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Sparkfly delivers the “endgame solution” for offers redeemed at point of sale

Thursday, February 9th, 2012

Catherine Tabor

Catherine Tabor, CEO, Sparkfly. Sparkfly is one of 60 innovative firms presenting at the upcoming Southeast Venture Conference

By Allan Maurer

Merchants and manufacturers spend billions annually on offers and promotions such as coupons, daily deals, online banner ads, sweepstakes, and more, but all have shortcomings, says Sparkfly CEO Catherine Tabor.

Founded in 2001 in Atlanta, Sparkfly was an early player in the electronic offers and promotions business, initially providing employee discount platforms to large firms such as Coca Cola and SunTrust and to Emory University.

That business grew covered a million employees nationally and $3 million in annual revenue, but Tabor says merchants in the company’s program really wanted to know what employees were doing once they came into their stores to claim a discount.

“I’ll partner with someone who can take these promotions to an in-store environment,” Tabor thought, but five years ago, “it didn’t exist,” she says.

After an “exhaustive search,” the company partnered with Softcard Systems, which had built a robust platform to track millions of high speed transactions, and built its new technology on top of that platform.

Raised capital for acquisition and platform development

Previously, Softcard had been tracking sales of sugar and flour and other packaged goods at grocery stores, but, Tabor notes, “it could just as easily track movie ticket sales or anything else.”

They were on their way to the “Holy Grail” for retailers, understanding their customers at the point-of-sale.

Sparkfly bought Softcard Systems in 2010, raising an angel investment north of $10 million to fund the buy and platform development. Development of its platform is now complete.

Will present at Southeast Venture Conference

Sparkfly is among 60 innovative technology firms presenting their business plans to venture capitalists and angel investors representing billions in capital at the upcoming Southeast Venture Conference in Tysons Corner, VA, Feb. 29-March 1. The company is seeking its first institutional round.

With the world going mobile, marketers have the ability to reach many more consumers, but they need ways to tie their promotions to actual purchase data.

Sparkfly sells a cloud-based solution that enables creation and distribution of personalized offers via the web and mobile devices that will be redeemed at point-of-sale. The patented technology does not require additional in-store hardware or software.

Owning redemption at POS

The product creates a dynamic code tied to buyers redeeming offers which zips back to its servers for authentication and tracking. It then unlocks any new offers to that buyer.

“What we’re trying to own is redemption at point of sale.”

graphicThe system also can connect online advertising to brick & mortar redemption of offers, which is often the missing link in tracking ROI for online advertising.

Retailers and manufacturers can customize promotions based on individual purchase behavior to deliver and manage offers for specific products by location, time of day, and demographic variables. Customers can receive their offers via social, mobile, or web channels. Tabor says it leverages existing infrastructure in POS environments and adapts easily to multi-lane or multi-store operations.

It has integrated with POS providers, including NCR/Radiant, MICROS, Gilbarco, REtalix, IBM, POSitouch and Verifone. The company holds 16 patents with other pending.

Sparkfly is also testing its new integrated platform in pilot runs with several large brands.

The company gets paid for performance – by transaction.

It’s continuing to integrate its software with merchants, consumer package goods manufacturers, and publishers.

Tabor points out that while daily deals and online discount offers are a big business, it’s expensive to be a Groupon or a Foursquare – businesses that required hundreds of millions in startup funding.

“We have the opportunity to make all those businesses more viable,” says Tabor, “tracking people within those networks through point of sale, which provides an opportunity to reward frequent buyers and loyalty rather than just giving someone you’ll never see again a coupon.”

Sparkfly is starting a pilot program with its first national merchant, Auntie Anne’s (the pretzel chain) in the Atlanta market during February.

Firefox losing the browser wars to Google’s Chrome

Friday, September 30th, 2011

By Allan Maurer

Google ChromeGoogle’s Chrome browser is poised to grab the number 2 browser rank from Mozilla’s Firefox, and I’m not surprised.

