ZERO FRICTION FUTURE with Facebook - Contra

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ZERO FRICTION FUTURE with Facebook - Contra
BUILDING A
ZERO
FRICTION
FUTURE
with Facebook
ZERO FRICTION FUTURE with Facebook - Contra
Menti.com Fragen
- Wie verändert sich das Shopping Verhalten aktuell während COVID
           - Wer denkt, das ist ein langfristiger Trend?
ZERO FRICTION FUTURE with Facebook - Contra
Ann-Cathrin Edelhoff
                               ANN-CATHRIN EDELHOFF
                               Agency Partner Manager, DACH
Agency Partner Manager, DACH
                               Facebook
Dublin, Ireland
ZERO FRICTION FUTURE with Facebook - Contra
FRICTION                        That item is
                                currently out
is one of the biggest threats     of stock.

to your business                                 Please wait a moment
                                                while we load your cart.
ZERO FRICTION FUTURE with Facebook - Contra
1 in 3
                                                                                                                                  shoppers globally would stop
                                                                                                                                  doing business with a brand
                                                                                                                                  they love after only one bad
                                                                                                                                  experience1

                                                                                                                                  €86B
                                                                                                                                  opportunity cost of
                                                                                                                                  friction in the EU2

1. PwC “Experience is Everything” 2018
2. “40 Cart Abandonment Rate Statistics,” Baymard Institute, Jun 2018. “Retail Ecommerce Sales in UK, Germany, France” eMarketer, Oct - Dec 2018. Exchange rate of USD 1 = EUR 0.87, Oanda.
com, Mar 1, 2019.
ZERO FRICTION FUTURE with Facebook - Contra
3 bn
monthly active users
ZERO FRICTION FUTURE with Facebook - Contra
TRADITIONAL CUSTOMER JOURNEY

      DISCOVERY      PURCHASE   POST-PURCHASE
ZERO FRICTION FUTURE with Facebook - Contra
DISCOVERY
                           awareness | inspiration | browsing | technology optimization
POST-PURCHASE

                           PURCHASE
                PURCHASE   consideration | checkout | payment

                           POST-PURCHASE
                           fulfillment | support | repurchase
ZERO FRICTION FUTURE with Facebook - Contra
DISCOVERY
ZERO FRICTION FUTURE with Facebook - Contra
DISCOVERY
DISCOVERY

SPARK
LOVE
where people
are open to it

                 FEED   STORIES   IN-STREAM
DISCOVERY
DISCOVERY

INSPIRE
ACTION
without leaving
Facebook or Instagram

                        COLLECTION   INSTANT EXPERIENCES
DISCOVERY
DISCOVERY

MAKE
DISCOVERY
FEEL IRL
no matter where
it happens

                  AUGMENTED REALITY ADS
PURCHASE

       BUY   NOW
PURCHASE
 PURCHASE

SHORTEN
THE PATH
TO
PURCHASE

            MARKETPLACE   SHOPPING ON INSTAGRAM
HELP PRODUCTS
FIND PEOPLE     DYNAMIC ADS
PURCHASE

                          SWIPE TO
                          FIND YOUR
                          STORE

STORE TRAFFIC OBJECTIVE
POST-PURCHASE
POST-PURCHASE

89%
of consumers expect brands
to respond within 24 hours

56.5%
of businesses can’t be
contacted by social media

Source: SAP Hybris, The 2017 SAP Hybris Consumer insights Report, 2017
                                                                         18
POST-PURCHASE

REIGNITE
DISCOVERY WITH
PERSONALIZED
OFFERS
TO GET CLOSER
TO A ZERO
FRICTION FUTURE

DISCOVERY – Make it personal and exciting

                                             POST-PURCHASE

                                                             PURCHASE
PURCHASE – Shorten the path the conversion
POST-PURCHASE - Build loyalty

                                                                        20
COVID-19
CHANGING CONSUMER
DECISION MAKING
The recessionary mindset
                Necessity may be driving large purchase                                                                               Delayers are interested in brand
                            prioritisation                                                                                            promotions & flexible payments

