the power of social referrals
DESCRIPTION
Keynote presentation with Extole and Vistaprint from 2012 Social Commerce Strategies conference. The presentation includes an overview of social referral programs, as well as an overview of Vistaprint's social referral program and promotions powered by Extole.TRANSCRIPT
THE POWER OF SOCIAL REFERRALS
Trevor Legwinski, Director of Product Marketing, Extole Michele Farley, Affiliate Marketing Mgr, Vistaprint
@Extoleinc @Vistaprint
January 24, 2012
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CONSUMER BEHAVIOR IS CHANGING
“90% of consumers trust recommendations from their friends
– 3x more than online ads” - Nielsen, 2009
“74% of consumers rely on social networks to help them make
purchase decisions” - Gartner, 2010
“75-90% of the top 10 search results on any SERP have at least 1
Facebook like or Twitter tweet” - BrightEdge, 2011
Bing now delivers personalized search results based on what your
friends like - Bing, 2011
Users share 4B things a day on Facebook. Every year, people will
share 2x as much as the year before - Mark Zuckerberg, 2011
Content recommended by friends is often more relevant than content
from strangers. - Google, 2011
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SOCIAL BY THE NUMBERS
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• Social networking sites reach 82% of the world’s online population; representing 1.2 billion users worldwide
• Facebook ~800M estimated; 1 Billion users by Dec 2012
• Google + currently ~62M users; on track to reach 400M in year
• Twitter ~200M profiles
• LinkedIn ~135M members
• 1 in 5 minutes spent online is social networking; 3 in 4 minutes on social networking on Facebook
SEARCH BY THE NUMBERS
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• Google Searches – ~1 Billion per day; ~42M per
hour ; ~47K per second – ~15% all searches came from
mobile devices, Early 2011
• Google Revenue – $29B 2010 Digital $ – 97% from search
SEARCH IS BECOMING SOCIAL
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THE MARKETING OPPORTUNITY
TRADITIONAL Brand Created One Directional – Push Marketing
NOW Customer Generated Two Directional – Social Marketing
Less Trusted, Becoming Less Effective
Trusted, More Effective, Wider Reach
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C2C MARKETING GETS YOUR CUSTOMERS TO SHARE
Trusted Referrals from Friends
Social Advocates Promote Brand
Social Content Amplifies Awareness
Acquisition & Sales
Traffic & Awareness
Social ROI & Insight
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Measurable Social Results
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Grow Acquisition & Sales
• Increased volume of new leads
• Higher AOV (Average Order Value) & LTV
• 5x conversion over other channels
Increase Traffic & Awareness
• New referral traffic to brand.com
• Increased shares in the social graph
• Improved Social SEO rankings
Gain Social Insight & Measure ROI
• Understand your brand’s social graph
• Track advocates & influence across channels
C2C MARKETING BENEFITS
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Extole is the leading Consumer to Consumer (C2C) Social Marketing Platform for brands and agencies to turn customers into social advocates, tapping into a powerful new marketing channel
• Powering 200+ leading brands & agencies • Founded in 2009 • Based in San Francisco with over 60 employees
ABOUT EXTOLE
9 9 © 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
ABOUT VISTAPRINT
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• Leading online provider of professional marketing products and services to micro businesses and the home
• Micro business = business with 1-10 employees • Founded in 1995 • Operate 24 localized websites and ship to over 120
countries • Serve over 11M customers annually • 3,100 employees globally
© 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
VISTAPRINT ACQUISITON + SOCIAL STRATEGY
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• Vistaprint customer acquisition centered around traditional media
• Looking for social media conversational platform to interact with customers
• Interested in building WOM referral program • Extole’s strength was in peer-to-peer referrals
© 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
SOCIAL REFERRAL PROGRAM
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Challenge: • Vistaprint has always had a
loyal base of users that love the brand
• Needed a way to easily let users share and provide incentives for doing so
• Didn’t want to spend valuable internal resources building an entire system to track and fulfill
Goals: • Drive measurable social activity
and significant incremental new user sales by offering a referral incentive that entices users to share
12 © 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
OPTIMIZATION
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Optimized to make sharing process one step, seamless
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PROMOTING THE REFERRAL PROGRAM
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© 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
PROMOTING THE REFERRAL PROGRAM
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© 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
PROMOTING THE REFERRAL PROGRAM
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• Messaging to repeat customers • Unique message to program participants
© 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
CROSS CHANNEL PROMOTION OF THE PROGRAM
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Post-‐purchase environment
Holiday email drop Site-‐wide footer
Dedicated Facebook Tab
SOCIAL REFERRAL RESULTS
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10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Shares by Month
Shares by Month
Results-to-date: • Program has grown 60% from 2010 – 2011 • Cost of acquiring customer ¾ of traditional media • Over 200k participating advocates • On average, every advocate shares over 4 times per session • Every share receives an average of 2 ‘Friend Clicks’ across sharing
channels • Higher conversion rates than any other channel
New Advocates by Month
2,000
4,000
6,000
8,000
10,000
12,000
14,000
New Advocates
SOCIAL CONTENT CREATED
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SOCIAL PROMOTIONS – POLLS & GROUP BUYING
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Value in WOM marketing, using current customers as sales force
Deliver messaging at positive, post-transactional touch points
Re-market the program to keep users engaged and encourage sharing (ongoing)
Strategize on how referrals can tie into existing and new social efforts
TAKE AWAY POINTS VISTAPRINT KEY TAKEAWAYS
TAKE AWAY POINTS CONCLUSION
22 © 2012 Extole, inc. All rights reserved. Proprietary/Confidential.
Consumer behavior has drastically changed, consumers trust content from friends and peers
Social is becoming an integral part of search and your SEO strategy
Consumer-generated content is a critical part of your marketing strategy
Your customer advocates can become one of your best marketing channels
Social referral programs encourage the creation and sharing of consumer-generated content
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© 2012 Extole, inc. All rights reserved. Proprietary/Confidential.