http://frankmedia.com.au | This is the presentation of our March 2012 FRANkademy session which focused on social business and retail. In this session we demonstrated how social business and retail can work together to not only increase sales and consumer loyalty, but also facilitate customer service and aftersales service: 1) Introduction to social business: why we should care, implementation and ROI 1a) Best practice – retail case study Best Buy and Sportsgirl 2) Trials and tribulations of social commerce: do’s and don’ts of using Pinterest, Facebook, Twitter and Four Square Thanks for everyone for attending the session! If you have any questions or would like to attend the next FRANkademy session please contact us: frank@frankmedia.com.au

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

3. “
A customer is the most important visitor
on 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 serving
him.
He is doing us a favour by giving us an
opportunity to do so.

4. Social business with a retail flavour
• Social business introduction
• Consumer and retail trends
• Case Study: Best Buy & Sportsgirl
Trials and Tribulations of Social Commerce
• Twitter
• Facebook
• Pinterest
• Foursquare
• .. And others

5. 1. Social business with a retail flavour
• Social business introduction
• Consumer and retail trends
• Case Study: Best Buy & Sportsgirl

6. Current State of Social in Australia
Only 42%
of Australian organisations
are embracing social media
48%
have no presence
in the space
Only 16%
feel it is important to have a
clear social media strategy
Only 2%
prioritise dedicating
funding KMPG 2011
Source
Source: KPMG report in B&T article: http://www.bandt.com.au/news/australian-businesses-lag-in-social-media-game

7. Traditional Media Approach

8. Social Business Approach

9. The new breed of consumers
Traditional Media Approach Social Business Approach
Listening to advertising Avoiding advertising
Listening 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

10. You need both to succeed
BRAND AWARENESS BRAND REPUTATION SALES

11. The relative importance
Bought Owned
Media Assets
“Earned”

12. Nielsen study agrees
EARNED
Twitter
OWNED
Forums
BOUGHT MEDIA
Facebook
Blogs

13. Consumers are social- brands aren’t
72% use social media to keep up with brands
80% say great service online keeps them loyal
74% use social media to recommend products to
friends
51% share product advice and info on social
media
40% want more engagement from brands online
http://frankmedia.com.au/wp-content/upLoads/2011/12/FRANk-media-Lithium-the-Digital-Divide.jpg

14. Impact of Digital on Customer’s Lives
Over 1/3 of us are Internet enabled Digital information
using mobile TV’s will help me influences 50% of
devices to buy shop online even my in-store sales
products online # more # and will do so
increasingly *
Over 65% of in-
store purchases 86% of us will
are initiated on maintain or
the web # increase our
level of online
expenditure #
We spend nearly
2 hours/week
shopping online + We spend an
average of 9.3
hours/week with
social media +
Sources
1. Harvard Business Review 2011*
2. PwC 2011 “Australian & NZ online shopping market insights” #
3. Nielsen 2012 +

15. How to Increase Consumer Loyalty
Human Brands
http://trendwatching.com/briefing/

16. The Future of Retail: Connected Consumers
By 2020, we will see a very
different consumer – one who
co-creates & seeks personalised
products and services.
Virtual networks will link these
consumers and technology. It will
change how consumers
communicate with each other and
retailers.
The Australian Centre for Retail Studies,

17. Retail today: Social is Driving Retail
Polyvore 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

18. Example of social retail in store: Tweet Mirror
• As customers try on clothing items they can use Tweet Mirror to send
snapshots of themselves to friends via Twitter or e-mail.
• For retailers it’s good brand exposure far beyond the store.
http://www.youtube.com/watch?v=CU-DYKR4f8k&feature=player_detailpage

19. Most brands are socially inept.
Share, talk, answer, engage, give something
for free, have a personality, be different…

20. Social Media Best Practice
Tactics/
Shop Front
Strategy
http://www.intersectionconsulting.com/blog/

21. Social Business has a knock on effect

22. The Benefits of Getting it Right
Companies view social media as offering the most benefit in
the upper stages of the purchase funnel.
http://www.booz.com/media/file/BoozCo-Campaigns-to-Capabilities-Social-Media-and-Marketing-2011.pdf

23. Top 6 take outs
Social is no longer optional- integration is key
Social Media has a knock-on effect
beyond marketing
Social Media requires a Social Business
It is not about the tools but how you use them
Content & Context is the new marketing
First mover advantage is there to be seized

24. Total Retail Sales in Australia = $216 billion
Bricks &
Mortar Sales
$205.5bn 95.1% of total retail sales
E-Commerce
Retail Sales
$10.5bn
4.9% of total retail sales
29% online retail sales growth 2011
Source:
NAB Study – Jan 2010- 2011

