Conversations, Social Media, and E Commerce

There is a tremendous focus among the leading minds of the internet on the concept of "conversations."   The thought process is quite apparent at blogs such as Arnold Waldstein, William Mougayar, and AVC and with start ups that are attempting to facilitate "conversations" such as Engagio and Disqus.


I think that Arnold states the obvious when he says, "Engagement is the new currency of the web but it’s still very scarce."

We are constantly reminded about engaging the consumer, developing communities, and all the other jargon that is used to define the illusive benefit of the web.  Its one thing to discuss the concept of "community" on a blog that gets 200,000 visitors a month on average and enjoys over 150 comments a day to any article, on any topic that is posted; that is an engaged community where commenting has become conversations.   

The real battle, is between, is the internet truly a tool to redefine social relationships or is it nothing more than another marketing/advertising channel?  I hear a lot about "community managers" and I cannot help, after searching the web for "what does a social media community manager do" but realize that the concept of social media as nothing more than a marketing/advertising channel is winning by a long shot!

The reality is that social media needs to foster something more basic than 'community' or 'engagement' and something fundamental to 'conversations' and that is a sense of BELONGING.  

I would recommend the following two articles:

     Sherry Turkle:  Alone Together

     Amanda Enayati: The Importance of Belonging

In a world of big business vs. everyone else, the battle between the web as just another advertising channel vs. fostering engagement, communities and conversations, is one that we must take seriously.  No conversations occur without a sense of belonging.  Nothing becomes a 'brand' without a fundamental belief on the part of the consumer that the 'brand' belongs to or holds value to them.  A community is nothing more than a 'place' where someone feels they belong.   Someplace between promoting products, seeking business connections, and or hyping our own expertise, the web has to foster a sense of 'belonging.'


I think that one small company has found the ideal, and I enjoy reading every single one of their posts:  Door County Coffee & Tea.

March - Tee Madness!

Yes, its March and its time for the annual tournament of 64 awesome brands to face off in TEE MADNESS; a bracket style showdown!

Quite simply Tee Madness takes 64 of the best up and coming t-shirt brands and has them square off in a March Madness style tournament.  After the brands signup, the competition will begin:  Brands square off head to head competing for YOUR vote!

For more information you can visit the site HERE or check out the TEAMS and visit their websites HERE.

This is something that a tee shirt company should have gotten behind!

I came across this via I AM THE TREND and STORE NVY.

Communities and Branding: Learning From The Master

 

Over the course of my professional career I have been associated with some of the most recognized brands in apparel.  This association was behind the scenes as we either owned the license to produce the goods or we financed the turnaround of the troubled brand; this would include brands such as Spuds Mackenzie, Big Dogs Sportswear,  and Jimmy Buffett's Caribbean Soul to name just a few.

One of the great things about being behind the scenes is that you get to understand the brand, the thinking behind the creation, and you get to observe the personalities involved.

From the evolution of screen printing in four color process on white or pastel colored shirts to where we are today, you realize that the concepts of "branding" and "community" has been at the forefront of success and longevity of numerous tee shirt lines long before their current vogue with the advent of the internet.

Even after all these years and with the explosion in imprinted apparel graphic design, I still believe that Micheal Latona, who was the original artist of some of the best graphic designs that launched Jimmy Buffet's Caribbean Soul and who then went on to establish Harlequin Nature Graphics as the premier nature graphics screen printing company, is still the most creative artist/screen printer ever.  Here is the only sample I have of his work on my computer (he did everything by hand):

After 40 years Jimmy Buffett is still the absolute master of the concepts of  branding and community both on and off the web!  From Caribbean Soul, Parrotheads, to Margaritaville he has continuously and consciously developed his brand and his community;  lets be honest, would Florida be as popular of a vacation destination without him and his music?  That is the ideal of "lifestyle."

Today, we throw around terms without ever thinking about the core characteristic of the terms that we use.  We talk about "brand" when we probably should be using the term, "label." We can relate to, like, and recognize a "label" but a brand involves something deeper; an essence, a spirit, a quality.  Labels create, market and project their message on the consumer, while a brand has their message projected upon them by the consumer.

