Brand building 2.0

Brand building 2.0
Retailers jump on the social networking bandwagon

By Jessie Bove, Associate Editor
October 01, 2008

When dealing with the newest horizon of marketing—social networking—there are a host of Web sites that immediately come to the forefront. Sites such as Facebook, MySpace, LinkedIn and Twitter are the most well known and are leading the way in this new frontier for retailers seeking to develop deeper relationships with their customers. With social networking sites, it's not about bolstering profits or making a sale; it's all about brand building.

Retailers ranging from small, local boutiques to large-scale national chains are embracing social networking technology to expand their businesses and brands. "Movie theaters, book stores and retailers who sell products that have emotional impact or benefit from opinion and consumer review can benefit by the viral spread of their brand and brand image," says Dr. Maurice A. Ramirez, founder and president of Kissimmee, Fla.-based High Alert LLC.

Perhaps one of the most unique aspects of social networking technology is that it uses "pull marketing," as opposed to most "push marketing" methods. "Social marketing is pull marketing, i.e. the potential customer selects people from whom they want to receive marketing," Ramirez explains. "This form of opt-in marketing is far more effective, because the customer is receptive to the message." Social networking sites also have the distinct advantage of having customers predisposed to buy from them and having trust already established before the marketing message is sent. However, Ramirez points out that it is difficult to convert online relationships to in-person relationships (purchase events), and retailers must learn how to differentiate serious networkers from "name collectors."

Some of the retailers paving the way for brand building via one of the most popular formats—Facebook—include Abercrombie & Fitch, Barnes & Noble, Best Buy, Costco, Crate & Barrel, Gap, Home Depot, J. Crew, Kohl's, Nordstrom, REI, Sephora, Staples, Target and Victoria's Secret, among others. However, according to Princeton, N.J.-based interactive marketing agency Rosetta, only 30 percent of the top 100 retailers they surveyed last May had launched a "fan" page on Facebook.

For those retailers who have not gone as far as to launch pages on social networking sites, there are several that are experimenting with interactive components on their own Web sites. From message boards and opinion forums, to blogs, videos and event promotion, retailers are amping up their sites and encouraging both customers and employees to give feedback and participate.

Austin, Texas-based Whole Foods Market Inc. just launched a newly designed Web site with a homepage that includes features on vendors, in-store brochures, top-rated recipes and the latest blog entries. Visitors are also able to access their local store's Web pages to learn about events and promotions. The new site offers several other interactive options, including videos of cooking demonstrations, a "store art gallery" featuring the chalkboard artwork that appears in-store and discussion forums. Whole Foods Market is also using third-party sites such as Facebook and Twitter to further grow the Whole Foods Market community. "We've taken our passion for food and customer service and brought it online," says Bill Tolany, global coordinator of integrated media for Whole Foods Market. "Our stores have long been community gathering places, and now we are extending that community even further."