4th August, 2010 John Horsley, Client Services Director, Econsultancy.com Digital Trends : Snapshot 2010

Online Customer Complaints Crowdsourcing Social CommerceMobile

Vodafone Direct Sales, Team Briefing

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| 13 January 2008| Course Title| *Online Complaints & Online Customer Service

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Online customer complaints

| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Online complaints & customer service

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Brand rating sites and apps

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Complaints on Social NetworksComplaints on social networks

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| * Provision Of Customer Service * Resolution Of Issue * Providing Help And Advice (product) * Reputation Management

Retention Of Existing Customers * Providing answers / solutions - where the customer is

Conversion Of New Customers * Prospective customers seeking advice * Unhappy customers using competitors service

Competitor Intelligence * Issues with new products * Consumers attitude towards competitors services & products

Product Development * Development of products, plans and pricing * Makes company aware of any issues * Services

Online complaints handling

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| 13 January 2008| Course Title| *CrowsourcingWikipedia, Crowdsourcing is the act of outsourcing tasks, traditionally performed by an employee or contractor, to a large group of people or community (a crowd), through an open call.

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Changing RelationshipsThe changing relationship of consumers and brands

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Crowdsourcing Examples : Vodafone

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Crowdsourcing Examples : Papa JohnsTop 3 submissions go on sale 2nd - 29th Aug

Winner gets: - Pizza for life - Appearance in TV ad - 1% of sales up to $10KPapa Johns Facebook Competition

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Crowdsourcing Examples : Lego Mindstorm Lego MindStorms.com

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Lego Mindstorm

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Crowdsourcing Market Research

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Crowdsourcing cycle of adoption Gartner, hype cycle - This generally how technologies are adopted.

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *

Loyalty

SalesCustomer Engagement

Co-Creation& Insights Brand & Design

AdvocacyLoyalty Brand ValueSales & Business GrowthProduct Dev& InnovationCrowdsourcing effect on sales

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| 13 January 2008| Course Title| *Social Commerce

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Timing of 5 Overlapping Eras

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *78% believe that consumer recommendations are the most credible form of advertising.(Nielsen, word of mouth the Most Powerful Selling Tool, 2007).Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. ("Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape," JupiterResearch, March 2007)Power of a review on purchase

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Increased social traffic to Retail 500

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Social Commerce Example : Visa RIGHTCLIQ

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Social Commerce Example : Amazon Facebook

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Social Commerce Example : Social Gaming - Retail Therapy

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Social Commerce Example : Vodafone player

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| 13 January 2008| Course Title| *mCommerce

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Searches for gadgets

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Growth in mobile phone sales

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *

Smartphone sales increased by 48.7% to 54.3 million units in this year's first quarter [Source: Gartner, via AOP Digital Landscape Report, June 2010]Smartphone usage is up 70% and growing faster in the UK than Europe [Source: Comscore/GSMA MMM, via AOP Digital Landscape Report, June 2010]There are 15,375,945 mobile media users in the UK. (3 month average to January 2009) [Source: M Metrics via Orange survey, March 2009]Web traffic from mobiles is already estimated to be growing 8 times faster than web traffic from UK PCs. [Source: Deloitte]

Smartphone Addicts

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *37% of smartphone owners have purchased something non-mobile with their handset in the past 6 months.

19% of total smartphone owners have purchased music from their device, 14% have purchased books, DVDs, or video games and 12% have purchased movie tickets.

41% of iPhone users and 43% of Android users are most likely to check sale prices at alternative locations from their mobile phones while they are shopping.

