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A Very Important Engagement

By Deborah Cassell
Gourmet Retailer
February 2011



When it comes to using social media to connect with consumers, everybody's doing it, including specialty food and housewares retailers. Here's why and how your company should be engaging shoppers online.

Facebook. Twitter. Foursquare. Yelp. Just a few years back, these words meant nothing to the average consumer, whose interactions with manufacturers and retailers were limited to shopping trips, commercials and coupons. Today, every company has an online presence, from a corporate website to a blog to a weekly e-newsletter. And social media applications are transforming the way consumers interact with their favorite brands.


Just ask Media Logic, a New York-based agency that specializes in marketing for a social world. The firm recently conducted a study of what retailers are doing in the social media space and discovered several trends, including an explosive acceleration in the popularity of the "like" button during the third and fourth quarters of 2010 — the same year that "grandma found Facebook," says Ron Ladouceur, Media Logic's executive vice president, adding that the site's fastest-growing audience is ages 35 and up.

How do you get Facebook users to "like" your brand? Try what Ladouceur calls "basic, brutal retail" and offer them a one-time 40-percent-off coupon just for hitting the button. Once users like a brand's page, they expect something in return — value in the form of additional discounts/coupons and contests/sweepstakes as well as interesting status updates. If the brand doesn't deliver, it looks lazy or dead, Ladouceur says.

The goal should be "trying to keep current likers engaged so that they don't un-follow me," he adds.

There are many ways to go about engaging consumers online. Some retailers solicit user-generated content, such as fan photos that "show us how you're using our products," Ladouceur suggests.

Retailers, specifically, should think about the items they stock that are loved, whether it's a best-selling sauce or a regional beer, and call attention to these products using social media or even partner with suppliers to help promote them, Landouceur advises, adding that classic foods and retro brands seem to attract a lot of fans.

Certain retailers have found great success "tweeting," too.

For example, "Whole Foods has gained Twitter followers (1.8 million) because they have direct-messaged them a resolution to a customer-service issue," Ladouceur points out. Companies that do this "end up building large follower bases of former complainers who are now brand advocates because they solved the problem using Twitter."

Ultimately, you need to "try to get an understanding of what your consumer wants," whether it's a sense of fun, nostalgia or exclusivity, Ladouceur says. "Find your social schtick." The social media phenomenon caught many retailers off-guard, but they're now discovering it's "a free opportunity to advertise that you never had before."

What scares most brands about social media is that they have no control over what consumers are saying about them, which is why you should embrace the technology and participate in the conversation, says ICC president & CEO David Rich.

"Social media has just become another way in which consumers are communicating," he explains. And it has an even bigger effect than sampling or billboards ever will, because you can reach a larger audience online. Why promote your brand all by yourself when other people can do it for you through their positive comments? Rich asks. Social media also can be used to enroll shoppers in rewards programs, show demonstration videos and announce events.

How you communicate with your customers is crucial. Be "genuine" and "authentic," rather than "throwing propaganda up there," Rich says.

For example, Whole Foods has used its Facebook wall to state its opinions about USDA decisions. Rich also credits companies such as Ikea and Steaz Organic Tea for their social media strategies.

And it's not enough to just have fans. "You're better with 1,000 fans than 100,000," Rich points out, adding that just because you're not seeing much activity doesn't mean that users aren't participating. The 90-9-1 rule dictates that 1 percent of people write reviews, 9 percent actually tag a comment onto that review, and 90 percent read what everyone else wrote, he notes.

Right now, Rich summarizes, "It's almost inexcusable" not to have a social media presence.


Ring Bros. Marketplace
It's been about a year since South Dennis, Mass.-based Ring Bros. Marketplace started using Facebook and Twitter to engage consumers in the Cape Cod area.

Director of Marketing Donald Fallon updates Facebook five days a week, sometimes twice a day, and two other staff members have the authority to do so, as well. Sample posts include those alerting customers to upcoming cooking classes and food-related trivia (users love the latter). The store also mentions sightings of its brand in the media: For example, when shopping bags from its store were seen in an episode of "The Bachelor," Ring Bros. uploaded a still photo to its Facebook profile.

