Posts Tagged ‘Social Media’

Express Lane for August 11

Couple of stories catching my eye this morning:

The New York Times has a look Red Hook, Brooklyn, just a couple of months after the Ikea there opened. Many community residents were against the opening of this location, as they feared the traffic and noise impact on the local community. Ikea also tore down several historic buildings to make room for this location. But now, just two months after the retailer opened there, some residents in the community are finding positives in what Ikea has brought to the community.

Best Buy has announced a series of airport kiosks/vending machines that will dispense cell phone accessories and other portable electronics. Apple has had their own iPod vending machines in airports and other locations for a few years now and this model has, seemingly, worked well for them. This similar model should also prove to be a low-cost distribution channel for Best Buy.

Finally, Customer World is discussing social media in banking and the obstacles that it faces in adoption. Interesting views on an industry that has been slow to adopt social media and why customers would be reluctant to embrace social networking in banking.

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Express Lane for August 7

Social Shopping is an emerging field and E-Commerce Times has a great post that explains what is is, provides a rundown of different social shopping services, and opportunities for retailer involvement within the field.

With social media transforming the way we work and interact, there becomes less of a distinction between the time we spend on and off the clock, so to say. Steve Bendt provides a great look into the ramifications of wage laws in the United States and the impact they have on retailers who look to use social media to connect with their customers.

Get Elastic is talking about the viral marketing video campaign from Office Max that ties in to their Back to School “Penny” marketing. I really like this campaign. It is a series of fun videos that ties in well with the overall brand position for Officemax for this season. Good job by Officemax, I think.

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Express Lane for August 6, 2008

A few of the stories I’m reading and wanted to share today:

John Zogby’s got a very insightful look into the political trends of retail consumers and dives behind the numbers to make sense of it all. He looks at presidential election polling numbers, the retailers the customers shop at, and how this relates to the retailers’ branding.

J.Crew’s website has had their share of mistakes and downtime lately. Church of the Customer is talking about the apology e-mail that the retailer sent out to their customers and what this means for the company.

Matt at A New Marketing presents a clean, easily digestable definition of what social media is.

.. and finally - Starbucks is offering a $2 discount on iced beverages in the afternoon when you buy a drink in the morning. I think this is a smart move that should drive repeat business throughout the day. Besides that, I’m selfish and now look forward to saving a little bit of money on my second trip to Starbucks every day.

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Wal-Mart using Facebook to target young consumers

Good post this morning over at Retail Design Diva talking about how retailers are using Facebook to capture the Back to College crowd:

Students can take a quiz to discover their “decorating style” and (ta-da!) receive a list of products they can buy at Wal-Mart that best reflects their style, and their roommates’, of course. How smart is this?! Students can also search Wal-Mart’s Web site for eco-friendly products or download a shopping list of dorm room pieces. The hip, new items can then be shipped directly to the school (no furniture hauling for dad), making life a lot easier for parents and kids. And let’s be honest, mom and dad are going to be all over that, even if they don’t have a Facebook account. This idea is absolutely brilliant–and I don’t even shop at Wal-Mart.

In a world of Facebook, MySpace, LinkedIn, YouTube and a variety of social networking and media sites, retailers could benefit substantially from plugging in. Securing teen and college kids’ dollars is extremely lucrative. Connecting with them on their own platform is invaluable. Apparently, Wal-Mart did its research, because according to the National Retail Federation, the average first-year college student spends $1,112.62 on back-to-school gear. Cha-ching. Who’s in for setting up a MySpace account?

More from Facebook Takes Over the Retail World.

Credit to Wal-Mart to being ahead of the curve of traditional retailers in adopting new technology to reach out to customers. Curious to see how these consumers react to Wal-Mart when Target seems to have a stranglehold on this segment. Could social media technology give Wal-Mart a leg up?

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It’s 2007 and retailers need Community Managers

Imagine it is Friday at 5:00PM and someone just posted, on their blog, about a horrible shopping experience they had at your store. Maybe a cashier was rude or maybe a store was disgusting - but whatever their frustration, they just posted their thoughts online and now it’s gotten linked to from two dozen websites and now people are talking about it across the country.

