STORES Magazine - September 2008 - (Page 30)

EXECUTIVE SUITE / COVER STORY bridge, Mass.- based Forrester Research, is more skeptical. “As a brand builder, maybe there’s some value, but retailers need to guard against the notion that everyone’s doing it, so they should, too.” Choosing not to dip a toe into the social networking waters in this instance is one thing; turning a deaf ear to the power of social networking is another. These tools can profoundly impact how shoppers interact with retailers — and it’s the shoppers now approaching their prime spending years who are most likely to have been smitten by them. Social networking sites are proliferating. Some of the best known include MySpace, Friendster, Hi5, LinkedIn and Disney’s Club Penguin, but with about 90 million members, Facebook leads the pack. Founded by Mark Zuckerberg in 2004 when he was a Harvard sophomore, Facebook’s origins are rooted in U.S. universities. Its popularity quickly spread to high school students, and later the company opened the dorm room doors to an even broader audience (the fastest-growing user demographic is 25 and older). In May 2007, Facebook announced an initiative called Facebook Platform. Essentially, it invited third-party software makers to create programs for Facebook and share in the profits. Hundreds of “social applications” have debuted, from games like Wordscraper to music and photo sharing tools. Last fall, Microsoft outbid Google to gain a $240 million stake in Facebook. Growth has continued at a steady pace, with numerous businesses exploring the value of Facebook. Still, as is often the case when it comes to emerging technologies, many retail companies choose to observe rather than engage. In May, Princeton, N.J.-based interactive marketing agency Fan-tastic approaches PINK BY VICTORIA’S SECRET A n early Facebook entrant, the Pink page includes plenty of bells and whistles. Among them are videos, including one showcasing the new collegiate collection. Users can find out how to get a gift with purchase and they can download Pink wallpaper for their cell phones. Fans have uploaded their own videos, too. There’s a place to sign up for the latest news, including first notice of upcoming sales, promotions and events, and there is a way to add a Pink widget to your PC. Fans: 477,178 and counting TICKETMASTER usic, entertainment and sports are perfect for social networking, and Ticketmaster is seizing the opportunity to connect with Facebook users. Through a series of tabs, it’s easy to check out hot music tours and other events. While there, users can enter a contest to win a guitar or other prizes. Light on funds? The Ticketmaster fan page provides video snippets. Looking to impress friends with your knowledge of what’s going on? It provides Live Daily Music News. Users can’t actually buy tickets from the Ticketmaster page, but with just one click, they’re linked to Ticketmaster.com. Fans: 64,755 and counting M TARGET T Many retail companies choose to observe rather than engage imely and directed, Target’s fan page currently is geared toward back-to-school — especially for the collegebound set. While other retailers closely link actions on their fan pages back to their websites, clicking around Target’s fan page is entertaining and informative. Click and watch roommates blend their dorm styles using Target products, or a video of designer Sami Hayek discussing his philosophy on color. Rosetta reported that only 30 percent of the top 100 online retailers they surveyed had launched a “fan” page. (For Facebook neophytes, a fan page is a free profile that a company can set up and maintain. Users can declare themselves a “fan” of the company.) In the interim, J.Crew, QVC, Home Depot, Kohl’s and Best Buy have launched fan pages. Adam Cohen, a partner in the consumer product and retail practice at Rosetta, believes that Facebook’s low barrier to entry has helped jump-start interest. “Anyone can set up a page and create a free profile,” he says. “Facebook is a gold mine for marketers: the platform has an average of 200 data points on each user. It’s a great way to get to know your customers better and to gain a better understanding of what’s important to them.” Cohen cautions against what he calls forced messaging, however. “Your brand is being talked about so it makes sense to monitor the conversation and to engage in it when it’s approWWW.STORES.ORG 30 STORES / SEPTEMBER 2008 http://Ticketmaster.com http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - September 2008

STORES Magazine - September 2008 Contents Executive Editor's Page President's Page Office Depot Unveils First Green Store Dunkin’ Donuts Debuts DDSMART What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Are You a Facebook Fan? RFID Concept2Watch E-commerce Supply Chain Marketing ERP Credit Web Optimization LP Vantage Point Newsbeat Cover Story LP Program Building Biometrics Industry Perspective Customer Service Site Selection E-Commerce LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - September 2008

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