                 Which large purchases will you prioritize making first?
                     (% of delayers for that purchase, Germany)                                                                    % Purchase delayers who approve of brands
                                                                                                                                                  (Germany)
           66%
                       60%
                               51%                                                                                                                                      75%
                                         46%       44%                                                                                  66%
                                                             40%       39%        37%           36%

                                                                                                           17%        16%
                                                           ne

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                                                                                                                            Offering flexible payment terms   Running promotions / offers
                                                                                           ish
                                                   ro
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       at

                   o

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                                        on
                             Ho

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                                      rs
                                    Pe

Source: Global Web Index COVID Tracker Wave 3 22nd – 27th April 2020
Increasing value rather than reducing price
Main reasons to change stores (Germany)

                                                                                                    Store is less crowded                                      42%

                                                                                                 Closer proximity of store                               36%

          Safety concerns more                                                                            Cheaper prices                           29%

          powerful than saving                                                                         Larger assortment                     25%
          concerns
                                                                                                   Longer opening hours                17%

                                                                                                            Special offers             17%

                                                                                                            Cleaner store             15%

                                                                                    Better home delivery / pickup services      10%

Source: McKinsey & Company COVID Consumer Pulse Survey, 30th April – 3rd May 2020
Lidl are using
WhatsApp to help
customers find the
quietest time to shop
Reduced store visits post lockdown

                    How are you planning to change
                   your shopping behavior (Germany)
                                                                                                                                     Consumer Traffic to retail properties
                                                                                                     20
                                                                   49%
                                                                                                      0

                                                                                                          20

                                                                                                                       20

                                                                                                                                    20

                                                                                                                                                 20

                                                                                                                                                              20

                                                                                                                                                                           20

                                                                                                                                                                                        20

                                                                                                                                                                                                     20

                                                                                                                                                                                                                  20

                                                                                                                                                                                                                               20

                                                                                                                                                                                                                                            20

                                                                                                                                                                                                                                                         20
                                                                                                     /20

                                                                                                                  /20

                                                                                                                               /20

                                                                                                                                            /20

                                                                                                                                                         /20

                                                                                                                                                                      /20

                                                                                                                                                                                   /20

                                                                                                                                                                                                /20

                                                                                                                                                                                                             /20

                                                                                                                                                                                                                          /20

                                                                                                                                                                                                                                       /20

                                                                                                                                                                                                                                                    /20
                                                                                                    -20
              36%

                                                                                                    /02

                                                                                                                 /02

                                                                                                                              /02

                                                                                                                                           /03

                                                                                                                                                        /03

                                                                                                                                                                     /03

                                                                                                                                                                                  /03

                                                                                                                                                                                               /04

                                                                                                                                                                                                            /04

                                                                                                                                                                                                                         /04

                                                                                                                                                                                                                                      /04

                                                                                                                                                                                                                                                   /05
                                        34%

                                                                                                  15

                                                                                                               22

                                                                                                                            29

                                                                                                                                         07

                                                                                                                                                      14

                                                                                                                                                                   21

                                                                                                                                                                                28

                                                                                                                                                                                             04

                                                                                                                                                                                                          11

                                                                                                                                                                                                                       18

                                                                                                                                                                                                                                    25

                                                                                                                                                                                                                                                 02
                                                                                                    -40

                                                                                                    -60

                                                                                                    -80

                                                                                                   -100

                                                                                                                                                                       Germany                UK

      Spend less time inside        Visit stores less     Either spend less time or
             stores                    frequently              visit stores less

Source: Global Web Index COVID Tracker Wave 3 22nd – 27th April 2020; Google Mobility Data 2020
Helping brands with no ecommerce drive sales online

Run advertising on Facebook using           Optimise performance using
  a retailer's product catalogue             signals from retailer site

                        Collaborative Ads                                 Multi-Retailer ‘Add-to-cart’ Ads
Introducing Shops,
your new digital
storefront

SIMPLE                  SCALABLE

Maintain one unified    Get additional global
shopping experience     reach and distribution
across Facebook apps

CUSTOMIZABLE

Tailor the experience
to showcase your
brand identity
CHECK IN   NOW
                                              SHOP   NOW

      ORDER   NOW

             DELIVER ON THE
            PROMISE OF NOW                            CHAT   NOW

BUY   NOW
                                       BOOK    NOW

              PAY   NOW
THANK YOU
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