Twitter e-commerce play a mixed bag for marketers

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Marketers are keeping an open mind about using Twitter’s just launched Early Bird Exclusive Offers e-commerce service, but none DMNews spoke with had made a concrete commitment to use the deal-promotion platform.

Twitter debuted the service July 6 as its first step into online retail.

The program, which creates an additional revenue stream for the social site, will allow Twitter and select advertisers to promote time- and supply-sensitive deals on products and events, such as concert tickets. Twitter users who subscribe to @earlybird will see the offers in their feeds, where links will lead them to the point of purchase after a few clicks.

Aaron Magness, senior director of brand marketing and business development for online shoe store Zappos.com, said his company’s flagship brand likely wouldn’t utilize @earlybird.

“We really utilize Twitter as a means to form personal connections and interact with our customers and employees,” he said. “We don’t use it to offer discounts or deals.”

However, Magness added that he could envision companies that already use Twitter to offer discounts taking advantage of the service.

“It could be interesting for other sites and other retailers that are price sensitive,” he said. “We have a sister site – 6pm.com – that’s all about value for great brands. At that point, it might be something that is interesting for 6pm.com. I think it really depends on how the retailers are utilizing tools like Twitter.”

Twitter will use the service to generate revenue through agreements with advertisers.

The microblogging site was criticized through 2009 for lacking an obvious business model. Its other recent revenue-focused platforms include the Promoted Tweets and sponsored trending topics.

Early Bird is similar to strategies implemented by marketers including computer maker Dell, and JetBlue Airways, which regularly post deals on their own Twitter pages. The move also makes Twitter a competitor to other daily-deal websites, including Groupon and Woot.

Morgan Johnston, manager of corporate communications at JetBlue Airways, said the airline is open to the idea of offering deals on @earlybird, adding that it uses Twitter’s Promoted Tweets.

“We try to be an innovative company,” Johnston said. “We try to always look for what’s going on in the future. As new products and services and initiatives develop, we’re certainly going to take a look at them and see if they work with our strategy.”

It is unclear when the first deal will be posted to the feed. As of July 9, the @ earlybird page, which had nearly 23,000 followers, included a link to frequently asked questions about the program and a text message option for consumers. While

Twitter said on its blog that it plans “to choose exciting deals,” retailers will determine the prices of items and how many will be available.

Augie Ray, senior analyst at Forrester Research, said the service “seems like a fairly modest early entry” into e-commerce.

“In fact, I’m not even sure I’d call it e-commerce at this point,” he said. “It seems to be much more positioned as a bit of an advertising play, to be honest. It’s a different strategy for them because they haven’t been content producers.”

A Twitter representative referred calls from DMNews seeking comment to a company blog post on the platform’s launch.

http://www.dmnews.com/twitter-e-commerce-play-a-mixed-bag-for-marketers/article/174411/

JetBlue campaign touts TruBlue loyalty program

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JetBlue Airways launched a campaign June 30 to acquire new members for its customer loyalty program, “TruBlue.”

The campaign will include e-mail marketing, in-flight and airport spots, and online and out-of-home advertising. Agency Carlson Marketing created the campaign.

The effort, “Be True,” was created eight months after an overhaul of the loyalty program, said Leann Guinn, coordinator of marketing programs at JetBlue.

She said the campaign is an opportunity for JetBlue to re-introduce the rewards program, adding that many JetBlue customers are not program members.

Guinn said JetBlue is targeting 25-to-50-year-old consumers, and its media plan focuses on individuals who are searching for travel in their day-to-day lives.

The company enlisted real people for the campaign. The campaign creative features the “real passions” of six TruBlue members, each with a story about dedication. For instance, one member talks about providing clean water wells in Tanzania, while another speaks about teaching improvisation.

The airline made changes to the program after a customer survey was conducted a year and a half ago. Taking consumer opinions into consideration, the company added more flexibility with accrued points that no longer expire, with the proviso that members must travel on at least one paid JetBlue flight or make a qualifying purchase with a JetBlue Card from American Express within 12 months of their last TruBlue transaction.

Members who sign up can participate in an enrollment program and flight bonus opportunities. Through July 8, members will receive 1,000 bonus points when they join. The airline will also provide an additional 2,000 points to consumers who buy a flight ticket and travel within 60 days of signing up.

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Go further in customer loyalty practices to build brand

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The American businesses that have the strongest bottom lines right now are those that enjoy the strongest brand loyalty. More and more organizations have come to this realization and as a result are looking at how their online marketing activity can help to gain visibility for and engagement with their brands.

Marketers have always known the value of brand building. Once consumers begin to trust a brand, their loyalty to it grows – and loyal customers have far higher long-term value than opportunistic customers. However, the greatest challenge has always been how to create customer loyalty.

Consumers have shown that they will defect from brands that bombard them with impersonal and irrelevant information. Similarly, they are more likely to make a purchase after a personalized interaction with a brand.

Those organizations that initiate personalized customer engagement will be rewarded with loyal customers. First impressions can’t be taken back, so it’s important to identify interested consumers effectively – to not damage your brand for future customers – and then to ensure that the initial engagement does not try to hard-sell, which may be rejected by the consumer.

Online lead generation is now used by marketers to initiate long-term customer engagement. Customer information and some basic preferences can be captured through most techniques in this arena. The latest approaches promote softer engagement at the outset and ongoing interaction to gather insight into the customer as well as increase exposure of the brand.

Creating a one-on-one dialog between a brand and an interested consumer is the kind of soft-sell that promotes long-term benefits. The customer is given more time in which the brand can nurture trust, as well as continually discover more information that enables further personalized engagement.

It’s important to ensure that engagement with the customer is varied and always relevant to the preferences you have established with them. Sending the customer coupons for free trials or a purchase discount are valid outlets for customer engagement. However, this is one part of the conversation, which should go further. Organizations should use communications, such as newsletters, to deliver company updates as well as consumer-oriented advice that will appeal to the customer. This engagement builds trust and also creates further context for the engagement. The more that you know about the customer, the more precisely you can target those special offers and promotions – and the more warmly they will be received.

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