We Play in Traffic

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.

Seems like everyone is trying to figure out what to do, with high expectation among many retailers using social media.  But the first question is: is it even right for your brand?

So we created a matrix that might help some retailers in thinking about social media, including whether to use it all.

This matrix has two axes:

The horizontal axis we’ll call “frequency.” This is how often the consumer interacts with your retail brand – typically, how often they shop at your store (but in the case of something like 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 vertical axis we’ll call “engagement.” Engagement is the emotional affinity with your retail brand; being a member of the “club” of people that view themselves as aligned with your retail brand.  Many of these are retail brands that sell their own branded items: Nike, Coldwater Creek, Crate & Barrel, Apple.  Low engagement retail brands are likely those selling “commodities,” like gas stations or auto parts.

Matrix to aid with social media usage

These axes give us four quadrants which may be a guide for how to think about your retail brand’s use of social media.  Take a minute to think about your brand from an engagement and frequency standpoint.  Where might your brand be on these axes?

Once you’ve located your retail brand on this map, here are some views that might 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 retail social media: a real opportunity to engage customers as friends, confidants, lovers.  And to encourage them to engage with each other as fans of your brand.  To help this along, you may need someone from your organization interacting in the social space all day, answering questions, offering insights, dishing news.  But with this engaged group, it may be worth your while.

Low frequency/high engagement retail brands:  examples are Chico’s and 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?).  Chico’s uses its stylist Sher Canada.

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.  7-Eleven is working this hard after abandoning Facebook a few months back.  A CEO on CBS’s Undercover Boss is just the borrowed interest they needed.

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).  Maybe some traditional advertising and Yellow Pages.