The second most likely activity is accessing consumer reviews, with 39% of iPhone owners and 31% of Android owners investigating reviews from their handset before they purchase.Smartphone mCommerce transactions

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Online payment breakdown

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Amazon made $1billion in sales via mobile in past 12months. Mobile Commerce Example: Amazon

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Mobile Commerce Example: Ebay Red Laser

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *O2 iPhone app

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Vodafone Apps

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Marketing agency Sponge, found that 40% of retailers questioned have no plans to use mobile in the next 24 months.Internet Retailing June, 2010

Fantastic first mover advantage for the 60% who do see the opportunity. 40% of retailers questioned have no plans to use mobile

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| 4th August, 2010 | John Horsley - Digital Trends Snapshot 2010| *Summary Complaint - Every cloud has a silver lining Consumers relationships with brands are changing Be where your customer is Crowds contain wisdom and generate sales Gain eyeballs, advocates and revenue through social commerce Mobile is a 2 way communications channel - beyond utility

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| 13 January 2008| Course Title| *Thanks for your time

Econsultancy is a global independent community-based publisher, focused on best practice digital marketing and ecommerce. Our hub has 80,000+ members worldwide from clients, agencies and suppliers alike with over 90% member retention rate. We help our members build their internal capabilities via a combination of research reports and how-to guides, training and development, face-to-face conferences, forums and professional networking.For the last 10 years, our resources have helped members learn, make better decisions, build business cases, find the best suppliers, accelerate their careers and lead the way in best practices and innovation.

Join Econsultancy today at http://econsultancy.com.

All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsulancy.com Ltd 2009.

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***People love complaining. Offline or face to face on average people tell up to 16 people about an issue they have and when they have a something positive to share they share it with up to 9 people .

Since blogs first exploded on the internet people have been empo wered people to complain and make their opinions and experience public. Fuelled by the advent and growth of social networking sites these complaints can reach and influence much larger numbers of people. In recognition of this and the fact that many brands are simply not offering any online customer services sites like get satisfaction have blossomed. These sites are providing a means for customers to be vocal where at least the company may come to help them or get answers from others sharing their experiences.

Most complaint sites have similar business models in that they charge brands to respond to customer complaints and provide customer support and service.

You will see in the examples I give above that customers are venting frustration and sharing their issues with others via the social web. There is certainly a trend in the rise of complaint sites in terms of popularity (visitors and content) a number of them are gaining traction and are growing very fast. These sites will be replicated as they gain in popularity as their content grows and they rise up in the search engines.

*EasyJet are using get satisfaction to provide customers with resolution to issues. This is interesting as they have removed their contact number off of their contact us page and hidden it in the FAQ section of their web site. I can only think this is intentional as they are using this to reduce the cost of call centres handling enquiries.

2,665 complaintsnear 4,000 members 8 staffFAQ section - provides resources to customers

Its interesting how many members there are vs complaints and postings. Some of the members are answering ***Complaints are not always a bad thing and plenty can be gleamed from them to bring back into the business.

You need to take services to where the customer is and provide solutions at that point of customer contact. *The phenomenon of corporations creating goods, services and experiences in close cooperation with experienced and creative consumers, tapping into their intellectual capital, and in exchange giving them a direct say in (and rewarding them for) what actually gets produced, manufactured, developed, designed, serviced, or processed.

Many companies are starting to recognize crowd sourcing as a fantastic way to build brand loyalty, advocacy whilst co creating assets for the business. I am going to show you several examples of how crowd sourcing has been adopted by the enterprise. Seem to fall into two distinct camps - Branding and design and Product and innovation

Yahoo Answers, Linked In Answers as well as Digg, Stumbleupon, and delicious are examples of web 2.0 platforms and companies which rely on the wisdom of the crowds. In addition, Google, Amazon, iStockphoto and Netflix embed various crowd sourcing mechanisms to deliver superior, targeted content.

*MSN Viral Ad about the changing relationship advertisers have with the consumer.**PAPA JOHNS:

Papa Johns is using Facebook to find their next specialty pizza. The Papas Specialty Pizza Challenge tasks Facebook fans with creating the winning recipe for the companys next specialty pizza. The top three submissions as selected by Papa John Schnatter and corporate taste testers will be integrated into the Papa Johns menu and sold in stores from August 2 to August 29. The applicant with the highest-selling pizza receives quite a nice prize 1% of pizza sales post challenge (up to $10,000), pizza for life and a guest appearance in a Papa Johns TV commercial. Papa Johns is quite savvy when it comes to incorporating social media into the campaign. Since the contest is housed within Facebook, sharing is essentially baked in throughout, increasing the number of eyeballs on the campaign.

