the social retailer: what ‘social’ means for the future of commerce
DESCRIPTION
Most retailers are having a tough enough time keeping their inventory fresh and up to date, let alone trying to figure out how to leverage the newest, latest, greatest social platform for reaching potential customers. The good news is that leveraging the social web isn't about hopping on the newest, latest, greatest social platform. It's about thinking about your business - internally and externally - as a social organization. And what does that mean? Tara Hunt, one of the pioneers of the social web will talk about how to become a social organization without having to keep up with Twitter and how harnessing the innate socialness of the web can help you connect with your customers and build your business.TRANSCRIPT
the social retailer:what ‘social’ means for the future of commerce
by Tara Hunt, buyosphere.com
what is the promise of the social web?
NOT the promise of social
NOT social
(this is embarrassing)
“What is that thing we can do to help make our customers’ lives
simpler, less confusing, less alienating, more efficient, more
meaningful and just plain better?”
THE promise of social
who is your customer?who is your customer?step 1.
who is she?
and more importantly:
WHO ARE YOU?
a strong brand identity is more important now than ever:
In the age of self-expression, branding becomes an even more important exercise. If you don’t know who YOU are,
then how can you expect your customer to identify with you?
the good news:
there are lots of ways to connect now.
the bad news:
you still think it’s all about you and your needs.
who is your customer?what does she need?step 2.
number 1.
motivation
the what’s-in-it-for-me model
made
will this bring mepopularity? will I get
followers? points? will it validate my talent? can it help me jump the line or cross the velvet rope? Will it
make me feel special?
laid
will this make memore desirable to him/
her? will it make me more
attractive? will it landme the man/woman
of my dreams?
paid
can I make a living bydoing this? will I getdiscounts? will I get
free stuff out of it? will it get me that coveted
job?
“I know what women want. They want to be beautiful.”
Valentino
fashion is aspirational
g o o dc l o t h e s
o p e n a l ld o o r s
t h o m a s f u l l e r
number 2.
ease her mind
credit: more.com
in other words...
It’s not your customer’s job to put you first. The world doesn’t revolve around you, it revolves around her. How can YOU make life
easier for HER?
many stores are implementing mobile POS in order to cut down on big queue’s to the
cash --------->
fun (though slightly sexist) idea to make shopping more
pleasurable for everyone.<-----------------
customers aren’t complicated. they want:
1. great customer service
2. good value
3. convenience
4. a fast finish
who is your customer?making it happenstep 3.
case study 1.
ASOS17.5 million unique visitors a month
8 million registered users160 countries
2011 sales: £146.5 millionCREATIVITY
next day delivery!
ASOS identified early on that range and free shipping are the most important factors for their customers - so they spend £60M per year on free shipping plus stocking one
of the largest ranges of fashion merchandise online.
ya think that pastelsare on their customers’ minds?
important to note:ASOS built a brand and
customer loyalty BEFOREthey built a community with
FashionFinder
case study 2.
FAB1 million registered users in <5 months
4.5 million users2012 projected sales: $100 million
(already surpassed $300k/day)CURATION
“Everything we do has to be well-designed,” the CEO (of Fab.com) said.
“Social can’t be a bolt-on; it has to be part of the core experience and
designed really, really well.”VentureBeat
case study 3.
modcloth600% annual growth rate
$20 million sales/year$45 million raised in VC
COLLABORATION
“Susan Koger said ModCloth’s growing success has been to understand their customers and knowing exactly what she wants rather than taking a one-size-fits-all approach.”
RetailBiz.com.au
be the buyer
$500 in cashproduction + same of your piece
your garment will be sold on Modcloth.com
1900 designs submitted in under 2 weeks.
more collaboration examples:
case study 4.
brooklynindustries
$25 million sales/yearonline & offline (15 stores)
built without any fundingFAST FASHION
“As fast fashion continues to win over shoppers, more specialty retailers like Brooklyn Industries, which traditionally freshened merchandise just a few times a season, find
they, too, must speed up their turnaround cycles.”
who is your customer?buyosphere.com
current buying model:
step 1. stimuluscustomer has a need. i.e. “ooooo, love that dress my friend pinned. Would love something similar,
but less expensive.”
step 2. research (zmot)customer spends time researching options:
searches, reads reviews, goes between favorite stores, asks opinions, reads magazines...etc
step 3. decision (fmot)customer finds that perfect thing and orders it.
step 4. experiencecustomer receives item, experiences it, may post
reviews for others to learn from..
buyosphere gives customers aplatform to send out a
public search inquiry thatcan be answered by their
peers OR by the designers/brands themselves.
stimulus + research
theworldofwonderful.netdesigner: julia stanescu
gorgeous hand-made, unique clutches designedwith love by talented Romanian designer.
Fabulous discoverymade because Juliareceived the signal.
No traditional search would turn
this up!
who is your customer?the social retailerin summary
Summary
It doesn’t matter which buzzword, trend, bandwagon, etc. you jump onto, you need to understand the following to be a social retailer:
1. The core question: “What is that thing we can do to help make our customers’ lives simpler, less confusing, less alienating, more efficient, more meaningful and just plain better?”
2. who is your customer? who are YOU for that matter? BRAND matters more and more. connecting with your customer means you are helping her express who she is...
3. what does your customer need? what’s in it for her? what does she need other than to buy one of your products/services? the more you know about her, the better you’ll be able to answer this one...
Case Study Overview
1. ASOS - built their success by spending their $$ on satisfying the basic need of their customer: quick & free shipping. now they are co-creating editorial to help new customers.
2. FAB - built their success on putting their customers’ happiness at the core of everything they do. Curation and creating ‘smiles’ is the key.
3. MODCLOTH - is building their success because they collaborate with their customer to merchandise.
4. BROOKLYN INDUSTRIES - is looking to be more successful by responding to the needs of the customer: the demand for fast fashion (locally)
5. BUYOSPHERE - is all about connecting people looking for unique items with designers and retailers offering unique items. we are building our success on connecting treasure hunters with treasure makers.