25. Core Issues Facing Australian Retail Industry
Consumers are saving more than ever
(10.5% savings rate)
Becoming used to price reductions
Consumer confidence is low and Australians
are prioritising reducing down debt.
High Australian dollar is a double edged sword
for Australian retailers.
Cheaper for retailers to procure overseas goods, but
also cheaper for Australian customers to buy
from international online stores
Source:
PwC 2011 “Australian & NZ online shopping market insights” #

26. + Digital + + Physical +
• Instant access to products
• Convenient & global shopping
24/7
• Edited product selection
selection
Consumers are immune• to the ‘battle’event and
• Access to broadest product
Shopping as an
experience
• Easy to research products and
compare 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 repairs
dialogue
• Instant gratification of all senses
• Fast checkout

27. Call
Social
centre
media
Networked
appliances
Seamless
Online Integrated
store
Experience Mobile
Helpful
Internet
staff
enabled
TV’s

28. In store customer ‘non-service’
Customer service
Harder for bricks & assistants harder to
mortar retailers to find
differentiate from (online is always available)
online They often lack
(Kneejerk reaction makes
the problem worse)
product knowledge
(web has product knowledge
& customer reviews)
Save $$$ by
Customers reducing labour
increasingly focus
on price & Service assistants are
convenience too busy
(both core on-line (50% in-store promotions are
strengths) executed late or not at all)
Less consumer tolerance to
poor experience
in-store
(products stocked in wrong shelves)

29. 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

30. Rise of Service
• Customer priorities have shifted from “low price” to “service”
• Retailers need to hire and train service staff to remain
competitive
http://cmosurvey.org/files/2012/02/The_CMO_Survey_Highlights_and_Insights_Feb-2012_Final.pdf

31. Social Service on the rise
Consumers seek and prefer
social service
• 62% have used social media
for customer service
• 76% would use if they better
understood the tools
http://econsultancy.com/us/blog/9181-social-customer-service-a-best-practice-checklist

32. Group Buying: is it worth it for retailers?
The reality is that many
retailers don’t see repeat In 2011 $498 650% growth yr/yr *
customers from online million sales * (off low base)
promotions +
(they don’t 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% haven’t heard of them
consumers spend—or or don’t understand them #
( Males, Gen Y & baby boomers
return and spend—above
… untapped potential)
the loss leader
Restaurants, Group buying strength is providing
accommodation and Retailers don’t have this deals for service businesses
health & beauty use group luxury (they sell time & encompass higher profit
buying the most margins)
Sources
1. TNS Research Group 2011*
2. Nielsen 2012 #
3. Rice University 2011 “How businesses fare with daily deals” +

33. Case Study
The world’s largest
multi-channel home electronics retailer
Example of a brand finding value in a
transparent, customer focused social business strategy

34. A Corporate in Transition
“...focused on better solving the unmet needs
of our customers — and
we rely on our employees to
solve those puzzles…”

35. Inevitable Shift
CLOSED COLLABORATIVE OPEN CULTURE
Silos, separate and Freely sharing Connecting internal and
information hoarding information and external communities for
knowledge internally mutual gain

36. Social Developments – (Include…Everyone!)

37. Concept into Practice
“Be PART of the
conversation
customers tell about “Consumers are giving
YOUR brand” us all kinds of
information
if we choose to listen”
Best Buy CMO
Barry Judge
“Technology isn’t
(vs. our competition)
that interesting. “we have to BE MORE
It’s HOW IT COMES than just a business”
TO LIFE”.

38. Best Buys – Key Learnings
• Listen first, talk second
• Its OK to fail
• The same social values apply online
as offline
• You have to be ready to respond
• Customers will tell you and everyone else where your
organisation is broken…and expect a fix
• People are forgiving
Overall Best Buy is treating their social business
experience as a journey and have learned the importance
of listening instead of pushing.

39. Case Study

40. Sportsgirl – ORIA ‘Most Innovative Online Retailer’ 2011
• With its 111 stores, Sportsgirl has worked to
differentiate itself by being more than a retailer
through a deeply integrated social media strategy.
• With more international & online entrants to the
category, Sportsgirl understand "you've just got to
be better, savvier and more aligned with what your
customer is wanting“
• - CEO Elle Roseby

41. Sportsgirl Blog
Regularly updated & rich in
content
• Regular Interviews
• Guest bloggers @ LMFF
• Style updates
• Photography tips & tricks
Various categories beyond
fashion, including music
festivals, travel, nightlife etc

42. Sportsgirl Facebook
• 128,000+ Likes
• 6,000+ talking about
this
Blog updates, new
arrivals, Lookbooks, Style
Snaps…
75 comments, 67 likes

43. Sportsgirl Twitter
Blog updates
On the ball with
customer service
Fun, personable
brand voice
Re-tweeting
customer happiness