Do you use Mozilla’s Firefox browser or Chrome? I switched to Firefox from Microsoft’s Internet Explorer years ago, because at the time Firefox was faster and its add-0ns made lots of online tasks quicker and easier. Now, however, I find Firefox seems to have bloated to the point where it has as many, if not more problems than Explorer.

Not infrequently, when trying to reopen it, Firefox delivers that “Firefox is still running” message that more often than not requires restarting a computer. It is certainly slower than Chrome and will just freeze up for a second or two at times for no obvious reason.

I still like it’s add-ons and changing browsers can be a pain once they’re set up to suit me – particularly if you work online as I do.

Chome may overtake Firefox by December

Apparently, I’m not the only one doing more of my work (and play) via Chrome rather than Firefox (though I still haven’t switched entirely, despite considering it). StatCounter, the Irish firm that tracks browser use, shows that Chrome is on track to surpass Firefox by December.

In the first week of September (2011), Chrome boasted a 23.6 percent share of the browser market, while Firefox had 26.8 percent. Internet Explorer, for all its faults, still the dominant browser (and according to recent tests, the most secure, h’mmm) had 41.7 percent. Now that Explorer has adopted many of the best features of both Firefox and Chrome, it may be time to give it another try. Is it still suffering from the bloat that slowed it down and caused browser crashes?

Still, Chrome is gaining users so quickly, it wouldn’t be surprising to see it overtake IE. It gained eight percentage points since January, up 50 percent.

Fireforx and IE both dropped 4 percentage points in the same period – obviously losing them to Chrome.

If these trends continue unabated, Chrome will pass Firefox by December.

So just what the heck happened to Firefox, anyway?

Even going by the different numbers measured by Net Applications, which pegs Firefox at a 22.6 percent share and Chrome at 17.8 percent, the pace of Chrome gains means it would bypass Firefox by mid-2012. Net Applications figures include the massive Chinese market.

So just what the heck happened to Firefox, anyway? Among other things, it seems to update every week or so, generally disabling a handful of incompatible add-ons every time (including a security plug-in). Lately, it will just stop loading new sites while I’m working. Earlier this week I had to grab the urls and move them to Chrome when it did that.

A Google search showed that others were having similar problems. Chrome, on the other hand, updates silently and without causing any troubles – so far.

At our recent Digital East conference in Tysons Corner, VA, one app development expert noted what should be obvious: software products have work well and if they don’t, people find something else – fast.

I’m not crazy about everything in Chrome. I’m used to finding the new tab button on the right, not the left, and I haven’t mastered all its eccentricities yet, although I will in short order if I finally make Firefox (or Explorer) my secondary browser and use Chrome as my primary one. I just hope they don’t, over time, junk it up to the point where it’s advantages disappear as they have with Firefox.

 

 

Unique visitors to Tumblr rocketing upward, half under 34

Friday, September 23rd, 2011

TumblrThe social blogging site Tumblr has seen its unique user base soar in the last year, gaining 183 percent from May 2010 to May 2011, according to the Nielsen Co. “State of the Media: Social Media Report Q3 2011.

Nielsen says Tubmbr enjoyed 11.9 unique visitors in May, up from 4.2 million just a year ago. The site averages 21,280 messages and links posted daily.

Tumblr surpassed the number of blogs hosted by WordPress in June. It currently hosts 29 million blogs.

Just over 57 percent of Tumblr user are under the age of 34.

Tumblr is very visually oriented. Its easy-to-use system also makes it ultra simple to reblog posts from those followed on Tumblr.  It hosts many fashion oriented blogs, personal blogs, food blogs, many film or film star focused blogs, media outlets galore, and a significant number of porn blogs.

