Why Dell Beats the Hell Out of Threadless
I apologize for the outlandish headline, but I don’t really think it’s any more outlandish than crowning Threadless as the sales guru of Twitter. I’m sure you’ve read some recent press in the media bragging about Threadless being the company to emulate when it comes to monetizing on Twitter. (Read one article from Inc here) I simply can’t disagree more. I have nothing against Threadless and admire the company for many reasons. For example, they are the King of crowd sourcing- why not give them a crown for that? But monetizing Twitter? No. They made money on Twitter by creating an entire product line exclusively FOR Twitter, not by utilizing it as a sales vehicle for promoting their own existing product. Of course the product sold well, it was made specifically for Twitter!
So how do you monetize social media without creating a product line specifically for it? Dell figured it out. They are a great example of a company who actually engaged on Twitter and sold millions of dollars worth of computers as a direct result of those efforts. (Dell article from Entrepreneur here) I think their success was two-fold and actually quite basic. First, they correctly targeted their customer and simply provided them with useful information. Next, they implemented systems to monitor, measure, and manage customer service interactions.
(Great tips for handling customer service here.) These are great starting points and should serve as the foundation for any small business looking to incorporate social media in their marketing efforts.
While those are great steps for getting started in social media, it’s important that companies don’t stop there. The real key to your success lies in your ability to actively engage that target demographic. I urge you to roll up your sleeves a little and try some new strategies this year to finally get some ROI from social media. To get you started, I’ve brainstormed a couple ideas below.
- Include a playful and creative flyer in outgoing packages encouraging participation and possibly offering a reward… “Be a sweetie! (attach some candy to the card) Post a pic of you wearing this t-shirt on our Fan Page and we’ll send you a $5 gift card.”
- Create a survey on Facebook or poll on Twitter (twtpoll) asking “friends” to vote on which new products to sell/create…the winning product will be offered to survey participants first, and at a discount. (See how Modcloth does this here)
- Track down recent customers on Facebook and “friend” them with your companies Facebook page (who doesn’t want more “friends”?)
- Spend money to make money…hire a Community Manager that will actually have the time to effectively target and engage new customers and strengthen your online branding. (Not sure what a Community Manager does? Read this by Chris Brogan.)
I truly believe social media is the future for small business marketing and I hope you can find at least one of these ideas helpful in your efforts to engage online. Always be on the lookout for innovative new ideas to reach your customers and don’t be shy. A sincere, heartfelt, and playful “hello” to your customers will be appreciated more times than not. Just make sure you have the infrastructure in place to monitor, measure, and manage all those new customer interactions.
Need help with your social media campaign? Contact me directly here!
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=98589cb3-0644-47c6-9a28-8b3c4ee94c82)
January 14th, 2010 at 12:10 am
[...] StartupNation Blog » Blog Archive » Why Dell Beats the Hell Out of … [...]
January 14th, 2010 at 2:07 am
I encourage you to reconsider your assessment. While I know nothing about Threadless, the ability for an obscure startup to build a Twitter business is a far more relevant case study for entrepreneurs than a global brand moving into that channel.
Additionally, if you look closely, Dell’s Twitter strategy isn’t even helping the business.
If Dell were primarily a computer discounter/liquidator, their Twitter channel would be a clear indicator of success and momentum, but their bread and butter is selling pristine, full-price new systems online and through retailers.
So while it makes a great social media story, is their current Twitter model really a home run for Dell?
•Cannibalism – Dell Outlet sells returned and refurbished items, which likely eats into new system sales. If you look at today’s news, while sales at chief competitors picked up 20%-30% in the last quarter, Dell posted a meager 5% uptick in new system sales.
•Margin erosion – Add in the costs of refurbishing, repackaging, etc. and already slim PC margins get even thinner.
•Channel conflict – How well are online affiliates taking all this fabulous disintermediation news.
•Freezing demand for new systems – Why buy the latest and greatest right away when you can wait a little longer for either 1) the price to drop on Dell.com or 2) the returns to start showing up at the Dell Outlet.