*Here are a couple more examples of how crowd sourcing has enabled brands to source great idea that inform the design and development of their products. Connecting on and offline activity through social media is a smart move and tied to product even smarter.

Mindstorm - Lego have created to allow fans and enthusiasts to design Lego androids - Linked to a physical product - 4 Robot designs are provided in the kit - Visual programming language - Site encourages users to create a design photograph, upload and share it with the community. - Site make you set up a Lego.com account to become a member - drops users into marketing loop

*Lego have clearly understood that its the big kids looking for nostalgia who make them money.

In growing community of near 12,000 members who are all paying 199.99 for the kit Lego would made approximately 2,400,000 in sales. I am sure looking at some of these bots that fans have bought multiple kits and would buy any ad-ons that Lego brought to market. This is huge revenue just from one product and a simple and well executed concept.

**Gartner, hype cycle - This generally how technologies are adopted. I would say we have had the early hype about crowd sourcing and have heard a number of over hyped success stories. That early hype has worn off for many and I think we are now in what Gartner call the Trough of disillusionment. I wouldnt necessarily agree with this term but there are barriers that businesses have and decision that need to be made that means that Crowdsourcing is not no.1 for many. In 2011 I think we will be entering what they term as the slope of enlightenment as we hear of more crowd sourcing successes.

***81% of holidays booked online are researched online - Thomas Cook, 2009

Consumers will pay between 20% - 90% more for items rated 5 star over 4 star items**Visa have officially launched Rightcliq, a new social commerce service that allows US shoppers to get second opinions from their Facebook and email contacts on potential purchases and then buy them.

Rightcliq is essentially a social bookmarking service like Best Buys universal wishlist Giftag service with an image/price grabber to facilitate comparison shopping combined with an autofill credit card payment feature from card details stored with Rightcliq (not necessarily Visa).

The web-browser plugin-powered service from Visa is also partnering online retailers (1-800 flowers, Barnes & Noble, Avis) to offer users of Rightcliq special discounts, and offers tracking services for online purchases.

Check out the screenshots and the video below but in a nutshell what Rightcliq does is create a browser bookmarklet that saves selected items to a private online wishpace that can be shared with friends to get feedback on shopping ideas, and from where members can compare and buy bookmarked items.

In other words, Rightcliq is a social version of PayPal.

Whilst the Rightcliq site design and navigation are well, different, and the plugin heavy-handedly brands your browser with Visa Rightcliq is an interesting, and potentially useful service. Its also a concept that other financial service providers could, and we think, should build on but perhaps in a less intrusive way. A useful build for Visa would be to offer members Visa payment card protection services (which require registering all your cards anyway), and perhaps add in a price comparison engine.

Should all retail banks and card providers be looking to offer similar social shopping services on their secure websites to drive transactions and loyalty?

So Facebook and Amazon have just reinforced their status as the IT couple in social commerce right now.

Hot on the heels of an Amazon powered store on Facebook for consumer goods giant P&G, Amazon is deploying Facebook-powered recommendations on its own site. Theres also a natty birthday reminder function with gift recommendations for your Facebook friends.

Specifically, when you now login to Amazon you can activate your Amazon Facebook Page (in public beta screenshot below), which is accessible from your Amazon personalized store and shows:

* Your Facebook photo and profile (seems trivial but it makes the experience so much more personal) * Upcoming Birthday and Gift Suggestions for Your Facebook Friends from info. scraped from their social graph * Amazon Items Popular Among Your Facebook Friends * Recommendations Based on Your Favorite Books on Facebook * Recommendations Based on Your Favorite Music on Facebook * Recommendations Based on Your Favorite Movies on Facebook

All this is entirely optional, and Amazon goes to some length to lay to rest any privacy qualms that tend come with all things Facebook - stating clearly that it will not share account and purchase details with Facebook, nor will it contact Facebook friends.

