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the social retailer:
what ‘social’ means for the future of commerce
                      by Tara Hunt, buyosphere.com
what is the promise of the social
              web?
NOT the promise of social
NOT social




(this is embarrassing)
“What is that thing we can do to
 help make our customers’ lives
  simpler, less confusing, less
alienating, more efficient, more
   meaningful and just plain
            better?”
                     THE promise of social
step 1.

who is your customer?
who is she?




              and more importantly:

                WHO ARE YOU?
a strong brand identity is more important now than ever:
In the age of self-expression, branding becomes an even
more important exercise. If you don’t know who YOU are,
 then how can you expect your customer to identify
                        with you?
the good news:

    there are lots of ways to connect now.

                 the bad news:

you still think it’s all about you and your needs.
step 2.

who is your customer?
  what does she need?
number 1.

motivation
the what’s-in-it-for-me model

       made                       laid                      paid

   will this bring me     will this make me      can I make a living by
 popularity? will I get more desirable to him/ doing this? will I get
followers? points? will       her? will it         discounts? will I get
it validate my talent?      make me more         free stuff out of it? will
 can it help me jump    attractive? will it land it get me that coveted
 the line or cross the   me the man/woman                  job?
  velvet rope? Will it      of my dreams?
make me feel special?
“I know what women want. They
      want to be beautiful.”

          Valentino
fashion is aspirational
good
clothes
open all
 doors
  thomas fuller
number 2.

ease her mind
credit: more.com
in other words...

  It’s not your customer’s job to put you first. The world doesn’t
revolve around you, it revolves around her. How can YOU make life
                          easier for HER?
fun (though slightly sexist) idea
                               to make shopping more
                              pleasurable for everyone.
                                   <-----------------




many stores are implementing
 mobile POS in order to cut
 down on big queue’s to the
       cash --------->
customers aren’t complicated.
        they want:

  1. great customer service

        2. good value

       3. convenience

       4. a fast finish
step 3.

who is your customer?
     making it happen
case study 1.


ASOS
17.5 million unique visitors a month
           8 million registered users
                       160 countries
          2011 sales: £146.5 million
                        CREATIVITY
next day delivery!




ASOS identified early on that range and free shipping are the most important factors
for their customers - so they spend £60M per year on free shipping plus stocking one
                 of the largest ranges of fashion merchandise online.
The Social Retailer: what ‘social’ means for the  future of commerce
ya think that pastels
are on their
customers’ minds?




     important to note:
  ASOS built a brand and
 customer loyalty BEFORE
they built a community with
       FashionFinder
case study 2.


          FAB
1 million registered users in <5 months
                       4.5 million users
    2012 projected sales: $100 million
         (already surpassed $300k/day)
                            CURATION
“Everything we do has to be well-
 designed,” the CEO (of Fab.com) said.
“Social can’t be a bolt-on; it has to be
   part of the core experience and
      designed really, really well.”
                 VentureBeat
The Social Retailer: what ‘social’ means for the  future of commerce
The Social Retailer: what ‘social’ means for the  future of commerce
The Social Retailer: what ‘social’ means for the  future of commerce
case study 3.


modcloth
   600% annual growth rate
      $20 million sales/year
    $45 million raised in VC
        COLLABORATION
“Susan Koger said ModCloth’s growing success has been
to understand their customers and knowing exactly what
she wants rather than taking a one-size-fits-all approach.”
                       RetailBiz.com.au
be the buyer
$500 in cash
 production + same of your piece
   your garment will be sold on
         Modcloth.com

1900 designs submitted in under 2
             weeks.
more collaboration examples:
case study 4.


 brooklyn
industries
         $25 million sales/year
    online & offline (15 stores)
     built without any funding
               FAST FASHION
“As fast fashion continues to win over shoppers, more specialty retailers like Brooklyn
 Industries, which traditionally freshened merchandise just a few times a season, find
                   they, too, must speed up their turnaround cycles.”
who is your customer?
     buyosphere.com
current buying model:

           step 1. stimulus
customer has a need. i.e. “ooooo, love that dress
my friend pinned. Would love something similar,
              but less expensive.”