It can be searched by tags and users can place tags they follow (such as “tech” or “business” or “news”) on a sidebar of their dashboard. Many users create multiple blogs and it is very easy to follow other blogs, although not so easy, always to find individual users or blogs as one might wish. Like most social networks, users do a lot of carping on the site about how it does or does not work, changes and so on.

EMarketer speculates that as more marketers join the site and figure out how to use it best, it is poised to become a major player in the social space, which some would argue, it already is.

We enjoy Tumblr, which makes it easy to scroll through many blog posts from a huge variety of sources in a minimum of time, stopping where interest clicks. We’re not sure how good it will be as a marketing vehicle, but it provides a way to reach a substantially young audience with the right type of dynamic, visually oriented content.

It’s uniquely effective for visuals, from photographs to inforgraphics. –Allan Maurer

 

Want to monetize social media: hook users on achievement

Wednesday, September 21st, 2011

Rogelio Choy

Rogelio (Ro) Choy - COO, Formspring

By Allan Maurer

A few years ago, the idea of paying for virtual goods online with real currency seemed outlandish to some. “It blew people’s minds,” says Rogelio (Ro) Choy, COO of the question & answer social site Formspring. But game companies such as Zynga, creator of Farmville, among other popular Facebook games, are successfully using that model.

Choy is one of dozens of Internet mavens, social media experts, marketing gurus, venture capitalists and entrepreneurs participating in the upcoming Digital East conference in Tysons Corner, VA, Sept. 28-29.

He’ll be discussing how to monetize social media efforts. He’ll address display advertising, brand advertising, performance advertising, social currency, mobile advertising and virtual currency. He’ll discuss each in some detail based on what he’s learned in a career packed with social media experience.

Choy was previously the CEO of Peerpong, a Q&A service using NLP/semantics for identifying interests and knowledge from social streams. Prior to Peerpong, Ro was Chief Revenue Officer for RockYou and responsible for leading all the business efforts for the company and Director at eBay Motors, leading the online parts business. Prior to eBay, Ro co-founded Cima Systems, a leading VOIP software provider for auto dealers.

Advisor on social media

Choy serves as an advisor to a number of social media focused startups including Applifer, Nanigans, Wildfire Interactive, Project Slice, Adnectar, 500 Friends, Guestmob, Facepad, Replybuy, J2Play, GamesthatGive and Groupcard.

We asked Choy to elaborate on using virtual currency to monetize social media.

“It’s a completely different way of imagining how people can make money on the web,” Choy says. It works because making social media platforms such as Facebook an intrinsic part of the game dramatically reduces the cost of acquiring customers.

In 2011, according to eMarketer, Choy notes, “27 percent of all Internet users were social gamers of some sort and 42 percent of all social networkers play games. In all 62 million people are playing social games of some sort. So a lot of people are playing games in a social network and buying certain types of virtual products.

Those virtual products are consumables tied to achievement in the games, not permanent objects, usually, Choy says.

Hooking people on achievement

“It’s the concept of hooking people on achievement within the broader concept of gamification. You get people used to making short goals,” Choy says. Then you present them with a longer, more difficult goal they may wish to attain, but they may lack the time to complete and want to speed up the process. “That’s where you monetize.Once they’re hooked on achievement, then you charge.”

The concept can be applied to anything, content, e-commerce, any experience that’s social in nature and involves friends, Choy adds.  “Where people want to surpass time or material constraints, that’s where you monetize. Build achievement into how you think about offering your products or services on social media platforms.”

Choy says there are compelling opportunities in brand and performance advertising, social commerce and mobile marketing as well. Social commerce, for instance, “Is probably the least developed, but potentially the most compelling,” he says. We could tell from our interview that you’ll be hearing practical ideas that will get the gears of your mind cranking.

 

Atlanta firm offers $10K bounty for IT talent

Tuesday, September 20th, 2011

By Allan Maurer

David Cummings

Pardot CEO and co-founder David Cummings looks out the window of the company's 33rd floor offices in Atlanta.