Social commerce is a two-sided coin helping people buy where they connect, and connect where they buy and Amazon looks like it wants its logo printed on both sides of the coin. By deploying Facebook-powered recommendations on its site, Amazon is making the e-commerce experience more personal and social.

This greatly improves the Amazon experience.

But the current beta is still a far cry whats possible, in terms of real-time social shopping, or even simple deploying Facebook social plugins. Whilst Amazon might have issues with outsourcing too much social functionality to the social network for most brands and retailers it should be a quick, easy and inexpensive win.

And he very fact that Amazon has jumped into bed with Facebook should be pause for thought for all brands and retailers whilst there can be a number of good reasons not to emulate Amazon, there are also good reasons to do just that and here, we think, emulating Amazon by deploying Facebook connectivity could be a smart move.*

Want to set up a fashion store selling top labels such as Diane Von Furstenberg, Gap, Barneys New York, Juicy Couture, Banana Republic, Tory Burch and TopShop? Well now you can.

The Sugar Inc. blog network (ShopStyle, PopSugar, FabSugar, BellaSugar) targeting 18-40 women, has just partnered with leading fashion brands to launch a Facebook-based game app, pitched as a FarmVille of shopping, called Retail Therapy (app, site), where you set up and manage your own virtual store (a bit like the Fashion World and Mall World Facebook apps, but with heels).

The idea is simple and familiar; manage inventory from in-season fashion items, and build your clientele. Upgrade your retail store with Facebook Credits that you win, earn or pay for and build the best store in Facebook.

Whats different about Retail Therapy are the brand partnerships, which effectively transform the Facebook game into a vehicle for in-game advertising, and a Facebook promotional platfrom for exclusives, scoops and promotions for brand fans. What would be really interesting is if the game evolved to include a social affiliate program whereby visitors to friends stores could actually purchase items for sale and the store owner receive an affiliate commission.

But virtual social commerce is an interesting twist on social commerce with many marketing opportunities, and if you are a fashion brand, its perhaps worth investigating. And for non-fashion retail brands too, theres the opportunity to set up your own Facebook game for in-game advertising and promotions perhaps a virtual social commerce game for your category*This is not an example of social commerce but I do think its a good example of social media marketing and online advertising working hand in glove. This is an ad created by thisisopen who widgetise content to serve as advertising based on a ROE model.

Ad served every week during the European part of the F1 season. Over 100,000 interactions (5 sec + mouse or click starts an interaction) per 1,000,000 imp served. Avg time spent (overall) is over 3 minutes. Avg time spent with telemetry is over 15 mins (during practice, qualifying and the race).

*Pretty much 25% of all sear*

In this graph you can see year on year growth for the sale of mobile phones compared to fairly static growth of other that consumers are spending their money on.

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*Ebay have annouced a mobile commerce of $1.5 billion USD for 2010. Partly driving this is their acquisition of RedLaser an app that allows users to make product comparisons.

- Featured on an iPhone commercial shortly after debut and quickly went on to become one of the most popular iPhone apps. Over 2 million downloads 4 star rating 8,600+ user ratingsHold up to product bar code in store / provide more info on product and a price comparison

Ebay Increase product catalog by adding 200+ million listing from their site Plan to add 7,000+ global merchants from shopping.com Will include 95 of the top 100 online retailers

*O2 have built an app that provides users with access to their account, their account allowances and iphone help information.

The next step would be to use the app to create a 2 way channel between the customer and the business to provide an opportunity for up sells and cross selling of products, accessories and services.

This channel should also be used to provide customer service and reduce the costs of call handling and FAQ section could be added and even a customer forum so that customers could self service.

*Vodafone have a number of apps available to customers and non customers that provide utility mainly around friends, contacts, social web and around lifestyle such as sports and entertainment. However Vodafone does not provide customers with up to the minute information about their account and pricing plans. None of the apps allow me to purchase from Vodafone. Here is a fantastic opportunity to open up a channel and start selling to your consumers. *

*Complaints - Every cloud has a silver lining.

Always remember where the is a complaint is a lead waiting to be closed a customer waiting to be converted. *