How Fab.com Achieved Two Million Users in Seven Months with #SocialCommerce Marketing Strategies

Although Fab.com was founded in early 2010 as a social network for gay and lesbian users, it has quickly turned into an e-commerce site with an incredible following. As their social network base grew it made the leap from networking site to high-end flash sales. This young endeavor is already making a huge impact in its industry.

Lessons from Social Commerce Summit 2012 #SCS

Sheezan Bakali, director of marketing for Fab, spoke at the recent Business Insiders’s Social Commerce Summit. She revealed the basic points behind the strategy that brought Fab.com over 2 million users in just seven months. Sheezan shared that Fab’s keys to success was based on three elements in their marketing strategy.

Product

Sheezan shared that they provided “virtual products and physical products that must delight every day.” She highlights that the product itself should never be skimped on. The consumers who purchase need to be provided with a quality, end product that will serve as its own selling point. Customers need to feel the satisfaction of purchasing a quality product along with the comfort of having a user-friendly front end.

Make sure the product that arrives on your customers doorstep speaks for itself.

Social Media

Fab was created to be social. To keep everyone on Fab in-the-know, they now have a calendar listed on site that displays products that are soon to go on sale or have just went up for a sale price. This means their consumers usually begins to post on Facebook or Twitter without needing additional prompting. No one likes hearing about a great sale after it ends, but Fab’s analytics show them that this particular strategy really gets their followers talking, or tweeting. Currently, every 30 seconds, someone is tweeting about a Fab.com deal.

In one great test of their marketing power and reach, Fab promoted a product known as Beardo. This unique product is a combination of a a stocking cap and a knit ‘beard’ to keep the face warm. This quirky product sold quickly and became a huge success on Fab.

Users are encouraged to invite their friends, earn credits, and engage with other Fab users.

Strategic Advertising

Fab didn’t come out of the gate with endless funds for costly worldwide advertising possibilities, but they also have full understanding that social media cannot do all of the work either. In order to find the perfect balance, they target their marketing as specifically as possible.

Just at launch time, out of the 175,000 members, over 50,000 of them arrived via ads. Those early influencers helped to fuel the pinwheel that helped to create such a significant jump in their user-base. During their advertising process, Fab goes out of their way to target brand new communities that they believe can appreciate what Fab has to offer. This strategy can also go a long way in feeding back into social media.

From Artfire to Etsy, Fab now joins a growing list of boutique and economy retail sites that are gaining ground by providing consumers with a level of customization that may not have been possible before, at least not when on a budget. The option for budget clothing is available in every Walmart across the country, the option for customized clothing that doesn’t cost an arm and a leg are only available on sites like Fab.

Author:

@BasilPuglisi is the Executive Director and Publisher for Digital Brand Marketing Education (dbmei.com). Basil C. Puglisi is also the President of Puglisi Consulting Group, Inc. A Digital Brand Marketing Consultancy that manages professional and personal branding for Fortune 500 CEOs, Hedge Fund Managers and Small Business Owners.

Sources:

About Basil Puglisi

@BasilPuglisi is a Content Contributor and the Chairman of the Board for Digital Ethos. Basil C. Puglisi is also the Digital Marketing Manager for PMG Interactive. As the Digital Marketing Manager he provides oversight and support to Digital Campaigns, from Website Development to Search and Social Reach.

What Klout is Doing with User Data and #SocialCommerce

Over the last few years, we have all observed as friends and followers found themselves virtually up-in-arms about privacy issues on just about every social network. Each one seems to have gone through its own growing pains when it comes to sometimes questionable sources declaring user’s information is being utilized in a variety of suspicious manners. However, most have come to terms with the fact that data is not so often sold as it is aggregated and measured for many marketing purposes, includes those that benefit the user.

Now that we are using so many social networks simultaneously, we have not one profile, but a fine, long, and continuously growing, list of them.Social network

  • Facebook
  • Twitter
  • Google +
  • Foursquare
  • Flickr
  • Yelp

As each of our most favored networks have grown, they have also steadily increased their focuses on the type of user data that is cultivated, and how it is shared.

Klout

Klout has been a terrific way to integrate our profiles, and then run them through an algorithm that will display the various details of your own social media influence. Klout currently supports 12 different networks and as their developers continue to add more, your social influence can continue to climb.

Image representing Klout as depicted in CrunchBaseUsing Klout can have more benefits than simply the benefit of having the most Klout. Users are treated to a wide variety of Perks that can be anything from several months of free trial on a notable website or service, to a free sample of the latest and greatest body wash. Sometimes a user can sign up for selected Perks, and just as often, Klout will extend exclusive offers to users based on their social influence rating and common topics.

12+ Networks and Growing – Where is my data being used?

Recently, a representative from Business Insider visited with Tim Mahlman, the Chief Revenue Officer for Klout. He wanted to share exactly what Klout does do and does not do with their user’s personal data.

