Sector Sidebar:
Tweeting Their Way to Customers
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If you want to know what Maxine Clark, CEO of Build-A-Bear Workshop Inc. (BBW), is thinking, go online. Rarely a day goes by that she doesn’t post on Twitter. Calling herself ChiefExecBear, Clark tweets about conferences she attends, sports teams she loves and, of course, the latest company news. Customers can find her on Facebook too and can read updates on her blog (maxineclark.wordpress.com). Besides Clark’s personal pages, Build-A-Bear also has its own presence on Twitter and Facebook, as well as YouTube. All of these outlets allow the company to “speak directly to customers,” explains Clark. “Social media is an important element to any brand today.”
Other specialty retailers have also followed customers to these virtual communities. Best Buy Co. Inc. (BBY) has the Twelpforce, which answers customer questions via Twitter. Coach Inc.’s (COH) Facebook page boasts more than 500,000 fans, and its Twitter page, launched last fall, has 270,000 followers.
More than half of online shoppers have chosen to “friend”’ or “follow” at least one retailer on social media sites like Facebook, according to a new survey by market research firm ForeSee Results Inc. The firm says it typically finds that those customers who choose social media to learn about deals and new products are the most satisfied with the brand. Indeed, consumers turn to the Internet for reviews and information on a variety of products, according to a fall 2009 National Retail Federation survey of more than 22,000 adults. Electronics is the most-researched category, followed by appliances and home-improvement products, the organization reports.
More and more of that research is being done on cell phones, according to a survey by Motorola Inc. (MOT). During the 2009 holiday season, 51 percent of shoppers in 11 countries used their phones to comparison shop, check reviews, read product information and get coupons while in a store. On B&N Mobile, a mobile commerce site launched last year by bookseller Barnes & Noble Inc. (BKS), consumers can browse bestseller lists and find out if their local store has a particular title in stock. They can make purchases using their phones too. OfficeMax Inc.’s (OMX) mobile Website has a click-to-call feature that connects consumers with a customer service representative. Site visitors can also check out weekly specials and buy products. Still, none of these developments signal the demise of brick-and-mortar stores, says Michael Souers, an industry analyst for Standard & Poor’s Equity Research, a division of The McGraw-Hill Companies (MHP). In a tough retail environment, he adds, specialty retailers “with a strong brand name, aggressive brand support, and a mix of traditional stores and Websites will likely be strong performers in the long run.”