Recent promotions Ring Bros. has featured on its fan page included photos of an in-store visit from Santa. Whenever it participates in a special event, such as a fundraiser for the Cape Cod Museum of Art, the retailer takes pictures for Facebook.

"It's another way to let people know what we're doing," Fallon says.

Like other companies, Ring Bros.' Facebook page is tied to its Twitter page so that when it makes posts to the former, they feed the latter automatically.

Perhaps most importantly, Fallon always responds to other people's posts: "If you don't, they won't interact again."

As a small store that's fairly seasonal, Ring Bros. doesn't have "a ton" of fans, Fallon says. However, "People are interacting with us on it, and that's exactly what we wanted." In looking at many other sites, he adds, "There are a lot of posts, but no comments, no interaction. ... I'd rather have 280 really engaged customers than 10,000 that just liked it and never looked at it again."

Ring Bros. bases some of its success on how many members use its exclusive Facebook discounts. During the second round of the NFL playoffs, the retailer offered fans a 5-percent-off coupon; it also ran radio ads promoting this discount. Super Bowl weekend, it ran the same coupon, but only via Facebook; the latter resulted in 25 percent more returns, perhaps proving the power of social media versus traditional advertising.

"Leveraging free and inexpensive outlets such as social media and direct-email blasts are much more effective," Fallon concludes.

Ring Bros. also has dabbled in Foursquare, a social networking application that lets users share their current locations with friends, granting visitors who "check in" on the site 500 points towards its rewards program — the same number shoppers receive for every $5 they spend in the store. (For every $250 a customer spends at Ring Bros., they receive a coupon worth $5.) If the "mayor" checks in online, he or she receives 1,000 points (limit: once a week).

When asked for his advice for other retailers looking to use social media to boost business, Fallon says you have to do more than just promote products in order to "keep it engaging." Facebook, for example, is a fun place for users to visit, "so you have to be fun, too."

The Chopping Block
The Chopping Block, a Chicago-based recreational cooking school and gourmet retail store, has actively engaged in social media as a marketing strategy since early 2009, according to Public Relations Manager Andrea Miller, adding that the company "has built an active community around cooking that continues to grow.

"We utilize social media as a way to share information about events, cooking techniques and innovative recipes as well as an interactive way to solicit feedback from customers," she explains. "We also run contests and solicit feedback from customers about products. For example, we are considering a new knife line, so I posted on Facebook/Twitter and asked what people would like to see in our stores."

The Chopping Block posts to Facebook one to four times a day during the week and once or twice per weekend, linking all updates to its Twitter account, too. It always responds to consumer comments and also retweets any mention of the company.

"We'll occasionally tweet about the number of spots left in classes," Miller notes. "We've also tried live tweeting of classes and events in the past. For example, at last year's Chill event at the (Merchandise) Mart, I tweeted about each of the chef's dishes as I tasted my way through the event. People seem to like those kind of review tweets from The Chopping Block since we are considered local food experts."

At present, The Chopping Block is running a contest to get its fan total up to 2,500. The 2,500th fan will receive a $100 gift card.

Facebook aside, the retailer also "encourages customer feedback and actively participates in conversations on Yelp (a site that features opinions about local businesses from real people) and other review sites," she continues. "We have a total of 135 Yelp reviews, with an average of over 4 out of 5 stars for both locations."

Like Ring Bros., The Chopping Block participates in Foursquare, as well. First-time users who check in get a free glass of house wine when attending a cooking class, while "the mayor" receives a free bottle. Those who check in via Yelp also are rewarded.

At the end of the day, "we measure success by number of fans/followers, but our goal is to create a community around cooking," Miller says. "We are interested in any technology that promotes a conversation about cooking and are always looking for new ways to engage our customers."

After all, engagement is the key to successful social media marketing, as savvy retailers can attest.






  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 

 485 Route 134, South Dennis, MA 02660          Phone: 508-394-2244           Fax: 508-394-0121
 
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