The Top Retailers on Facebook: Social Media or Advertising Medium?

December 3, 2009

What I might conclude about the review of what these 21 brands are doing on Facebook is to know our audience and engage them personally, not corporately.  Only post “ads” on Facebook when the message has real value, not when your brand just wants to promote something thinking it’s  “free” media.

After reading and listening to a lot of “experts” about what retailers and other business should do with social media, it is clear that there are no “best practices.”  No “do this and you’ll get great results every time.”  Or a consistent “five steps to a winning social media effort.”  Or “here’s how to get a million engaged Facebook fans.”

So I decided to look at what the top retailers on Facebook were doing.  I figured they must be a top Facebook fan page because they are doing something right on that site.  And I could report in on that.

I went to AllFacebook.com and searched through the top 1,500 Facebook pages by order of fan base.  In this, there we 21 retailers (does that number seem small to anyone else?)

First, here’s the list in order of largest to smallest fan base:  Starbucks (#6 with 5,116,396 fans), Victoria’s Secret, McDonald’s, Victoria’s Secret Pink, H&M, Subway, Chick-Fil-A, KFC, Krispy Kreme, Pizza Hut, Disneyland, Dunkin Donuts, Buffalo Wild Wings, Best Buy, Kohl’s, Dairy Queen, Papa John’s, Taco Bell, Target, JC Penney, Gap (#1363 with 486,501 fans).

First, the disappointment: I cannot truthfully tell you what they are doing consistently that might have created their fan bases.  And for some, I can’t even tell you how they have hundreds of thousands of fans at all, given how little they interact with their audience.  Instead of this being social media, many of these brands treat it like just another advertising medium.

Starbucks is international (therefore a larger potential base) and the model of alignment marketing; yes, they sell coffee, but they really sell the connection between their brand and their customer’s self-image.  Say what you want about Starbucks, that alignment is the holy grail in marketing.  Starbucks also does a good job of providing varied posts that speak to the mindset of their audience; their corporate posts are interesting and on-brand, they have polls where fans actually guide their offerings, and individual barristas are often engaged in conversations.  Nice empowerment.

H&M also has an audience with high affinity towards it.  But more importantly, their international presence likely gets them a large fan base.  But they aren’t doing anything really special on their Facebook fan pages.

Victoria’s Secret and Pink.  Even I figured out why they’re on the list: it’s the models, stupid

Many of the top retail Facebook fan pages are restaurants.  Maybe at some point in the past these sites had a promotion to build their fan base. Because for most, I can’t figure out why I’d want to get a post from them.  Store openings?  Old promotions?  New burgers?  Each has well more than half a million or more fans yet do little with them.  A few exceptions worth noting: Papa John’s awards one Facebook fan per week $50, and has a free pizza with purchase offer through Facebook. And Pizza Hut’s Facebook fan page links to online ordering.

The last group is merchandise retailers.

Best Buy is perhaps the most engaged of this group.  It’s the holiday season and they have a number of apps that provide value in finding gifts, and recently posted a Facebook-only $20 off coupon.  They post very regularly, often with content that I would find valuable.

Kohl’s does a terrific job of actually engaging with fans; they must have someone dedicated internally who sends personal messages. And that same person, or the same voice, writes their posts with a very human tone.

The biggest disappoint was Target.  652,000 fans.  I think of Target as a brand that does so much right.  But their Facebook page is pretty lackluster.  No fan engagement.  No Facebook-only stuff.  Their posts seem kind of trite.  Plus, there is a discussion posted on their Facebook pages from a disgruntled employee that includes pretty stark profanity. Is Target actually looking at their Facebook page?

I think if I ran a company that had as many Facebook fans as most of these retail brands, I might work a little harder at trying to have these people become real fans who want to read my posts.  Not just people that signed up some time ago, and (I’m guessing) are never given a reason to go back to that Facebook page.  To do that, I think I’d empower some people in my company to interact with my fan base rather than continually push out what are clearly ads.   After all, isn’t that what social media is all about?