ATLANTA – Unemployment may be a major problem generally in America, but many high tech companies are nevertheless struggling to find just the right talented IT engineers.

So, while the IBM’s of the world are laying off staff, Atlanta’s Pardot, which sells a marketing automation platform that helps businesses track, score and nurture leads, is offering a $10,001 bounty to anyone providing a talent referral that works out.

Pardot, which currently has about 60 employees, offers great benefits. “We pay 100 percent of healthcare premiums, which includes dental care, match 401k contributions, cater lunches on Friday’s and breakfast Mondays,” says Pardot co-founder Adam Blitzer. Blitzer co-founded the company with David Cummings.

The company is looking for people familiar with Software-as-a-
Service (SaaS) and Web apps. But, Blitzer adds, “We’re a small company. We all wear a lot of hats and work with each other closely. The toughest part for us is finding people who fit into our unique, quirky culture.”

Adam Blitzer

Adam Blitzer

Helicopter high

Pardot is located on the 33rd floor of the One Atlanta Plaza building, where you can just about look weather helicopter pilots in the eye. It shares the generous space with Hannon Hill and Shotput Ventures. For a look at the “unique quirky culture,” see “A Dizzying View from the Top.” The offices include such amenities as a telescope, a pinball machine, a ping pong table, a gong, a telescope and a “culture book.” It is reminiscent of the heady days of the Dot Com boom at the beginning of the century.

But that culture also includes an attitude. “They need to be positive, self-starting, and supportive. A positive attitude (or its lack) comes right out in an interview,” Blitzer says. “You would be surprised how many applicants bad mouth former employees, complain or come off negatively. If they’re that way in a job interview, what would they be like to work with?”

Blitzer says the company is offering the extra dollar of the $10,001 bounty to set it apart from a similar offer by a Seattle company. The idea, Blitzer says, “Is that instead of working with one or two recruiters, we want to accelerate the process by tapping into the community. We have always offered an internal bounty for finding talent, and we wanted to make that external and see what we get from making everyone a recruiter for us.”

Blitzer says a strategy like that probably would not have worked before the advent of social media such as Twitter and LinkedIn. “They make it much easier,” he says.

The bounty offer will run indefinitely until the company “Can’t hire anyone else,” Blitzer says. “We’ve been growing faster than we could hire. Ideally, just in engineering, if we could hire two a month for the next five months, I’d be happy.”

Interested? Email jobs@pardot.com.

 

Should app developers put more focus on low income groups?

Tuesday, September 13th, 2011

Ken Eisner

Ken Eisner

By Allan Maurer

Not many tech products or services target the low income consumers, although it is a large and growing segment of the U.S. population. But says Ken Eisner, vice president for Policy and New Business Development at One Economy Corp., there are a number of reasons why the smartphone and app development industry should focus on that group.

Eisner plans to elaborate on this idea at the upcoming Digital East Conference at Tysons Corner, VA, Sept. 28-29.

For one thing, Eisner points out, “Some of these populations are expanding the use of a smartphone as their primary way to access the Internet.”

He notes that a recent Pew Internet study showed that 87 percent of African Americans and Latinos own smart or featurephones and are more likely to take advantage of a wide array of phone data functions. They send as many as 200 more text messages a month than whites consumers, for instance.

Maximize profits while doing social good

Corporations could maximize profits while doing social good by targeting these lower income groups, Eisner says. But right now, “There is no focus on this group. There is no pricing oriented to them. And there are not enough apps developed for it.

“Look at app stores, you’ll see things created specifically for this group. Apps to monitor diabetes medication, or how long you have to wait in line for a government servcie, or how to file for earned income credits. But too few are developed. Most developers in Silicon Valley don’t have much contact with this group. They have no knowledge of the need. They have the notion there are no business models to be built around it.”

To help remedy that situation, One Economy has developed the concept of apps for social good, with a focus on apps for health, education and civic participation created especially for this group, Eisner says.