44. 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
experience
http://www.proprint.com.au/News/291320,retailers-turn-to-large-format-print-and-qr-codes-to-replace-in-store-
shopping.aspx

45. Digital In-store Experience
For customers to make the most
out of the QR codes, Sportsgirl
held info sessions and put info on
its blog
http://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/

46. It’s not about the tools.
It’s how you use them.

47. 2. Trials & Tribulations of Social Commerce

48. Why do people follow a brand
on Twitter?
94% Discounts and Promos
88% Free Stuff
87% Fun & Entertainment
69% Company News
57% Related topic interest
56% Customer Service
http://econsultancy.com/us/blog/9410-a-guide-to-ad-targeting-on-twitter-infographic/

49. 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
Coles…
http://www.smh.com.au/business/coles-twitter-campaign-goes-down-down-gurgler-20120307-1uj4c.html

50. Amex and Twitter partnership
50
American Express is turning
Twitter content into commerce by
connecting card holders to
merchants and delivering real
world value to both
With the continued convergence of online and
offline commerce, the closed loop continues to
enable Amex to bring seamless, relevant ways to
connect our card holders and merchants on the
most powerful social and digital platforms
http://www.psfk.com/2012/03/twitter-brands-
deals.html

51. 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/

52. Facebook is the most successful social network
with 850m users worldwide, but:
• Most brands use it as an isolated
communication channel
• Many talk about themselves 24/7
• Many don’t talk enough and think that the
http://www.allfacebook.com “build it and they will come” approach is
/facebook-page-
consumers-2012-02 enough

53. 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 don’t 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 invasive
http://econsultancy.com/us/blog/9410-a-guide-to-ad-
targeting-on-twitter-infographic/

54. Walmart local Facebook pages
54
Approx. 10M Facebook fans and 3,500 stores
Designed to connect consumers with their nearest Wal-Mart stores aimed to deliver
shoppers store-specific information, such as in-store events and promotions, as well as
region-specific products

55. Starbucks Facebook page
• Almost 30M followers
• Receive 10,000’s of Likes on each
post
• Recently attracted 15,000+
comments on fun questions such as
“hot or iced”

56. Social ROI: You get out what you put in
2011 study shows that
95% of Facebook posts on
brand pages are ignored
www.allfacebook.com/facebook-wall-posts-brands-2011-10

57. F-commerce: Why it Fails to Deliver
Most 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 same
promotions
http://socialcommercetoday.com/the-social-commerce-value-proposition-infographic/

58. 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 (Burberry’s 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/

59. F- commerce experience: Tesco’s virtual changing room
Virtual fitting room via a
Facebook app, allowing
customers to create 3D
digital versions of
themselves and try on
different outfits from a
selected range.
https://www.facebook.com/Clothingattesco?sk=app_261347243942251

60. F-commerce Success Story: Miishka
• Miishka is a Melbourne
designer selling her
collection exclusively via
Facebook
• Over 47,000 fans and an
engagement rate of 6.14%
• Simple, but super effective
solution
http://tribecount.com.au/online-retail/make-every-sale-on-your-facebook-create-extra-
engagement/

61. Create virtual pin boards to share the things you love with one click
11.7 million UVs per month worldwide
360,000 per month in Australia and growing rapidly

62. Stuff I Want
Cute vases…

63. Trials and Tribulations of Pinterest
Implications for Brands
• Users post images that they do not own
• While individuals get away with this copyright breach, brands need
to 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 that
website
• No self promotion is allowed on the Terms – contribute to the
community
• 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/

64. How Brands are Using Pinterest
Get discovered
By sharing relevant and shareable
content
(products, coupons, etc.)
Show core values and personality
By sharing multiple facets of the brand
Micro-target customers
Several boards allow brands to
separate and classify content for
customers
Drive referral traffic
By encourage visitors on-site to “Pin it”
Run competitions

65. “Pinterest is very much aligned with our brand values, in that we’re both
passionate 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

66. 25 million users worldwide
World’s largest mobile-only social network: 1 in 12
iOS devices

67. 4 Ways to use Instagram for your brand
Burberry
Kookai Australia Show exclusive behind
Display new products the scenes images
The Hungry Workshop
Melbourne
Show brand Tiffany & Co.
personality
Branded Instagram app +
filters + hashtag
competition

68. 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 awareness
http://wewillraakyou.com/2011/11/in-store-instagram-studio-right-onto-facebook-for-ted-baker/

69. Turns offline brand interaction into online
word of mouth with super-social users
Geolocation service Gamified check-ins Recommendations
“What can I do/eat/visit/buy Reward patronage - check-in Users leave tips, make lists
in this area?” deals and points e.g. Melbourne’s best op
shops
Enables your business to be Reward loyalty - mayorships
discovered WOM through Twitter,
Facebook
Offer hyperlocal deals
Awareness, sales and customer loyalty

70. How Retailers can Use Foursquare
Offers to first-time customers to
get them through the doors Awareness
Sales
Show some love to your top Customer loyalty
customers
Being a social
business
Contribute to the community by
leaving your own tips
Adding value to
consumers’ lives

71. Louis Vuitton: A Social Brand on Foursquare
Perfect for their positioning
as a luxury brand with a
strong culture and heritage
focus – all around the
world!

