Increase Sales & Customer Loyalty with Niche Social Networks
Feb 23, 2009 1:18 pm by Kregg Knox (K2)Social networking has quickly become an integral part of everyday life. The use of social networking is not simply restricted to today's youth, but spans all ages. It was revolutionary when e-mail became mainstream many years ago. The idea that you could send a message and the recipient could read that message within seconds was groundbreaking. Social networking sites are the evolution of that: communication and community building using the power of the internet. Read on to discover more about this ongoing trend.
Social networking is the creation of an online community where people with common interests gather together to share ideas, stories, jokes, play chess, and more. Less than a year ago, MySpace was the leader in social networking. Facebook is the current giant: In April 2008, Facebook over took MySpace based on the number of unique visitors monthly, and just last month Facebook reached 175 million users.
The rise of social networking has created new ways of marketing and reaching a customer base. Given the rise in use of sites like MySpace and Facebook many marketing specialists are developing new ways to reach these communities with their products and services.
With many retailers struggling in todays economy, many are asking how can we recover lost revenue. The answer is simple: create a social network for your business. A recent article in Internet Retailer by Bill Siwicki mentioned a couple of these business's. The e-retailers at Bodybuilding.org launched their own social networking website, "BodySpace" in 2006. The website reached 50,000 members within its first year, and today boasts a quarter of a million members.
| "We focused almost 100% of our efforts in 2008 on the community, and it paid off: Sales increased 45%," says CEO Ryan DeLuca of Bodybuilding.org. ("Niche Social Networks for passionate customers increase loyalty and sales," by Bill Siwicki - Internet Retailer) |
If a niche market such as bodybuilding can create a social network that draws in 250,000 members and counting, any retailer that serves a market of enthusiasts (runners, cooks, and automobiles to name just a few) should consider developing their own social network.
| Retailers don't approach their members with a hard sell, but more or less allow them to meet and greet fellow enthusiasts. Matt Gahman, director of Internet sales and development at Buckmans.com (ski & snowboard shop) states," We limit selling to in-house banner ads and a link to the e-commerce section atop the pages." On average, Gahman states that visitors spend six-and-a-half minutes viewing 15 pages daily. "With a social network, if I just want to hang out and show videos and pictures, I don't want to have a 'Buy this, buy that' constantly showed in my face. ("Niche Social Networks for passionate customers increase loyalty and sales," by Bill Siwicki - Internet Retailer) |
In this way, a social network encourages conversation between fans of a product or service, and allows the members to sell the products to one another by recommendation. It is said that word of mouth is the best way to market your products and services, and social networking makes that possible.
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