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Archive for July, 2010

Aided social media engagement

Posted by Kanupriya on July 31, 2010

Actually more than aided, I felt like writing “forced” social media engagement as a title for this post :) . Below anecdote is a real life example of two Indian e-commerce brands utilizing social media in different ways. For the sake of anonymity let’s call these brands as X & Y.

Brand X: An old and established e-commerce player in India which has got reasonable service level and till date as a consumer I have never faced much issues with it.

Brand Y: A new e-commerce player in the same industry but which has changed rules of the game completely in India and based on its service levels has managed to completely floor its customers. Lots of loyal customers (including me) of other similar sites have shifted their loyalty to this new brand Y mainly because of the consumer experience and customer service offered by this brand.

Brand Y being a new brand was already present on social media platforms but Brand X didn’t have any such strong online social presence. Now with all this hubbub of social media, fans on Facebook and followers on Twitter, X also decided to strengthen its fan base but instead of taking the straight route decided to take a shortcut and launched a promotion campaign which said – become our fan on Facebook and get Rs. 500/- worth of our voucher absolutely free. Mailers, messages and those standard blah blah blahs to promote this campaign went live. And as expected, their fan base started to multiply on an hourly basis…tens, hundreds and thousands…so much so that finally X decided to put a cap of first 5000 fans for their free vouchers. The brand was trusted and the promise made by the brand was loud & clear, to add to that this incentivization to consumers helped the campaign to achieve what it aimed at. Within few days only the fan base swelled to thousands. Now it was the time for customers to get their incentives but lo’ when the vouchers came it was not as fair as the campaign claimed it to be. Constraints applied were – the voucher was not valid for the entire e-store, there was a special section created to redeem that voucher and none of the products available there were less than 4 times of the voucher amount; the voucher was valid for hardly few hours; due to traffic on the server, website was going down often whenever one tried to redeem the coupon code and from such a limited catalogue,  lots of products of lowest price were marked as “sold”.

Well, didn’t take much time for customers to realize that this was just another marketing gimmick from this trusted brand and the voucher was just another trick to garner some fans and build up the metrics. And the decrement in fan base started to happen at a pace faster than what it had taken to build it up. Realizing the con, consumers started to quickly click “unlike X” and write negative comments about the brand openly on platforms like Facebook & Twitter. Not only X lost the chance to impress the new customers, it also lost the trust of loyal customers who had clicked on “like” because they had genuinely liked the brand. Fiasco, negative publicity and bad word of mouth far sooner than imagined by the brand!

X understood the harm done and decided to take some quick steps – they launched a better redemption store, better discounts and quick responses to all online grievances. But the fact remained that X’s customers were annoyed and the damage to the brand was already done.

And the status of fan count for both these brands as on today (almost 2 weeks after this promotion): While X is at a count of some 6k+ fans, Y is at a count of 1.06 lacs+ fans.

So, what would be quick takeaways w.r.to social media engagement from this case study?

  • Don’t jump into social media unnecessarily and that too without a proper thought through plan. A promotion which can work in other mediums may not work in this medium.
  • While social media is excellent for customer engagement but if things go wrong, it is an equally powerful medium for customer “disengagement”
  • You know that negative word of mouth on this medium spreads like fire! And why not, after all it’s in human nature to crib more than praise :) ?
  • Don’t incentivize your customers as tool for engagement, empower them and give reasons in terms of products and services for them to be engaged in your brand.
  • Number of fans or followers is not just yet another marketing metrics which can be increased through some formulaic route; let it grow organically as much as possible. The more natural positive progression it will be, chances of your fan base following a stable track will be higher.

Note: Why am I not revealing the names of brand X & Y? Well, first of all if you have been following Indian e-commerce industry on social media then I’m sure it’s not difficult for you to guess the brands I’m talking about. Secondly, earlier I used to like this brand X and since X tried to correct its mistake very quickly in this case, so I thought not to openly mention their name and generate another negative page about them :-)

Posted in Marketing & Media, Social Media | Tagged: , , , , , | 1 Comment »

Recent posts at Pluggd.in

Posted by Kanupriya on July 30, 2010

Have not updated my new posts on Pluggd.in here, so providing the links to some of recent posts at PI:

WoMM – The Evergreen Strategy for Free Marketing: “Word of mouth” marketing is an age old concept now and from bigger organizations to start ups, almost everybody wants to take this free marketing path. While some think that WOM is something which will happen on its own, some go ahead & incentivize their customers to spread the word and then there are some who take extreme steps of contracting paid outsourced help to create positive word of mouth for their brands. Despite this being “known-by-all” concept, how many startups are there who genuinely have been focusing on this free marketing route and targeting the consumers who can be influencers for fresh leads? Read More…

India to overtake China in mobile market by 2013 [Report]: As per a latest report by London based Informa Telecoms, India’s mobile subscriber base is set to rise to 1.159 billion by the end of 2013, thus making it the world’s largest mobile market. While India is poised to have phenomenal growth, the market in China is actually set to slow down. By the end of 2013, the number of active mobile subscriptions in China will be 1.106 billion. Read More…

Voice Blogging Service by Airtel – Voice is a Commodity: Bharti Airtel has officially unveiled its voice-blogging service now enabling Airtel subscribers to share recorded voice updates with their friends and family members. Read More…

