Quanbit - Leveraging E-commerce with Enterprise Social Networking

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Twitter @Quanbit @GlobaliseUK

Leveraging E-commerce

with Enterprise Social Networking

How an on-line customer community can boost your e-business

Hugo TeruzziUK - Argentina

Social Networking Leveraging E-commerce

How and How much?

Social Networking - Facebook

Prediction: 1,000,000,000 users in 2012

Facebook & E-commerce in 2010 FB Stores

F-commerce concept born in 2011

Is F-commerce the “next evolution” of E-commerce?

F-Commerce vs. E-commerce

Is Facebook a competitor or an ally of traditional E-commerce websites?

Competitor or Ally?

Launch your free site or store in Facebook

60,000 stores are based on Payvment

Payvment 2012: “Cross-Store Shopping Carts”

The number of micro-stores is growing fast

Several Apps are available to build sites & stores

Competitor or Ally “Cross-Store Shopping Carts”

Competitor or Ally Payvment concept is not new!

Competitor

Competitor or Ally

The other side of the coin:

FacebookOpen Graph Protocol

Websites can use the “Like”, “Want” and “Own” buttons allowing visitors to share and connect

with friends

Competitor or Ally

The biggest Facebook Open Graph partnerships:

Pages customised according to each visitor’s profile

Product recommendations, birthdays’ notifications…

“Integrating Facebook Open Graph technology across eBay’s global commerce platforms represents a powerful way to bring people

together across an inherently social activity: SHOPPING”

Katie Mitic, Director of Platform

and Mobile Marketing at Facebook.

Social Commerce

WE-Commerce?

The WE-Commerce EraWE-Commerce or Social Commerce connects

Social Media and E-commerce to enable consumers to shop with their friends

This is what industry leaders are doing:

Facebook benefits for E-commerce

WE-Commerce

A Great Marketing Tool

A fantastic Traffic Driver

A way to spy on competitor activity

How good is Facebook for companies engaging in conversations with their communities?

Engaging in Open Conversations?

This is the essence of Facebook but …

Limitations of a public environment

Confidentiality is at risk

Negativity is difficult to manage

Participation is low

Facebook is oriented to People

Communities of employees or

partners cannot be public

Negativity from clients

Negativity from associates or partners

“1% Rule” or “90-9-1 principle”

• 90% of visitors are Lurkers

• 9% of users are Commenters

• 1% Creators – value adders

2000 contributions need 200,000 visits

Only 1% of the visitors create

content

Product Orientation

Companies need product centred networks

How to overcome these limitations?

Let’s take a quick look at what some of the industry leaders are doing

What are the flagships doing?http://community.ebay.com/

What are the flagships doing?http://MyStarbucksIdea.com/

What are the flagships doing?http://www.ideastorm.com/

The strategy is …

Creating a safe private environment for engaging in conversations and co-creating with your community

Using Public Social Networks to promote what you have developed with the private online community

To combine Private and Public Social Networks to leverage E-commerce

Benefits of Private Social Networks

Private Social Networks can be bespoke designed around your product

They allow privacy among community members

They encourage deep member insights

Encourage deep member insights

In a Private, recruited, 400-person community, more than 64% of members contribute new content 7+ times every month = an average of 2,000 meaningful insights! Communispace Study, 250 communities, 100,000 members

You need 200,000 visits to your Facebook fan-page for a similar number of insights

1% rule 64% rule - Why?

Most appreciated values of Private Communities

Exclusivity and privacy – in small communities

The opportunity to forge relationships with other “selected” members and with the sponsoring brand

The knowledge that one’s voice is being heard

Some Conclusions

Public Social Networks strongly collaborate with E-Commerce

Private Communities are becoming a MUST for E-commerce

What about price? Public Social Networks are seen as FREE

Private communities are not FREE

Not every company is eBay or Starbucks

How much is a Private Social Network?

Private communities are product oriented and bespoke; functionalities might be extremely variable

The job involves both technical and psychological skills; a multidisciplinary team is necessary – 5 to 10 people on average

How much is a Private Social Network?

Time between 12 and 18 months

Price €500,000-€1,000,000

Building Private Social Networks

PROPRIETARY SOFTWARE

Time around 6 months

Price €50,000-€100,000

OPEN SOURCESOFTWARE

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