•Pulling focus from Dell.com - When the choice is between the labrynthine click path and full prices of the online mother ship and simple, streamlined bargain hunting through the Twitter-Dell Outlet nexus, which experience will customers gravitate toward?
Again, Dell’s business model is not predicated on selling factory seconds, but what happens if that becomes what customers want most from Dell? Could social media success be undermining profitability? Even Dell.com?. Further, is it really a great idea to aggressively market Twitter’s fast lane to the Dell discount mall in new and emerging markets when the flagship online operation and offline retail profile aren’t well-established there?
Dell has made a lot of money through Twitter, racked up some positive headlines and burnished its social media reputation, but at what cost?
January 14th, 2010 at 4:31 am
[...] StartupNation Blog » Blog Archive » Why Dell Beats the Hell Out of … [...]
January 14th, 2010 at 8:39 am
Hey Heather, I have to agree with Stone; the proof is in the pudding. An obscure startup (and there are a TON of Internet t-short companies out there to obscure them) building both a Twitter and a Facebook business is noteworthy.
From my own experience, I’ve bought t-shirts from Threadless only because I became aware of them through social media. I’ve never bought a Dell, in spite of their social media efforts.
Regardless, thanks for your article and keep fighting the good fight!
January 14th, 2010 at 8:47 am
I.F. Stone,
I appreciate the comment. I would like to emphasize however, this post isn’t about evaluating business models or points of distribution. It is simply a comparison between the two companies regarding their attempts to monetize Twitter.
For that reason alone, I disagree that they should serve as a case study for selling on Twitter. Being a “sales guru” on Twitter should be about utilizing it as a platform to move product, not proving that we need to make an entirely new product line each time we want to explore a new marketing method.
As a little guy myself, I understand the desire to root for the underdog, however, I think its unwise to advise entrepreneurs to create new product lines strictly for Twitter.
January 15th, 2010 at 11:35 am
Cam from Threadless here. Completely agree with your conclusion. Playfulness wins. Twitter is a perfect platform for us to connect with tee lovers and our followers as friends (”customers”?! no one wants to be treated as a customer/unit of consumption on such a personal channel). We drove a really significant chunk of revenue for a small company on Twitter last year, excluding the Twitter Tees site. I’m sure Dell is kicking our ass in total revenue from Twitter, but I bet we’re making more people smile every day
January 21st, 2010 at 1:08 pm
Hi Cam!
You’re a class act! (with a great brand monitoring strategy in place ;)) Threadless has done an amazing job reinforcing its brand on Twitter and communicating with “friends” …kudos to you! And yes, you are making people smile…you even made me smile reading your comment!
All the Best,
Heather
January 24th, 2010 at 9:37 pm
FYI to all previous posters… yes, Threadless is a start-up, but keep in mind that it was well established BEFORE Twitter entered the picture.
July 26th, 2010 at 12:13 pm
monetizing a website is really a great way to earn money in a passive way just like real estate.`**
December 20th, 2010 at 2:26 pm
well, monetizing websites and stuffs should be great. making money on the internet is a great way to earn money :.;
December 20th, 2010 at 5:45 pm
well, monetizing websites and stuffs should be great. making money on the internet is a great way to earn money :~*
July 8th, 2011 at 9:06 am
Win on Google and have a lot of money if you’re a interessed by that … read this on my own site
August 2nd, 2011 at 2:35 am
An perfect share, I just given this onto a fellow worker who was doing a bit analysis on this. And he in fact bought me breakfast basically because I observed it for him.. smile . So let me reword that : Thnx for the treat! But yeah Thnkx for spending the time to mention this, I definitely feel powerfully about it and love reading more on this theme. If possible, as you become expertise, would you mind changing your blog with more details? It is highly cordial for me. Big thumb up for this web log post!
August 8th, 2011 at 4:07 pm
Asian Traveler…
[...]Here are some of the websites we definitely recommend for our visitors[...]……
August 12th, 2011 at 2:16 am
There are definitely numerous particulars like that to take into consideration. That could be a great point to deliver up. I provide the thoughts above as normal inspiration but clearly there are questions like the one you bring up where an important thing will likely be working in trustworthy good faith. I don?t know if finest practices have emerged around issues like that, but I’m sure that your job is clearly recognized as a good game. Each boys and girls feel the affect of only a moment’s pleasure, for the remainder of their lives.
