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have developed sophisticated social media strategies that are bring- ing more than fans and followers, they’re delivering a bottom line im- pact. That means the area is ripe for independent retailers as well. Wet Seal CIO, Jon Kubo, says the key to getting results from social media is, “customer engagement,” which is marketing-speak for having actual online conversations with custom- ers. Kubo places so much stock in social media that he’s had his staff jigger Wet Seal’s database software so that the company can accumu- late and analyze all of the “likes” it gets from Facebook fans, as he wants to know exactly what fans liked. Kubo told the conference
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that Wet Seal’s social media efforts are generating 20 percent of the company’s ecommerce sales, and he ranks the return on investment among the best he’s ever gotten from a tech project. Shoe retailer, Steve Madden,
has also jumped on the bandwag- on. The company recently ran a campaign to acquire 100,000 Face- book fans, and it did so by offering a fans only discount, but telling them that if anyone leaked the code, the whole promotion would be canceled. “Not one customer leaked the code,” says Andrew Koven, Steve Madden’s president of ecommerce and customer experi- ence. Koven says the promotion not only had the desired effect on the company’s Facebook fan base, but it also netted $200,000 in sales in just 15 days. “It was an unqualifi ed success,” he says. All but one of 24 marketers
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surveyed in a new report from the World Federation of Advertisers and research fi rm, Millward Brown, are committed to increasing the time and money they spend on so- cial media in the next 12 months. Marketers surveyed say their fan pages are about generating insight, advocacy, loyalty and engagement from fans. Says Nick Oram, manag- ing director of independent media agency, Total Media, “There’s a scramble for territory between the brand, the PR agency, the creative agency, and the digital agency, as everyone’s trying to be the one to do it.” Yet it’s hard to determine the rewards. “Quite a few clients appear to want an immediate re- action,” Oram says, “but it doesn’t work like that. It takes a while to develop relationships and then to see a return. Brands know it’s a huge channel where people spend a
continued on page 92 INDEPENDENTRETAILER
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