Social Networking Sites: The New Wave in Marketing

Without a doubt, technology is transforming the way business is done. There is a change in the marketplace from the physical to the www, with an equivalent alteration in the way products are advertised and marketed. The usual tried and tested methods of marketing and selling are just not enough - innovating and ideating is the name of the game.

Till recently an internet presence meant a website with a few pages and contact information and maybe the capability to sell products online. Now, in addition to the website, there is a new and seemingly unique method for marketing and selling, a method that’s not only cheap but also surprisingly effective –social networking sites. Sounds a little ambiguous and vague, but social networking sites like Facebook, Twitter, MySpace and Orkut et al allow the retailer to interact in a very positive way with both existing and potential customers, without looking like they are just out to sell something. Weird? Maybe...but sample this bit of information first - Facebook has an estimated 300 million users. Twitter was recently voted the most used word in 2009. What this simply means is that an astoundingly large number of people are now regular users of social networking sites. Obviously, these people form a huge audience for any business, product or service. But should the Indian jewellery business owner take these sites seriously? Well, the answer is a resounding yes. Read on to find out why...

Besides the fact that social networking sites allow people to connect with each other, they are multifunctional from the business perspective – they help increase customer base, create brand awareness without the usual marketing gimmicks and function as a site for customer support. In fact, the gems and jewellery industry is actually already using social networking sites for marketing, advertising and selling. Jewellers from around the country and the world are using these sites to create a global impact. Major businesses include internationally renowned names like Tiffany and Cartier and closer home, it’s biggies like the Gitanjali Group, Popley, Talwarsons and H. Ajoomal that are creating a mark online. Jewellery designers like Farah Ali Khan and Rasvihar’s S. Ahalya amongst others have hundreds of fans on their Facebook pages. Brands like Blue Banyan are even using the sites to create awareness about industry issues.

There are virtually hundreds of these sites on the internet and these can be categorized into one of three broad groups –

• Social networking sites where pages can be hosted and updates and links and other information can be provided – Facebook, Twitter, Orkut, MySpace et al.

• Professional networking sites which allow the store or brand a presence via the profiles of the people who work for it – LinkedIn, Ecademy and others.

• Sites which allow the user to post articles or news items, which can then be linked to the brand website or page - Diggit, Reddit and similar websites.

1. Post interesting information about all that is happening in the world of jewellery including news and events like exhibitions, auctions, offers, new developments, collections, celebrity events and so on. This includes comments, images, videos, business applications to facilitate buying and selling and links to the store website, blogs and articles.
2. Link to more customers by joining groups that fit the customer profile. Being part of a group gives the retailer better visibility even to people who are not direct fans or followers and helps the store find more customers.
3. Use the page to provide an inexpensive customer support base by encouraging and responding to queries.
4.Provide useful information to existing and potential customers like taking care of jewellery, or the 4 Cs of purchasing diamonds or interesting titbits about the history of jewellery, or about different gemstones and so on.
5. Post customer testimonials and press coverage, to create a brand buzz. In fact, if a celebrity has purchased a jewellery piece, and she tweets about liking the piece or praises the store in her Facebook wall or blog, that comment can be used on the profile. The particular tweet or wall link can be used in the Twitter or Facebook page. Also, one tweet or wall update from a celebrity would be seen by her followers and fans – translating into some really good, free publicity for the store.
6. Advertisements on social networking sites can be targeted to specific customers. Basically direct marketing in the form of print and TV ads or hoardings is expensive. Social networking sites provide inexpensive methods of providing ads, which is based on pay per click. Moreover, they collect demographic information based on the profile details of the users. These details include sex, profession, marital status, hobbies and interests, religious and political beliefs and so on. So if the store sells art jewellery or lightweight jewellery, the ad can be targeted specifically for the required customer profile, for example, age group between 18 and 25 years. This way maximum benefit can be derived for the minimum cost of posting an ad.
7. Several social networking sites also provide tools which help in marketing, promotion and direct and indirect selling. These can be used at a very low cost, as compared to conventional marketing methods.

Just setting up a profile or page is not enough...to really gain from the page, here are some essentials that all retailers should take care of.