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Don’t Lose Site Of What’s Right For Your Online Retail Efforts

December 1, 2009

“It’s social media, it’s social media,” cried Chicken Little, who told Cocky Locky, who told Turkey Lurkey, who told Henny Penny.  Then the four of them ran around madly wondering what to do because it sure seemed like the sky was falling.

I’m a believer that social media has power for business (witnessed by me writing this).  But for many retailers, sites like Twitter, Facebook, YouTube, and MySpace have become an enormous distraction from more effective and even more appropriate interactive efforts.

As I wrote earlier, social media is not right for every retailer.  Yet it’s easy to become really distracted by the publicity about it.  If you have a plan for social media that you believe in, work it.  Take the time to try things, learn things, interact with those on your social media sites, grow it, and be social.

If it’s something you can’t really devote the time or energy to make successful, don’t spend time or energy at the expense of other efforts that will likely be more effective for your business. Give yourself a pass for the moment and come back to it later.

“Make your email, SEO, SEM, display ad efforts and other online efforts better so I don’t eat you alive,” said Foxy Loxy.

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Facebook Humbug. Retailers Take a Pass On Social Media Site This Season.

November 17, 2009

According to research conducted by the Opinion Research Corporation and Yesmail, 27% of online shoppers who plan to both research and buy holiday gifts online this year will look for ideas about what friends and family want on sites such as Facebook. And nearly one-half (45%) will use social networks to research items, compare prices and look for offers.

So, what are major retail brands doing to take advantage of this?  With some exceptions, on Facebook, nothing.

First, the quick list of the brands that have no special efforts for this holiday season as of this date:

Target, Wal-Mart, Kmart, Saks, Tiffany, Crate & Barrel, Victorias Secret, Nordstrom, Nieman Marcus, Bloomingdale’s, Kohl’s, Old Navy.

Now the brands that have created something unique:

Sears. For becoming a Facebook fan (wrapped in a holiday elfin presentation), Sears offers Facebook-only deals that look pretty terrific and are offered on a limited-time basis – with a clock ticking away).  They also have an online game that involves getting a gift past some kids to a hiding spot.  It is intended to sell Sears Layaway and is nonsensical, but I played it five times (never winning, btw).

Gap. A well-integrated effort that features some Gap-dressed 20-somethings that are featured in their TV spots. The online component allows me to choose between a number of holiday or gift cheers, and by typing in the name of the recipient, a “cheer team” spells out that person’s name before they perform.  I can send the cheer to whomever I want.  A nice use of technology.

JC Penney has a Gift Guru.  It connects with my Facebook page where I type the name of one of my Facebook fans into the box and Penney’s makes recommendations.  You know, it wasn’t bad.  Got the genders right.  I even thought one of the ideas was good.  They also have a something called “Share the Joy” that is a clever way to link back their gift page by creating a message on their Facebook page that can be quickly uploaded to my Facebook page, Twitter (hence the 140 characters), an email or a link to the web page itself.  Another nice use of technology.  In another area of their Facebook page, there is a tab called “Sweepstakes” that is Penney’s effort to get people to become fans, much like Sears.  Except that it’s separate from the holiday effort and kind of hidden.

J. Crew. They have a banner on Facebook for a J. Crew Gift Guru.  But when I click this, it really just goes to their unfestive personal shopper page.  JCP kicks their corduroy butts.

Macy’s. Yes, Virginia, there has to be something from Macy’s.  A tab that tells the story of that little girl’s question, a link to a mini site on a sweepstakes about why you believe (a little complicated), a “Santa Post Office” with downloadable holiday paper and an offer of a donation for every letter dropped off at Macy’s, info about Macy’s Santa Tour, and a few other cool things.

 

Fancy technology isn’t critical for the holidays.  But if you’ve got a bunch of Facebook fans, why not help them enjoy the holiday, and shopping season more.

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Retail Holiday Shopping: Necessities and Small Indulgences

November 16, 2009

This is a personal perspective, but I wonder how many others are thinking like this.  And, though it may be late to react, if this is something retailers might want to consider in positioning gifts they offer.

