Looking for an example of excellent ROI from social media in business? Have a look at Oklahoma City-based Samuel Gordon Jewelers. The high-end jewellery store has revealed the effect their social media strategy has had on their advertising expenditure.
They currently spend $50,000 a year on marketing. Which might sound a lot, but in 2004 they spent $500,000 on promotional material in magazines or TV spots. Daniel Gordon, the Company President, claims that revenue has increased by 30% in the last six years, despite the smaller marketing budget. Mr Gordon credits this increase to the community they’ve created through social media.
It’s not just online revenue they’ve increased either. Stores have seen an increase in visitors of 20-40% over the last couple of years. The increase started at the same time as their social media campaign kicked off, suggesting that a great online presence has led to an increase in business.
So, what was their social media strategy?
Firstly, they created a competition where a couple could win an entire wedding, including the honeymoon, worth $25,000. This involved the company building relationships with related companies in order to get the donations (dress, transport, venue etc) required, which benefited all parties. As a result, the competition drew in an average of 7,500 visitors to the site per month, a big jump from their usual 2,500 a month.
They later expanded on this community of visitors with an interactive blog and website, a broad selection of social media channels, including Facebook, Twitter and Foursquare, and the release of an iPhone and Android app. As an incentive, the Foursquare mayor of a store will receive a “special jewellery surprise” worth $75-250, and apps users earn ‘virtual points’ every time they share something on their social media sites.
Essentially though, Mr Gordon’s personal involvement with the campaign has given the business a human face customers can relate to. That personal link he creates on Twitter, Facebook and the blog gives him a loyal group of followers who will consider Samuel Gordon Jewelers first, next time they shop.
How involved is your CEO in your social media strategy?
- Retail Jeweler Grows Business With Blog and Social Media: Interview with Daniel Gordon (powertofightthebigboys.com)