     step 2. research (zmot)
  customer spends time researching options:
searches, reads reviews, goes between favorite
  stores, asks opinions, reads magazines...etc

      step 3. decision (fmot)
customer finds that perfect thing and orders it.

         step 4. experience
customer receives item, experiences it, may post
      reviews for others to learn from..
stimulus + research

buyosphere gives customers a
   platform to send out a
  public search inquiry that
  can be answered by their
 peers OR by the designers/
     brands themselves.
theworldofwonderful.net
                                  designer: julia stanescu

                       gorgeous hand-made, unique clutches designed
                          with love by talented Romanian designer.




Fabulous discovery
made because Julia
received the signal.
   No traditional
 search would turn
      this up!
in summary

who is your customer?
    the social retailer
Summary

It doesn’t matter which buzzword, trend, bandwagon, etc. you jump onto, you
need to understand the following to be a social retailer:


1. The core question: “What is that thing we can do to help make our customers’
   lives simpler, less confusing, less alienating, more efficient, more meaningful
   and just plain better?”


2. who is your customer? who are YOU for that matter? BRAND matters more
   and more. connecting with your customer means you are helping her express
   who she is...


3. what does your customer need? what’s in it for her? what does she need other
   than to buy one of your products/services? the more you know about her, the
   better you’ll be able to answer this one...
Case Study Overview

1. ASOS - built their success by spending their $$ on satisfying the basic need of their
   customer: quick & free shipping. now they are co-creating editorial to help new
   customers.


2. FAB - built their success on putting their customers’ happiness at the core of everything
   they do. Curation and creating ‘smiles’ is the key.


3. MODCLOTH - is building their success because they collaborate with their customer to
   merchandise.


4. BROOKLYN INDUSTRIES - is looking to be more successful by responding to the needs
   of the customer: the demand for fast fashion (locally)


5. BUYOSPHERE - is all about connecting people looking for unique items with designers
   and retailers offering unique items. we are building our success on connecting treasure
   hunters with treasure makers.
Tara Hunt
CEO & Co-Founder
Buyosphere.com

tara@buyosphere.com

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The Social Retailer: what ‘social’ means for the future of commerce

