From Social Media to Social Commerce & Connected Commerce. Presentation @ e-Business World 2015 Conference (Divani Caravel Hotel - Athens)

1. From Social Media to
Social Commerce &
Connected Commerce
Periklis Vanikiotis
Head of Digital Publicis Groupe
Founder eCommerceNews.gr

4. Social Commerce:
How your customers’
social circles
influence
what they do
where they go
what they buy

10. Really?

11. So what? Isn’t that what we’ve been hearing about for the past 10 years?
Is this discussion about the present or is it yet another trend that’s on its
way, like so many others?
Isn’t that what promises sales through Social Media but at the end of the
day you only generate leads? Am I missing something?
Yes, I’ve heard about it, but are the changes that are brought along
really that many?
Oh well, brands always wanted to sell – what is it that’s changed now
and we are talking about Social Commerce?
Is there something I HAVE TO do?
Is there something I CAN do?

12. 2005
2007
2008
2009
2010
2011
2012
2013
2014
2015
Social Commerce Short Timeline

13. 2005
Social Commerce Short Timeline
2009
BBSs
AOL
Usenet Groups
SixDegrees.com
Friendster (2002)
LinkedIn (2003)
MySpace (2003)
Facebook (2004)
YouTube (2005)
The Infant Years
Social Networking’s Adolescence

14. 2005 November
The term Social Commerce introduced
by Yahoo!*
* Describes a set of online collaborative
shopping tools such as shared pick lists, user
ratings and other user-generated content-
sharing of online product information and
advice
Social Commerce Short Timeline

15. Social Commerce Short Timeline
February
Virtual Gifts Sold on Facebook (A $15
USD business before closing in August
2010)
May Apps Platform Launches – Market
Place Opens on Facebook
November
Facebook Pages is Launched leading
to shop windows for brands
POLYVORE
Launches2007

16. 2008 December
DELL Claims 1 Million $USD in revenue
via Twitter –
Sales Alert!
Social Commerce Short Timeline

17. July
$34 Spent on Facebook’ s FIRST retail
Transaction via 1800-Flowers
Sales Alert!
Social Commerce Short Timeline
2009

18. But…

19. Social Media = Communication

20. Social Media is the Fear of Brands

24. 2010
Social Commerce Short Timeline
2012
The Biz Grows Up

25. March
PAMPER’ S FACEBOOK STORE does
1000
Transaction per Hour
Social Commerce Short Timeline
2010

26. April
LEVI’ S Goes Social adding
FACEBOOK plugin to their
Friends Store
Social Commerce Short Timeline
2010

27. April
DISNEY launches a group ticketing
Store on Facebook for its movies
Social Commerce Short Timeline
2010

28. GAP Groupon Offers a $50 Voucher for
$25
Nets 441.000 Customers
GROUPON becomes the fastest
growing company of all time
FACEBOOK introduces Places
FLY DELTA Buy your tickets on
Facebook
2010
Social Commerce Short Timeline
August

29. August
Mark Zuckerberg says
“If I had to guess, Social Commerce is
next to blow up”
Social Commerce Short Timeline
2010

30. November
WALMART Introduce
Crowdsaver
Social Commerce Short Timeline
2010
FACEBOOK launches
Deals

31. January
LIVING SOCIAL runs AMAZON’s
$20 voucher for $10
Sells 1.378.938
Social Commerce Short Timeline
2011
GOOGLE enters the Group
Buy space with
Offers

32. April
$1.93 USD in Funding
For Social Commerce StartUps
In the First trimester of 2011
Social Commerce Short Timeline
2011
• 28% of Facebook Users have
Purchased something online via
Facebook LINK
• 35% of Consumers would buy
products on Facebook
• 32% would so from Twitter (if
Possible)
• 47% of consumers access customer
reviews in-store via mobile handsets

33. Now we are ready

34. 2013
Social Commerce Short Timeline
2014
The Rise of Social Commerce

35. #1 Online Marketplaces and Auction
Sites
Markets that are community – based where 2
individuals engage directly in buying and selling
Amazon.com (1994) – 22% Increase in Net Sales
eBay (1995) – $18,3 B Sold in Goods (ex Vehicles)
Etsy (2005) – 800.000 Online shops
TaskRabbit (2008) – 75% Users come by WoM
Getaround (2011) – 5 Cities, 10K Car Owners,
$14M Funding
Social Commerce Short Timeline
2013
Source Startup.fm
Types of
Social Commerce

36. #2 Social Network Shops & Shopping
Apps
Sales that are referral driven on established social
platforms – ie Through a shop tab on Facebook
Facebook (2004) – 1M Advertisers
Twitter (2006) – 33% Follow a brand – 67% buy from
brands they follow
Tumblr (2007) – 250.000 page views (a typical
day)
Instagram (2010) – 25% More Engagement
Pinterest (2010) – 70M Users – takes 41% of
eCommerce
Social Commerce Short Timeline
2013
Source Startup.fm
Types of
Social Commerce

