Traditional vs. social media marketing for the independent retailer

Independent’s Day at Retail’s BIG Show opened with an interesting contrast of perspectives. Rob Klaben, Morris Home Furnishings VP of Marketing, presented practical steps his company has taken in the last few years to increase sales. Real world actions were also shared by Amanda Kinsella, the Director of Marketing for Logan Services – an Ohio-based company specializing in residential Heating and Air system replacement. While both have found success, the distinction was in their methods.

Klaben began his presentation by explaining the advertising arsenal they employ to drive sales: targeted direct mail, front page spadeas, high frequency TV, and newspaper inserts. Direct mail, he said, is a particularly vital part of there advertising campaigns. They’ve found that their best responses to direct mail is in Dayton, where they’ve been utilizing that strategy the longest. What that demonstrates, Klaben explained, is that you can’t just do a single direct mail, retailers need to consistently be in touch with their consumers.

The marketing campaigns for 2010 focused around value for the consumer. Discounts of 5-10% don’t cut it, he said, in the furniture industry. Shoppers want deep savings. And in a series of examples, Klaben walked the group of independent retailers through a number of marketing successes through the year.

One strategy that Morris Home Furnishings is having a large sale after closing down their store for an entire day. Klaben called one such sale the “Closed to Markdown Everything” sale. Basically, they warn customers through direct mail and TV ads that they’ll be closed on Friday in order to markdown their merchandise by about 50%, and invite everyone to come shop the discounts when they reopen. Preferred customers will often be invited to a private preview and an additional dollar amount off. And it’s not a ploy, employees spend that Friday literally crossing out prices and writing – by hand – the new sale price. This, Klaben said, continues to be one of the most popular sale events that they host.

At Logan Services, Amanda Kinsella runs marketing from a different angle. There she has helped annual sales grow by 29% in 2010 following a web and social makeover. She focused on mixing TV and digital strategies, driving customers to Logan Services’ Facebook and Twitter accounts through commercials as well as posting TV commercials on those same social media groups.

For independent retailers ready to dips there toes in the social media ocean and launch their first account, Kinsella had an important warning: “If you build it, they will NOT come. You have to get them there.”

Thankfully for the audience, Kinsella followed that statement with a long list of ways retailers can start building their fans and followers. Building social networking into your company culture, which includes training for some employees and making everyone aware of rules and consequences, is the first place to start. Then reach out to friends. She did this by asking her personal social network if anyone knew of friends, family or neighbors that needed a new furnace. Two sales came out of that one post. Partners can also be a good source outreach. Logan Services’ online content and pages were highlighted on the Facebook page of their partner, Service Magic. Compared to the same time the previous year, web sales tripled for Logan Services following a mention (and link) on Dayton’s BBB Facebook page to their online content.

Social media is not supposed to replace what’s already working for a retailer, she closed with, it’s simply an additional way to help gain new customers. So in a debate between traditional and social media marketing, it seems there is room for both.