Facebook Takes Over the Retail World

Adults have them, and so do kids. C'mon, I know you've seen the Dr. Phil where he rips into a mother of three because of her scandalous pictures on MySpace. Or what about the beauty pageant winner whose Facebook pictures were used as blackmail? Any way you cut it; social networking is H-O-T, hot. Wal-Mart is all over this, recently launching a "Roommate Style Match" group on Facebook to capture college kids on their way back to school.

Students can take a quiz to discover their "decorating style" and (ta-da!) receive a list of products they can buy at Wal-Mart that best reflects their style, and their roommates', of course. How smart is this?! Students can also search Wal-Mart's Web site for eco-friendly products or download a shopping list of dorm room pieces. The hip, new items can then be shipped directly to the school (no furniture hauling for dad), making life a lot easier for parents and kids. And let's be honest, mom and dad are going to be all over that, even if they don't have a Facebook account. This idea is absolutely brilliant--and I don't even shop at Wal-Mart.

In a world of Facebook, MySpace, LinkedIn, YouTube and a variety of social networking and media sites, retailers could benefit substantially from plugging in. Securing teen and college kids' dollars is extremely lucrative. Connecting with them on their own platform is invaluable. Apparently, Wal-Mart did its research, because according to the National Retail Federation, the average first-year college student spends $1,112.62 on back-to-school gear. Cha-ching. Who's in for setting up a MySpace account?

In the information age, creativity reigns and it won't be too long before other retailers catch on and start hiring bloggers, launching social networking promotions and posting YouTube videos. Times, they are a-changin'. While we're all just making this up as we go along, the pay-off is potentially huge. Only time will tell, and I look forward to seeing Wal-Mart's quarterly sales results, how about you?

Speaking of you--Are you a retailer that already uses social networking sites for promotion? If so, we'd love to hear about your campaign or your experience interacting with the Facebook/MySpace crowd. Leave a comment or e-mail us!

--Heather Strang

Comments

[Nick Burcher]

I have looked at the Wal-Mart Facebook Group - it is a great 'what not to do lesson' for companies looking to use social networking sites for marketing purposes!

I have incorporated this into an article I have recently written about UK retailers using Facebook - there are some really good examples like Primark and some that have potential for chaos like Tesco supermarket employees uploading photos and comments to Facebook groups!

Hope you enjoy it and keep up the good work!

Nick

[Bryan Loar]

On the other hand, social media can easily be used against the company.

Brian Morrissey's article* in Adweek indicated that Wal-Mart's foray into Facebook gave members the platform to grill Wal-Mart on its possibly real or perceived labor practices.

The article also pointed out Coke's failure in the user-generated media arena.

The article wisely suggests that a "me too" attitude is an inappropriate strategy. Instead, adding value to the user experience (e.g. BMW's Mini) is a more reasoned approach.

*Why Some Brands Seem Anti-Social

[Kevin Dugan]

Heather - Target and Amazon are also on Facebook. http://adverlab.blogspot.com/2007/08/wal-mart-and-target-on-facebook.html