In this day, do you really want to wait until corporate PR gets into the office at 9:00AM on Monday morning before someone even thinks about reacting to this story? Monday is too late when there’s the potential that someone, reading the blog post, has decided not to shop at your store on Sunday.

Think it is far-fetched? I talked about this earlier in the year, when one consumer posted about their bad experience at a Kohl’s.

Think something like this can’t happen to your business? I can tell you that no matter how well you think you are training your employees, something somewhere is going to happen and someone is going to talk about it online. The next big story could be affecting your retail chain.

Today I read, over at Consumerist, about an unpleasant experience a person had returning items at Victoria’s Secret. Look through the comments and you will see a range of responses - some agree with the poster and complain about Victoria’s Secret customer service, while some stick up for Victoria’s Secret, while others debate the quality of merchandise Victoria’s Secret carries.

You know what I would love to see? Someone from Limited Brands posting a comment in that thread. Maybe they say that they are sorry for the experience, that they will look into it, and get in touch with the original poster privately. They could talk about how they are going to look into the policy and figure out if the sales person was poorly trained, rude, or even correct in what they do. A personal face of the corporation, being honest and engaging conversation, could stop an already bad experience from spiraling out of control. A personal face who could prevent the same situation from happening again.

This is the role of an online Community Manager: someone who represents a brand, online, and engages in honest communication with managers. It’s not hard to go through blogs, social networks, and community websites to find out what is being said about your brand. It’s not that hard to engage and welcome conversation and criticism. It’s not that hard to admit that, hey maybe someone made a mistake at the store level but it was due to poor training and we are going to correct that.

People make mistakes and they want to see big businesses admit that they do, as well. But a retailing remaining silent and ignoring the conversation around them is going to hurt their business and drive away customers.

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Looking for retailers interested in social media/community opportunities

I don’t often use my own site to solicit anything of a commercial nature. But looking at my server logs, it is obvious that I get a lot of traffic from some pretty major retailers. So I’d like to put this out there:

I’m working with a client on a relaunch of a sports-focused community-based website. It’s pretty specific to one geographic area, but it currently has some pretty solid traffic behind it and a very loyal community behind it. With this relaunch, I am actively looking for retailers who may want to create a co-branded marketing strategy and reach out to this highly targeted demographic. I think it’s a great opportunity for a retailer, especially a sports or outdoor orientated retailer.

I’d really like to create a dialogue with retailers or businesses who may be interested in this type of opportunity. In addition to this client, I’ve got other clients that I consult and work with on an ongoing basis and I am interested in helping retailers connect with their market.

For more information, contact me via e-mail at [ts AT robotictom.com] or use my contact form.

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Online retail still viable to traditional retailers

The New York Times ran a report this weekend, suggesting that online retail sales may be losing steam. The report has gotten a lot of people talking across the industry, but it is slightly misleading. While the year over year growth may slow down a bit, overall retail sales will continue to grow with the help of online sales.

Retailers need to continue adapting their online retail strategies. I think the most growth will still be seen within traditional (”brick and mortar”) retailers who create an online experience that is an extension of the in-store shopping experience. This will continue to create consumers who are better informed, make more confident purchases, and feel a stronger connection to the retailer.

Traditional retailers should begin to view their online presence as an extension of their brand. They should seek to create communities around their brand instead of just pushing products. There is still a lot of room to grow in this area. The result will a more loyal customer and an increase in overall sales.

Margaret Brennan at CNBC writes that online shopping is not dead yet. Good look at the rise in non-traditional online sales, including sales in footwear and apparel.

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JCP goes back to 1998 and releases downloadable, desktop sales application

JCP

I’ve come across a press releasing from JCPenney, announcing the release of a new downloaded desktop application called JCPToday. From their press release:

AUSTIN, Texas–(BUSINESS WIRE)–Skinkers, T3 and WTG have collaborated on the development of a unique desktop application that is helping one of America’s largest retailers, JCPenney, reach customers in a whole new way. The application, JCPToday, is designed to enhance relationships between JCPenney and its customers by delivering sales offers, new product announcements and in-depth features directly to a computer’s desktop. The application can be downloaded from www.jcptoday.com.

In essence, they’ve created a desktop calendar that allows you to keep track of things that you have to do while being reminded of upcoming sales and seeing some of the products JCP offers.

