Ann Taylor has become the latest retailer to tap into the growing popularity of FourSquare and offer store discounts based on how often users “check in” at one of its locations. According to Mashable, customers will begin receiving a 15% in-store discount after their 5th check in, and customers who are “mayors” of each location will get 25% off items that aren’t already on sale.
On the surface, this is a smart move for Ann Taylor, as it rewards mobile customers for engaging in existing activities. It’s also a smart promotional play; as customers check in at Ann Taylor locations (the program is being piloted in 8 NYC stores for now), this activity is often shared with their online social communities, such as on Twitter.
So how could Ann Taylor (and other retailers that are offering similar initiatives) build on this FourSquare promotion?
Let’s look at the Ann Taylor example, and the small NYC pilot FourSquare program they have launched. If I were consulting with Ann Taylor, I would suggest that they consider creating a social/mobile marketing advisory panel from among the customers that are most frequently using FourSquare to check in at NYC’s Ann Taylor locations. As my friend CK can tell you, while social media is big, mobile marketing is poised to become gigantic in the coming years. By reaching out directly to some of Ann Taylor’s most passionate customers that are also social media and mobile media savvy, Ann Taylor could get some incredibly valuable advice directly from its customers about how to improve its mobile marketing and communication efforts.
I recently worked with Dell on a similar initiative. Dell identified a few dozen customers that were actively using social media tools to discuss the company, and Dell brought them into its Round-Rock headquarters to meet with them and get feedback directly from them on how the company could improve its efforts. Over two days, Dell heard from its most passionate customers about how the company can improve its marketing, product design/development, customer service, and social media efforts. I was blown away by the event and can tell you that the discussions were incredible, and a joy to be a part of.
Ann Taylor could do the same thing, and I think it would be a wonderfully smart move for them.
Tags: Marketing
Mack:
Interesting shifts afoot with 4Sq and mobile marketing. I’m not a social media expert by any means, but I’ve spent a fair amount of time on the marketing+psychology front, so here’s a thought to build upon your council idea.
Retailers have the opportunity to create more engaged communities when they invest (time, effort, money) in building relationships proactively. One key decision trigger that promotes relationship building is “reciprocity” – when we receive a “gift,” we feel an obligation to return the favor, often far out of proportion to the size and value of the original gift.
Retailers can give all kinds of “gifts” that don’t even have to be monetary. Information that isn’t widely known – and “insider’s sneak peek” – is a gift. Exclusivity is a gift. Even good natured competition can be a gift.
A discount, on the other hand, is a bribe. You do this, then I’ll do that. Completely different psychology and frankly far less powerful.
Now, there are no absolutes so I’m not throwing dirt on Ann Taylor’s efforts – what they’re doing is a smart test – so I’d be fascinated to see how they could broaden their efforts and make a bigger tent.
Thanks!
Stephen Denny
@Note_to_CMO
Stephen those are great points, especially on the psychology of gift-giving.
I love this quote: “Retailers can give all kinds of “gifts” that don’t even have to be monetary. Information that isn’t widely known – and “insider’s sneak peek” – is a gift. Exclusivity is a gift. Even good natured competition can be a gift.”
I agree, and these are the types of gifts that would appeal to customer evangelists. Any retailer can start offering discounts via FourSquare usage. That’s way too simple and extremely easy to copy. As you said, it’s good that they are experimenting and thinking about how to leverage these tools, but I think they need to think beyond simply boosting retail sales via discounts. How could they use FourSquare usage among their customers to help them identify their customer evangelists? These would be people that are likely ALSO very social media and mobile-marketing savvy. Why not reach out to these evangelists directly and see if there is a way to get their input/feedback and help it shape/improve their social/mobile marketing efforts?
In many ways, this reminds me of where we were 3 years ago with blogger-outreach programs. At the time, companies were starting to offer items to bloggers, with the hope that they would blog a positive review about the item. Then, as now, I thought it was more beneficial for companies (esp B2Cs) to find ways to begin a relationship with their most passionate online customers, and involve them in their ongoing marketing efforts, if possible.
Dell’s recent #DellCAP event is an example of what I’m talking about, as far as collecting more meaningful feedback from customers. Hopefully retailers such as Ann Taylor that want to use FourSquare, will eventually move beyond simply offering discounts to customers via the tool.
Mack:
The discount is so easy to do, though! And that’s the problem. We’re busy, we’re searching in the dark for what to do in this nascent space and we default to a convenient first step. Nothing wrong with that and I hope they continue to move in the right directions to make a bigger tent.
This shifting definition – and power – of the concept of “WE” is an important angle here. We all shop at different stores and identify with few of them unless something specific is going on in our lives. For example, I’m buying a new car because I need one – my old lease is up – and therefore “I’m in the market for one” and the “I’m a die-hard Audi fan” gene is activated. If I’m not in the market, this gene remains dormant.
When we can activate a dormant consumer who might be an active one – when we take a “supporter” and turn them into an “activist,” for example, we shift their self-perception of “WE” into a new place. I wrote about this in one of our Decision Triggers newsletters a while back describing my interview with the social media consultant who ran Scott Brown’s (R-MA) Senate run. Creating activists is what we’re looking to do. So it’s still about value but there’s more to be done!
Good thought-provoking post -
Stephen you’re right, the discount is so easy to do, and probably a logical first step. I just hope it IS the first step, and that the company has or soon will give some thoughts to what comes next.
I know from my own point of view, if a brand I am passionate about contacted me and said ‘Mack we know from following you online that your very active in social media, and that you seem to be a fan of our company. We are looking to start using social media as a way to connect with our customers, and wanted to know if you could give us some pointers on how to get started?’, that I would want to help. Now granted, these are the types of services I CHARGE for as a consultant, but I would still want to work with them to help their efforts get off to a good start.
I think many evangelists would LOVE to be asked for help by their favorite brands/companies.