1.Social media is like teen sex.Everyone wants to do it. Nobody knows how.When its finally done there is surprise its not better. - Avinash Kaushik, Analytics Evangelist at Google

2. A customer is the most important visitoron our premises.He is not dependent on us.We are dependent on him.He is not an interruption in our work.He is the purpose of it.He is not an outsider in our business.He is part of it.We are not doing him a favor by servinghim.He is doing us a favour by giving us anopportunity to do so. 3. Social business with a retail flavour Social business introduction Consumer and retail trends Case Study: Best Buy & SportsgirlTrials and Tribulations of Social Commerce Twitter Facebook Pinterest Foursquare .. And others 4. 1. Social business with a retail flavour Social business introduction Consumer and retail trends Case Study: Best Buy & Sportsgirl 5. Current State of Social in AustraliaOnly 42%of Australian organisationsare embracing social media48%have no presencein the spaceOnly 16%feel it is important to have a clear social media strategyOnly 2%prioritise dedicating funding KMPG 2011 SourceSource: KPMG report in B&T article: http://www.bandt.com.au/news/australian-businesses-lag-in-social-media-game 6. Traditional Media Approach 7. Social Business Approach 8. The new breed of consumersTraditional Media ApproachSocial Business ApproachListening to advertisingAvoiding advertisingListening to peers on social networks 77% of online shoppers look for reviews to make a purchase decision 62% of online shoppers are brand loyal due to online satisfaction 9. You need both to succeedBRAND AWARENESS BRAND REPUTATION SALES 10. The relative importanceBought Owned Media AssetsEarned 11. Nielsen study agreesEARNEDTwitterOWNEDForumsBOUGHT MEDIAFacebook Blogs 12. Consumers are social- brands arent72% use social media to keep up with brands80% say great service online keeps them loyal74% use social media to recommend products tofriends51% share product advice and info on socialmedia40% want more engagement from brands onlinehttp://frankmedia.com.au/wp-content/upLoads/2011/12/FRANk-media-Lithium-the-Digital-Divide.jpg 13. Impact of Digital on Customers LivesOver 1/3 of us areInternet enabled Digital informationusing mobileTVs will help meinfluences 50% of devices to buy shop online evenmy in-store salesproducts online #more #and will do so increasingly *Over 65% of in-store purchases 86% of us willare initiated onmaintain or the web # increase ourlevel of onlineexpenditure #We spend nearly 2 hours/week shopping online +We spend an average of 9.3hours/week with social media +Sources1. Harvard Business Review 2011*2. PwC 2011 Australian & NZ online shopping market insights #3. Nielsen 2012 + 14. How to Increase Consumer Loyalty Human Brandshttp://trendwatching.com/briefing/ 15. The Future of Retail: Connected ConsumersBy 2020, we will see a verydifferent consumer one whoco-creates & seeks personalisedproducts and services.Virtual networks will link theseconsumers and technology. It willchange how consumerscommunicate with each other andretailers. The Australian Centre for Retail Studies, 16. Retail today: Social is Driving RetailPolyvore Svpply Lookbook 15M UVs / month 81% receive advice from friends & family relating to product purchase through a social media network Almost 50% of shoppers have made a purchase based on a recommendation through a social media network Social sharing and social shopping are driving awareness and sales to brands that were previously unknown 17. Example of social retail in store: Tweet MirrorAs customers try on clothing items they can use Tweet Mirror to send snapshots of themselves to friends via Twitter or e-mail.For retailers its good brand exposure far beyond the store.http://www.youtube.com/watch?v=CU-DYKR4f8k&feature=player_detailpage 18. Most brands are socially inept.Share, talk, answer, engage, give something for free, have a personality, be different 19. Social Media Best Practice Tactics/Shop FrontStrategyhttp://www.intersectionconsulting.com/blog/ 20. Social Business has a knock on effect 21. The Benefits of Getting it RightCompanies view social media as offering the most benefit inthe upper stages of the purchase funnel.http://www.booz.com/media/file/BoozCo-Campaigns-to-Capabilities-Social-Media-and-Marketing-2011.pdf 22. Top 6 take outsSocial is no longer optional- integration is key Social Media has a knock-on effect beyond marketing Social Media requires a Social BusinessIt is not about the tools but how you use them Content & Context is the new marketing First mover advantage is there to be seized 23. Total Retail Sales in Australia = $216 billionBricks & Mortar Sales$205.5bn 95.1% of total retail sales