Oyegirl.com – Online shopping portal exclusively for women: Joining the ecommerce trail now is Oyegirl – an online shopping portal for women. Though Oyegirl.com is yet another online shopping portal but this one is different in a way that it’s targeting only women and as their introduction reads – it is India’s first ecommerce portal exclusively for women. Read More…

Indiatimes launches HiBuddy, Voice Blogging Service: We had earlier written about voice based blogging service by Airtel. Now Indiatimes has introduced a similar voice-based social networking and blogging platform, called ‘HiBuddy’ for Reliance mobile phone users. Read More…

Facebook reaches 12 million user base in India: While Facebook crossed 500 million user base mark worldwide, it has also shown very positive growth in India and has touched 12 million mark as on yesterday. Users in India are uploading more than 53 million photos in a month and even mobile usage has increased nine-fold in the past year. Read More…

Consumer Confidence Index – Indians are Super Confident: While it was 127 in last quarter, it’s 129 for this quarter; Indian consumers remain most upbeat in the word despite food prices crisis at home and improving outlooks elsewhere. With a two point increase, at 129 points Consumer Confidence Index is the highest in India in the latest Nielsen Global Consumer Confidence Survey followed by Indonesia and Vietnam both 119 index points. While India is ahead for last two quarters, but up till Jan’2010 it was actually Indonesia which was topping the list. Read More…

Posted in Internet Marketing, Marketing & Media, Web 2.0 | Tagged: , , , , | Leave a Comment »

Ebooks booming globally but print yet to stay in India

Posted by Kanupriya on July 28, 2010

In my last post itself, I had written about ebooks picking up faster than estimated internationally. But as I had thought, the trend of physical vs. ebooks sales does not seem to be following the same curve in India. Here is an update on e-book industry in India which came in press recently – Craze for ebooks yet to catch on in India

So, Indian publishing industry is still gung ho about the printed books only. Despite the prices being dropped in India, Amazon Kindle has managed to sell only 2000 numbers locally which is very meager if we compare it with overall Kindle sales globally. We even have a more economical version of ebook reader ‘PI’, but even there the sales do not seem to be impressive enough to give reasons to publishers to launch digital version of their books.

Predictable, isn’t it? Despite being so heavily into digital medium,for everything else, somehow as a consumer this whole digital book stuff and a separate device to read such books always leaves me wondering on the feasibility of overall ebook industry in India on a larger scale. Not that it would never pick up, in fact Indian consumers are undoubtedly the most unpredictable ones, but I think digital book adoption is still years away as far as Indian market is concerned. Now think of these points:

  • In a market which is so heavily dominated by movies or books piracy and considering the price conscious mass consumers of India, isn’t a separate device and that too of minimum Rs. 10k to read digital books a difficult blockage for e-book adoption?
  • Even if you buy one and the device needs internet connectivity, then where are such easily accessible connections for you to download the books on the go?
  • I’m not even sure how many consumers actually pay for original copies of printed books in India? Will this digital version of the books actually accentuate the chances of digital piracy?
  • Will it help if text books are launched as digital versions in some high end schools for better market penetration in India?

Don’t you think that as far as this industry is concerned, the buying behavior of Indian consumers will take some time to change and adapt to the digital world? Well, ebooks are definitely outselling physical books globally but from the current state of this market in India, seems like print industry is definitely going to stay for some time now. And I’m happy for the same because as I always say, I prefer to read books (esp. fiction ones) in a printed book format only :-) . Thank god, Indian consumers like me don’t need to worry about changing our consumption pattern so soon.

Posted in General, Marketing & Media | Tagged: , , , , | Leave a Comment »

E-books outselling hardcover books: Slow extinction of physical book industry?

Posted by Kanupriya on July 21, 2010

Until few months back, Amazon used to sell 48 Kindle copies for every 100 physical copies of books that it offered in both formats. But the figures definitely seem to have taken a dramatic change now.

Amazon.com, one of the US’ largest booksellers, announced on Monday that for the past three months, sales of books for its e-reader, the Kindle, has outnumbered sales of hardcover books (via).

Now Amazon is selling 143 Kindle books for every 100 hardcover books, including hardcovers for which there is no Kindle edition. The figures do not include free Kindle books.
As far as overall digital book sale is concerned, even there is an upsurge. In past four weeks, sales rose to 180 digital books for every 100 hardcover copies. Amazon has 630,000 Kindle books, a small fraction of the millions of books sold on the site.
The growth rate of Kindle sales tripled after Amazon lowered the price of the device in late June to $189 from $259 and as per the Association of American Publishers, e-book sales have quadrupled this year through May.

Amazon had earlier also predicted to sell more of e-books as compared to physical books  and the recent statistics undeniably cast a notable change in favor of their estimation. There is definitely need for this product in certain consumer segments, moreover e-books are eco friendly and easier to store as compared to the physical ones. So, does this mean physical books are on their slow path to extinction now? What about avid readers like me who still prefer to read the physical books? Will the affordability, accessibility and convenience factor to store books affect my consumption behavior? Though Kindle as such has not been doing that great in India but considering the book market in India (India is the world’s third largest English language book market and has been growing at about 10% per annum for several years) and availability of more affordable products like Infibeam’s Pi, will the global trend of e-book outselling physical books apply to Indian market too? Would be interesting to observe some statistics from Indian e-book sellers to come out with a better comparison between international vs. domestic market but as of now from all the global trends, e-books definitely seem to be picking faster than estimated and that too in a short span of time.

Posted in General, Marketing & Media | Tagged: , , , , | 2 Comments »

 
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