Retailers using social media to score last-minute shoppers
Rolling Meadows mom Melanie Sheehan credits Facebook for her awesome find that will make her three children ecstatic Christmas morning.
As a result of becoming a "fan" of a local toy shop on the social media network, Sheehan landed three Zhu Zhu pets - the small mechanical hamsters that are the hottest, hardest-to-find toy of the season.
Learning Express in Lake Zurich announced that when a shipment of the coveted pets arrived, owner Rich Derr would let customers know through a Facebook posting.
Sheehan, who had used Facebook to keep up with friends, saw the announcement and was able to score three of the fuzzy pets. "This was the first time Facebook was a tool that made my life easier. I didn't have to call stores and drive around looking for the toys," she said.
Making shopping easier and giving the shopper control are goals retailers have when it comes to getting shoppers in the door. In the midst of the busiest shopping week of an economically challenged holiday season, retailers are attempting new methods along with some of the more traditional avenues.
In addition to Facebook, stores send e-mail blasts to attract shoppers and make them aware of sales. Retail experts agree this method is not working as well anymore as customers are often bothered by all the advertising in their inbox. "E-mail isn't that effective at the end of the day," said Paula Rosenblum, managing partner at Retail Systems Research.
Retailers also are filling customers home mailboxes with more coupons and promotions than ever. Bed Bath & Beyond and Kohl's are leaders in this arena with hundreds of other retailers sending deals mainly to existing customers. Victoria's Secret sent out gift cards for $10 off a purchase, Justice is offering 40 percent off the entire store with a postcard and Gap, with its fun plaid holiday advertising theme, is sending out cards with 30 percent off offers. Gap also is advertising on TV this season after taking a couple years off from the airwaves.
The older advertising methods won't go away, experts say. "Direct mail is always going to be part of the mix," said Paul Fellinger of Focused Labs, a new social media and technology company focusing on Facebook fans.
Experts say social media is the wave of the future. "Social media has quickly risen to a high level of interest and understanding. Retailers are figuring out how to play appropriately in that space," said Anne Brouwer, senior partner at McMillan Doolittle retail consulting firm in Chicago.
Facebook, still in its infancy when it comes to retail, is taking the lead. "Facebook is exploding," said Fellinger of Glenview.
He explained that Facebook, with 350 million members worldwide, is just another platform for brands to interact with the customer. "Retailers are figuring out clever ways to engage with these people," Fellinger said.
A recent poll found that 47 percent of online retailers will increase their use of social media this season. More than half, 60 percent, said they had added or improved their Facebook and Twitter accounts this year, the National Retail Federation report said.
"When social media started, retailers hoped it would be a way to sell," said Ellen Davis, of the NRF. But right now, experts say, most retailers are using it as a branding tool and a way to get information to customers about promotions.
Retailers taking the lead include Kohl's with 902,000-plus fans, Best Buy with more than a million friends and Starbucks with more than 4 million fans. These companies monitor customer complaints, track customers and change their Facebook pages to match ad campaigns. The social media sites are also a place for merchandise giveaways and announcements, such as the case with the Lake Zurich toy store.
But Fellinger stresses it's not about the number of friends or fans a company has. It's about staying in constant contact with customers. "If you can create a quality target audience or fan base," he said, "it's a powerful tool."