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5 Social Shopping Trends Shaping the Future of Ecommerce. May 26, 2010. Lauren Freedman, President, the e-tailing group, Inc. Pehr Luedtke, CEO, PowerReviews, Inc. The Voice of Cross-Channel Merchandising 15 years ecommerce consulting Author, It’s Just Shopping

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5 Social Shopping TrendsShaping the Future of Ecommerce

May 26, 2010

Lauren Freedman,

President, the e-tailing group, Inc.

Pehr Luedtke,

CEO, PowerReviews, Inc.

The Voice of Cross-Channel Merchandising

  • 15 years ecommerce consulting

  • Author, It’s Just Shopping

  • 50+ years traditional retail and catalog experience

  • Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging

  • Proprietary research studies on mystery shopping, merchandising and consumer behavior

  • The leader in social commerce, focusing exclusively on retail

  • With over 1000 clients, the most widely deployed customer ratings platform in the world

  • Most robust product offering

  • Technology platform complimented by human support

Webinar Agenda

The e-tailing group Trend Tracker

Why the consumer voice? Why now?

2010 Social Shopping Study Results

Social Commerce Success Planner

Q&A Session

5 Social Shopping Trends Shaping the Future of Ecommerce

The e-tailing group Trend Tracker

Social shopping from the merchant perspective

The Merchant Adoption Curve

Beyond the merchandising standards ratings/reviews occupy a prominent place on the product page while social and sharing tools quickly see escalated penetration

Source: 2009 e-tailing group Mystery Shopping Survey

Reviews ranked in top 1/3 of features; social via sharing gains prominence

Source: 2009 e-tailing group Mystery Shopping Survey

Many merchants are already employing social tools on their sites

Today 78% employ Facebook fan pages, 65% use customer reviews,and 64% are publishing via Twitter

Source: 2009 e-tailing group Mystery Shopping Survey

Why the consumer voice? Why now?

  • The information about products,categories and brands available online is growing exponentially

  • With so much content available, consumers now have to “edit” in order to make the right shopping decisions for their needs

  • Considerations relative to trust come into play as more social options exist for sharing and gathering information

  • While the media fuels adoption of new technologies, customers will have the final say on which merchants and information they will ultimately trust

5 Social Shopping Trends Shaping the Future of Ecommerce

2010 Social Shopping Study Results

Survey Methodology

Survey Objectives

  • Understand category-centric behavior relative to overall trust and online shopping

  • Explore customer utilization of social media to assess perception, interest, and propensity to buy based on engagement with these newer tools

  • Trend customer reviews and social shopping monitoring changing and evolving consumer behavior since the initial jointly sponsored survey in 2007

  • Assess merchant perception relative to consumer interest level in social media tools

In March 2010 PowerReviews and the e-tailing group fielded an online questionnaire to over 1,000 consumers (50% male/50% female) who shop online four or more times annually, spending over $250 via that channel.


5 Trends in Social Shopping

Control rests with consumers

Research starts with search, but happens on

brand and retailer sites

Consumers expect social tools for their research

experience, engaging mostly with the basics

Consumers seek a variety of voices throughout

the research experience

Facebook is the social platform for researching/shopping






Control rests with consumers


Online research puts the consumer in control of the research experience

Year-over-year the percentage of overall shopping that involves researching productsonline remains strong as currently 50% say it is a factor at least half the time.

Most consumers satisfied with available info

82% report being somewhat to very satisfied with information when researching online

Personal research drives confidence

83% are somewhat to much more confident about making a purchase decision when

they conduct their own research online vs. speaking to a salesperson in-store

And saves significant time

79% report saving somewhat to much more time doing their own research online compared to more traditional in-store research

Most shoppers spend a significant amount of time researching

The time spent researching depends on shopper personality types but the majority (60%) report spending a week or more researching an information intensive product prior to purchase.

Research starts with search, but happens on brand/retailer sites


Search continues to be the starting point for research; social media not top of mind


A majority of shoppers (57%) begin research with a search engine;

yet one-fifth choose either the brand’s site or a retailer.

Search is a conduit; research takes place on brand and retail sites

Past search, retailer and brand sites were named as the top places where shoppers will typically research products online.

Consumers expect social tools


The basics continue to be important

Consumers expect social tools in the online shopping process, engaging mostly with the basics.

Consumers are more engaged with the #1 social tool, reviews

Compared to 2007, shoppers are reading more customer reviews to be confident judging a product with people reading 8 or more up 77% over 2007 and 16 or more up 140%.

Consumers are taking more time to research

Compared to 2007, shoppers are taking more time with people spending 10 minutes or more up 28% over 2007 and people spending a half hour or more up 83%.

Consumers demand a more comprehensive and credible review experience

Consumers seek a variety of voices


Friends and likeminded consumers are more influential than experts

Consumers trust reviews to corroborate other research/voices

Traditional ecommerce merchandising & customer service also serve as a voice to validate research

Facebook is the social platform for researching/shopping


After basic social shopping tools, Facebook features show the most potential to inform buying behavior


The driver of Facebook relevance in social shopping is the “friend” voice

50 or fewer friends


Facebook provides an opportunity for frequent social engagement

The e-tailing group checklist for facilitating trust

  • Think “trust” and the influence of all merchandising and marketing programs on how consumers will react and respond

  • Ensure your site is a destination that serves the information hungry shopper well

  • Present a product page complete with strong descriptions, in-depth user-generated content, rich media and recommended products

  • Nurture user-generated content and present the whole picture to garner the greatest trust among your customer base

  • Monitor and embrace social media in order to understand customer behavior that sets the stage for future selling efforts

Social Commerce Success Plan

Developing your social commerce strategy

1. Build the foundation for trust

  • Initiate the conversation, focusing on the fundamentals:

    • Customer reviews

    • Q&A

  • Eliminate factors that degrade trust:

    • Focus on content volume

    • Present balanced perspectives

    • Identify verified users

  • Minimize the friction between engaging with content and purchasing a product

2. Make content easy to find and consume

Findable through SEO Easy to consume

3. Accelerate trust through the collective voice

Facebook “Friends” Brand “Experts”

“People Like Me” Staff “Experts”

Community “Experts”

PowerReviews Social Commerce Suite


Collective Voice


Focus on the #1 tools with the greatest impact on buying behavior

Make it easy for shoppers to find and quickly navigate your content

Give researchers access to all of the voices they trust in one place

Retail Site

  • Customer Reviews + Q &A

  • Drives the highest level of community generated content

  • People like you integrated into review collection process and display

  • In-Line SEO + Review Display 2.0

  • Leverage customer voice and long tail keywords by making social content searchable

  • Quickly summarize and add credibility to content with Review Snapshot & Review Faceoff

  • People like you + Facebook Like Button + Brandshare

  • Turnkey integration of 3 most influential voices into your site

  • Automatically display content from likeminded users, friends, and brand experts

What’s next?

“Social commerce”becomes “Open commerce.”

User content invigorates the entire organization.


Thanks for coming.

To request a demo/social commerce consultation:


To contact your speakers directly:

Lauren: lf@e-tailing.com


To download a copy of this webinar, visit:


Also, don’t forget to come see us at IRCE in June!

Booth #628

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Confidential, p.

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