Monday, November 23, 2009

E-cards and Animation Can Make Christmas Shopping Fun



With Thanksgiving just days away, it’s hard not to think about the holidays. After the turkey, pumpkin pie and football are over, it’s time for shopping. Black Friday, the day after Thanksgiving, has historically been one of the busiest shopping days of the year. Online shopping also has gained momentum with the Monday after Thanksgiving becoming the busiest online shopping day of the year and earning the moniker Cyber Monday.

In an attempt to make their messages stand out in increasingly cluttered online mailboxes this holiday season, a number of retailers are using digital greeting cards to entice customers into their stores. For the fourth year in a row, OfficeMax has teamed up with JibJab with the “Elf Yourself” (http://www.elfyourself.com/) holiday card promotion. About 35 million “Elf Yourself” cards were sent in 2008, according to OfficeMax (2009). Since 2006, the seasonal site has attracted 284 million visits in what some consider the most successful social-media marketing campaign that the Web has seen so far (McCarthy, 2009).

“ElfYourself” allows visitors to the Web site to affix their head, their family members' or even their boss’s to a dancing elf body put to music, ranging from hip and hop and disco to country and holiday classics. This year, Facebook and Twitter have joined in, allowing fans to tweet a link to their video creations or share them on their Facebook profile, or e-mail or embed the videos on their own Web sites. In addition, the site allows users to sign-in with Facebook Connect to find headshots from their own photo albums or their friends' (McCarthy, 2009). Those happy with their creations, can order merchandise featuring the elfin video for $4.99 to play back after the holidays or transfer it to an iPhone. Otherwise, the video expires once the holiday season has ended. Such changes promise to attract even more visits this year (Warren, 2009).

Check out this card on YouTube:



The concept of animated digital greeting cards is one that Deb Shops could use as well. But instead of elves dancing around in traditional red and green regalia, site visitors could create videos with characters wearing Deb formal wear, holiday favorites or other select fashions. Such a site would particularly appeal to Deb’s target audience, young women ages 13 to 25. The video would allow want-to-be models to try out the runway in a non-threatening, fun way.

Animation adds a sense of whimsy to holiday shopping that will attract young and older buyers alike. It adds movement to an otherwise static object. At holiday time, Deb shoppers will include many shopping for young friends and relatives, shoppers who normally may not find themselves among Deb customers. This is one way to garner attention and help Deb stand out among the clutter.

At a time when budgets are especially tight, animated e-cards and videos like "Elf Yourself" are proving more popular than ever. ComScore data recently reported that the category received a seasonal boost in traffic in October, thanks to Halloween, Boss's Day and Sweetest Day. The sector attracted 21.9 million Americans, a 15 percent increase from September, making e-cards the top-gaining category for the month (MarketingVox, 2009).

Deb could benefit from such a popular social media tool as "Elf Yourself," which has proven it can attract millions of visitors, many of whom also become customers.

References:
McCarthy, C. (2009, November 9). “Elf Yourself” Returns with Facebook and Twitter Power. Retrieved November 23, 2009, from http://news.cnet.com/8301-13577_3-10393998-36.html.

MarketingVox.com (2009, November 23). Retailers Enlist E-card to Cut Through Crowded Inboxes. Retrieved November 23, 2009, from http://www.marketingvox.com/retailers-enlist-e-cards-to-cut-through-crowded-inboxes-045574.

Warren, C. (2009, November 10). Elf Yourself Returns for 2009 with Easy Twitter and Facebook Sharing. Retrieved November 23, 2009, from http://mashable.com/2009/11/10/elf-yourself-2009.

YouTube.com (2008, November 20). Retrieved November 23, 2009, from http://www.youtube.com/watch?v=Cc1BzHMsmpM&feature=related.

Monday, November 9, 2009

Facebook Fans Say They Want Discounts Not Conversation


Deb Shops Facebook Fan Amanda Wilson proclaims in her posting, “Debs should post coupons to use in the stores on the Facebook page!” She’s not alone in what she says she wants.

A new study released this week from Razorfish on consumer behavior, suggests all consumers really want from their favorite brands on social media is a good deal. FEED: The 2009 Razorfish Digital Brand Experience Report, posted November 8 on Media Post News (Walsh, 2009), surveyed 1,000 connected consumers about their attitudes toward social media marketing and how digital is changing the way they interact with brands.

The survey found that promotions and discounts were primary drivers of friending a brand for 37 percent of Facebook and MySpace users and 44 percent of Twitter users. The report points to companies such as Starbucks, which has amassed nearly 5 million fans and soared to the top of Facebook brand pages by offering coupons for free pastries and ice cream, and Dell, which has earned kudos for generating $3 million in sales from its Dell Outlet through Twitter.

