December 31, 2011

Jewelry Site Plukka Turns Group Buying On Its Head

 
 

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via Mashable! by Lauren Drell on 12/28/11


The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark. If you would like to have your startup considered for inclusion, please see the details here.

Name: Plukka

Quick Pitch: Social shopping with a group buying twist — more jewelry buyers means a lower price for everyone.

Genius Idea: Applying the group-buying model to the manufacturing process, not just the final product.


Today's group buying sites often exist to get rid of leftover inventory from last season; both the designer and the website get a cut, while you get the last season's threads for half the price, three months late. Jewelry site Plukka turns that model around — it doesn't manufacture the item until there's demonstrable interest in it. And the more people want to buy it, the lower the price dips, like a reverse auction. Each flash sale presents images of a David Yurman-esque item, such as 14k gold, diamond and gemstone rings, necklaces and earrings. Interested consumers can "buy" the item for 24 to 48 hours (or until the item sells out). "Buying" it blocks off the current price — the card isn't actually charged later, when the final, low price is set. Prices range from $200 to $5,000, with most falling within the $500 to $700 range.

Plukka founder Joanne Ooi says that its test-demand-before-you-create-supply model means that the designs are riskier and more creative, since the company isn't investing in manufacturing until sales are locked in. Traditional jewelry designers have to predict trends and hope people will like the designs — Plukka knows there's interest before the gold is melted down. The jewels are designed by Plukka's in-house team, but the spring collection will feature collaborations with fashion bloggers, too.

Because manufacturing cost-per-unit drops as the number of units increases, the site can pass the production savings onto the consumer, thus making high-end jewelry more affordable. Plukka's patent-pending sliding scale calculator determines how the price should lower as more people purchase the item — and everyone gets the same final price. The minimum is around 25 units, and if that threshold isn't met, the item isn't manufactured — so there's no unwanted inventory lying around. Plukka's tagline is "what we make is what you want," and its business model reflects that.

And unlike Gilt and other sites, where you only reap the benefits of a referral if the person makes a purchase, Plukka offers 10% for the mere act of referring five friends to a particular sale, and then another 10% off for each friend who buys the item (the discount maxes out at 40%).

Plukka hopes to have a mobile app on the market by the end of 2012.


Series Supported by Microsoft BizSpark

Microsoft BizSpark

The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark, a startup program that gives you three-year access to the latest Microsoft development tools, as well as connecting you to a nationwide network of investors and incubators. There are no upfront costs, so if your business is privately owned, less than three years old, and generates less than U.S.$1 million in annual revenue, you can sign up today.

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How to Launch a Social Ambassador Campaign

 
 

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via Mashable! by Curry Smith on 12/29/11


Curry Smith is affiliated with NOLAbound, a unique program that immerses 25 professionals in New Orleans business to discuss the city's entrepreneurial and social media influence. You can apply to be considered for a spot in the program at www.benolabound.com/apply.

As long as brands want to improve and increase social media engagement and fellowship, they'll need authentic, relevant, community-oriented content. One solution is to give consumers the chance to serve as brand representatives.

Social media ambassador campaigns can fit a wide range of industries and products. They succeed by targeting popular bloggers and "super users" of networks like Facebook, LinkedIn, Twitter and YouTube. This type of partnership can be a successful strategy for all parties.

  • The brand wins if the selected ambassadors have strong voices to discuss the brand within relevant online communities.
  • The ambassadors win if the brand partnerships yield access to greater resources. Also, successful partnerships can help establish ambassadors as authorities in their fields.
  • The brand audience wins if content both online and offline becomes more relevant and exciting. The ambassador's audience wins if the ambassador introduces audience members to something that excites, educates or entertains them.

But watch for challenges and pitfalls along the way. For instance, simply giving ambassadors an all-access-pass to your brand is inadvisable. The transparency and immediacy of social media means that any brand considering a social media ambassador campaign must first make some careful decisions about control, access and overall brand strategy before deploying a successful program.

We have identified what we think are the five most critical considerations before launching a brand ambassador program.