E-CommerceRetail Sales $10.5bn 4.9% of total retail sales29% online retail sales growth 2011Source:NAB Study Jan 2010- 2011 24. Core Issues Facing Australian Retail IndustryConsumers are saving more than ever(10.5% savings rate)Becoming used to price reductionsConsumer confidence is low and Australiansare prioritising reducing down debt.High Australian dollar is a double edged swordfor Australian retailers.Cheaper for retailers to procure overseas goods, butalso cheaper for Australian customers to buyfrom international online storesSource:PwC 2011 Australian & NZ online shopping market insights # 25. + Digital + + Physical + Instant access to products Convenient & global shopping24/7 Edited product selectionselection Consumers are immune to the battleevent and Access to broadest productShopping as an experience Easy to research products andcompare prices They want a seamless integrated experienceon or experience Ability to test, try products from their desktop, to their smartphone, to the store itself. Rich product information, Personal help from caring customer reviews and tips associates Editorial content and advice Convenient returns Social engagement and two-way Help with initial setup or repairsdialogue Instant gratification of all senses Fast checkout 26. CallSocialcentremediaNetworkedappliancesSeamlessOnline Integratedstore ExperienceMobile Helpful Internetstaff enabled TVs 27. In store customer non-service Customer serviceHarder for bricks & assistants harder tomortar retailers to finddifferentiate from(online is always available)online They often lack(Kneejerk reaction makes the problem worse) product knowledge(web has product knowledge & customer reviews) Save $$$ byCustomersreducing labourincreasingly focuson price &Service assistants are conveniencetoo busy (both core on-line (50% in-store promotions are strengths) executed late or not at all)Less consumer tolerance topoor experience in-store(products stocked in wrong shelves) 28. Customer non-service: David Jones David Jones realises that its profit losses are in part a result of poor customer service As a result, 300 jobs are created to deliver specialised services to shoppers 29. Rise of Service Customer priorities have shifted from low price to service Retailers need to hire and train service staff to remain competitivehttp://cmosurvey.org/files/2012/02/The_CMO_Survey_Highlights_and_Insights_Feb-2012_Final.pdf 30. Social Service on the riseConsumers seek and prefersocial service 62% have used social mediafor customer service 76% would use if they betterunderstood the toolshttp://econsultancy.com/us/blog/9181-social-customer-service-a-best-practice-checklist 31. Group Buying: is it worth it for retailers?The reality is that many retailers dont see repeatIn 2011 $498650% growth yr/yr *customers from onlinemillion sales *(off low base)promotions + (they dont spend beyond the promotional offering)22% Australians currently use group buying sites # Business model is that(core 35-40 females) discounts are loss leaders and loss leaders only work in the context that 30% havent heard of them consumers spendoror dont understand them # ( Males, Gen Y & baby boomers return and spendabove untapped potential) the loss leader Restaurants,Group buying strength is providingaccommodation andRetailers dont have thisdeals for service businesseshealth & beauty use groupluxury(they sell time & encompass higher profit buying the mostmargins)Sources1. TNS Research Group 2011*2. Nielsen 2012 #3. Rice University 2011 How businesses fare with daily deals + 32. Case Study The worlds largest multi-channel home electronics retailerExample of a brand finding value in atransparent, customer focused social business strategy 33. A Corporate in Transition...focused on better solving the unmet needsof our customers andwe rely on our employees to solve those puzzles 34. Inevitable Shift CLOSED COLLABORATIVEOPEN CULTURESilos, separate andFreely sharing Connecting internal andinformation hoardinginformation andexternal communities forknowledge internally mutual gain 35. Social Developments (IncludeEveryone!) 36. Concept into Practice Be PART of the conversation customers tell aboutConsumers are givingYOUR brandus all kinds ofinformation if we choose to listenBest Buy CMO Barry Judge Technology isnt(vs. our competition)that interesting.we have to BE MOREIts HOW IT COMES than just a businessTO LIFE. 37. Best Buys Key Learnings Listen first, talk second Its OK to fail The same social values apply onlineas offline You have to be ready to respond Customers will tell you and everyone else where yourorganisation is brokenand expect a fix People are forgivingOverall Best Buy is treating their social businessexperience as a journey and have learned the importanceof listening instead of pushing. 