37. #3 Daily Deals and Group Buying
If Enough number of people agree to purchase
something, the products and services are offered
at reduced price
Livingsocial (2007) – Record Breaking Deal
(Amazon Gift Card)
Groupon (2008) – 50M download Mobile App
ScoutMob (2010) – 13 Cities -$5M backed
Google Offers (2011) – Most Popular Deal was $20
worth of Powell’ s Books
Social Commerce Short Timeline
2013
Source Startup.fm
Types of
Social Commerce

38. #4 User Review Sites
Sales are driven through product reviews by other
purchasers, service reviews, and or rewarding
individuals for sharing the same on their social
profiles
Amazon (1994) – 209 Million Active Users
Yelp (2004) – 90% Users Say Positive Reviews
impact their company buying choices
JustBought.it (2012) – Social Sharing Gives 3% of
friends spent value in points – 500 points = 5
pounds
Social Commerce Short Timeline
2013
Source Startup.fm
Types of
Social Commerce

39. #5 User – Curated Pick Lists
Sites Focusing only on shopping; users create lists
of product and services for other people to shop
from
Fancy (2009) – Valued at Aprox $600M
List (2010) – 1M + Monthly Unique Visitors - $1M in
sales every month
Styloko (2012) – 700.000 Products from UK Retailers
Social Commerce Short Timeline
2013
Source Startup.fm
Types of
Social Commerce

40. #6 Crowdfunding / Crowdsourcing
Consumers became an active part in the
production process through voting, funding and
collaborative design
ModCloth (2007) – $100 M in Revenue
Indiegogo (2008) – 44.000 Campaigns - $99M
Successful Dollars
Kickstarter (2009) – $788M Pledged – 48.606
Successfully Funded
Social Commerce Short Timeline
2013
Source Startup.fm
Types of
Social Commerce

41. #7 Social Shopping
Shopping that includes chat and forum features
for people to discuss, exchange advices and
opinions. It almost like an offline shopping
Listia (2009) – Over 5.000.000 Items exchanged
Motilo (2011) – Takes Social Shopping to next level
Fab (2011) – 10M Members “live feed” to share
what they buy
Social Commerce Short Timeline
2013
Source Startup.fm
Types of
Social Commerce

42. Now: Social Commerce is a Social Utility

43. Helps people solve problems socially using their social intelligence (ability
to learn from each other and profit from social situations – e.g. collective
buying) (Mercedes)
Helps people solve the social problem of standing out, by helping them
manage their social status by expressing themselves (e.g. fan-first offers
that ‘sell’ bragging rights (Burberry)
Helps people solve the social problem of fitting in by facilitating social
bonding (e.g. social media gift stores (Starbucks, Anton Berg)

44. Social commerce, it’s still a catchall phrase that describes a number of
different ways of using social platforms to conduct commerce.

45. Increase brand awareness
Increase leads and sales
Improve online reputation
Retain clients
Community memberships
Engagement with content
Reputation
Social Conversions

47. The top 500 retailers
earned $3.3 billion from
social shopping in 2014,
up 26% from 2013,
according to the
Internet Retailer's Social
Media 500.
Social Commerce Short Timeline
2014

48. Some Great
Examples
Social Commerce Short Timeline
2014

49. The influence of reviews
on a user’s decision to
purchase is well
documented, and it’s
refreshing to see
AO.com acknowledge
this by making ‘Reviews’
the default tab on the
product details page
Ratings & Reviews
on AO.com

50. Ask a Facebook Friend on
Fashion ID
On the Product Details Page a link
invites me to ‘Ask a Friend’
(“Freunde Fragen”) about a
product. This connects me to my
Facebook account, and the
Facebook chat stream appears in
a panel on the right-hand side,
showing me which of my nearest
and dearest is online at that
moment. From that point, all I have
to do is select which friend I want to
talk to, drag the product over to
the panel and chat away about
the item in question

51. ModCloth’s Virtual
Fashion Buyer
In the ‘Be the Buyer’ section of the
site, users cycle through a selection
of samples that have been put to
the community vote, with options
to ‘Pick’ or ‘Skip.’ User feedback is
also encouraged, with good and
bad comments about each
sample displayed in equal
measure. This allows the community
(and, of course, the business) to see
what changes would make the
sample more desirable to the
fashion-loving audience.

52. Nordstrom takes
social commerce
in store
US department store Nordstrom has been
testing how to use its social data to
enhance the in store experience, by
adding a Pinterest swing ticket to
products that have been most-pinned
online.
This social commerce example is truly
elegant multichannel marketing, and to
my mind is the in-store equivalent of a
‘Most Popular’ or ‘Trending’ list on an
ecommerce site.