In June, the company and AT&T disclosed winners of its first App for Good contest. The grand prize winner was Brendan McBride and his colleagues from New York City, for their application “Remás.” The team received $10,000 to continue the development of their “app” that enables users to find the lowest cost overseas money transfer option closest to their location.

Other winners and their prizes include:
• Ysiad Ferreiras won the $5,000 Health prize for his application, SnapFresh,
which helps food stamp recipients find healthy places that accept Supplemental
Assistance Nutrition Program (SNAP) payments (formally known as food
stamps).
• David Simnick and Daniel Doll won the $5,000 Education prize for their webbased
application, TalkChalk, which leverages the power of social gaming and
networking and applies it to how students learn.
• Nick Jacobsen won the $5,000 Banking prize for his application, MobileSaver,
which is a mobile web portal for the management of an Individual Development
Account.
• Robert Hellestrae won the $4,000 Gaming prize for his app, Nutrition Missions,
which introducers users to delicious, nutrient dense foods by completing steps of
varying difficulty through fun and healthy “missions.”

Other opportunities

Others opportunities for marketing to the low income group would be apps around the jobs market, considering the current unemployment situation, says Eisner. “There is also a great opportunity on the banking side,” he adds. “Sometimes we need to take our cues from abroad, where mobile banking and mobile payements became a fantastic business.

Eisner plans to go into more detail about how to approach this group at Digital East.

“From the One Economy viewpoint, it’s better to hit some true needs (with smartphone app development). Instead of just looking at the top of the pyramid, try to solve bigger problems such as those banking and mobile payment issues or new forms of communication that focus funds at the lower end.”

 

 

TechCrunch disrupted: What’s up with Arrington and AOL?

Wednesday, September 7th, 2011

Michael Arrington

Michael Arrington

UPDATED – The first time we saw Tech Crunch leak a memo from inside AOL and discuss it as frankly as it would any other business story, we figured it would only be a matter of time before AOL and Tech Crunch disrupted each other’s day.

Now, Fortune is reporting that AOL fired Arrington, leading to speculation that TechCrunch could lose other contributors and its position as a leading tech blog. Personally, it seems less nuanced and more colorless already.

AOL bought Tech Crunch about a year ago for $25 million and promised the snarky site founded in 2005 by Michael Arrington editorial independence. Last week Arianna Huffington fired Arrington from his own site when he formed an investment fund (the Crunch Fund) with AOL. That led to Arrington issuing an ultimatum to AOL. Now we’re not entirely sure if Huffington was trying to maintain TechCrunch’s editorial independence or if Arrington is.

Large corporations such as AOL and the executives who run them do not always realize that legitimate news operations treat their own corporate masters the same way they do any other corporate masters unless someone brings a hammer down.

Now don’t get us wrong, journalists are not free of influence, no matter how hard they try to be, and lots of folks beside AOL take issue with the way Tech Crunch covers (or doesn’t cover) some stories.  We recently saw an entire stream of complaints about it in threads on Google+. But TechCrunch, up to now,  maintained an independent voice – whether we like it or not.

As a journalist with 35 years of professional experience spanning daily newspapers, major magazines, books, and thousands of news and feature articles for online news outlets, I’ve seen this news vs. corporate values battle play out many times. One of the primary difficulties is that the players really do often have vastly different value systems. Executives of public companies are charged with creating shareholder value and producing profits, not with guarding the independence of a news organization.

Editorial Independence

Traditional journalists have a completely different value system based on creating and retaining the trust of their readers, which requires that much discussed “editorial independence.” Admittedly, in today’s world, advocacy journalism, particularly on TV and the web, have become increasingly dominant. And, certainly, many people a journalist covers would prefer that only one voice be heard.

A source for a Tech Journal story about municipal cable systems we did once, asked us, “Does this have to be another ‘he said, they said,’ story?” Well, yes.