72. Foursquare: Granata Pet
Dog food business launched 10 billboards in the US with Foursquare IDs
• When people walking their dog noticed the billboard, they could check-in using
Foursquare & the billboard dispensed the dog food.
• Outcome: Pet stores sold 28% more product than the previous period, store
requests for product increase by38%.
• They have since launched over 100 billboards across Europe.
http://www.youtube.com/watch?v=YekTIVcXf60

73. ShopKick: Mobile Shopping Rewards
The app lets stores “influence their behavior,” said
Mikael Thygesen, who is the chief marketing officer at
the Simon Property Group and the president of its
Simon Brand Ventures division.
3 million users
RECEIVE KICKBUCKS
REWARDS CUSTOMERS FOR
WALKING INTO SELECTED STORES &
IN-STORE BEHAVIOUR
Real time customer data
• location
• social networks
• mobile apps RESULT: > $110 million in-store revenue for
ABILITY TO DELIVER INTUITIVE,
• blogs partner retailers and brands in 2011 (source
• tweets RELEVANT & TAILORED OFFERS TechCrunch)
• purchasing history
” Conversion rates of walk-ins to sales can be
measured directly by counting specific shopkick
offers in the basket at retailers, by rewards for
purchases through POS integrations, and
ShopKick users can now unlock • Store gift cards conversion rates of product scans to product
exclusive 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 Roeding
Sources: iTunes, TechCrunch

74. ShopKick: Mobile Shopping Rewards

75. Kakku: Connecting Shops & Shoppers
http://kakku.co/

76. Trend: Mobile Point-Know-Buy
http://trendwatching.com/trends/pointknowbuy/

77. 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 phone
Source: Google Study 2011 in Australia

78. 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 free
http://www.designboom.com/weblog/cat/16/view/15557/tesco-virtual-supermarket-in-a-subway-station.html
http://www.theage.com.au/small-business/trends/mobile-shoppers-put-on-an-appy-face-20120206-1r0l9.html

79. Mobile shopping with Augmented Reality Apps
Swivel Zugara
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 image room mirror
Typical 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

80. Mobile Payment Technology: Google Wallet
http://www.google.com/wallet/what-is-google-wallet.html

81. Digital In Store Experience: Starbucks Mobile Payments
• A digital reader in Starbucks • Users load the card with $$$
stores scans a bar code displayed form a credit card or other
on the user’s smartphone screen. account
• The bar code is linked to a phone • 26 million smartphone
app backed by the user’s transactions were made since
Starbucks card its launch less than a year ago
http://www.computerworld.com/s/article/9222481/Starbucks_mobile_payments_perk_past_26M_transactions_
http://www.readwriteweb.com/archives/starbucks_launches_smartphone_payments_nationwide.php

82. Retail Social Business Best Practice
DEPARTMENT
HR OPERATIONS
INTEGRATION
MARKETING
MERCHANDISING
• INSIGHTS
• BUSINESS GOALS
• SHARED PASSION
• RELEVANT
CONTENT
STORES
PRODUCTS
EVENTS/
CAMPAIGNS
STAFF BRAND
INTEGRATION

83. FRANk Process: 4 steps to a social business
4 ROI metrics & • Detailed quarterly reporting on agreed key KPIs
Constant monitoring of chatter
reporting
•
3
Community • Community Manager recruitment & • FRANkademy workshops, training and
• Editorial calendar
training
support
Management • Knowledge sharing • Response flow chart
• Employee engagement
2
Social Business •
•
Resource management
Strategy implementation
•
•
Budget recommendation
Measurement of success
Strategy
• Content planning • Marketing as a Service
• Social policies and guidelines • Plan to become a social brand
• Internal- all stakeholders
1 Listen & Learn •
•
External- consumers industry, trends, competitors, strengths, opportunities, weaknesses, …
Analysis of online chatter and buzz- agile and dynamic approach

84. At what stage is your business?
“We are nowhere” “We’ve made a start” “We get it!”
We have Facebook and We have a community
We’re not sure where
Twitter but no one manager who regularly
to start or whether
wants to be our friend engages with our
we need to?
or talk to us. growing community.
90% + of brands