We talk about "communities" as something relating to individuals, with a shared interest, coming together and we believe that the future is about communities.  The reality is "a shared interest" can also be nothing more than a fad or a craze:  At one time things like hula hoops and pet rocks created "communities" also but these communities eventually moved on because they were not anything more than a craze.

The reality is a "community" has to be much more than about shared interests; it has to be about "lifestyle."  Virtual communities must become real communities as a first step to advancing to lifestyle status.  Lifestyle, like brands, must involve something deeper than just "shared interests."

Lifestyle is about perspective and attitude, most people don't realize that Jimmy Buffett started the Save The Manatee Movement back in 1981; that was the beginning of the broadening of the budding brand beyond music.  He did fall behind in the area of apparel, that was more the fault of the individuals behind Jimmy Buffett's Caribbean Soul/Caribbean Soul and Tommy Bahama ended up the dominant player in that market but Jimmy Buffett's Margaritaville is attempting to re establish themselves in the apparel market, and doing so with the recognition that their "community" has aged.  One day even Threadless will have to grow beyond tee shirts!

Then, its fascinating to watch how Jimmy Buffett and Margaritaville can evolve and adapt as witnessed by their newest adventure, the "gamification" of a brand/lifestyle, which idealistically is the goal of every consumer product company:

The brilliance of wisdom!

From Niches To Communities To Tribes

Being a producer of a niche product to a niche market I am constantly seeking out new ways to capitalize on opportunities.  

Between "how can I gain an advantage?" to "there has to be a better way?" that pretty much encompasses the totality of my mind set.  

I realize that one of my current key problems is that while I am using terms such as "community," "social media," and or "consumer centric," the reality is that my concept of these terms is totally different than what is considered popular at the moment and I am missing the mark in the confusion.

I am gambling on the fact that the future belongs to those who go from creating a community to creating a tribe.  While a community is about sharing a tribe is about belonging and it involves participation and loyalty.

The reality is that the social network comes first and the sale of product is secondary.  Which involves totaling changing the way one thinks.  You create a platform that is attractive to your niche market, someplace where those that belong to the niche market feel comfortable and share; and you reward the sharing with discounts to products.

Tribes are about exclusion and exclusivity and brands that cater to niche markets have to create a sense of pride with their brand.  Ecommerce is becoming too much like traditional retail with endless promotions and advertising. The reality is that the internet has created an opportunity to create platforms where people congregate, socialize, hang out, and then you advertise and promote within the platform.      

Tribes are about belonging, and belonging should instill a sense of pride among the members of the tribe.  When your niche is big and tall and plus size then the pride has to come from exclusivity.  Thus, you promote the social, the music, the games, the interaction and you promote products that cater to the interests captured in the social and size availability becomes the gatekeeper.

Tribalism thus creates a pride of participation and belonging which in turn creates increased product sales.  Its not the brand that is promoted but rather the social that promotes the brand.

You have then created a sense of belonging with the statement "A Shirt For US!" A positive sentiment from a negative attribute; you have created a tribe from a shared physical attribute.  

Communities

The concept of "community" has always had two distinct meanings; one confined to living organisms and used by biology and the other referring to human beings.

As the term has evolved in its use in regards to the internet a hybrid of both meanings seems to be developing.  On one hand the concept of an online community is, like biological one that defines a group of living organisms that share a populated environment and on the other a group of interacting human beings that share some common values and enjoys social cohesion.

With the internet I think the key is to determine how one turns the concept of community from the biological definition, or as nothing more than living organisms that share the internet to one that involves human beings with common values and social cohesion; from a petri dish to a neighborhood as I like to describe it!

The long term success of virtual communities will be predicated upon their ability to create a social cohesion; at some point large virtual communities will have to become federations; on line communities start from the top down and at some point their success will depend upon their ability to transform themselves into the opposite. The appeal of communities in the physical world is that they are personal because they all start from a basic unit; the family.  From families neighorhoods are created, from neighborhoods comes towns and cities, from there come states, then regions and nations.  The whole concept of social circles grows from the most familiar and intimate to the least.