Any way, last week, AOL brought that proverbial hammer down on TechCrunch, although it’s hard to tell which side is really fighting for editorial independence.

In a memo about the site’s editorial independence, Arrington wrote:

“As of late last week TechCrunch no longer has editorial independence. Some argue that the circumstances demanded it. I disagree. Editorial independence was never supposed to be an easy thing for Aol to give us. But it was never meaningful if it shatters the first time it is put to the test.”

He proposed two options to AOL: reaffirm the site’s editorial independence and autonomy from the other top AOL editorial property, the Huffington Post, or sell TechCrunch back to its original shareholders.

The real question, despite the objections of the TechCrunch staff, may be whether or not the site can deliver real objectivity, with or without Arrington, and others are whether the investment fund deal with AOL (or his other investments) comprises his independence on TechCrunch. What do you think?   –Allan Maurer

The Tech Crunch post on the Arrington/AOL affair:

Is this the end of Tech Crunch (as you know it?)

The LA Times tells the story this way:

Tech Crunch Founder Michael Arrington Issues Ulitmatum to AOL

Arrington’s proposal (ultimatum?) to AOL

Michael Arrington trying to buy back TechCrunch

 

 

Tumblr near $100M raise at $800M valuation

Friday, August 26th, 2011

TumblrThe popular blogging service Tumblr, which hosts more than 27 million blogs, many of them photo or graphically oriented, is about to close on a funding round of from $75 million ot $100 million, according to the Wall Street Journal.

The WSJ pegs the company’s valuation at $800 million, which may not rock the Facebooks and Groupons if the world, but does show that companies can attract significant funding without making money if they have large enough audiences.

Tumblr raised $30 million in 2010 from Sequoia Capital, Union Square Ventures and Spark Capital and a total of about $40.2 million. Teh WSJ says Graylock Partners, an investor in Facebook and Groupon, as an investor in the new funding round.

The service has exploded in popularity this year. Tumblr, which employs 50, had 13.4 million unique visitors in July, up from 6.7 million in December, according to digital measurement service comScore.

We just started using Tumblr recently. About 20 percent of Tumblr blogs are fashion oriented and it include numerous other visually focused blogs, including those of porn starts and amateur nude models.

It has features that can make it addicting: you scroll easily through the blogs you follow with a mouse wheel and it’s very easy to reblog posts. You can “track” subjects such as film, technology, or Game of Thrones, say, and scroll through all the posts on that topic. It only takes a click on a blog’s “follow” button to start receiving its posts. Posting is also a quite painless endeavor.

All in all, we find it pretty easy to kill a couple hours scrolling through Tumblr blog posts.

Text posts do not seem to draw the attention or “notes” that visual blogs do, but we’ve found specific blogs and posts exposed us to stories, ideas and images we would have otherwise missed. We particularly like the “Future of Journalism Project” blog, which touches on many topics we cover here, such as social and digital media.

We’ve noticed people complain regularly about changes to the Tumblr service, to bloggers reposting items without attribution, and the other social media carping that we hear also about Facebook, Twitter, and LinkedIn (although less so about LinkedIn).

We suspect Tumblr is about to become the social network everyone talks about for a while. It’s not a Facebook/Twitter killer or a Google+ competitor so much as it may be competition for Blogger and to some lesser extent to WordPress. — Allan Maurer

 

 

Devising Killer Facebook ads: target more than the bullseye

Monday, August 22nd, 2011

Marty Weintraub

Marty Weintraub, CEO of aimClear, author of "Killer Facebook Ads"

By Allan Maurer

The current buzz says that brands should not be selling, selling, selling on Facebook, but rather, building community. While there is definitely truth to that, “We’ve sold hundreds of millions of dollars of products on Facebook,” says Marty Weintraub, CEO of the online marketing agency aimClear and author of the new book, “Killer Facebook Ads.”

