Category: F-Commerce

Generosity. Wikipedia defines it as “the habit of giving freely without expecting anything in return [...]“

It is a desirable character trait in a person but you hardly come across generous brands. I think these times may be changing.   As social media and social business redefine how brands and its customers interact, we see more and more generosity from brands. Giving back to consumers and adding value to their lives is BIG in social business- in fact it is the key to a successful social business.

But what do brands gain exactly by being generous? Well, let’s have a look at this fine example of generosity (aka random act of kindness) from Denmark:

Anthon Berg, a chocolatier in Denmark recently opened a pop up store for one day only selling its chocolate. The twist: you can’t buy the chocolate with money. Customers could only get their hands on the delicious chocolate by promising a good deed to a loved one. Suggestions for good deeds were attached to all chocolate boxes and people could “buy” the chocolate by promising to serve breakfast to your loved one, don’t talk behind your friends back for a month, etc. Thousands visited the store that day and happily queued to get into this innovative pop up store.

Customers who “bought” chocolate recorded their keeping their promise on Facebook and also the recipient of the good deed was selected via Facebook. Customers later posted their loved ones fulfilling their promise on the Anthon Berg Facebook page and thanked the brand for the yummy chocolate.  This kept the buzz around the brand going for a long time after the store had shut.

So what’s in it for Anthon Berg? How does generosity pay off for a brand?  The pop up store generated a lot of buzz internationally with heaps of blogs picking up the campaign. From a PR perspective, it could not have been better. If you looked at some hard metrics such as brand awareness, brand sentiment as well as sales, I’m sure Anthon Berg saw some rather impressive results.

Trendwatching, the leading independent trend firm for consumer trends, agrees with brands’ generosity. It says that “for consumers long used to (and annoyed by) distant, inflexible and self-serving corporations, any acts of kindness by brands will be gratefully received. For brands, increasingly open communications both with and between consumers (especially online), means that it’s never been easier to surprise and delight audiences with R.A.K.: whether sending gifts, responding to publicly expressed moods or just showing that they care”.

So next time your customers needs you to be a bit generous, just do it. It can pay off big time!

P.S.: another generous brand is Red Balloon- watch the video to find out how generosity is part of the brand values:

http://www.youtube.com/watch?v=nXKMGjbjhoY&feature=youtu.be

Sources: http://www.psfk.com/2012/03/buy-chocolate-with-good-deeds.html and http://www.youtube.com/watch?v=_cNfX3tJonw&feature=youtu.be

As we approach “FRANkademy Retail and Social Business”  this Friday I thought I’d whet the appetite with some observational snippets.

Australia remains emerged in a culture of austerity, caution and uncertainty. This is reflected in part by:

• Australians have increased their savings rate, since the economic turndown in 2008/09, to 10.5% (the highest rate since 1984).
• Consumers are becoming used to price reductions and expect to purchase items on sale, increasingly fuelled by group buying sites.
• A high Australian dollar is a double edged sword for Australian retailers – cheaper for retailers procuring goods from overseas but also cheaper for Australian customers to purchase goods from international online stores.
• Australians are prioritising reducing their debt.

(source: PwC 2011 “Australian & NZ online shopping market insights”)

Some of the  issues we shall cover include:

ONLINE SHOPPING; before we all freak out about creating tundra-like conditions at shopping centres let us not forget that of the $216 billion spent annually only 11 billion comprises online, less than 5%! (source: NAB Study).

GROUP BUYING SITES’ business model is that discounts are loss leaders and loss leaders only work in the context that consumers spend—or return and spend—above the loss leader. The reality is that many retailers don’t see repeat customers from online promotions. Group buying are on the wane, likely to become smaller as they serve a particular group of attractions and specialty services.

CUSTOMER EXPECTATIONS have forged ahead as the retail category resolutely has resisted the cost of understanding and innovation. Retailers need to stop second guessing the customer and begin to listen & learn.The shift from an under resourced, under paid & under informed service offering towards a seamless integrated experience needs to happen. Last month’s CMO Survey indicated that consumers priorities have shifted from low price (-32%) to service (+56%)

TECHNOLOGY INITIATIVES do not make for an overall retail strategy meeting the needs of a community. Just because it’s technologically possible doesn’t mean people want it.

BRICKS & MORTAR RETAIL are in a position of strength and can leverage their advantage to fulfill peoples basic needs; to participate in a communal experience of sharing, hearing gossip, escaping from daily life, haggling for a bargain and to feel a sense of community. Part of this dynamic is being recognised and feeling appreciated, enter Shopkick, which introduces real-world incentives to recognise and encourage checking in.