The press release intrigued me enough to download the application, but I can’t say that I’m impressed. While I appluad JCPenney for looking for different ways to reach their customer, this application seems outdated, stinks like spyware, and is short sighted in scope.

First, the good things about it:

1. I applaud retailers when they look for non-traditional ways to reach their customers. Using any sort of technology to market a retailer is a good step, since most retailers are still relying on traditional means of print, radio, and television advertising.

2. JCPenney is trying to establish a connection with the customer, reminding them to shop the entire store. As such, the application seems to not focus on any one area of the store and really tries to drive the store home, rather than individual products. Sure, there are individual products listed here, but click around and the customer gets a feel for the range of products that the store carries.

Now, my problems with this:

1. A downloadable application? What is this, 1998? In 2007, who is still trying to reach consumers with downloadable applications. Recent report states that 1 in 5 people in the world have high speed internet access. In an age of user distrust due to adware and spyware, I can’t imagine that many people are going to jump at the chance to download another application that will sit in the background of their computer and potentially hog resources and send private information to someone else. Whether or not the application actually does this is irrelevent, this is what a lot of people would think a downloadable application like this would do.

(Note: No matter how many times they put on the website that no private data is being shared or that the application isn’t spyware, how much trust do people have in corporations to actually be honest? Probably not that much. I don’t think I’m the only person to feel this way. In fact, Angelo Mandato had to develop his own uninstall application to completely get this application off of his mom’s computer. While it may not be spyware, making it hard for a user to uninstall an application is not cool.)

2. Using PUSH-technology to send information is, literally, a one way street. We PUSH the information to you that we want you to see. In an age of web 2.0, consumer-centric communities and interactive technology, people want to interact and share information. They don’t want to be spoon fed information.

3. 1 (the downfalls of a downloadable application) + 2 (the one-way communication of said application) = 3: the people who are likely going to take the time to actually download, install, and use the program are going to be consumers who are already enthusiastic about the JCP brand. This application is going to reach out to the already converted, but won’t do much to convert new people to the JCP brand. This goes back to relying on traditional advertising methods to market the retailer.

I hate to say it, but I think that this application is a failure. I do think they have a good concept for what they want to do, but I wish they would have executed it differently. How I would have done it:

1. JCP: retailer and desktop software publisher? Instead of using the time and the resources to create a new calendanr application, I would have reached out to already existing applications in order to create a co-branded service. There’s a myriad of organizational and calendar applications, and now JCP is competiting with them. In addition to already existing desktop applications such as Outlook, iCal, and Sunbird, there are plenty of web-based services, like those developed by Google and Yahoo, as well as others like 30 Boxes, Spongecell, and Remember the Milk. JCP should have reached out and attempted to integrate their marketing message into a pre-existing service.

2. Let’s say JCP reached out to everyone and no one wanted to integrate JCP branding into their service: I still wouldn’t have gone the downloable application route. Integrate the calendar application into JCP.com and brand it there. You are keeping the user on your own site and will have so many more opportunities to make the sale than by having the user in another window in a desktop application. Make it easy for the user to purchase what they want.

3. By keeping things on the web, JCP would have an opportunity to create a real interactive user community. The other day I laid out some ideas for ways Gap Inc. could integrate their sites together, and most of them apply here. Use a blog to showcase new fashion and reach out to the customer. JCP is expanding their stores and enhancing the in-store shopping experience - but not in my area. I’d love to see more about these new features and a blog would be a great area to show things like this.

But the key to the blog is interaction. With the application JCP has created, they’re able to feature items and trends but they’re not soliciting feedback and allowing the user to create their own connection to the JCP brand. This one way communication isn’t going to fly with today’s consumer. By building a community around the blog and calendanr, they would keep people coming back and, in turn, keep people coming back to their own website.

AdWeek has an article about the launch of this application with some quotes from people behind it. They seem to see this application as a way to reach already existing customers. While I have already pointed that out and agree with that, I think that they could have easily done this in a way that could really reach out to other people who don’t already shop at JCP.

I really wanted this application to be good, but I think JCP has missed the mark. If JCP had taken the concept and altered it, only slightly, they could have a real smash hit on their hands; something that would have enhanced their brand and something that other retailers would use a case study. But instead, they have an application that will most likely be thought of as intrusive spyware and will soon be forgotten.

