Thursday, October 18, 2012

Online and offline sales


This columnist was asked, “Can online efforts contribute to offline sales?” My answer would be yes because that’s been proven time and again. Just look at the data around digital advertising, affiliate marketing programs, and web-site conversations.
However, it’s usually difficult to directly attribute the increase to the contribution of social media. This is partly because the best social-media campaigns are deeply integrated with in-store messaging and partly because there are few ways to explicitly measure the effect because the final action—in-store sales—is, by definition, occurring in an offline channel.
One of the many things social media, in particular, has done is give people an opportunity to participate in conversations around a specific product, service and so on. The organizations that are smart, that are winning, are aggregating those conversations in places where they are easily accessible through a search. That creates a natural flow that brings people to a level of awareness of these products or services and that leads to purchase, either offline or online.
There are a number of cases we can point to where social media was a direct driver for purchases from stores or businesses that are traditionally considered offline, and which data is powerfully in favor of a strong effect on the bottom line.
The positive trends around engaging in social media for business are overwhelming. Companies from coffee shops to automobile dealers to computer shops have demonstrated success and deepened relationships through their expansive social-media efforts.
Best practices for using online efforts to get offline sales include the following: Proactive customer service based on monitoring to build relationships with customers and prospects; Online drivers to offline events, sometimes held in-store; and brand ambassador programs, which leverage and empower enthusiasts to “spread the word” to their personal networks and influence others to purchase goods.
I spoke before a digital marketing class about the day we are going to have to decide how much privacy we expect to have. It probably is not too far away that one day we will walk into a store and clothing will be automatically recommended for us, or we will approach the counter of a coffee shop and they will already know what we want to order.
Look at what Foursquare is doing already. When I check in somewhere, Foursquare will tell me if there’s a special event happening down the block.
This is just the tip of the iceberg in terms of the increasing importance of going digital into the formerly offline purchasing arena. When you go to a makeup counter, for example, you might see YouTube testimonials from people who used a specific makeup product. Or you might even see a Twitter screen with tweets from people who were satisfied with tax preparation when you go to the office of a government agency to do what is expected of you as an upright citizen.
Just look at the work Google has done to capture consumers at the most important moment in purchase, what is called the “zero moment of truth”—the moment when consumers are deciding what to buy, even before encountering a particular product.
The possibilities such technologies open for brands to understand and influence customer purchase behavior really are staggering. And I just don’t mean consumer purchase behavior in general. Brands will be able to personalize the digital experience around a purchase based on who and where individual customers are.
As far as company size goes, I think the essential challenges are always the same, I do see size giving companies different advantages. A rowboat turns faster than a cruise ship, as they say, and I think smaller companies can apply the insight they gain from listening to conversations much more easily than large ones.
On the other hand, larger companies have more resources, which means they can listen to more of the conversation, and use more sophisticated filters and metrics in doing so. But again, for any company, the essential skill is not keeping up, but understanding how to listen.
Social media is, well, social. And social engagement often takes a more frivolous or consumer-based tone. But the simple fact is, no one makes any decision—especially a costly business decision—without first going online to conduct research about a company or category. Used right, social-media channels can enable businesses to “own” that search with relevant content and keywords. As they say, if you’re not on page one of Google or Yahoo, you simply don’t exist.
So, to me, online and offline are becoming indistinguishable. And from a brand perspective—and from a personal perspective, too—I find the possibilities that creates extremely exciting.
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Bubuwit Squeaks
Talent Spotter
Food shows are perennially popular on TV, because the viewers like to see good food presented well, and because they are effective programs for selling advertising to supermarkets. One manufacturer decided to recruit a celebrity chef to promote their products. The clever part was that it was not someone who was already famous—they identified a relatively unknown newcomer to the celebrity chef scene and signed him up, while he was still relatively unknown. They got him to use upmarket, state-of-the-art utensils on the show, and to pose for photo shoots. Photos were sent to magazines with stories and where it was appropriate—recipes. The celebrity chef was the glue that held together the components of a big campaign and signing up the chef early in his career meant they did the campaign relatively cheaply compared to using a high-profile and already famous face.

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