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Social Ecommerce
2009 Planning Guide
Social Ecommerce
           2009 Planning Guide | Overview

           Nearly all of our retail clients are asking us the
           following question:


           “We’ve done product ratings and reviews, what
           social shopping features should we implement in
           2009?”


           Step 1: Determine which key metric you want to improve
           Step 2: Review the options against adoption
           Step 3: Rank order the options that impact your metric




8/5/2008   Optaros confidential. All rights reserved.               2
Social Ecommerce
           Step 1 | Determine Key Metric to Improve

                 Measure the key ROI metrics, which are often:
                     • Traffic
                     • Conversion
                     • Average order size
                     • Shopping cart Abandonment

                 … and additional metrics may include:
                     • Loyalty (return visitors)
                     • Brand awareness
                     • Reduce customer service calls & product returns
                 Establish a formal ROI model based on actual site
                 analytics and performance
                 Establish a multivariate (A/B testing) strategy to
                 measure new features

8/5/2008   Optaros confidential. All rights reserved.                    3
Social Ecommerce
                              Step 2 | Review Options Against Adoption

                                                                                                    The next 4 pages
                                                                                                    show specific
                                                                                                    features for each of
                                                                                                    the 3 phases of
                             High




                                                                                                    adoption
                                                                               Visionary
                                                                             Concepts to be         Each feature lists the
                                                                              aware of or
                                                                                                    key metric it impacts
           Differentiation




                                                                            experiment with
                                                                                                    and links to real
                                                          Strategic
                                                      Features that will                            world examples
                                                      be commonplace
                                                        over the next                               Go through the
                                                         12 months
                                                                                                    gallery and select
                                        Baseline
                                     Features most
                                                                                                    candidates that
                              Low




                                      have already                                                  impact the metric(s)
                                      implemented
                                                                                                    you have chosen.
                                              High                                            Low
                                                                      Industry Adoption


8/5/2008                       Optaros confidential. All rights reserved.                                                    4
Social Ecommerce
                  Step 2 | Baseline Options




           Drop-down cart                            Single page checkout   Quick-pick modals        Navigate by persona
           Order size                                Abandonment            Conversion, order size   Conversion
           Rue La La                                 Rue La La              Rue La La, Endless.com   Target Gift Finder




           Guided search                              Ratings and reviews   Real-time inventory      Recommendations
           Conversion                                 Conversion, returns   Abandonment              Conversion
           Swimsuits at Lands' End                    Many sites            Rue La La                Many sites




8/5/2008          Optaros confidential. All rights reserved.                                                              5
Social Ecommerce
                     Step 2 | Strategic Options




           Merchant blogs                                On-line print catalog   Multimedia                     Micro-sites
           Traffic                                       Conversion              Conversion, order size         Traffic
           mydeco                                        Bloomingdales Catalog   IKEA Bedroom, Madewell, Gap,   Netshops.com, azjeans.com
                                                                                 ASOS, Martin+Osa




           Visualized search                             Alternative reviews     Product configuration          Abandoned cart email
           Conversion                                    Conversion, returns     Conversion                     Abandonment
           BEDAT & Co                                    Shoeline.com            Oneida, Reebok, Blue Nile,
                                                                                 Martin+Osa, Timberland


8/5/2008             Optaros confidential. All rights reserved.                                                                             6
Social Ecommerce
                     Step 2 | Visionary Options




           Deal-of-the-day                               Private event retail            Shop by preference        Pop culture
           Traffic                                       Traffic                         Conversion                Conversion
           Steep and Cheap, Woot                         Rue La La                       StyleFeeder.com, mydeco   Celeb Style,
                                                                                                                   Alternative Celebrity




           Visualization                                  Virtual shopping               Social configuration      Mobile shopping
           Conversion                                     Conversion                     Conversion                Traffic
           Zoomii.com, PicLens,                           Lowes gardening shop, Kinset   Threadless T-Shirts       Amazon’s iPhone Website
           Borders magic shelf, RIMOWA                                                   DK Travel, mydeco         eBay’s iPhone application


8/5/2008             Optaros confidential. All rights reserved.                                                                                7
Social Ecommerce
                     Step 2 | Visionary Social Shopping




           Retailer community                            Focused communities   General communities   Pull in social graph
           Traffic                                       Traffic               Traffic               Conversion
           TJ Maxx Community                             Stylehive             Kaboodle, ThisNext    Fans




           Virtual social shopping                        Social widgets       Shop together
           Traffic                                        Traffic              Conversion
           Sears                                          Lemonade, Cartfly    NetShops



8/5/2008             Optaros confidential. All rights reserved.                                                             8
Social Ecommerce
           Step 3 | Rank Order Options

                 For example, if you chose Conversion as your key metric, your
                 options are the following:
                     • Baseline: Ratings & reviews, Quick-pick modals, Guided search,
                          Recommendations, Persona navigation
                     • Strategic: Online print catalog, Visualized search, Multimedia, Alternative
                          reviews, Product configuration
                     • Visionary: Shop by preference, Pop culture, Visualization, Virtual
                          shopping, Social configuration