First, the mind-set:  I’m still a little shell-shocked from the economy of the past year.  So I’m not buying anybody anything huge at retail this holiday season.  Everybody’s computer still works.  The TV’s have decent pictures.  Everyone has an MP3 player that plays music.  Got an Xbox; don’t really need a Wii.  Combo pool/ping pong/air hockey table will gather dust after a few months use.   Radio-controlled helicopter?  Last one broke after second flight.  Archery set… well, not a great basement activity.

So, this holiday season, I’m shopping retailers for two kinds of things for the people on my list:

Necessities.   Yes, socks (white, black, maybe a fancy pair or two).  And pajamas.  A belt.  Gloves.  Even towels.  Stuff that I know has worn out or worn down and needs to be replaced.  But I’m also adding a gasoline gift card for my college-attending, part-time-working daughter.  And a gift certificate for an oil change at Jiffy Lube (she’ll be less susceptible to them selling her a bunch of unnecessary repairs like they did last time if she only has the value of an oil change).  My son’s headphones are Scotch-taped together, so I’m thinking their replacement fits the necessity category.

Small indulgences.  Gift cards to Caribou coffee, In-‘n-Out Burger, Taco Bell, the local D’Agostino’s pizzeria.  A certificate good for two movie tickets at the local Kerasotes theater (they’re on their own for Goobers and Raisinets).  Another certificate for bowling at the local Brunswick Zone.  Tickets to a Chicago Wolves hockey game.   Another one for Teavana (I have a tea freak on the list).

None of these are “Here’s a gift certificate to Amazon/Best Buy/Target/Macy’s” that suggest I don’t have a clue as to what the people on my list would like.  They are all well-considered for the recipient.

Ok, there won’t be a pony to wake up to.  But with some thoughtful packaging (everything gets its own re-usable box or envelope), I think the people on my list are going to think this was a great holiday.  I just wonder if, when all is said and done, if retailers will be thinking the same thing.

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What’s The Difference At Retail? 5 Shoe Brands Make A Point

October 12, 2009

Here are the brands:  Nine West, Ferragamo, Marc Jacobs, Allen-Edmonds and Geox.  Only one has a functional point of difference.  Yet you’d hardly know it if you went into their retail stores.

All these brands are sold through other retailers but also have their own retail stores.  They all sell shoes and other fashion items that are arguably more expensive than the average price point in their category.  And they are all positioned differently in the market.

The first three brands are what I would call fashion brands.  Yes, you’re buying a quality shoe.  But you can get a quality product from DSW.  With these brands you’re buying  into the brand name as a fashion statement and a particular style.

With Allen-Edmonds, there is a fashion statement, but you’re really buying into the idea that their shoes are constructed to provide lasting (albeit expensive upfront) value.  They’ll never go out of style and they’ll last forever.  I think you could even pass them on to your kids in your will.

But Geox has a functional point of difference.  Yet, at retail, they don’t really act much different from these other brands. Oh, their stores are a little less the trappings of wealth and more Euro-modern in appearance.  But they really do little to point out the “breathe-ability” of their shoes in-store.  In fact, they look like most other regular shoe stores when you enter them.  Shoes on wall displays: women’s over here, men’s over there, kid’s in the back.  I could spend 30 minutes looking at their shoes and walk out never knowing why Geox shoes are different.  There’s little in the stores to describe that, and nothing attached to the shoes themselves.  I pick each pair up and look it over, or I handle the price tag to see the cost, and I still don’t know about how these shoes breathe.  Yes, they have funny holes on the soles.  I don’t know why.

Wait, there’s a poster over there that shows steam coming out of the bottom of one of their shoes.  Huh?geox

I rant.  But here’s the point: so few products have real, functional points-of-differences that when they do, retailers need to really take advantage of them. We ad people spend agonizing hours divining positions and identifying audiences with whom to create a perceptual alignment.  When a brand has a real advantage, we break out the good beer.