38. Case Study 39. Sportsgirl ORIA Most Innovative Online Retailer 2011 With its 111 stores, Sportsgirl has worked todifferentiate itself by being more than a retailerthrough a deeply integrated social media strategy. With more international & online entrants to thecategory, Sportsgirl understand "youve just got tobe better, savvier and more aligned with what yourcustomer is wanting - CEO Elle Roseby 40. Sportsgirl BlogRegularly updated & rich incontent Regular Interviews Guest bloggers @ LMFF Style updates Photography tips & tricks Various categories beyond fashion, including musicfestivals, travel, nightlife etc 41. Sportsgirl Facebook 128,000+ Likes 6,000+ talking about thisBlog updates, newarrivals, Lookbooks, StyleSnaps75 comments, 67 likes 42. Sportsgirl TwitterBlog updatesOn the ball withcustomer serviceFun, personablebrand voice Re-tweeting customer happiness 43. Sportsgirl Window Shopping Sportsgirl uses QR codes on all clothes in its shop window Customers could simply shop after hours by using the QR codes and their mobile phones 24/7 interactive shopping experiencehttp://www.proprint.com.au/News/291320,retailers-turn-to-large-format-print-and-qr-codes-to-replace-in-store-shopping.aspx 44. Digital In-store Experience For customers to make the mostout of the QR codes, Sportsgirl held info sessions and put info on its bloghttp://www.sportsgirl.com.au/blog/post/2011/06/youre-invited-join-the-qr-code-instore-workshops/http://m.sportsgirl.com.au/mobile/blog/post/2011/06/qr-101/ 45. Its not about the tools. Its how you use them. 46. 2. Trials & Tribulations of Social Commerce 47. Why do people follow a brandon Twitter? 94% Discounts and Promos 88% Free Stuff 87% Fun & Entertainment 69% Company News 57% Related topic interest 56% Customer Servicehttp://econsultancy.com/us/blog/9410-a-guide-to-ad-targeting-on-twitter-infographic/ 48. Trials and Tribulations of Twitter: Coles Latest Twitter campaign went belly up for Coles After announcing price cuts of fruit and veg for all stores, Coles copped a lot of criticism from consumers Consumers were concerned about Aussie farmers and how they could possibly receive a fair price for their products if it sells so cheap Shortly after, Coles launched a Twitter campaign and asked to finish this sentence: in my house it is a crime to buy____________ The responses that followed possibly surprised Coleshttp://www.smh.com.au/business/coles-twitter-campaign-goes-down-down-gurgler-20120307-1uj4c.html 49. Amex and Twitter partnership 50 American Express is turningTwitter content into commerce by connecting card holders tomerchants and delivering real world value to both With the continued convergence of online and offline commerce, the closed loop continues toenable Amex to bring seamless, relevant ways toconnect our card holders and merchants on themost powerful social and digital platformshttp://www.psfk.com/2012/03/twitter-brands-deals.html 50. Amex: How To Increase Loyalty Amex and Twitter partnership allows Amex card holder to sync their purchases with their Twitter account In return for tweeting about their purchases, card holders receive discounts at participating retailers The result:http://socialcommercetoday.com/amex-tweet-for-dollars-campaign-garners-early-success/ 51. Facebook is the most successful social network with 850m users worldwide, but: Most brands use it as an isolatedcommunication channel Many talk about themselves 24/7 Many dont talk enough and think that thehttp://www.allfacebook.combuild it and they will come approach is/facebook-page-consumers-2012-02 enough 52. It is not an easy gig for brands to be successful on Facebook Study finds that customers expect brands to have a Facebook presence but dont want them to bother them with their content- ouch! 53 % of respondents believe brands must maintain Facebook pages for relevancy, BUT 64 % said they hate when they are targeted via their social network profiles 58 % find marketing via social media to be invasivehttp://econsultancy.com/us/blog/9410-a-guide-to-ad-targeting-on-twitter-infographic/ 53. Walmart local Facebook pages 54Approx. 