The Canadian Social Shopper Sponsored by: Presented by: Steve Bielawski Rosalina Lin-Allen eCommerce Practice Director Director, Client Strategy Tenzing Delvinia www.tenzing.com www.delvinia.com370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Webinar Agenda Introduction Steve Bielawski, Tenzing The Canadian Social Shopper - Rosalina Lin-Allen, Delvinia Q&A If you have questions during the webinar, please input them in the Q&A panel on the right side of your screen and we will address them at the end of the presentation.370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

About Tenzing Company Highlights Tenzing Founded in 1998, privately owned Data Centers Production Datacenters: Toronto, Kelowna & Disaster Recovery Environments Vancouver, plus 3 separate Operation Environments Centers for 24x7x365 support 450 customers (15% in US and abroad) Consistent double digit growth: last 5 years Profit 200 Ranking 6 years in a row APAC EMEA 80 employees (75% dedicated to service delivery) Business Focus: Managed IT Services Ecommerce Platform Solutions (mid/enterprise) SaaS solutions Web Collaboration Solutions370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Ecommerce IT Infrastructure Example Example >>> Typical Mid Market Ecommerce IT Infrastructure Ecommerce Phases Provision Design Deploy Test Production Fees One Time Set Up Fee 36 Monthly Payment Plan Your Online Store Is Open: 24 x 7 x 365370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Ecommerce Managed Services We Focus On This So You can Focus On This370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Sample Tenzing Clients Ecommerce Software-as-a-Service Enterprise Web370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

We are a Digital Strategy & Customer Experience Design firm. Help companies connect with their customers by turning data into actionable experiences that drive business results.370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Our Capabilities. Insight Strategy Design The Delvinia Insights group offers Delvinias Digital Strategy group is Delvinias team of experienced expertise in a comprehensive expert in helping organizations to designers will leverage the digital repertoire of qualitative and identify key trends and competitive strategy and employ various user quantitative research methodologies threats in the digital landscape, centered design methodologies and critical to understanding the digital evaluate their current digital tools to create the most engaging universe today. presence, and establish a strategic customer experience while achieving plan and roadmap to ensure their your business objectives. success. ASKINGCANADIANS | VOICE OF THE CUSTOMER SOLUTIONS Full service online survey programming & hosting Online Panel Development and Hosting Custom Recruitment Online Research Community AskingMedia Data Capture Tools 160,000 Members Digital Mosaic Segmentation Social PRIZMC2 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Agenda Canadian Social Shopper Behaviours Social Shopping Trends Approach to Social Shopping 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Why Brands Should Care About Social Media 23% Internet traffic goes to social media sites (source: AC Nielson, Sept 2011) 21h average time Canadians spent on Facebook per month (source: Facebook, June 2011) Feb10 Facebook traffic surpassed that of Googles in the U.S. (source: Socialnomics) 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

From Links to Likes 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Social Media Impact on Content Consumption 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Social Media Impact on Shopping 69.2% Check ratings and reviews as part of their shopping process. Source: , Nov 2011, n=956 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Social Enables New Business Models 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Social Networks in Brick-and-Mortar 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Social Used Throughout the Shopping Process My Blogs, Social Search Ratings & My Sphere Reviews Social Sphere Product Brick & Mortar Word of Mouth Social Product Sites Site My Social Sphere Brick & Mortar Product Product Blogs, Sites Product Social Ratings & Site Sites Reviews RESEARCH PURCHASE POST PURCHASE 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

The Stats Check ratings for a particular product on a retailer/brand site 69.2% Read blogs relating to the product or product category 28.2% Check the retailer/brand social media page to help make 25.9% decision Email friend(s) to seek their opinion on a particular 17.8% purchase decision Interact with the retailer/brand through their social media page 10.3% to help make decision Post a picture of the product on a social network site and ask 5.6% your friends for opiniions 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: , Nov 2011, n=956 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

What to Expect Mainstream Canadians are in early utility phase. Information Utility Transaction Main StreamACTIVITIESCONSUMER Research information Start integrate social more Comfortable and expect social CORE into their daily lives Interactive content to be part of the transaction Use more for info & utility experience CONSUMER CONCERNS Security & privacy concerns Can live with the security and Declining concern but still privacy risks relative to the act as barriers to do more reluctant to transact value 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Social CommerceSocial technology enhanced shopping experienceRatings & Reviews E-commerce in Social Networks Social Component in E-commerce Sites Social Technology in the Brick and Mortar Environment 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

E-commerce in Social Networks 2.7% have purchased products via Facebook while 28.7% will consider purchasing products via a brand/retailer Facebook page in the near future (source: , Nov 2011, n=977)370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

E-commerce in Social Networks 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

What is the approach to meet the needs of social shoppers?370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9

Approach Followed or friended a brand/ retailer social media pageStep 1: ListenUnderstand how your target audienceinteract with your category & brandon social media in their shoppingprocess. Source: Nov 2011, n=1005 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

ApproachStep 2: Define StrategyIdentify sweet spot for your brand& category.Establish key performance indicators. 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

ApproachStep 3: Cultivate the Community 37% has unliked orTop 3 reasons consumers engage with brands stopped following a1. Learn about discounts & deals branded social2. Find out about the latest products & events media site in the3. Get opinion/advice from other consumers past month.Source: , Nov 2011, n=1,005 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

ApproachStep 4: ExperimentKeep trying new things.Get customer input - social media is aforum for a two-way dialogue. 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

ApproachStep 5: MeasureMeasure against your keyperformance indicators.You cant improve upon what youcant measure. 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Some Results to Date $1M USD Revenue Dell claims via Twitter sales alert. (Dec 2008) 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Some Results to Date $65M Drop in Netflix share value when Warner opened a Facebook movie rental (streaming) service 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Future Shoppers The future social shoppers are a lot more socialnetwork savvy than the mainstream consumers today. 85% 330 50,000 Teenage girls use Average number of Number of retailers their friends & peers Facebook friends who have opened a as a source of trend each Canadian facebook store with information and 45% between the ages of Payvment seek the opinion of 13-24 has, compared those same groups to an average of 225 when purchasing for all demographics clothing or footwear. (50% more). (Source: eMarketer, Nov 2010) (Source: Facebook, June 2010) 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Other Great Resources 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Past Webinars 85% 40% of Canadian consumers of Canadian smartphone owners research price online as part of have used their phone in the their shopping process. process of shopping. Download the Download theCanadian Multichannel Shopper Canadian Mobile Shopper Webinar Webinar http://www.slideshare.net/delviniainteractive/the-canadian- http://www.slideshare.net/delviniainteractive/the-mobile- multichannel-shopper shopper 370 King Street West, 5th Floor, Box 4 Toronto, Ontario M5V 1J9

Sponsored by: Presented by: Steve Bielawski Rosalina Lin-Allen eCommerce Practice Director Director, Client Strategy Tel. 877-767-5577 x436 Tel.416-364-1455 X271 Email. steve.bielawski@tenzing.com Email. rlinallen@delvinia.com Tenzing www.twitter.com/rlinallen www.tenzing.com www.linkedin.com/rlinallen Delvinia www.delvinia.com370 King Street West, 5th Floor, Box 4Toronto, OntarioM5V 1J9