  • 1. the social retailer: what ‘social’ means for the future of commerce by Tara Hunt, buyosphere.com
  • 2. what is the promise of the social web?
  • 3. NOT the promise of social
  • 4. NOT social (this is embarrassing)
  • 5. “What is that thing we can do to help make our customers’ lives simpler, less confusing, less alienating, more efficient, more meaningful and just plain better?” THE promise of social
  • 6. step 1. who is your customer?
  • 7. who is she? and more importantly: WHO ARE YOU?
  • 8. a strong brand identity is more important now than ever:
  • 9. In the age of self-expression, branding becomes an even more important exercise. If you don’t know who YOU are, then how can you expect your customer to identify with you?
  • 10. the good news: there are lots of ways to connect now. the bad news: you still think it’s all about you and your needs.
  • 11. step 2. who is your customer? what does she need?
  • 13. the what’s-in-it-for-me model made laid paid will this bring me will this make me can I make a living by popularity? will I get more desirable to him/ doing this? will I get followers? points? will her? will it discounts? will I get it validate my talent? make me more free stuff out of it? will can it help me jump attractive? will it land it get me that coveted the line or cross the me the man/woman job? velvet rope? Will it of my dreams? make me feel special?
  • 14. “I know what women want. They want to be beautiful.” Valentino
  • 19. in other words... It’s not your customer’s job to put you first. The world doesn’t revolve around you, it revolves around her. How can YOU make life easier for HER?
  • 20. fun (though slightly sexist) idea to make shopping more pleasurable for everyone. <----------------- many stores are implementing mobile POS in order to cut down on big queue’s to the cash --------->
  • 21. customers aren’t complicated. they want: 1. great customer service 2. good value 3. convenience 4. a fast finish
  • 22. step 3. who is your customer? making it happen
  • 23. case study 1. ASOS 17.5 million unique visitors a month 8 million registered users 160 countries 2011 sales: £146.5 million CREATIVITY
  • 24. next day delivery! ASOS identified early on that range and free shipping are the most important factors for their customers - so they spend £60M per year on free shipping plus stocking one of the largest ranges of fashion merchandise online.
  • 26. ya think that pastels are on their customers’ minds? important to note: ASOS built a brand and customer loyalty BEFORE they built a community with FashionFinder
  • 27. case study 2. FAB 1 million registered users in <5 months 4.5 million users 2012 projected sales: $100 million (already surpassed $300k/day) CURATION
  • 28. “Everything we do has to be well- designed,” the CEO (of Fab.com) said. “Social can’t be a bolt-on; it has to be part of the core experience and designed really, really well.” VentureBeat
  • 32. case study 3. modcloth 600% annual growth rate $20 million sales/year $45 million raised in VC COLLABORATION
  • 33. “Susan Koger said ModCloth’s growing success has been to understand their customers and knowing exactly what she wants rather than taking a one-size-fits-all approach.” RetailBiz.com.au
  • 35. $500 in cash production + same of your piece your garment will be sold on Modcloth.com 1900 designs submitted in under 2 weeks.
  • 37. case study 4. brooklyn industries $25 million sales/year online & offline (15 stores) built without any funding FAST FASHION
  • 38. “As fast fashion continues to win over shoppers, more specialty retailers like Brooklyn Industries, which traditionally freshened merchandise just a few times a season, find they, too, must speed up their turnaround cycles.”
  • 39. who is your customer? buyosphere.com
  • 40. current buying model: step 1. stimulus customer has a need. i.e. “ooooo, love that dress my friend pinned. Would love something similar, but less expensive.” step 2. research (zmot) customer spends time researching options: searches, reads reviews, goes between favorite stores, asks opinions, reads magazines...etc step 3. decision (fmot) customer finds that perfect thing and orders it. step 4. experience customer receives item, experiences it, may post reviews for others to learn from..
  • 41. stimulus + research buyosphere gives customers a platform to send out a public search inquiry that can be answered by their peers OR by the designers/ brands themselves.
  • 42. theworldofwonderful.net designer: julia stanescu gorgeous hand-made, unique clutches designed with love by talented Romanian designer. Fabulous discovery made because Julia received the signal. No traditional search would turn this up!
  • 43. in summary who is your customer? the social retailer
  • 44. Summary It doesn’t matter which buzzword, trend, bandwagon, etc. you jump onto, you need to understand the following to be a social retailer: 1. The core question: “What is that thing we can do to help make our customers’ lives simpler, less confusing, less alienating, more efficient, more meaningful and just plain better?” 2. who is your customer? who are YOU for that matter? BRAND matters more and more. connecting with your customer means you are helping her express who she is... 3. what does your customer need? what’s in it for her? what does she need other than to buy one of your products/services? the more you know about her, the better you’ll be able to answer this one...
  • 45. Case Study Overview 1. ASOS - built their success by spending their $$ on satisfying the basic need of their customer: quick & free shipping. now they are co-creating editorial to help new customers. 2. FAB - built their success on putting their customers’ happiness at the core of everything they do. Curation and creating ‘smiles’ is the key. 3. MODCLOTH - is building their success because they collaborate with their customer to merchandise. 4. BROOKLYN INDUSTRIES - is looking to be more successful by responding to the needs of the customer: the demand for fast fashion (locally) 5. BUYOSPHERE - is all about connecting people looking for unique items with designers and retailers offering unique items. we are building our success on connecting treasure hunters with treasure makers.
  • 46. Tara Hunt CEO & Co-Founder Buyosphere.com tara@buyosphere.com