Social networking for retailers

A question I often get asked by retailers is "where should we be on the social networks?".

The reality is that there's many brands out there who are beginning to tap into the likes of MySpace, Bebo, Facebook and the more niche networks, but only a few who are really doing it right.

Before you start thinking about how you interact with social networks, ask yourself this question "what have I got to offer users on social networking sites?". This is the bigger question, because I think a lot of retailers still need to realise that social networks are not really going to be a place where you're going to sell lots of your products... in fact it's more of an opportunity for you to speak to your consumers and listen to their feedback.

You can offer your users a place to communicate with you. ASOS currently have about 45,000 Facebook "fans" and if you join this group you will be engaged with competitions, offers, free delivery codes and first looks on latest products.

The social networks and affiliate networks are also working away at their own micro-affiliate platforms, which would allow you to recommend products to your set of friends and earn some money in return. I expect this to be a big focus for 2009, but I also think this is unlikely to be a real money spinner for people, as social networks like Facebook are unlikely (in my opinion) to be an important part of the retail cycle. Yes people spend lots of time there, and yes I think it could be a good place for retailers specialising in small ticket items (impulse buys etc), but I don't think it's going to be a major growth area for online retailers.

Nick Robertson, CEO of ASOS.com, stood up at Google's retail seminar back in July and said that social networking "was the cherry on the top of the cake" and that the basis of his company's success was built on the product choice / availability, the simple conversion process and the great fulfillment ASOS provided as opposed to their presence on Facebook.

I think he's right. Get the basics of ecommerce right and you will be doing well. Social networking should be seen as an extension of customer service for many companies, and if you use the networks to listen and communicate (as opposed to trying to sell) you're on the right lines.

Bigmouthmedia recently got praise from a blogger just by reaching out to him and saying, if you want to use other forms of social networking to follow us, be our guest. Recognise that users will interact with your brand on their terms, and by allowing them to do this on various networks (where you add value to your customers) you should be able to keep them happy.