                 Select the ones appropriate for your business, rank order
                 from Baseline to Visionary, and estimate the impact on
                 conversion rate of each one.
                 Your top 3 should be the ones most adopted that show the
                 greatest potential benefit to your business




8/5/2008   Optaros confidential. All rights reserved.                                                9
Social Ecommerce
           2009 Planning | How to Learn More

                 Read a blog
                     • Product Configuration
                     • New Retail Concept
                     • Ecommerce Strategy – 4 Myths
                     • Ecommerce Blogs

                 Contact our Ecommerce Director with
                 questions




8/5/2008   Optaros confidential. All rights reserved.   10

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2009 Social Ecommerce Planning Guide by Optaros

  • 2. Social Ecommerce 2009 Planning Guide | Overview Nearly all of our retail clients are asking us the following question: “We’ve done product ratings and reviews, what social shopping features should we implement in 2009?” Step 1: Determine which key metric you want to improve Step 2: Review the options against adoption Step 3: Rank order the options that impact your metric 8/5/2008 Optaros confidential. All rights reserved. 2
  • 3. Social Ecommerce Step 1 | Determine Key Metric to Improve Measure the key ROI metrics, which are often: • Traffic • Conversion • Average order size • Shopping cart Abandonment … and additional metrics may include: • Loyalty (return visitors) • Brand awareness • Reduce customer service calls & product returns Establish a formal ROI model based on actual site analytics and performance Establish a multivariate (A/B testing) strategy to measure new features 8/5/2008 Optaros confidential. All rights reserved. 3
  • 4. Social Ecommerce Step 2 | Review Options Against Adoption The next 4 pages show specific features for each of the 3 phases of High adoption Visionary Concepts to be Each feature lists the aware of or key metric it impacts Differentiation experiment with and links to real Strategic Features that will world examples be commonplace over the next Go through the 12 months gallery and select Baseline Features most candidates that Low have already impact the metric(s) implemented you have chosen. High Low Industry Adoption 8/5/2008 Optaros confidential. All rights reserved. 4
  • 5. Social Ecommerce Step 2 | Baseline Options Drop-down cart Single page checkout Quick-pick modals Navigate by persona Order size Abandonment Conversion, order size Conversion Rue La La Rue La La Rue La La, Endless.com Target Gift Finder Guided search Ratings and reviews Real-time inventory Recommendations Conversion Conversion, returns Abandonment Conversion Swimsuits at Lands' End Many sites Rue La La Many sites 8/5/2008 Optaros confidential. All rights reserved. 5
  • 6. Social Ecommerce Step 2 | Strategic Options Merchant blogs On-line print catalog Multimedia Micro-sites Traffic Conversion Conversion, order size Traffic mydeco Bloomingdales Catalog IKEA Bedroom, Madewell, Gap, Netshops.com, azjeans.com ASOS, Martin+Osa Visualized search Alternative reviews Product configuration Abandoned cart email Conversion Conversion, returns Conversion Abandonment BEDAT & Co Shoeline.com Oneida, Reebok, Blue Nile, Martin+Osa, Timberland 8/5/2008 Optaros confidential. All rights reserved. 6
  • 7. Social Ecommerce Step 2 | Visionary Options Deal-of-the-day Private event retail Shop by preference Pop culture Traffic Traffic Conversion Conversion Steep and Cheap, Woot Rue La La StyleFeeder.com, mydeco Celeb Style, Alternative Celebrity Visualization Virtual shopping Social configuration Mobile shopping Conversion Conversion Conversion Traffic Zoomii.com, PicLens, Lowes gardening shop, Kinset Threadless T-Shirts Amazon’s iPhone Website Borders magic shelf, RIMOWA DK Travel, mydeco eBay’s iPhone application 8/5/2008 Optaros confidential. All rights reserved. 7
  • 8. Social Ecommerce Step 2 | Visionary Social Shopping Retailer community Focused communities General communities Pull in social graph Traffic Traffic Traffic Conversion TJ Maxx Community Stylehive Kaboodle, ThisNext Fans Virtual social shopping Social widgets Shop together Traffic Traffic Conversion Sears Lemonade, Cartfly NetShops 8/5/2008 Optaros confidential. All rights reserved. 8
  • 9. Social Ecommerce Step 3 | Rank Order Options For example, if you chose Conversion as your key metric, your options are the following: • Baseline: Ratings & reviews, Quick-pick modals, Guided search, Recommendations, Persona navigation • Strategic: Online print catalog, Visualized search, Multimedia, Alternative reviews, Product configuration • Visionary: Shop by preference, Pop culture, Visualization, Virtual shopping, Social configuration Select the ones appropriate for your business, rank order from Baseline to Visionary, and estimate the impact on conversion rate of each one. Your top 3 should be the ones most adopted that show the greatest potential benefit to your business 8/5/2008 Optaros confidential. All rights reserved. 9
  • 10. Social Ecommerce 2009 Planning | How to Learn More Read a blog • Product Configuration • New Retail Concept • Ecommerce Strategy – 4 Myths • Ecommerce Blogs Contact our Ecommerce Director with questions 8/5/2008 Optaros confidential. All rights reserved. 10