If you have a retail brand that has a point of difference, scream it. Put it in the store windows.  Add it to in-store displays.  Have your sales people start every conversation with the difference.  Make sure no one enters or leaves your store without knowing the difference.  They may not buy something, but make sure that’s not because they missed the reason why.

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A Simple Guide For Retailers To Think About Social Media

October 6, 2009

Social media has become the topic of the day in retail marketing.  Lots of conversation about retail use of Twitter, Facebook, MySpace, YouTube and more.

There’s a mad dash towards doing something.  But the question is: what to do?

We thought a first step might be to define where a retail brand would fit on a matrix that could help guide its view of social media, including whether to use it all.

This matrix has two axes:

One, we’ll call “frequency.” This is how often the consumer interacts with your store.  Typically, how often they shop at your store, but in the case of banking, “shopping” may be the wrong way to describe it.  Some stores are shopped frequently (perhaps you go to Starbucks every day).  Some infrequently (think mattress retailers).

The other axis we’ll call “engagement.” Engagement is the emotional affinity with your retail brand; being a member of the “club” of people that see themselves as emotionally aligned with your retail brand.  Many of these are retailers that sell their own branded items: Nike, Coldwater Creek, Crate & Barrel, Apple.  Brands with low engagement may be those selling “commodities,” like gas stations or auto parts.

Matrix to aid with social media usage

Matrix to aid with social media usage

Those axes give us four quadrants.  These quadrants may be a guide for how to think about your store’s use of social media.  Once you’ve located your store on this map, we’ve added some views that could help in your thinking about what to do with social and other interactive media:

High frequency/high engagement retail brands:  examples are Starbucks and Whole Foods.

What to do:  this quadrant is the sweet-spot for social media.  It should be treated as a real opportunity to engage customers as friends, confidants, lovers.  And let them engage with each other as frequent fans of your brand.  To do it well, you may need someone interacting in the social space all day.  Answering questions, offering insights, dishing news; Whole Foods has 14 Tweets in the past 4 hours (and 1,459,000 followers).  But then again, Starbucks only posts on Facebook every day or so.  They let their 4,288,000 Facebook fans do most of the talking; about once every few minutes it appears.

Low frequency/high engagement retail brands:  examples are Coldwater Creek, Swatch.

What to do:  Amplify the “brand badge” in social media.  It’s likely these brands already have a strong affinity market – you can buy a blouse or a watch at lots of places but shoppers of these stores are drawn because they see themselves as members of the club that is these brands.  They are fans.  Fans use Facebook.  Swatch rewards its 68,000 Facebook fans with musings about and access to creativity (its brand badge?).  Coldwater Creek has no fan page.

High frequency/low engagement retail brands:  examples are 7-Eleven, gas stations and other “convenience” type outlets.

What do to:  Use borrowed interest to create higher engagement.  Face it, people are largely going to your store because it’s “there.”  If another store were “there” instead they’d shop at that store.  Social media is a challenge, but things like frequency contests or “Twitter-only sales” could create some interest.  Looks like 7-Eleven is now back on Facebook after abandoning over a hundred thousand fans months ago and only has 198 Twitter followers.  Maybe this is a way for 7-Eleven to get re-engaged.

Low frequency/low engagement retail brands:  examples are mattress and furniture stores, remodeling outlets.

What to do:  Focus on awareness and search presence.  That’s right: don’t focus on social media.  It’s a giant uphill battle.  You’d be better served making sure that your brand is readily found when your category is searched.  That means strong SEO and SEM efforts.  Maybe with a skew to geo-location (see my blog on that).

The next question might be: which social media site is best for your store.  But, this is getting long already.  So that will be the subject of another episode of We Play In Traffic.

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Twitter as Retail Customer Service

September 30, 2009

Wondering what to post on Twitter?  Wondering how to interact with followers?  How about thinking of Twitter as a customer service channel?

Several retail brands already use Twitter for customer service.  Among them:  Wells Fargo Bank, online footwear retailer Zappos, and Best Buy.

