK ‘LIKE’ UP-SELL WITH REVIEWS AND RECOMMENDATIONS INTEGRATE ‘CHAT’ SO FRIENDS CAN SHOP TOGETHER MAKE YOUR WEBSITE THE SOCIAL FLAGSHIP BRING YOUR OFFLINE BRAND EXPERIENCE ONLINE . 4.

ellis@syzygy.THANK YOU m.net @mellis71 .