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Hot Topic, lifestyle marketing, and integrating store and web design

One of my local malls, the Monmouth Mall in Eatontown NJ, recently has seen a number of retailers relocate and remodel their stores: Victoria Secret, The Limited, Express, New York and Company, and Hot Topic. Add in the conversion of a Rampage to Forever 21 and new stores being built (Charlotte Russe, Hollister, and Modell’s), the mall is generating excitement with their newness.

The Hot Topic remodel interested me. It’s been 10 years since they opened in their spot that they were in. The new store has better lighting, better merchandise presentation, more excitement, and it is more inviting to shop in.

Not only did they remodel this store, but this is one of the first 10 percent of Hot Topic stores to get the new, reworked layout.

Hot Topic’s dark Goth stores, which were once a huge hit with rebellious teen shoppers, are getting a lighter, brighter makeover as the retailer struggles to pull sales out of a deep hole, the company’s chief financial officer said Wednesday.

“Based on feedback from our customers and changes in the [apparel] industry, we’re changing the look of our stores,” James McGinty told a gathering of analysts at the Piper Jaffray Annual Consumer Conference in New York.

“People were telling us that the stores were too dark, gothic and intimidating to the average customer,” McGinty said.

(More from CNN/Money.)

Over at Lightheavyweight, Finn is talking about talking about how this new layout ties in with lifestyle marketing. To really capture your marketshare, as a lifestyle marketer, you have to evolve with your clients and adapt through the times.

One can create a great shopping experience and display merchandise well, but if it doesn’t connect with the customers, there will be no business. The challenge with lifestyle marketing is not only to create an exciting shopping experience, but to create one that connects. As Finn discusses, I think Hot Topic has done this.

This new layout is a fresh look for the retailer and a needed change. Adapting as the marketplace grows is not only good business, but it is something the retailer needed to do. The last 12 months have not been kind to them:

What I also like is how well their new website design ties in to the new store concept. Brighter colors, better navigation, better presentation of merchandise. Not only does the new site work well and look nice, but it’s a direct reflection of the thoughts that drove the new store layout. This is a great integrated effort to create a cohesive shopping experience across all mediums. This is something that not very many retailers get right and Hot Topic did.

It will take a while to get this concept off of the ground and really reinvigorate the business, but the seeds of growth and change are there for the long run. Watch out for Hot Topic (again).

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Retailers and Social Media - when are they going to learn?

Recently, I wrote about the new Sears marketing plan and slogan, “Where It Begins”. Today, a Google search for “sears + ‘where it begins’” returns an article from AdWeek first and my website second.

Good thing for Sears, I was generally positive about the new slogan and marketing campaign. Imagine if I was negative and ripped it apart.

As a retailer, do you know what your customers are really saying about your brand online?

Are people reacting favorably to your marketing strategy? To you Summer clothing line? To your latest sale prices?

Are people discouraging others from going to your store because of a bad experience? Because of a short tempered cashier they encountered? Because of the ugliness of your new dresses? Because your return policy sucks?

I can bounce across the web right now and show you a Facebook page where a guy is showing off the new polo he bought from Abercrombie & Fitch.

I can show you a forum where people are talking about the perceived lack of training the cashiers exhibit at Sears.

I can even pull up a Myspace group where employees are talking about mistreatment from management at Kohl’s.

This information is out there. It’s freely accessable. I know where to find it and I’m not alone in that.

If you, as a major retailer, are ignoring this information, you are giving away valuable information that could help you grow your brand, increase your sales, and make the changes that you need to make in order to compete better.

If you, as a major retailer, are reading this information but not interacting with your customers on your own, then you are completely missing the point. Start a corporate blog and encourage discussion, good and bad, on your own website.

Hire an evanglist. Someone who will be the e-face of your company. Someone who will interact with your customers through blogs, forums, and social networking websites. Someone who will drive people to come to your website, to your store, strenghten your brand, and build lasting relationships with your customers.

The answers to what your consumers want are all around us. You just have to look for them and let them know that you are listening.

Other industries are already doing this and succeeding. Why the major retailers in America haven’t jumped on, I don’t know.

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