The findings suggest social media marketing isn't so much about boosting brand awareness as enticing users with concrete offers. Garrick Schmitt, Razorfish group vice president of experience planning and editor of the study, said "That to me is a big 'Aha! What we're finding is that with Facebook and Twitter, marketers are assuming some deeper dialogue, but what's really going on is – people want deals" (Walsh, 2009).

Such results suggest that The Cluetrain Manifesto: The End of Business as Usual, released 10 years ago, may have missed the mark when it declared “markets are conversations” (Levine, Locke, Searls, and Weinberger, 1999). This series of 95 truisms about marketing in the Internet era almost immediately attracted a cult-like following, serving as a precursor to what we today know as blogs, Twitter, Facebook and other social media.

An excerpt reads, “A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter – and getting smarter faster than most companies. These markets are conversations. Their members communicate in language that is natural, open, honest, direct, funny and often shocking” (Cluetrain.com, 2009).

While consumers still value open and honest conversations, they also want something for their time in the form of a discount. The Razorfish survey is important to retailers like Deb because companies that use social media effectively are creating loyal customers. Razorfish found that the overwhelming majority of consumers who actively engage with a brand, by following them on Twitter or entering a contest such as Deb Shops Ultimate Prom Makeover Sweepstakes for example, can evolve from passive reactors to advocates almost instantaneously (Walsh, 2009). Such contests not only attract consumers but can be used to build databases by asking for op-in data, including e-mail addresses, Facebook fan status and cell phone information that can be used in other marketing approaches.

On average, 97 percent report increased brand awareness; 98 percent show increased consideration; 97 percent will likely purchase a product from the brand; and 96 percent may recommend the brand to their friends. Perhaps more importantly, 64 percent of consumers report making a first purchase from a brand because of a digital experience (Walsh, 2009). Read more about the study at http://feed.razorfish.com/.

To retain and add customers, Deb needs to shift focus from brand awareness and impressions to create campaigns that drive people to make purchases and spread the word to friends about products they buy. Deb is taking steps in this direction. For example, the same day that Wilson suggested a coupon, Deb announced its first Happy Hour special. Shoppers who bought a sweater between 7 p.m. and 11 p.m. got free leggings (Facebook.com, 2009). This is an interesting approach but it is limited to a specific item. A coupon, on the other hand, could have more wide-spread appeal because the decision about what to buy is in the consumers’ hands.

In addition, Deb could benefit from an increased presence on Twitter. To date, Deb is only mentioned on other sites, such as coupon sites. A new study released by Performics, the marketing arm of Publicis Groupe's VivaKi Nerve Center, and ROI Research, an analytics and technology firm suggest such inactivity is a poor marketing move (Sullivan, 2009). The study found that nearly 50 percent of people who saw a brand's name on Twitter went to a search engine to look for the product (Sullivan, 2009). The findings, presented at Ad:Tech, noted that about 44 percent of Twitter users have recommended a product on Twitter and 39 percent have discussed a product on Twitter (Sullivan, 2009). Twitter has evolved into one of the hottest social media platforms available and should part of Deb’s marketing arsenal.

References:
Levine, R., Locke, C., Searls, D., and Weinberger, D. (1999). The Cluetrain Manifesto. Retrieved November 4, 2009, from http://www.cluetrain.com/.

Sullivan, L. (2009, November 5). Consumers More Willing To Share Brand Info On Social Networks Than Previously Thought. Media Post News. Retrieved November 6, 2009, from http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=116866.

Walsh, M. (2009, November 7). Razorfish Study: Special Offers Drive Engagement In Social Media. Media Post News. Retrieved November 9, 2009, from http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=117008.

Wilson, A. (2009, November 8). Facebook.com posting. Retrieved November 9, 2009, from http://www.facebook.com/debshops#/debshops?v=wall.

Monday, November 2, 2009

Deb Could Better Use Social Media to Reach Teen Consumers


Every generation of teenagers believes it is unlike any that came before. In some respects they are right. Today’s kids never knew a world without the Internet. To them, control, alt, delete is as familiar as learning their ABC’s. Today’s teens also are part of a generation with access to more money and the free time to spend it.

The Teens Market in the U.S. Report (2009) predicts the market for products bought by and for the 25.6-million-member teen market is expected to increase from $189.7 billion in 2006 to $208.7 billion in 2011, despite an estimated 3 percent decline in the teen population (Marketing Charts, 2009). Specifically, teen girls account for a healthy portion of the billions that teenagers funnel into the economy. They also are receptive to advertising in traditional places as well as alternative media, making social media an important marketing tool for businesses serving the teen market (PRWeek, 2003).