Here’s 4 things to know about Shopkick:

1. It rewards customers for walking into selected stores & in-store behaviour
2. It generated $110 million in-store revenue for partner retailers and brands in 2011 (source: TechCrunch)
3. Conversion rates of walk-ins to sales can be measured directly by counting specific shopkick offers in the basket at retailers, by rewards for purchases through POS integrations, and conversion rates of product scans to product sales can be measured through in-app questionnaires and POS integrations. (source: Founder, Cyriac Roeding)
4. Whereas 80% of Foursquare users are male with 70% aged 19-35 the Shopkick profile is 55% female with 49% aged 25-39 and 13% aged 40+

Here’s a slightly cheesy video from their site 

We’re looking forward to a lively session and hope to see you there!

Facebook stores have had some success in the past but it has not really taken off yet. First movers such as ASOS in the UK or Petco in the US are already set up and sell their products directly via Facebook but the broad masses seem reluctant to join the movement.

Source: http://www.indrashishghosh.com/facebook-store-applications/

Many brands are still unsure of “this Facebook thing” and are trying to find their feet in the social space let alone sell on Facebook. Many brands are still questioning the power of Facebook as an advertising tool and as a consequence the next question for many is whether Facebook can become a successful direct sales channel in its own right.

There are very compelling reasons however to open up a Facebook store whether one believes in the power of Facebook or not.

1. People love Facebook: the social network giant has over 750m users and it is not a secret that people are simply addicted to it. 50% of the active Facebook users log on to Facebook in any given day and 48% of the 18- 34 year old check  Facebook first thing in the morning.
2. Facebook is free: The platform is completely free so there are no hosting or domain fees. Additionally, there is no commission to be paid to Facebook. Obviously you still need to invest in extra resource to manage the Facebook shop and develop it first but it is a fairly cheap solution to growing online sales.
3. First mover advantage: It is still out there but not for long. If your brand wants to be seen as innovative, young and trendy you may want to set up shop sooner rather than later.
4. Measure ROI: F-commerce allows your brand to link the advertising and marketing expenses to sales. This is crucial for many brands struggling to make the connection between a social business strategy and sales. With a Facebook store it will be easy to monetize Facebook and measure ROI.
5. Competition: Your competitors may soon start trading on Facebook and this is when you can no longer ignore Facebook. It would be like a new shopping center opens up and you do not set up shop there although it is free and your competitors are trading there.

The success of your F-commerce strategy however will depend  on how it can enhance the purchasing experience. You need to find a way to cut through a person’s news feeds on Facebook to literally yank him or her out of their social environment and into their shopping frame of mind. Social Innovations, a group of developers from the UK has come up with a cool app to make the social shopping experience a lasting one. Here is a demo:

Basically this app is able to “learn” about a potential customer from its Facebook profile (likes, events, interests, hobbies etc) and as a result can provide tailored product offers. In this demo the customer likes Katie Price and therefore the app suggests clothing to buy as worn by Katie Price. Certainly a different customer experience compared to a brick and mortar store with a grumpy sales assistant. Customers are also able to receive exclusive Facebook discounts and can share their shopping experience via their Facebook status with friends.

If this is a bit too much for you then you may like some simpler apps such as Payvment, Novelo or Tab Juice as reviewed here. Whatever you do though, do it with the right strategy in place and never rely on a shiny app to sell your product.

After intensive testing in New Zealand, Facebook Check-in Deals has finally launched in Australia just a few days ago on the 15th of August. Starting with big brand partners – Commonwealth bank, KFC, 7-Eleven and Westfield shopping centres, it certainly is arriving with a bang and getting people excited about checking in to business’s Facebook Places page to receive offers – for example, the Commonwealth Bank is offering 2 free movie tickets for opening a new account and 7-Eleven will let you have a big 450ml bottle of Coca-Cola for $1 – that’s if you check in on Facebook, of course.

How does Facebook Deals work?

It’s a relatively simple concept that Facebook copied from Foursquare (which they unsuccessfully tried to buy for US$125 million). Facebook Check-in Deals allows businesses to create coupons and discounts on the social network, which can be unlocked upon a Facebook user’s check-in to the business location on Facebook Places through the Facebook mobile app. The types of deals can vary according to what kind of purchasing motivation the business wishes to encourage – such as trial purchase, loyalty, group purchasing, or charity association. . Now with Facebook Check-in Deals, users can also see what offers are nearby and share those deals with their friends.