1. Populate the Candidate Pool


The first step in any ambassador program is to generate a pool of possible candidates. The process of finding, managing and maintaining the "talent" has yet to be simplified on a large scale, though companies like Business 2 Blogger have begun to develop solutions.

In most cases, brands will opt to find the ambassadors themselves, preferring to have total control. This process usually works like a web 2.0 version of the traditional talent search: researching people who might be good fits, compiling a list of favorites, approaching them, negotiating, and moving forward with the "talent."

However, brands can also open the curtains on the process by employing elements of crowdsourcing. For example, Fila sought six real-life women for its Fall 2011 Body Toning collection. The brand chose five winners live via webstream, and the sixth was a "people's choice" winner, accessed via the FilaToning Facebook Page.

A crowdsourcing campaign can drive awareness and engagement before brand ambassadors are even selected. In the case of Fila, influential fitness bloggers applied and drove their audiences to the FilaToning Facebook Page to vote on their behalf, which drove more Likes for the company — before the ambassadors had even been selected.

Of course, crowdsourcing can also have its drawbacks. It lessens brand control, and could thus propel undesired candidates to the forefront. Each company will have to weigh its own long-term needs and short-term campaign elements to decide which approach is best.


2. Select your Ambassadors


Once a brand has built a pool of potential ambassadors, the hard work is narrowing down the list to the few individuals who best match its needs and values. Employing real people to be living, breathing extensions of a brand requires selection criteria far beyond that of a print ad model or paid spokesperson. Here are four key considerations.

  • Reach: How big is this person's existing audience? Does it align with the target audience?
  • Perspective and voice: How does this person's viewpoint reflect on the brand? Is his or her voice complimentary to the brand's voice?
  • Authority: Is this person's opinion valued on the subject? For example, T.J.Maxx selected fashion blogger Lindsey Calla to post and make appearances on behalf of the brand because her authority on fashion mattered to consumers.
  • Media fit: Consider whether this person is a good fit for planned media extensions across multiple media formats. Not all bloggers are great on camera, and not all YouTube stars can tweet.

3. Manage those Ambassadors


After choosing the ambassadors, companies need a plan to manage their access and activities. While professional talent often comes with an agent, everyday people do not — meaning that the obligation to train, inform, assist and manage the ambassador falls to the brand.

Ambassadors will use creative decision-making. This should be embraced and encouraged — it's why they were selected. To channel and pace this enthusiasm, brands need to plan appropriately.

The biggest consideration in managing ambassadors should be clear, timely and concise communication. Companies must plan ahead and convey any needs and desires to participants frequently. Do not assume anything.


4. To Edit or Not to Edit


Real people have bad days. They curse. They cut and dye their hair. They have tattoos. They over-share. How will this affect the campaign? Deciding up front what sorts of filters to put in place is a key safeguard — and a unique process for each campaign.

Giving free reign to ambassadors to share their impressions is a risky move. Projects that encourage participants to candidly post their impressions of the brand — on Facebook, Twitter, and personal blogs — can result in rich, candid conversation. For the right effort, authenticity can pay off.

On the other hand, some brands require a higher level of control because they cannot be associated with certain content. In that case, editing ambassadors can be done through legal contracts and nondisclosure agreements, or by restricting or limiting social media posts.


5. Leverage the Content for Posterity


With a completed ambassador program, brands are faced with the challenge of longevity. How does an immediate and instant communication medium turn into one with lasting impact and influence?

Solutions are as varied as the campaigns themselves. Consider recording film footage of the ambassadors' experiences and uploading to YouTube. Fila also created print ads featuring their real-life ambassadors. Coupon Cabin has created a blog corner for Kate Gosselin to post directly to their website.

When done correctly, long-term content planning can foster a partnership with social media ambassadors that will continue adding value long after the partnership officially ends.

Images courtesy of Flickr, miuenski, jurvetson, Mr. Wright

More About: brand ambassador, contributor, features, How-To, Marketing, Social Media, social media campaign

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8 Ways Digital Will Improve B2B Sales in 2012

 
 

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via Mashable! by Guy Nirpaz on 12/29/11


Guy Nirpaz is the CEO and co-founder of Totango, which analyzes user actions on SaaS applications, providing sales teams invaluable information in qualifying prospects and prioritizing people to contact who are most likely to buy or renew.