53. The Scandinavian Way -sweet real-life social

54. 2015

55. North
America
87%
South
America
52%
Europe
70%
Africa
27%
Asia
38%
Oceania
72%
Total Internet Penetration: 42%

56. North
America
58%
South
America
48%
West
Europe
47%
Africa
9%
Asia
21%
Oceania
45%
Total Social Media Penetration: 29%
Central &
Eastern Europe
45%
East 43%
M.East 17%
Central 4%
South 9%
S/East 32%

57. Source: brandingandbuzzing.com

58. The Buy button would
allow Pinterest users to
order and pay for some of
the products they
discover on Pinterest
without leaving the
company’s website or
app
Buyable Pins start rolling
out today! (29 June
2015)

59. Shopping was one of the top activities during which users liked to access
Pinterest

60. So You Can Shop From
Tweets
Twitter Introduces
“Buy” Buttons

61. It’s worth noting that the
buttons don’t take you away
from Instagram completely.
Instead, they open a mini-
browser within the app, so
once you’re done buying or
downloading or what have
you, you’ll be returned to
Instagram
Instagram Beefs Up
Ads With App Install
And Buy Buttons,
Interest Targeting, API

62. Just type a dollar amount into the
subject line of an email and send cash
to friends!
Snapchat Introducing Snapcash

63. Facebook is rolling out a new way to sell
things. It's letting certain stores sell their
products directly through the social network
via a "buy" button on their Pages
Facebook Adds ‘Buy’ Button
For Online Purchases

64. Facebook's just testing its so-called
"shop section," the move makes
sense, given its recent introduction
of peer-to-peer payments
capabilities, new ways to let stores
communicate with people via
messages, and its increasing
dedication to keeping people
within the Facebook ecosystem as
much as possible
Facebook's "shop section"

65. Facebook announced that a new
payment feature is now available
for Facebook Messenger users in
the U.S. Now you can make
person-to-person payments by
adding your debit card through
Facebook Messenger in just a few
taps.
Facebook Messenger Rolls Out
Payment Service

66. The social networking giant is making a
bigger push into selling goods online by
buying a shopping search engin
Facebook has acquired shopping search
engine TheFind.com, signaling the social
networking giant’s continued aspirations in
two of the Internet’s biggest money-makers:
search and e-commerce
Facebook acquires its way into e-
commerce by buying TheFind

67. Polyvore deal gets Yahoo
closer to a 'buy button'
Yahoo Snags Social Commerce
Site Polyvore

68. Pinterest taps IFTTT and
Polyvore as the first two
services to integrate its
APIs

69. Google’s next commerce
effort will be a “buy button”
to help people purchase
products featured in its
shopping ads
Google Confirms
‘Buy Button’

70. A Huge Social Shopping Mall

71. * Source: Lemon Stand (eMarketer, InternetRetailer)
Global eCommerce Market Size

72. * Source: Lemon Stand (eMarketer, InternetRetailer)
Global eCommerce Market Size

73. * Source: Lemon Stand (eMarketer, InternetRetailer)

74. Social is driving much bigger increases in retail traffic than any other online
channel.

75. Social media increased its share of e-commerce referrals nearly 200% between
the first quarters of 2014 and 2015

76. Source: DigitasLBI Connected Commerce 2015

77. Source: DigitasLBI Connected Commerce 2015

78. The latest technology trends and consumer habits that are transforming how,
where, and why we buy
Digital Environment, Social Media and the Global Retail
Ecosystem

79. Source: DigitasLBI Connected Commerce 2015

80. The growing use of mobile among consumers

81. Source: DigitasLBI Connected Commerce 2015

82. Social and Mobile micro-conversions will become an active and successful strategy with every business in
2015.
Direct Buying Becomes Mainstream

83. Source: DigitasLBI Connected Commerce 2015

84. Retailers fight discounting with a focus
on merchandise
Retailers adjusting store formats and
merchandise to target urban customers
Brick-and-mortar is becoming more of
an experience
Retailers investing more and more in e-
commerce

85. Source: DigitasLBI Connected Commerce 2015

86. Source: DigitasLBI Connected Commerce 2015

87. Retailtainment is Here

88. Source: DigitasLBI Connected Commerce 2015

89. Omnichannel is not an option for
retailers anymore — 'it is just business'

90. Commerce is coming to social media

91. Social Commerce is Not a Revolution

92. Social Commerce is a Key Factor on Shaping the future of retail

93. We talk about Modern Shopper

94. We talk about Connected Consumer

95. We talk about Connected Commerce

96. We aim to better prepare brands for the future of retail*
Now*

97. Thank You
www.linkedin.com/in/periklisvanikiotis
@Uroborus
www.uroborus.gr
periklis.vanikiotis@publicis.gr