  • Klout is not selling your data. Even though Klout does have a rather complete picture of you and your personal choices and preferences, this information is never sold to advertisers or brands.
  • Klout does leave the virtual door open to trying out new revenue models, they also plan to ‘keep their users first according to Mahlman.
  • There is only one element of Klout that any brands have access to and that is a user’s Klout score. Klout is the gatekeeper between their users and any influential brands.
  • Pinterest is one new network that Klout is highly interested in.

Since Klout already has 12 current networks and a list of networks that are in development, they are always in on the market for a new fast growing network to add to their social influence algorithms.

Author:

@BasilPuglisi is the Executive Director and Publisher for Digital Brand Marketing Education (dbmei.com). Basil C. Puglisi is also the President of Puglisi Consulting Group, Inc. A Digital Brand Marketing Consultancy that manages professional and personal branding for Fortune 500 CEOs, Hedge Fund Managers and Small Business Owners.

Sources:

Is Klout Crossing the Line When it Comes to Privacy?

What is Klout Doing with User Data?

Klout and Big Data

About Basil Puglisi

@BasilPuglisi is a Content Contributor and the Chairman of the Board for Digital Ethos. Basil C. Puglisi is also the Digital Marketing Manager for PMG Interactive. As the Digital Marketing Manager he provides oversight and support to Digital Campaigns, from Website Development to Search and Social Reach.

Daily Deal Horror Stories – Are they True? #SocialCommerce

Image representing LivingSocial as depicted in...

Image via CrunchBase

By now, you have likely heard some of the horror stories about businesses that have destroyed their bottom-lines, or worse, with daily deals or coupon offers. There are those like the LivingSocial deal offered by Scripa Massage & Wellness that allowed customers to save more than 88% on an enjoyable spa experience. However, the shop sold so many deals that it would have taken Scripa Massage & Wellness from three to five years to complete them all. A bad case of overselling.

80% of Merchants are Willing to Run Subsequent Deals

LivingSocial’s CEO, Tim O’Shaughnessy, shared with Business Insiders CEO Henry Blodget, that around 80 percent of businesses that run a LivingSocial daily deal, will agree to run another deal if offered. O’Shaughnessy’s response came on the heels of the questions and horror stories shared by merchants at the Social Commerce Summit in New York on February 7th.

Although O’Shaughnessy admits that they do not nail it every single time, he also insists that on the whole, it does work in just the manner the merchants advertise it. He shares that the most vital element to a daily deal such as through LivingSocial, is that the merchants upsell their products and services if they want return visitors.

The Whole Picture

Although Amazon reported that LivingSocial showed a loss of around $558 million just last year, O’Shaughnessy reiterates that those numbers do not show an accurate view of any profit or loss margins for LivingSocial. Although the biggest part of the sum was in the beginning of the year, the gap definitely narrowed towards the end of the year.

“There’s one small chart that Amazon filed that doesn’t really give a particularly illuminative view of the business. There are certain things from an accounting perspective that you can’t see with that limited of a view. It’s fun to see little snippets and extrapolate them out without the big picture.”

With around 60 million users, O’Shaughnessy also shared that aside from Groupon, LivingSocial has virtually no serious competitors currently, and that is company is doing extremely well. He also insist that as they grow, they are also learning how to more efficiently market to their consumers. If a consumer has never opened an email about for a discount on a local sports event, they probably shouldn’t be sending the emails to them anymore. LivingSocial has been working on a better way to engage those who do look for and desire their specific service offers.

Author:

@BasilPuglisi is the Executive Director and Publisher for Digital Brand Marketing Education (dbmei.com). Basil C. Puglisi is also the President of Puglisi Consulting Group, Inc. A Digital Brand Marketing Consultancy that manages professional and personal branding for Fortune 500 CEOs, Hedge Fund Managers and Small Business Owners.

Sources:

About Basil Puglisi

@BasilPuglisi is a Content Contributor and the Chairman of the Board for Digital Ethos. Basil C. Puglisi is also the Digital Marketing Manager for PMG Interactive. As the Digital Marketing Manager he provides oversight and support to Digital Campaigns, from Website Development to Search and Social Reach.

#Ignition2011: Sheryl Sandberg Shares Concerns for Facebook and Women

At the recent Ignition Conference Sheryl Sandberg shared that Mark Zuckerberg’s greatest fear is lack of innovation. She mentions that the two factors are fueling that fear.

  1. Google has as many job openings as Facebook has current employees.
  2. Facebook lacks the resources of many of its direct competitors.

Sheryl understands that one of Facebook’s immediate concerns involves their need to rely on less product launches in favor of those that have bigger impact. Facebook has a current focus targeting the balance of moving forward in their business growth, while still protecting user-privacy.

