Social Commerce: Disruptive Potential of Social
Media in Ecommerce and Classifieds
Thad Eby, UK Director
Agenda

Framing the problem: why user-generated content

Social Commerce as part of an online strategy

A Capability Maturity Model for Social Commerce
Page 2
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
What happens when Social Commerce is Applied Successfully?
Web 2.0 Told Us Community was Important
• The Product Catalogue Becomes Richer
• From 5 to 58 Searchable Attributes
• Additional “Sort By” Capabilities
• 41% Higher Order Value
• Consumers Define “Top Products”
• 63% Higher Order Value
• Returns go Down
• 20.4% Higher Return Rate w/o Reviews
• Better eCommerce
• 49% Higher Conversion Rate
• 22% Increase in Average Order Size
Page 3
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
View of the Online Buying Process
“Can’t find what I need”
Direct to site
Million results
or none
SEO Ranking
Organic
search
Relevance
control
Call customer
service
Search
% %
Dependence
on relevance
Paid search
Traffic
Trafficpage
Landing
increase
relevance
Leave website
Conversion
increase
%
Order size
increase
Static
merchandising
Guidance
Email
marketing
Unfamiliar
taxonomy
Affiliates
Relevant
promotions
Online
advertising
Traffic
Page 4
Static
merchandising
Browsing
Limited
refinement
Conversions
“Which is the
best product?”
Margins
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Sales
%
“Can’t find fit
for my requirements today”
Sub-Optimal
Purchase
Purchase Fewer
Items
Lower Margin
Purchase
Framing the Problem

Online sales and customer loyalty are driven by a better user experience
– Dialogue
– Advise

User experience is informed by a variety of factors
– Design
– Technology
– Data

Page 5
Customers are playing an increasingly pivotal role in the buying
experience
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Push & Pull: How to Get the Most from User-Generated Content

What do your customers want to do today?

Who are they buying for today?
We can advise customers
Page 6
Customers can advise each other
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Contemporary Structured Approach
1.
2.
3.
4.
Attract users
Provide optimal user experience
Boost conversion
Provide powerful business analytics
Traffic Sources
Email Targeting
Search Engine
Page Views
Brand
Site Utility
Ease of Exploration
Relevant Guidance
Conversions
Product Selection
Personalization
Cross-selling
Promotions
Social Information
Product Availability
Reporting, Analysis & KM Infrastructure
Page 10
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
What this all comes down to
… know your customers better
… advise your customers
… let your customers advise each other
… build lasting relationships
Page 11
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Online Capability Maturity: Where does Social Commerce fit?
Integrated
Search and
Navigation
Product
Catalog
Page 13
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Online Capability Maturity: Where does Social Commerce fit?
Dynamic
Merchandising
Product
Catalog
Page 14
Margins,
Revenue,
Pageviews,
Conversions
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Online Capability Maturity: Where does Social Commerce fit?
Content Sells
Product
Product
Catalog
Page 15
Margins,
Revenue,
Pageviews,
Conversions
Product Info,
Lifestyle guides,
Other Content
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Online Capability Maturity: Where does Social Commerce fit?
Social
Commerce
Product
Catalog
Page 16
Margins,
Revenue,
Pageviews,
Conversions
Product Info,
Lifestyle guides,
Other Content
Ratings,
Reviews,
Tags
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Online Capability Maturity: Where does Social Commerce fit?
Multi-Channel
Navigation
Product
Catalog
Page 17
Margins,
Revenue,
Pageviews,
Conversions
Product Info,
Lifestyle guides,
Other Content
Ratings,
Reviews,
Tags
Store
Inventory
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Online Capability Maturity: Where does Social Commerce fit?
Personalization
Product
Catalog
Page 18
Margins,
Revenue,
Pageviews,
Conversions
Product Info,
Lifestyle guides,
Other Content
Ratings,
Reviews,
Tags
Store
Inventory
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
User Profiles,
Order
Histories
Social Commerce (1)
Guided
Navigation®
Refinements
Allow users to
refine based
on objective
product
attributes
Social
Browsing
Leverages
Guided
Navigation®
to generate a
dynamic
taxonomy
based on user
reviews
Requires a dynamic taxonomy which updates at the speed
at which your users generate content
Page 20
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Social Commerce (2): Help users find relevant reviews
Dynamic Charting
Guided
NavigationTM
Tag Clouds
Sorting
Page 21
Copyright©2007 Endeca Technologies, Inc. All rights reserved.
Proprietary and confidential.
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Social Commerce (3): Guide users to the products right for them…
…Or whomever they are buying for
Pivot
between
related
products
and
reviews
Page 22
Copyright©2007 Endeca Technologies, Inc. All rights reserved.
Proprietary and confidential.
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Social Commerce (4): Deep Insight Into Reviews
 Integrated
reviews content
 Relationship
Discovery
 Concept
Clustering
 Guided
Navigation
 Text snippets
 Rich UI
Page 23
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Technology as an Enabler




Cater to individual use-cases through integrated information access
capabilities
Ability to integrate content from across the enterprise
Scalable infrastructure
Flexible & extensible infrastructure
Data Sources
Product Data
Page 24
POS, Purchase History,
Expert Reviews
Accessories,
etc.Proprietary
Copyright © 2008 Endeca Technologies,
Inc.Profitability,
All rights reserved.
andRatings
confidential.
and
Unstructured
(manuals, data
spec sheets, etc.)
Summary

User-generated is critical in a comprehensive online strategy

User-generated content must be seamlessly integrated into the customer
experience

Drive results by doing more with user-generated content
Page 25
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.
Thank you
Page 26
Copyright © 2008 Endeca Technologies, Inc. All rights reserved. Proprietary and confidential.