Monday, November 30, 2009

For Retailers Twitter Is The New Radio

In the old days of advertising (up until 2001 or so) there were essentially four ways of communicating with consumers: television, print, outdoor and radio. Of those, the "retail media" were newspaper and radio because they were the most targetable and you could change the message frequently. This article in the New York Times shows how retailers are embracing new media including Facebook and twitter, to get the message out at a moment's notice. That's great if you have perishable inventories that you want to move or other timely information you want to share with fans of your brand. It is, however, a double-edged sword.

Tweeting deals is one more way to communicate that what you're selling isn't worth the price you've been asking. Just as the auto companies conditioned consumers not to buy until the big red rebate tag was on the windshield of a car, retailers may find their customers waiting to buy because they know there will be another deal coming soon. In twitter and Facebook you have tools to help fans feel like insiders. The key is to find ways to alter the value equation beyond price reductions, because a customer who buys solely on price is only there until he finds a better deal. And in the information age that could be... now.

1 comment:

  1. Harvey, what a great topic and one that really resonates with marketers. Keep up the great insight.