How B2B products and services are purchased and sold is rapidly changing. Some call it the consumerization of IT, but perhaps it's the consumerization of B2B in general.

Buyers are demanding cloud-based products that are user-friendly as well as social and mobile capabilities, with as little sales involvement as possible. A good example is purchasing from iTunes: web-based self-service with instant gratification.

Below are eight predictions for B2B sales in 2012.


1. Social Selling Will Go Mainstream




Ninety-two percent of prospects almost never book a meeting from a cold call or email, according to a study by UNC's Kenan-Flagler School of Business. In 2012, rather than make cold calls, sales executives will first seek connections through social media networks, and then increase response rates with warm introductions.

Aside from personal networks, sales managers will also find ways to leverage the networks of colleagues, partners, customers, executives and former employees during the sales process. 




2. Companies Will use Facebook as a Sales Channel


Facebook was originally viewed as a network for personal communications in which direct selling was frowned upon. In 2012, more companies will experiment with the social platform as a sales channel, beginning with employees who sell or advocate to their friends.

Home Depot has already asked store associates to post helpful do-it-yourself tips on their personal pages. Farmers Insurance encourages local franchisees to build relationships with customers via Facebook; the company won a Guinness World Record doing so.




3. Sales Executives Will Adopt Big Data


In 2012, sales leaders will embrace big data to increase sales performance. Some will use it to identify the most profitable customers and find more leads with the same characteristics. Others will analyze customer usage patterns during trial and production to find the hottest prospects and to up-sell targets.

Combining analytics and sales automation, B2B companies will target prospects and customers with personalized offers triggered by specific behaviors.


4. Customer Engagement Becomes a Top Priority



Sales managers will no longer be able to drop off software and drive away. With the rise of subscription-based pricing models, unhappy customers who are not actively using a product or service will simply cancel their subscriptions.

This will align organizations behind their customers' success, and encourage them to increasingly monitor engagement throughout the customer lifecycle. Some B2B companies, like Yammer, will even appoint a dedicated VP of customer engagement, also responsible for up-selling and renewals.


5. Outside Sales Reps Will Use iPads



The iPad is finding its way into the enterprise. Some are calling it the most important new sales tool since the invention of the cellphone. In 2012, most outside sales reps will start to use an iPad or other tablet for work. They will use it for shipping, product documentation, demonstrations, to capture leads at a trade shows or to quickly research a prospect before a meeting. 




6. Most Sales Tools Will Move to the Cloud


The average sales organization already uses more than 24 software tools in the sales process, based on a poll conducted by Gerhard Gschwandtner, publisher of Selling Power magazine, at the 2011 Sales Strategies in a Social & Mobile World conference. This number is growing every year. In 2012, the majority of these applications will move to the cloud.

Many companies, for example, will adopt cloud-based versions of subscription and billing software. This is a boom for sales executives, who will now have more visibility into a customer's billing cycle, which is helpful when growing or renewing an account. Also, the more applications to move to the cloud, the more streamlined the process.




7. Sales and Marketing Will Converge




The sales process is becoming more self-sufficient, and customers are driving the pace. Outside sales are becoming inside sales, partly because of online conferencing tools. Inside sales is being replaced with self-serving website resources. As this happens, the lines between marketing and sales continue to blur.

In 2012, more organizations will appoint chief revenue officers in recognition of this trend. Overall, there will have to be closer collaboration between the sales and marketing chiefs.




8. More Companies Will Offer Free Trials


More organizations will offer free trials or completely free versions of their products. Prospects and customers are increasingly demanding self-service, which provides instant access to a free trial of products, before deciding to talk to a sales rep. Companies that offer a free trial will get more buzz and word-of-mouth referrals, and their sales costs will lower when fewer live touch points are required.

Image courtesy of iStockphoto, mbortolino

More About: b2b, cloud computing, contributor, features, ipad, sales, Social Media, Year End 2011

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