Jumping Into the Social Networking Playground

It’s no secret that social networking has gone mainstream, with more and more consumers logging on to community sites to stay connected and engaged. What started out as a youth phenomenon is now attracting a much broader spectrum of consumers, one that has relevance to a much wider base of retailers.

The marketing implications of social networking have not gone unnoticed by retailers. Social-network users can be powerful—and outspoken—advocates for a brand they believe in, bringing others into the fold (the downside, of course, is that they also tend be among its most vocal critics).

While there are no official statistics on exactly how many retail companies are socializing online, more and more are taking the plunge. In one recent study, 32% of retailers polled had a presence on Facebook. Industry experts contend that social networking will be a crucial element in marketing going forward.

In the summary of its “Top Social Computing Predictions for 2009,” Forrester Research predicted that brands increasingly will integrate social applications with traditional marketing campaigns and revise campaigns based on social feedback. “As a result,” the company stated, “we recommend that interactive marketers start efforts now, embracing listening platforms that help monitor brand while taking advantage of the recession to gain experience with social applications.”

Retailers have two basic options when it comes to jumping on the social-networking bandwagon: They can go it alone and build their own network, or they can set up “space” on one of the popular existing social networks, such as Facebook or MySpace, or the trendy micro-blogging site Twitter. Experts say retailers should determine which approach (or combination of the same) is best suited to their needs and resources before getting started.

Susan A. McKenna, CEO of Winnetka, Calif.-based social-media firm McKenna’s Marketing, believes retailers should tap into existing community sites rather than create their own social site.

“Consumers are already using sites like Facebook and Twitter, so retailers just have to learn how to target them in a meaningful way,” said McKenna. “Not only could building a community site cost thousands of dollars, retailers can’t just assume consumers will come once it is built.”

McKenna recommends retailers start out by creating a Facebook profile page and joining Twitter to communicate with shoppers. But she cautions that the strategies on how to approach these two popular networks differ.

“People don’t want to leave the Facebook site when they are logged on,” McKenna said. “This means retailers have to think of creative and meaningful ways to engage visitors directly on the site.”

Some suggestions include creating Facebook pages that offer interactive contests, poll questions and giveaways to members who become a friend, or “fan,” of the company. Keeping the context fresh and up-to-date will make consumers more likely to check back and engage with the retailer on its page more frequently, McKenna added.

Twitter is different in that it better allows merchants to interact with consumers in real time. Members can send and read other users’ updates, or “tweets,” which are short text-based posts of up to 140 characters. Updates are displayed on the user’s profile page and delivered to other users who have signed up to receive them.

“Twitter has a small platform to hold a conversation when you compare it to a social community like Facebook or MySpace,” McKenna explained. “It’s hard to have a meaningful discussion in 140 characters, but it’s perfect for having a mass dialogue.”

Gartner has cautioned companies that responding to comments on Twitter can be particularly risky, as the anonymous nature of the medium can easily descend into a negative spiral. It also maintains that companies scale back the number of tweets that tout corporate accomplishments and the like and have links to press releases, as they can become self-serving (and uninteresting), and ultimately hinder a brand image as much as help it. But it recommends that, at a minimum, companies should register Twitter IDs for their major brand names to prevent others from claiming them and using them inappropriately.

Retailers can also socialize by creating a social network of their own. Typically, such sites are separate but linked to a retailer’s e-commerce site and may also include links to popular existing social sites.

Sears Corp. recently launched two interactive community sites, MySears (mysears.com) and MyKmart (mykmart.com). The sites, powered by Viewpoints Network, feature blogs, message boards and product reviews.

“The ability to engage and interact with our customers is key to both our mission and our future,” said Rob Harles, VP community, Sears Holdings Corp. “The MySears and MyKmart social-networking communities offer customers a highly versatile venue to connect with other like