Loyalty to the largest social circle starts from the loyalty to the smallest.  If you look at Facebook, we know it is huge, with something like 700 million users, and it is overwhelmingly a success story.  But its success is not really due to anything it has done as much as it is due to the fact that users have actually met, face to face, with 89% of the people who they are "friends" with.  Thus, loyalty to Facebook is actually loyalty to the individuals who make up our social circle on Facebook.

I know one company that was a pioneer in the concept of communities and consumer centric business models.  They have a community that includes millions of like minded individuals but when I go and track their physical communities I note that they have 363 and the vast majority of them are congregated in urban areas and their largest community has 137 members.  

Well, some real quick math makes it obvious that they actually are a community of 22,000 (363 communities with an average of 60 members) rather than 1.5 million.

Of course they want to expand their 1.5 million by going international, and they should, but they need to also step back and realize that their long term success will be based upon increasing their 363 geographical communities, or their physical communities, rather than globalizing their petri dish.  Communities are just as much about vertical growth, or the depth of penetration, as they are horizontal, or overall size.

Looking Forward, Reaching Back

I received an email last night from an acquaintance yesterday in regards to apparel retail, the internet, and change; it was something circulating among a group of research fellows for an investment advisory group based in New York City.

They were discussing the 'fact' that there had been an assumption that with the advent of the internet apparel had to overcome the the hesitation of consumers to buy clothing sight unseen.  I was shocked, because being in apparel, having studied apparel retail for over 20 years, and being a cheerleader for the internet since 1996 that I issue was one that I have never once stopped to think about.

It dawned on me that that might be a legitimate issue in New York City but for the rest of the country that was never an issue.  The reason for this is because the rest of the country has a long history of buying apparel sight unseen;  those of us who remember receiving a Sears and Roebuck, Montgomery Wards, JC Penney catalog and or the myriad of other specialty catalogs that existed understand that buying clothing from a picture was not a novelty but rather a long standing tradition for a vast majority of Americans who are over 40.

I remember my sisters having slumber parties with their friends where they would sit with the JC Penney catalog and explore the new fashions or my mother thumbing through the JC Penney catalog much like folks today watch HGTV to find new ideas to decorate old rooms.

Realistically, the whole concept of brands came about because we were shopping sight unseen and a brand name represented a reputation for value and dependability;  Craftsmen tools, Kenmore appliances all were names you could trust.  JC Penney was popular in the 1970's because it represented "fashion" while clothing from Sears was old fashioned....pity the poor kid who's parents bought their clothes from Sears!

Sometimes we get so wrapped up in the concept of change that we tend to forget that some change is nothing more than a reconnecting to tradition, or a return to long known, well established principles.

The internet is not a threat to apparel retail but rather the exposure of the fact that they have lost sight of one major underlying principle of retail;  define your customer, your market, and serve them.  Retail can embrace the internet in a variety of ways but it will not assure them a future unless consumers can find a reason to embrace them.  Until department stores can rekindle the reputations they once had they will continue to be irrelevant;  you have to have a reputation, your name has to stand for something, or you will just be lost in the shuffle.

Retail has never been about how one shops but rather always about why one shops and what one shops for; we have lost sight of this basic principle over the course of the last 30 years of massive consumption fueled by easy credit; its not the internet that is a threat to malls and brick and mortar retail but rather the financial crash of 2008 that has fundamentally changed consumerism and retail.

Of course the innovators of today will hype the internet and social media as change because the reality is their sense of history only goes back about 30 years and thus, in a way they are changing their world; but realistically, they are not so much changing the world as much as they are returning the world of retail to its roots.

The concepts of 'community,' 'branding,' and 'social reputation' are all age old terms in the world of retail;  The reality of Web 2.0 or consumer centric business models really is nothing more than reaffirmation of the ideas that, "...the customer is always right" and or "...have it your way...."