They each have other Twitter channels, but they have separate Twitter locations to interact with customers.  Wells Fargo and Best Buy even have posted hours of when Twitter customer service is open, and show pictures of the customer service team so you know with whom you’re dealing.

It’s a 140 character, almost instantaneous dialog with customers that helps find the right products, figure out how to solve problems, and make friends.

Think about this:  if I were a cosmetics retail store (Ulta, Sephora) or cosmetics brand that sells through boutiques in other retail stores (Clinique, Clarins, H2O Plus), instead of just writing about whatever deal we had or asking questions about customers’ favorite products, I could be answering questions on how to solve skin and beauty problems.

If I were a tire retailer like Firestone, I could be answering questions about tire wear and alignment issues.

If I were a mattress retailer like the Bedding Experts, I could be helping people get a better night’s sleep.

You can keep the Twitter channel you might have originally opened to promote products.  But if you sell products that have high consumer interaction and some potential questions, maybe having a Twitter customer service channel is worth looking into.

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Is Your Twitter Just Retail Junk Mail?

September 28, 2009

I’ve been following a number of retailers.  And I have to say many of their Tweets are simply a 140 character version of junk mail.  By that, I mean a constant barrage of things liketweeter

I suppose it makes for easing Tweeting.  But it sends these Tweets to the same place that most of these messages would end up if retailers sent junk mail to followers homes: the garbage.

It’s a good idea to have the episodic Tweet be some offer of real value to the follower; it makes that offer feel even more valuable.  And even better to have Twitter-only offers occasionally.  But to have every Tweet be some message about what you sell is a turn off.

“Great,” you’re probably saying.  “So now what do I do?  I don’t have staff to play Twitter all day.”

Here are a few thoughts:

  • Use Twitter to find out what followers would like you to Tweet about. Just ask.  They’d love to tell you.  Then write.
  • Let followers inside. They’d like to know that they’re a special group.  Tweet something interesting that went on in your company today.
  • Give followers counsel. Your product has an end benefit to them.  Tweet about the end benefit: how to keep their skin good looking, how to save a few dollars, how to prepare leftovers.  Link it to your site where more descriptive information likely exists.
  • If all else fails, do some quick questions about preference: which of your products do they like best?  What’s their best experience with your brand.  Followers want to believe you are listening to them.  Let them talk.

Twitter is supposed to be a dialog.  The brands that are using it well make it a conversation.  If yours is one sided, you’ll have the same result as if followers were talking to a person that only talked about themselves.  They’ll quit listening.

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Google Maps Can Provide Retailers Better Media Planning

September 22, 2009

We recently started working with a popular chain of fast casual restaurants.  Media plans due.  Problem was, they have spotty distribution.  7 stores downtown, 4 more in the suburbs, 2 in the exurbs in one market.  Another with two stores across town. googlemap Another with stores within blocks from each other.  Distribution, and a budget, that did not allow effective market-wide media.

Google maps to the rescue.

We typed the address of each retail store by market into Google maps.  We looked at the maps market wide.  We looked at the maps at the store level.  We looked at plain map views that showed transit routes and buildings nearby, and satellite views that showed whether there were residential areas nearby.  We looked at Google Street View to see if each store was visible from the street (no), what else was nearby, and whether there were billboards, transit or other street signage available nearby.  We looked at major and minor thorough-fares to see traffic patterns.

We took screen shots using Snag-It (you have to get this) and put everything in Power Point.

Then we reviewed each market and each retail location and started building the media plan.

It is one of the most precise retail store media plans I have ever been involved with.  It transformed a “let’s run some occasional fractional ads as the budget allows in some local newspapers and hope someone sees them” to an “in-front of the right audience on an everyday basis” plan using transit, outdoor, and just a handful of community newspapers.

In all, it took about 3 days to get the right information for 150 stores.  We had an intern do the grunt work.  And had ESW’s media team analyze and build a plan from those results.

Maybe you think of Google maps as a cool way to see your house from the sky.  But turn it on its side and you have a way to look, literally, at how to plan retail media when you have a limited budget and distribution that doesn’t allow your retail business market-wide media coverage.

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