Sheryl’s Advice to Career Focused Women

Voted in at number 7 of 10, Forbes awarded Sheryl Sandberg the status of one of the world’s Top Ten Power Women of 2011. Sheryl has some very sound advice for other power women as well. She shares that a woman’s most important career choice is who they marry. She encourages women to find a partner with whom they can share their lives 50/50. She reminds them that in general, men lean forward or continuously focus on the growth of their careers, while many women seem to lean back, and let others take the re

Check out this video with Sheryl’s top three pieces of advice for women who aim to reach the executive suites in their careers.

She also notes that when it comes to an individual’s GPA, the women tend to remember their numbers as slightly lower than they really were, while men remember theirs as a tad higher. She also admits that it seems in general, people like men who are in power, women – not so much. However, people do actually seem to like Sheryl Sandberg which is proven by the number of people, men and women alike, who flock to events where she will be a key speaker.

The Google vs Facebook Battle Continues

Although she initially deflected questions from Henry Blodget about a Facebook phone at the Ignition Conference, she later relented. She has a desire to see Facebook users able to snap a photo on their smart phone and upload right away to an album, wall, or page. She is worried though that Google’s Android may be a factor in preventing that.

“If you buy a phone, you should be able to share pictures and upload your photos with Facebook, we care that Android works and does that,” she said. “Android has made a public commitment to openness, and we want to see that commitment kept.”

She also mentioned that Facebook is thoroughly committed to providing an app that will work on all phones. She shared that she is currently actively working towards this with every single phone manufacturer to see that it happens. Citing that she believes that all consumers should have a choice, when asked by Blodget about whether or not Facebook is currently building a phone, she answered that she would not speculate on the topic. Although this is by far a mysterious and obscure comment, coming from Sheryl Sandberg, it’s definitely worth giving some attention and perhaps a bit of closer inspection.

note: Special Thanks to Business Insider for hosting such a wonderful event and having DBMEi as their Guest.

Sources:

About Basil Puglisi

@BasilPuglisi is a Content Contributor and the Chairman of the Board for Digital Ethos. Basil C. Puglisi is also the Digital Marketing Manager for PMG Interactive. As the Digital Marketing Manager he provides oversight and support to Digital Campaigns, from Website Development to Search and Social Reach.

IGNITION: Future of Media Conference

This two day conference is coming to New York City November 30th through December 1st, 2011. Exploring the future of media business, IGNITION brings together executives and key stakeholders to discuss what is happening in the here-and-now.

We all understand that the definition of media has begun to expand to include games, local, social, and real-time communications that include sharing and other forms of data exchange. However, this also means that the lines between advice, business, and entertainment, has begun to blur.

Business Insider’s founder and CEO, Henry Blodget, will host IGNITION. One of the goals of IGNITION is to discuss how what is happening now, will affect your business. For this reason, a long list of top-notch speakers covering many media industries will be attending.

  • Glenn Beck – Founder and CEO, Mercury Radio Arts
  • Deep Nishar – SVP of Products and User Experience, LinkedIn
  • Sheryl Sandberg – COO, Facebook
  • Eliot Spitzer – Former Governor, New York
  • Sarah Bernard – Director of Online Engagement, White House
  • Adam Bain – CRO, Twitter

Business Insider designs their conferences the same way they design their media: intriguing and straight to the topic at hand. Discussions are kept short and each moderator or speaker will quickly get to the point. The fast-paced schedule will keep all attendees connecting while learning. IGNITION is expecting an impressive list of 400 to 500 entrepreneurs and executives from all facets of media including print, TV, digital, music, radio, and entertainment.

Attendees should arrive ready to strategize and create new business.

Adam Bain – CRO Twitter

Before he was CRO of Twitter, Adam Bain was the president of Fox Audience Network, or FAN, where he administrated strategies that would help to monetize Fox’s digital properties. He got behind Fox’s largest acquisitions of IGN, Scout Media, Photobucket, and Myspace. Before he held that position, he was the EVP for Product and Technology for Fox Interactive Media.

Bain began at Twitter just as they were gearing up to launch new monetization efforts. Although Twitter has executed minor experiments with advertising, they now want to increase their revenue significantly. With Bain’s proven abilities in that exact area, it seems to be an incredibly good choice for Twitter and for all who use it.

Get Ready for IGNITION: Future of Media

If you plan to attend IGNITION, register now and make sure to input dbmei15 for 15% off the price of admission as a DBMEi subscriber! This IGNITION Discount Code has been created exclusively for dbmei.com readers.

Sources:

About Basil Puglisi

@BasilPuglisi is a Content Contributor and the Chairman of the Board for Digital Ethos. Basil C. Puglisi is also the Digital Marketing Manager for PMG Interactive. As the Digital Marketing Manager he provides oversight and support to Digital Campaigns, from Website Development to Search and Social Reach.

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