His agency has managed Facebook ad campaigns generating over 10 billion impressions internationally. Client credits include MarthaStewart.com, Siemens, Second Life, Budget Direct, and other global brands.

He’s written extensively for respected Internet marketing trade publications including SearchEngineWatch, SearchEngineLand, SearchEngineRoundTable, and been quoted in many others.

The aimClear Blog (aimclearblog.com) has been cited as among the Technorati Top 10 Small Business Blogs, Cison Top Ten Social Media Blogs, PRWeb’s 25 Essential Public Relations Blogs You Should Be Reading, and listed in the AdAge Power150.

Weintraub is one of hundreds of top Internet mavens participating in the upcoming Digital East conference in Tysons Corner, VA, Sept. 28-29. He’ll be talking about demographic targeting on Facebook, particularly targeting by occupation.

More than 20 billion Facebook impressions

Weintraub has a wealth of experience to draw upon. “We’ve been doing Facebook ads since 2007,” he says. “We’ve served more than 10 billion impressions on Facebook.”

People who say they can’t meet their goals on Facebook “have the wrong goals,” Weintraub says.

The first thing anyone who plans to buy Facebook ads should consider, he suggests, is “Understand what you get free and what you have to pay for on Facebook. That’s really important.” The site monetized its viral elements, he says.

Second, he says, “Understand who your customers are.” To do that, he says, use the Facebook Paid Advertising tool. Facebook will let you drill down to very specific sets of demographics – people 51-54 in the U.S. Midwest interested in Popular Mechanics, say.

“Use screen capture to find out who your customers are,” says Weintraub. He points out, however, that just targeting the bullseye in not enough.

Keep an open mind about other interests

Someone interested in tennis is the obvious choice if you’re selling tennis rackets. “But,” Weintraub asks, “Can I get them interested in water bottles or fuzzy wrist bands? If they’re 58-61 and live in New York, can I interest them in the New York Philharmonic subscriptions? You have to have an open mind about their other interests.”

Then, take action. “You have two options, serve them ads or chat with them,” he explains. So you’re goals will be to sell things, or to get them to like your Facebook page or provide information.

The selling itself should take advantage of the medium, Weintraub notes. If you’re trying to sell radically new MRI technology to a neurology surgeon, you don’t advertise, “Radical new MRI equipment.” Instead, “You go, ‘Because it’s so sad when children die of neurology disorders,” with a photo of a grieving parent. “The person clicks through with an emotional connection,” Weintraub says.

Then you don’t take them to a landing page that shoves a form in their grill. You take them to a story about how the equipment saved a kid’s life.

“Don’t look just for literal targeting. If you’re selling organic cereal bars, look for people into sustainable living, recyling, and the environment. If you just target for organic cereal bars, you won’t have that much success. People are too literal in association sales.”

Be likeable

Another type of association to look for is competitive, where you target positive or negative sentiment toward a competitor’s product. That’s where you sell Xooms to people who say iPads suck.

You have to provide content that actually matters to the Facebook user, he says. “You have to play, ‘Now you’ve got me right where I want you.’ But you have to talk to them respectfully. If you’re crude, you’ll turn off the Facebook user.”

Even if all you’re trying to do initially is to build a Facebook fan base, he says “You have to offer something that matters to people for them to like you. The best way for someone to like you anywhere is to be likeable.”

 

Use social media to create a “halo effect” of excitement around your brand

Thursday, August 18th, 2011

Jamie Grove

Jamie Grove of Thinkgeek.com

By Allan Maurer

WASHINGTON, DC – While tracking social media related to your business and participating in discussions is important, “You shouldn’t obsess over either,” says Jamie Grove, vice president of Evil Schemes and Nefarious Plans (aka Marketing) at ThinkGeek.com, the site where you can satisfy your geek lust with such things as pizza slicers shaped like Star Trek’s Enterprise.

Instead, when done right, social media create a “halo effect” around a brand in which customers create excitement around your brand.