August 14th, 2011 at 5:28 am
I couldn’t currently have asked for a more rewarding blog. You are available to supply excellent guidance, going on to the point for straightforward understanding of your website visitors. You’re undeniably a terrific pro in this arena. Thanks for always being there humans like me.
December 7th, 2011 at 4:38 am
Hey, you site supplies all of the drivers that needed when re-installing my computer! With your help, I was able to get back my computer without difficulty. Wonderful site I have ever seen.
December 29th, 2011 at 9:25 am
Heutzutage kann niemand das Leben ohne Computer vorstellen. Was die Arbeit und die Studie wäre ohne sie aus?
January 10th, 2012 at 3:08 pm
I have to agree that social media is the future of small business marketing - especially Twitter. It makes your business (and yourself) so accessible.
January 13th, 2012 at 1:29 am
It’s over for that weave though…
January 14th, 2012 at 10:00 pm
I just lately came across your weblog and have been reading along. I thought I would leave my initial comment. I do not know what to say except that I have liked reading. Excellent weblog. I will keep viewing this blog actually usually.
January 25th, 2012 at 7:48 am
An fascinating discussion is value comment. I feel that it is best to write extra on this topic, it won’t be a taboo subject but generally individuals are not enough to talk on such topics. To the next. Cheers
January 29th, 2012 at 8:16 am
Woah! I’m really loving the template/theme of this site. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between superb usability and visual appeal. I must say you’ve done a excellent job with this. Also, the blog loads super quick for me on Chrome. Excellent Blog!
January 29th, 2012 at 8:52 am
Helpful info discussed I am really pleased to read this particular post..many thanks with regard to providing all of us nice information.Great walk-through. I truly appreciate this article.
March 9th, 2012 at 10:25 pm
When it comes to property yes I agreee Here’s some thing to make you smile: Thought for the day? : Any mental functions attempted in this area must be re-evaluated during a subsequent period. It has been discovered that standard logic works sideways in this area due to the influence of the occupant.
March 16th, 2012 at 6:12 pm
Hello, I would like to subscribe for this website to take hottest updates, therefore where can i do it please assist.Louis Vuitton Store
March 27th, 2012 at 12:40 am
This is really interesting, You are a very skilled blogger. I’ve joined your feed and look forward to seeking more of your wonderful post. Also, I’ve shared your website in my social networks! Please visit my website anytime. TY.
April 1st, 2012 at 5:04 am
At last I’ve found just the information which I’ve been looking for. You know, it was extremely disheartening to surf through a dozen websites but not get the to-the-point stuffs. But, your web site was an exception. I can proudly tell that- “See, here’s a website which i value for my study! ”
April 4th, 2012 at 4:52 pm
Like your site but my weather stinks. Meh
April 6th, 2012 at 12:24 am
Magnificent goods from you, man. I’ve understand your stuff previous to and you are just extremely wonderful. I actually like what you’ve acquired here, really like what you are saying and the way in which you say it. You make it enjoyable and you still care for to keep it wise. I can’t wait to read much more from you. This is really a terrific site.
July 9th, 2012 at 5:57 pm
Hi There to each and every one. I Am totally from Greece plus i employ a fresh world-wide-web site. Please Click my web site and analyze your impression. You Can Find a lof of creative ideas and knowledge just about my job role. It Really Is cost free 100% and without even registrator. Thx To all the people which will go to see my fresh new internet site. This Helps my job. | http://www.spiti.gr.com |
August 8th, 2012 at 11:41 pm
{Source of quite useful data relating to practically any auto insurance coverage company. A lot of people, the moment they have an auto insurance organization, just just let their current policy renew and renew without having checking to determine if perhaps they can get a greater deal someplace else Home Page. If that describes you, possibly you would look into exploring yourchoices for those who knew how and painless it truly is. This short article will show you just how simple the method is.
August 19th, 2012 at 12:19 am
I have been browsing online more than three hours today, yet I never found any interesting article like yours 301 Moved Permanently. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the net will be much more useful than ever before.