The key for the future of any internet based apparel line is reputation, brand, service, and value; but do not confuse the concept of value with low cost, but rather think of value as being a perception of getting more for ones money.  Eventually even the most successful community based companies of today will have to transition themselves to a brand;  before Threadless there was Jimmy Buffet, who has been transforming  communities of "Parrot Heads" into successful brands such as Caribbean Soul and Margaritaville for 30 years now!

Facebook, Community, and the Deconstruction of the Internet

The chart on the left has been quite the sensation around the internet the last few days and the article that accompanied the chart is also very interesting in its insight. 

A very simple summary is that  Americans are dramatically increasing the time they spend on Facebook but that this increase in time on Facebook is now coming at a decrease in the amount of time Americans spend on the rest of the web.  I think that the article states it best when it says, "The Social Web Versus the Searchable Web."

Yes, the web as a social utility has won out over the web as search and educate, but I think that where most people are missing the boat is that while the web is shrinking, so is our definition of community.  In another study just released, 89% of the friends that we have established on Facebook, we have met more than once in person.

Can't help but wonder, particularly in light of the belief that the web was going to change the world, change the way we live, and how we see the world, if the reality isn't that once again the old adage, the more things change the more they remain the same isn't true?

It also makes me realize that maybe my post from the other day is something that I need to develop and sell to some venture capital firm; I just might have stumble on the next multi billion dollar idea!

Maybe people are overwhelmed, maybe they are just recoiling from the constant bombardment of information, and they have retreated to the familiar; to the comfort of friends and family.

When you realize that cable news viewership is down, that Walmart is developing a "Walmart Express" in their attempt to cure their slumping sales and Best Buy has announced that they are going to begin renting space in their stores to other retailers, there obviously is a retrenchment from the excess going on.

Of course everyone is going to rush to promote themselves on Facebook,  now the focus will be on social media and "likes", rather than on search and "clicks."  But the reality is that isn't going to do a thing but make Facebook a really wild IPO in 2012. 

From my experience with Fan pages, ads, and promotions on Facebook, I would have to say that most folks use Facebook at work; the greatest results are between 9 am to 5 pm Monday through Friday.  Now, I have no idea if this is real data or just anecdotal but it would be interesting to see Facebook use vs. web use by time of day.  Then we have the development of programs such as Klout and Honestly which are being developed to help use identify who is trustworthy on the web but the reality is Americans are retreating to their comfort zone, of people they are retreating to communities of people they have met and know well; I think we are witnessing a "blowback" amongst internet users.

The future of the internet is scalability; users are going to only partake and consume new technology on a very slow and hesitant basis.  People want to connect but they want the security of a community.  From a retail perspective the concept of a consumer centric business model is critical; that gives the consumer a sense of belonging and fitting in.  Retail is no longer about discounts, emails, and advertising, but rather its about building a "Main Street" like relationship with the consumer; think Andy Griffith and Mayberry R.F.D. rather than Star Wars....

The brave new world of the internet has run into the age old desire for familiarity.  I think we need to start looking at the web from the perspective of sociology and psychology rather than from a perspective of marketing and tech.  Communities are not gimmicks, they are not ploys, but rather, like the theme song to the television sitcom "CHEERS" states:

Making your way in the world today

takes everything you've got;

Taking a break from all your worries

sure would help a lot.

Wouldn't you like to get away?

Sometimes you want to go

Where everybody knows your name,

and they're always glad you came.

You wanna be where you can see,

our troubles are all the same

You wanna be where everybody knows

Your name.

The future of the internet is not shrinking the world or globalization but rather one of re establishing a sense of belonging:  Its Main Street.

When An Online Community Becomes A Ghetto

We manufacture a brand of big and tall tee shirts that has amassed quite a loyal fan base, with consumers and retailers over the course of the last 20 years; when we added screen printed tees two years ago sales doubled.  When we tested going B2C via the internet we found our sales doubling again!  