Grove, who has worked online at places such as CompuServe before the Internet boom and as VP of e-commerce at Highlights for Children, has also been architect of several eCommerce websites and created iPhone apps, will talk about how retailers can use social media at the upcoming Digital East Conference at Tysons Corner, VA, Sept. 28.

Thinkgeek does things differently

“We do things a little differently at Thinkgeek,” Grove tells us. Once marketers “get hold of something, they tend to ruin it,” he says. “Most brands are trying to control the social media conversation. Many firms have poured resources into social media and now they’re scratching their heads trying to figure out how to make money from it. Our approach is more about participating in the community and celebrating it.”

That is a direction we’ll see more companies taking, he predicts, noting that it’s based on a really simple idea: treat your customers the way they want to be treated.

Slashdotted

A top 200 online retailer, Thinkgeek focuses on fun gifts and toys. The 12-year-old firm has revenue of about $100 million annually. The company describes its genesis this way on its website:

“ThinkGeek started as an idea. ThinkGeek started as a way to serve a market that was passionate about technology, from programmers, engineers, students, lovers of open source, to the masses that helped create the behind-the-scenes Internet culture.

“Three out of the four founding ThinkGeek members started an ISP in the Northern Virginia area way way back in 1995. We couldn’t afford Solaris, learned about a free UNIX-like OS, and spent almost an entire day downloading it onto over 50 floppies for installation on an old 486 laptop with no cd-rom (thanks Slackware!). After a few years with the ISP gig, the ThinkGeek idea popped into our heads, and, operating out of a spare room at the ISP office we setup shop and launched the site on Friday the 13th, 1999.

“A month or so later we were Slashdotted. Promptly thereafter, ThinkGeek was acquired by the good folks at Andover.Net who through an acquisition and a bunch of name changes, is now known as Geeknet. So we’re part of a cool gaggle of sites including slashdot.org, sourceforge.net, linux.com, and freshmeat.net.”

Grove says the first thing a retailer getting into social media needs to consider is “what are you going to talk about?” A lot of companies come out “blabbing about themselves all the time basically,” and that’s the wrong way to go. “People like to associate themselves with brands,” Grove says, “But they don’t want to hear about them all the time.

“Stop trying to use social media as an acquisition channel.” In fact, he says, company’s would be better off putting their social media into the hands of staff responsible for customer satisfaction rather than acquisition. “Put it in retention, not acquisition,” he says.

What brought the customer to you in the first place?

Be careful before you outsource your social media functions, he warns. “A lot of large firms outsource to PR companies or corporate communications. Those folks are not always in touch with your brand, so that may not be the best strategy. Find someone in your company who uses social media and is passionate about your brand. That’s the type of person you want handling your social media.

He suggests, “Think about what draws that customer to you in the first place.” In Thinkgeek’s case, he notes, “We’re a geeky company and we celebrate the geeky product line we sell. We share our geekiness with others. So, conversations revolve around topics such as “Star Wars,” or “Star Trek,” gadgets, computer stuff, or other things that bring its customers to the site. “Get into it,” he says. “Interact with followers. Point out other people in the community.”

Thinkgeek has done that with a variety of approaches. “We’re the granddaddy of Internet pranksters,” he says. “We create fake products. Last year it was a Playmobile Apple computer store.” Sometimes the company will actually makes and sells them if they’re popular enough, such as the iCade, a retro game arcade cabinet for the iPad it launched this year.

Grove says you should do as much tracking as you can, but don’t obsess over it. “We’re very heavily into paid search and affiliate marketing so it’s in my nature to collect a lot of data and analyze it. But don’t obsess. Build tracking in where ever you can.”

It’s probably a mistake to look at social media just for ROI, he notes. “When you’re really good at social media, you get a halo effect,” he says. “Social media sharing creates deep interest in a brand. People get excited about what you’re doing and share it, creating excitement around your brand.”