10M Facebook fans and 3,500 stores Designed to connect consumers with their nearest Wal-Mart stores aimed to delivershoppers store-specific information, such as in-store events and promotions, as well as region-specific products 54. Starbucks Facebook page Almost 30M followers Receive 10,000s of Likes on eachpost Recently attracted 15,000+comments on fun questions such ashot or iced 55. Social ROI: You get out what you put in 2011 study shows that 95% of Facebook posts on brand pages are ignoredwww.allfacebook.com/facebook-wall-posts-brands-2011-10 56. F-commerce: Why it Fails to DeliverMost brands on Facebook offer no compelling value proposition to its customers Most F- shops are simply clones of existing e-commerce sites Most F- shops sell the same products for the same price with the samepromotionshttp://socialcommercetoday.com/the-social-commerce-value-proposition-infographic/ 57. F-commerce: How To Make It Work 4 keys value propositions to focus on: Something First Give social media followers access to new products first (Burberrys Tryvertising) Something Unique Give social media followers something different, only available to them (Oscar de la Renta) Something More Give social media followers a bonus when they buy (EA) Something For Less Give social media followers a discount when they buy (Zynga)http://socialcommercetoday.com/the-social-commerce-value-proposition-infographic/ 58. F- commerce experience: Tescos virtual changing roomVirtual fitting room via aFacebook app, allowingcustomers to create 3Ddigital versions ofthemselves and try ondifferent outfits from aselected range.https://www.facebook.com/Clothingattesco?sk=app_261347243942251 59. F-commerce Success Story: Miishka Miishka is a Melbournedesigner selling hercollection exclusively viaFacebook Over 47,000 fans and anengagement rate of 6.14% Simple, but super effectivesolutionhttp://tribecount.com.au/online-retail/make-every-sale-on-your-facebook-create-extra-engagement/ 60. Create virtual pin boards to share the things you love with one click11.7 million UVs per month worldwide 360,000 per month in Australia and growing rapidly 61. Stuff I WantCute vases 62. Trials and Tribulations of PinterestImplications for Brands Users post images that they do not own While individuals get away with this copyright breach, brands needto be careful not to be sued Best Practice Pin your own content If pinning others work, pay attention to licensing limitations All pins link back to the website where the image was uploaded -ensure you want to be associated with all the content of thatwebsite No self promotion is allowed on the Terms contribute to thecommunity Pin visually stunning images that others will want to share(Products I Love is the third most popular pinboard name)http://adage.com/article/digitalnext/brands-pinterest-breaking-law/233038/ 63. How Brands are Using PinterestGet discoveredBy sharing relevant and shareablecontent (products, coupons, etc.)Show core values and personalityBy sharing multiple facets of the brandMicro-target customers Several boards allow brands toseparate and classify content for customersDrive referral trafficBy encourage visitors on-site to Pin it Run competitions 64. Pinterest is very much aligned with our brand values, in that were bothpassionate about helping people organise ideas and inspiration in style.Pinterest has given us the chance to inspire our customers in a unique way through sharing creative and inspiring content Kristina Karlsson, kikki.K founder 65. 25 million users worldwideWorlds largest mobile-only social network: 1 in 12iOS devices 66. 4 Ways to use Instagram for your brand BurberryKookai Australia Show exclusive behindDisplay new products the scenes imagesThe Hungry WorkshopMelbourneShow brandTiffany & Co.personalityBranded Instagram app +filters + hashtagcompetition 67. Ted Baker and Instagram Ted Baker used Facebook and Instagram platforms to drive shoppers into stores Built app that allowed stores to send gorgeous pictures of their customers straight to their Facebook page Thousands of people had their photos taken. The pictures that gathered the most Likes on Facebook won a prize Result: Drove hundreds of Likes and engagement to content + raised awarenesshttp://wewillraakyou.com/2011/11/in-store-instagram-studio-right-onto-facebook-for-ted-baker/ 68. Turns offline brand interaction into online word of mouth with super-social usersGeolocation serviceGamified check-ins RecommendationsWhat can I do/eat/visit/buy Reward patronage - check-in Users leave tips, make lists in this area? deals and pointse.g. Melbournes best op shopsEnables your business to beReward loyalty - mayorshipsdiscovered WOM through Twitter, Facebook Offer hyperlocal dealsAwareness, sales and customer loyalty 69. How Retailers can Use FoursquareOffers to first-time customers toget them through the doorsAwarenessSalesShow some love to your topCustomer loyaltycustomersBeing a socialbusinessContribute to the community byleaving your own tipsAdding value toconsumers lives 70. Louis Vuitton: A Social Brand on FoursquarePerfect for their positioningas a luxury brand with astrong culture and heritagefocus all around theworld! 