I attempted to take every single telephone call from consumers over the last 10 years and I was fascinated to find out how far the big and tall consumer would drive to buy our shirts, I have heard numerous stories of how they still own the first shirt they bought from us 15 or 20 years ago.  I found out that their wives love how our shirts wash up and I was surprised  at the number of women who would wear their husband's shirts as nightgowns after their husband had bought new ones.  I was also surprised at the number of women who bought our shirts for themselves when we added long sleeve and a couple of fashion colors to our line; in fact, they accounted for 35% of our sales. 

I have retailers who claim that they have customers that only shop at their stores because of our shirts and if they are out of stock then their customers walk out!  I have one elderly woman who buys her son 6 new shirts every month; she will not place her order on the internet because she doesn't trust the computer with her credit card, which she will only share with me!  I have doctor in Germany who buys 20 white tee shirts every three months; he must be one big surgeon!

That is a foundation from which to build a 'sized centric' community! 

Of course, as I am seeking investors to grow the business, I am constantly reviewing what other companies are doing to determine what innovations could benefit our niche in the future.  Since our basic product line is big and tall tee shirts, that we can also screen print, the idea of providing the big and tall consumer the same opportunity that Threadless, Cafe Press, and or Custom Ink offer regular sized consumers is obvious.  To look at Bonobos and realize how they have added product to their basic line, makes the concept of big and tall sunglasses, hats, and sandals logical.  As I am big and tall I know that hats, sunglasses, and sandals are impossible to find and they fit so well with our basic line.

In a six month period with nothing more than social media, and a direct mail of 5,000 postcards we built up a community of 67,000 consumer addresses; of which 87% are now purchasing 5 shirts on average twice a year; 10 basic tee shirts at a minimum of $17.50 each! 

That is a foundation from which to build a 'sized centric' community! 

So then I find out that companies such as ShoeDazzle, Jewelmint, and now Beachmint have redefined the concept of 'community.'  Apparently, now the concept is something you develop and then herd into a buyers club, where for a monthly membership fee you are offered a predetermined style of goods which you have automatically purchased unless you request not to purchase that month within a time window.  Or, from the Jewelmint website:

"Your credit card will not be charged until you make your first purchase! After you make your first purchase, you can always click "skip this month" in your Showroom from the 1st to the 5th of each month to avoid the $29.99 membership charge. This charge will add one credit to your account which may be redeemed for any piece of jewelry in our collection, at any time during the month."

I belonged to a record club in the late 1970's and I know that my neighbor belongs to Gevalia Coffee Club and I find it really hard to believe how much money folks are willing to pour into this concept!  In college, 15 of us decided to join a record club at the same time and within 6 months only one of us still continued their membership; with this type of business model you are not building a customer base as much as you are churning one and hoping that you attract more new members every month than you lose.  After six months in the coffee club my neighbor has threatened his coffee club customer service person if they mail him one more month's worth of coffee and that was two months ago!

Reading the consumer reviews on Facebook for Jewelmint, the concept, the product, and the customer service, I realize that the concept of 'community' has become a ghetto!

Over 20 years our brand has never experienced returns of more than 1/10th of 1 percent of sales!  Returns at Jewelmint have to be averaging 20%!  We sell a basic commodity which have no "fashion" and or "season" and as such we have never had to clearance sale anything; I am not real sure how one would deal with the fact that at anytime 20% of your inventory is floating around in the return system especially in light of the fact that your "selling" season is only one month.

Herd young ladies into your club with low cost product and the idea that you tailor their product offerings through your "style guide" and you have turned the concept of community into that of a ghetto!

I cannot help but wonder how many of these young ladies are actually old enough to have their own credit card and or to have a credit card with much of a credit line?

Not all change is a good idea and not all innovation is worth implementing.  I think business has to be sustainable and scalable thus I will focus on building our loyalty card program, our tee shirt of the month club, and try to figure out how to expand into Canada, Europe, Russia, and Australia in a manner that makes the shopping experience for our consumers a pleasant one, and makes the shipping of the product not such a nightmare for us.  Then of course I have the consumers in Singapore....