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.
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