71. Foursquare: Granata PetDog food business launched 10 billboards in the US with Foursquare IDs When people walking their dog noticed the billboard, they could check-in usingFoursquare & the billboard dispensed the dog food. Outcome: Pet stores sold 28% more product than the previous period, storerequests for product increase by38%. They have since launched over 100 billboards across Europe.http://www.youtube.com/watch?v=YekTIVcXf60 72. ShopKick: Mobile Shopping Rewards The app lets stores influence their behavior, saidMikael Thygesen, who is the chief marketing officer at the Simon Property Group and the president of itsSimon Brand Ventures division. 3 million usersRECEIVE KICKBUCKS REWARDS CUSTOMERS FOR WALKING INTO SELECTED STORES &IN-STORE BEHAVIOURReal time customer datalocationsocial networksmobile appsRESULT: > $110 million in-store revenue forABILITY TO DELIVER INTUITIVE,blogspartner retailers and brands in 2011 (sourcetweets RELEVANT & TAILORED OFFERS TechCrunch)purchasing history Conversion rates of walk-ins to sales can bemeasured directly by counting specific shopkickoffers in the basket at retailers, by rewards for purchases through POS integrations, andShopKick users can now unlock Store gift cards conversion rates of product scans to productexclusive deals when they use their Movie tickets sales can be measured through in-app app during certain commercials. Facebook game credits questionnaires and POS integrations. Founder Cyriac RoedingSources: iTunes, TechCrunch 73. ShopKick: Mobile Shopping Rewards 74. Kakku: Connecting Shops & Shoppershttp://kakku.co/ 75. Trend: Mobile Point-Know-Buyhttp://trendwatching.com/trends/pointknowbuy/ 76. Mobile: growing trend in Australia Australian mobile sales tripled to almost 10% of sales in December 2011 Mobile sales are expected to reach 50% of sales in the next three years 1 in 4 retail searches over Christmas 2011 came from a mobile phone More than 1 in 4 consumers have made a purchase via mobile phoneSource: Google Study 2011 in Australia 77. Mobile shopping: Tesco South Korea Mobile shopping in South Korean subway station Each product has a QR code which adds the product into shopping basket Convenient, fast and hassle freehttp://www.designboom.com/weblog/cat/16/view/15557/tesco-virtual-supermarket-in-a-subway-station.htmlhttp://www.theage.com.au/small-business/trends/mobile-shoppers-put-on-an-appy-face-20120206-1r0l9.html 78. Mobile shopping with Augmented Reality Apps SwivelZugara Users try on clothes, accessories, hair See how it looks function activates web colours, and even cosmetic surgery by cam and essentially acts like a dressing simply uploading their imageroom mirrorTypical conversion rate of online shoppers is 2-3%These apps aim to help users feel more informed and comfortable with their online retail purchasing decisions.http://blog.modernmobileapps.com/post/2011/03/06/New-in-Augmented-Reality.aspx 79. Mobile Payment Technology: Google Wallethttp://www.google.com/wallet/what-is-google-wallet.html 80. Digital In Store Experience: Starbucks Mobile Payments A digital reader in Starbucks Users load the card with $$$stores scans a bar code displayedform a credit card or otheron the users smartphone screen. account The bar code is linked to a phone 26 million smartphoneapp backed by the users transactions were made sinceStarbucks card its launch less than a year agohttp://www.computerworld.com/s/article/9222481/Starbucks_mobile_payments_perk_past_26M_transactions_http://www.readwriteweb.com/archives/starbucks_launches_smartphone_payments_nationwide.php 81. Retail Social Business Best PracticeDEPARTMENTHR OPERATIONSINTEGRATIONMARKETINGMERCHANDISING INSIGHTS BUSINESS GOALS SHARED PASSION RELEVANT CONTENT STORESPRODUCTS EVENTS/CAMPAIGNS STAFF BRANDINTEGRATION 82. FRANk Process: 4 steps to a social business 4 ROI metrics & Detailed quarterly reporting on agreed key KPIsConstant monitoring of chatter reporting 3Community Community Manager recruitment & FRANkademy workshops, training and Editorial calendar training support Management Knowledge sharing Response flow chart Employee engagement2 Social BusinessResource managementStrategy implementationBudget recommendationMeasurement of successStrategy Content planning Marketing as a Service Social policies and guidelines Plan to become a social brand Internal- all stakeholders1 Listen & Learn External- consumers industry, trends, competitors, strengths, opportunities, weaknesses, Analysis of online chatter and buzz- agile and dynamic approach 83. At what stage is your business? We are nowhereWeve made a start We get it!We have Facebook and We have a communityWere not sure where Twitter but no onemanager who regularly to start or whetherwants to be our friendengages with our we need to?or talk to us.growing community. 90% + of brands