#TrendingNow: How to Bridge the Gap Between E-Commerce and Social Media

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1 #TrendingNow: How to Bridge the Gap Between E-Commerce and Social Media ALLISON ENRIGHT Editor Internet Retailer MODERATOR MICHAEL KANE Director of Marketing Karen Kane EVAN CARROLL Product Manager, Digital Marketing ChannelAdvisor Sponsored by

2 Social rises Average traffic from social networks Facebook, Twitter, Pinterest, YouTube for all Social 500 retailers % % 7.65% Average monthly unique visitors from social to Social 500 retailer sites , , % Average social commerce sales for all Social 500 retailers 2014 $6.6 million 2013 $5.2 million 26.9% Source: Source: Internet Retailer 2015 Social 500

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4 #TrendingNow: How to Bridge the Gap Between E-Commerce and Social Media September 23, 2015

5 The Evolution of Social Media Generational Differences: Baby Boomers learning to accept social media Generation X comfortable with social media Millennials believe social media is an important part of their lives Generation Z has never known a world without social media From share to sell : Shifted from a focus on people to a focus on brands and products 2003: Myspace 2004: Facebook 2007: Twitter 2010: Instagram 2010: Pinterest 2011: Wish 2012: Wanelo 2014: Spring 5

6 Types: Organic Content vs. Sponsored Content Purpose Organic Content Foster a connection with the brand Opportunities Build customer loyalty Generate a sense of lifestyle around a brand Share brand initiatives or missions Example Sharing a USA Today article focused on the brand s initiative to in-source production and make 90% of its products in the US generated thousands of Likes and hundreds of Shares on Facebook Sponsored Content Develop brand awareness or advertise specific products Drive traffic to e-commerce site Introduce new product categories Drive conversions among new and existing customers Advertising the Karen Kane Maggie Trapeze Dress through Facebook news feed/mobile ads has generated 37.9% of its total product revenue YTD ($32,455) with an average ROI of 4X 6

7 Facebook: Who It Serves & How to Use Purpose: Connect with family and friends Opportunity: Advertise products and share news Audience: Existing customers/fans; friends of fans Best Practices: Focus on visual messages (strong images, enticing offers) Vary the content (brandbuilding vs. driving sales) Content should be relevant and newsworthy Use Facebook business tools: Offers & Events Photos & Videos Ads Locations Promoted Posts 7

8 Facebook: Who It Serves & How to Use Locations Posts/Photos Videos # of Shares 8

9 Facebook Case Study: Maggie Trapeze Dress Situation: After initial success in early spring 2015: Product put on auto-replenishment Wanted to capitalize on its popularity by creating Facebook ads for the spring/summer season Results: To date, ads have generated a 4X ROI and propelled the dress to become KarenKane.com s #1 all-time best-selling style In 2015, 5% of site revenue has been attributable to desktop referrals from Facebook, and 0.7% has been attributable to mobile referrals from Facebook 9

10 Twitter: Who It Serves & How to Use Purpose: Share news and information Opportunity: Broadcast a concise message Audience: Industry influencers, celebrities, customers Best Practices: Focus on text-driven messages (140-character limit) Not visually impactful Content should be timely Engage followers with questions and calls to action Use Twitter business tools: Promoted Tweets Promoted Accounts Cards Organic Tweets 10

11 Twitter: Who It Serves & How to Use Follow relevant influencers Retweet & engage with followers Promoted Card 11

12 Twitter Case Study: Shifting Strategies Situation: In 2013: 30% of social media budget was spent on Twitter advertising Results: Due to lackluster results, Karen Kane shifted dollars from Twitter to Facebook and Instagram Twitter has increased the size and presence of images on the platform, but Karen Kane has not shifted budget back 80% of active users access Twitter through a mobile device Source: Twitter 12

13 Instagram: Who It Serves & How to Use Purpose: Share (creative) photos and videos Opportunity: Build brand awareness and tell a story Audience: Fans, customers, industry influencers Best Practices: Content is king make sure every post is a work of art Follow industry influencers their likes build buzz Content should be concise, timely and relevant As a general rule, for every photo posted, you should: Like 3 other photos Comment on 1-2 other photos Schedule posts to avoid overwhelming followers 13

14 Instagram: Who It Serves & How to Use Interact with relevant industry influencers Use hashtag searches to keep up with competitors & colleagues Interact with fans 14

15 Instagram Case Study: Going Viral Situation: One of the best techniques used to grow fan base and drive fan interaction is to reshare relevant content posted by influential fashion bloggers Once content is Liked by a highly influential user, it gets recommended to their followers 98% of time spent on Instagram is via mobile device Results: Karen Kane s Instagram account has seen massive growth this year % since September 2014 Source: comscore 15