1. It is crucial to have a clear set of goals that the business wants to achieve through being on a networking site, or it may result in wastage of time and resources.
2. The Facebook or Twitter page address should reflect the company name – for example Twitter.com/Jewellery Store Name or Facebook.com/pages/Jewellery Store Name. A vanity address like this ensures clear brand identification and visibility.
3. The page should have a feel of the business and its’ USP. So, if the business specialises in solitaires or in pearl jewellery or in jewellery with religious motifs, the Facebook page design and posts or the tweets on Twitter should reflect that.
4. The page or profile on the social networking site should also have a link to the store website.
5. The real business name must be given in the profile so that identification is easy.
6. Monitoring of feedback and customer comments is essential. The content should be updated, so that the customer does not look at old news and information when she visits the page.
7. If the business has a presence on multiple sites, the profiles and content must be consistent with each other. To that end, convergence of the information on the sites is necessary.

They say that the proof of the pudding lies in the eating. Several retailers, big and small, are already utilising the benefit that these social networking sites provide. Here’s what they think...

Anil Talwar, Partner, Talwarsons Jewellers

Getting on to a social networking site is far simpler and of course cheaper than developing a full- fledged website. In combination with a website, it is a great value addition, especially for word of mouth publicity. It does form a good method to generate online publicity for new collections and events. However, social networking is only an addition to conventional advertising and marketing. Besides, the content has to be really good to attract attention - one can't just put up a page and expect the word to spread. The material should be interesting and relevant to the target audience. Creativity and the right perspective are extremely important, as is the right way of putting up the material.

Harshad Ajoomal, Designer & Director of H.Ajoomal Fine Jewellery

Basically, social networking sites help build business, since they allow people to reach out to people in a very personal way and very quickly. Internet connections too are cheap and easily available and updates can be made on the go. Website or not, the retailer can really utilise the various features like discussions, groups, fan club, images, email and so on effortlessly. A balanced mix of conventional and social networking marketing is essential – since people from the older age group prefer print or TV ads, while the younger generation would see more ads on the internet. It even makes sense to hire a professional for the job – the returns are much higher than the fee one would pay.

Prabodh Jain, Director, Rasvihar...

Social networking sites are visual, conversational and instantaneous. However, the boring, "me too" kind of brands would find it difficult to really leverage the advantage of these sites. While traditional print advertising provides excellent visual impact, receiving audience feedback and conducting market research is both difficult and expensive. Social networking sites, on the other hand, can help one engage in real time communication with immediate feedback. A judicious combination of both tools can deliver good return on investment in terms of time, effort and money. The best time to get onto social networking sites is right now - because the tools are relatively new there is no single, right method of doing it. Experiment, iterate and keep moving.

Shuchi Pandya, CEO, Blue Banyan...

Social networking is a useful tool for those who want to generate brand value. Twitter and Facebook allow jewellery companies to share insights about their company and the industry at large. A ‘story’ about the brand is created, thereby building associations in people’s minds – strong social capital. Links to Twitter or Facebook make the website more interactive. Most social networking sites are free, and provide significant value if used well. Social marketing really works if the brand really adds new and interesting information, so people are involved with the brand. They are more effective when the brand is related to a larger picture - an industry issue or opportunity and the brand's opinion about the same, rather than just focusing on selling and marketing the brand.

The verdict is out...

A simple search on Facebook for the keyword “jewellers” throws up more than 500 profiles, 250 pages and more than 500 groups...and this is just one social networking site. Clearly, there is no denying the vast opportunities and customer base that social networking sites create. Social networking sites as a means to expand business are here to stay...and the business owner who ignores their impact would do so at his own peril!

Highlights:

1. The usual tried and tested methods of marketing and selling are just not enough -innovating and ideating is the name of the game.

2. Social networking sites help increase customer base, create brand awareness without the usual marketing gimmicks and function as a site for customer support.

3. They are more effective when the brand is related to a larger picture - an industry issue or opportunity and the brand's opinion about the same, rather than just focusing on selling and marketing the brand. – Shuchi Pandya, CEO, Blue Banyan

4. Social networking sites can help one engage in real time communication with immediate feedback. – Prabodh Jain, Director, Rasvihar

5. Getting on to a social networking site is far simpler and of course cheaper than developing a full- fledged website. – Anil Talwar, Partner, Talwarsons Jewellers

6. It even makes sense to hire a professional for the job – the returns are much higher than the fee one would pay. – Harshad Ajoomal, Designer and Director, H. Ajoomal Fine Jewellery