One such company, Deb Shops, specializes in junior and plus-sized merchandise in sizes 0 to 26 for young women ages 13 to 25. The low-cost mall retailer operates more than 340 stores in 43 states as well as an online store (Debshops.com, 2009). With roots dating back to the 1930s, Philadelphia-based Deb Shops, according to its corporate Web site “is focused on providing current fashion and compelling values” and strives “to guide young women with dependable advice and empower them with current fashion and styles that fit both their figure and budget" (Debshops.com, 2009).

According to Quantcast (2009), 64 percent of Deb customers are female; 45 percent between the ages of 13 and 17; 84 percent are white; and 60 percent are from families earning between $30,000 and $100,000 a year.

In 2008, Deb Shops had no online presence (Krol, 2009). Its Web site was information-based rather than product-based. A year later, the retailer’s first foray into e-commerce is considered a success (Krol, 2009). In addition to building an e-commerce site, Deb began collecting e-mail addresses in its bricks-and-mortar point-of-sale system, and started using affiliate programs to drive site traffic, paid search and SEO, banners and targeted media, and partnerships with established brands where it makes sense Prior to the site launch, Deb Shops had a file of 60,000 names, most of which were old and dormant. Since the site launched in February, the database rocketed to more than one million opt-in names (Krol, 2009).

The retailer partnered with Seventeen magazine on its first campaign for prom, linking to the publication's Web site to jointly promote a contest. That added exposure enabled Deb Shops to build its database more quickly and drive more customers to the site. Deb also partnered with Jay McCarroll, winner of the fashion-focused reality show Project Runway to promote homecoming events.

Deb has a presence on Facebook, MySpace, LinkedIn and YouTube. But despite its extensive store network, the Facebook site, for example, only has 6,400 fans as of November 2, 2009 (Facebook.com, 2009) and the YouTube site had just 146 subscribers and 2,991 views (YouTube, 2009). Given Deb’s demographics, the online world offers many opportunities to improve its marketing efforts. In addition, since Deb customers are heavy cell phone users who text more often than they talk on the phone, the retailer could benefit for experimenting there.

Deb’s principal competitors, according to Quantcast (2009) include Charlotte Russe Holding, Inc.; Gap Inc.; Hot Topic Inc.; Limited Brands, Inc.; Target Corporation; and The Wet Seal, Inc. Looking at Facebook alone, Deb has the fewest fans of any of its competitors. Compare Deb's 6,400 fans to Target's 568,000 and The Gap's 475,000. While these two stores also attract buyers outside Deb's target audience that Deb isn't likely to reach, Deb's other competitors with similar demographics also have better numbers. For example, Hot Topic has 87,000 Facebook fans; Charlotte Russe, 57,000; Wet Seal, 28,000; and The Limited, 17,300 (Facebook.com).

All in all, social media offers businesses like Deb an opportunity to create two-way communication with customers. While Deb has recognized the benefits of social media, the company could do a better job of reaching out to customers through this valuable marketing tool. Over the next few weeks, I plan to make social media marketing suggestions that I beleive will help Deb better communicate with and attract the teen consumer.

References:
Debshops.com. Retrieved November 2, 2009.

Facebook.com. Retrieved November 2, 2009.

Knight, K., 2007, January 8). Study: Most Teen Girls Are On Social Network Sites: Teens are rushing to social networking sites. BizReport. Retrieved November 2, 2009, from
http://www.bizreport.com/2007/01/study_most_teen_girls_are_on_social_network_sites.html.

Krol, C. (2009, September 14). Deb Shops' First Foray into E-commerce Ends Up a Success. Retrieved November 2, 2009, from http://www.netplusmarketing.com/netplus-news/news-article.cfm?id=77.

Marketing Charts (2009, September 17). Millennials Highly Receptive to Permission-Based E-mail. Retrieved November 27, 2009, from http://www.marketingcharts.com/direct/millennials-highly-receptive-to-permission-based-email-10410/?utm_campaign=newsletter&utm_source=wmd&utm_medium=textlink.

PR Week (2003). MEDIA ROUNDUP: Growing Teen Sector Finding Room for More Than Fluff. Retrieved September 26, 2009, from http://www.accessmylibrary.com/coms2/summary_0286-23149680_ITM.

Quantcast (2009, October 16). Debshops.com Demographics Summary. Retrieved November 2, 2009, from http://www.quantcast.com/debshops.com/demographics#summary.

The Teens Market in the U.S. Report. Retrieved November 2, 2009 from http://www.marketingcharts.com/interactive/teen-market-to-surpass-200-billion-by-2011-despite-population-decline-817.

YouTube.com. Deb Girl Model Search. Retrieved November 2, 2009, from http://www.youtube.com/user/DebShops#p/c/2069B3E8D4BCDC67.