16 Pinterest: Who It Serves & How to Use Purpose: Discover new ideas and products Opportunity: Find new customers and drive conversions Audience: Potential and existing customers Best Practices: Photos are everything make sure content is strong Crop visual elements to maximize feed real estate Content lives forever; plan stock accordingly Focus on influencer outreach, not on building your page Spend time on SEO and crafting keywords Product and board descriptions drive Pinterest search results Plan content for both loyal customers and potential new shoppers 16

17 Pinterest: Who It Serves & How to Use General Trends: US women use Pinterest 4X more than men (42% vs. 13%) Surprisingly weak in Europe only 3% of European web users Dominated by tablet users (48% on ipads) The average Pinterest user has a HHI of $100,000+ per year Strong visual content Create boards to target specific keywords Once photo goes viral, reinforce inventory to convert potential orders 17

18 Pinterest Case Study: Cascade Wrap Dress Situation: The Cascade Wrap Dress has been our strongest-performing product since 2012 Began advertising this dress on Pinterest when advertising options became available Results: In 2015, Pinterest-generated revenue on KarenKane.com has jumped to 1.68% of total site revenue (vs. 0.16% in 2014) Over 50% attributable to this product Strongest product on Pinterest since launch Customers gravitate toward this image; valuable in generating traffic to other sites that sell the same product Pinterest generates over 400% more revenue per click over Twitter and 27% more than Facebook. 47% of all online shoppers in the US have made a purchase based on a Pinterest recommendation. Sources: Converto, BlogHer 18

19 Checklist for Boosting Holiday Sales Use social media to cut through the clutter of ; rely on different communications to reach your customer Take a multipronged approach to holiday promotions focusing only on sales, special events or organic content may not deliver the best results Understand how your customer shops during this period and tailor your message. Consider: Are they shopping for self or someone else? How important are your shipping & returns policies? Is your product a popular gift? Are you targeting your message to the gift giver or to the intended gift receiver? 19

20 Summary Understand the differences between platforms Plan audience outreach based on differences Set (appropriate) goals for conversion Monitor response and adjust strategy Update, engage, maintain and repeat 20

21 What s Next? 21

22 TREND #1: Social Platforms Enhance Commerce. 22

23 Buy Buttons Connect Social Media to E-Commerce Twitter Facebook Pinterest Instagram Image Sources: Twitter & Facebook 23

24 Rich Pins Provide Additional Product Information 24

25 Facebook Dynamic Product Ads Make It Relevant 25

26 Promotions Gaining More Real Estate Twitter s Product Cards Image Sources: Shopify 26

27 TREND #2: Shopping Is Social. 27

28 The Social Landscape Is Growing 28

29 Social Shopping Is Becoming a Bigger Trend What do these sites all share? Mobile first Social isn t an afterthought important part of the model Discovery is a key feature 29

30 Polyvore Is a Social Commerce Powerhouse 20M+ monthly visitors 73% women 50% women under 34 Highest AOV of all social sites: $66.75 Sources: emarketer, Polyvore 30

31 Polyvore: Who It Serves & How to Use Users create and share sets Retailers promote products 31

32 Polyvore: Who It Serves & How to Use Opportunity: To find new customers and drive conversions Audience: Primarily fashion and style influencers; categories for home and beauty as well 32

33 Houzz: The Pinterest for Design & Remodeling Users search styles and save pictures to Ideabooks Images come from more than 250,000 companies 33

34 Houzz: Who It Serves & How to Use Retailers can promote products Users can find local service providers 34

35 Houzz: Who It Serves & How to Use 25M+ monthly visitors Growth has more than doubled since end of % of users are homeowners 74% of users are actively planning to decorate. Source: Houzz 35

36 Houzz: Who It Serves & How to Use Opportunity: Reach new audiences and drive conversions Audience: Homeowners actively seeking styles you may provide 36

37 Wanelo: Want. Need. Love. 12M+ registered users 90% women 60% are under 24 80% of Wanelo s traffic is mobile Source: Wanelo 37

38 Wanelo: Who It Serves & How to Use Users can follow other users or stores that share their style 38

39 Wanelo: Who It Serves & How to Use Products are added to a user s feed Users can buy the products within Wanelo 39

40 Wanelo: Who It Serves & How to Use Opportunity: Boost brand identity and drive conversions Audience: Young, socially active females interested in style and fashion 40

41 Retailers Need to Be Where Buyers Are Recap Shopping sites becoming more social Social sites becoming more shoppingoriented 41

42 ChannelAdvisor Overview 42

43 Trusted by Thousands of Top Sellers Globally 43

44 The ChannelAdvisor Platform 44

45 Subscribe to Keep Up with Industry News 45

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