Posts Tagged ‘Social Shopping’

The Social “Ask”

by Ron on Tuesday, July 27th, 2010

Remember Ask.com? Back before Google became almost synonymous with internet search (sorry, Yahoo!), Ask had users enter natural language questions rather than strings of keywords. Ask is about to relaunch with an interesting new structure. First, the search engine now returns natural language answers instead of links. Second, and even more interesting, users will be able to open their query to the user community for a crowd-sourced answer.

via Horia Varlan (Creative Commons 2.0)

Ask is hardly alone in making Q&A part of social search. A startup called Aardvark enables social Q&A by finding a person in the user’s network to answer a question. Aardvark may have been onto something, as it was recently acquired by Google. Other social search sites that have enabled social Q&A are Quora and Formspring. Quora considers itself a “continually improving collection” of user-generated questions and answers. Formspring is oriented toward “conversational Q&A [that] helps you express yourself”. Among the major social networks, Facebook is developing a Q&A application, which is currently in private beta. LinkedIn long has supported the ability to ask questions and hold threaded discussions within user groups, while Twitter can support Q&A but doesn’t have a specific application.

We think that Q&A is a natural extension of social search and will become a permanent part of the social media landscape. We think Q&A is particularly relevant to social shopping. The process that now begins with a shopper’s review or recommendation can just as easily begin with another shopper’s request for information. Like writing reviews, answering questions is a way for shoppers to provide value, demonstrate expertise and gain influence. Of course, we at Zavee are continuing to develop and refine our own social search capabilities, so you can look forward to exciting new features over the next several months.

The Zavee takeaway:

  • Social Q&A is suddenly hot, but that doesn’t make it a fad.
  • Q&A is a natural extension of the social shopping feature set.
  • Look for exciting new social search features coming soon from Zavee.

An Open Letter to Zavee Merchants

by Alan on Friday, June 4th, 2010

My name is Alan Pleskow and I’m the CEO and a co-founder of Zavee. On behalf of everyone here at Zavee I would like to extend my personal thanks to every local business that has joined our company as a merchant. I also want to thank you for your patience in waiting for our shopper base to grow. Below is a brief update of what we are doing now and some of the great things you can expect from us over the rest of this year.

  • Merchants – More than 200 merchants are now members of Zavee, and more are joining every day. We have attracted businesses from a wide variety of categories and from all over our Northern Broward – Southern Palm Beach launch market. Many Zavee merchants are taking advantage of opportunities for increased social media exposure by “liking” Zavee on Facebook and following us on Twitter. Later this year we expect to add new features that will make your marketing even more effective.
  • Shoppers – We have completed development of the shopper portion of the Zavee platform, and have ramped up our consumer marketing accordingly. As every business owner knows, it takes time for consumers to learn about any new business – even one as cool as Zavee. The Zavee site is now fully optimized for search engines and we have an active online advertising program through both Google and Facebook. We will be launching our email marketing program in the beginning of June and already have begun our PR campaign. We expect thousands of shoppers to join in the next few months.
  • You Should Become a Shopper, Too - One way to increase the number of Zavee shoppers is for merchants to activate their shopper accounts at www.zavee.com. That’s right – every Zavee merchant is also a Zavee shopper. So next time you log in, click on the shopping bag icon and set up your shopper account. Your customers are earning cash back rewards, why not you? Another way to add merchants is for you to suggest Zavee to your customers. Almost 80% of consumers trust personal recommendations. Your recommendation of Zavee is almost certain to be effective.
  • Causes and Care Shares – Our team also has completed the portion of our platform that lets causes sign up, communicate with other members and receive Care Share contributions from shoppers. We are beginning our outreach program to causes and have been gratified by the response. If you are a member of an organization that you think would be right for Zavee, please invite them to contact us or let us know and we will take it from there. Since causes earn contributions through shopper transactions, it is in your interest as well as theirs for causes to join Zavee.

In fact, we want you to let us know what you think about the Zavee site and platform. Please do not hesitate to contact me at 561-290-0388 ext. 302, or our COO and co-founder, Ron Stack at 561-290-0388 ext. 301, with any questions, comments or suggestions.

We thank you for joining us, and we thank you for your continued patience and support as we roll out a social shopping platform that will help you grow your business through smarter marketing and a stronger local community. We’re glad you’re part of the Zavee community.

And if you’re a merchant in Broward or Palm Beach Counties and you aren’t a Zavee merchant yet, hit us up online or call Jerry Horowitz at 561-290-0388 ext. 501 and learn how Zavee can get you marketing smarter today.

The Zavee takeaway:

  • We are ramping up marketing to shoppers and causes, so the Zavee community is poised for exceptional growth.
  • You can help the community grow, by becoming a shopper, by recommending Zavee to your customers and by telling Zavee about your favorite cause.
  • Thanks, Zavee merchants – you’re the best!

The Positive Side of Negative Reviews

by Ron on Tuesday, April 13th, 2010

Actor, author, shortstop or chef, no one likes a negative review. But when we were developing the Zavee business model we decided early on that we would have to include negative as well as positive reviews. The goal we set for ourselves was to create a framework for reviews that were accurate, timely and fair – and that meant including negative reviews.

Our commitment to getting reviews right stemmed from our insight that reviews were another form of Social Media and, as such, were going to be a vital component of the Zavee experience and value proposition. We also learned, based on research with merchants, that many business owners who expressed concern about potential harm from fraudulent, malicious or even accurate negative reviews also intuitively understood the benefit of hearing about issues directly from the customer affected.

As marketers are learning, people will say whatever they want to whomever they want, and merchants don’t have the power to control their customers’ conversations. They can, however, do two important things.

First, they can listen, learn and respond. Thanks to Social Media, including reviews, merchants can make necessary adjustments to their business almost in real time. This is something that every business should be doing, all the time, through every available channel. Twitter and Facebook are great listening posts, but reviews are a channel that exists solely to provide feedback about the customer experience.

Second, merchants can participate in the conversation. By actively engaging with their customers merchants can address problems quickly and publicly; they can provide perspective that helps customers evaluate reviews; and they can favorably shape perceptions about the business.

  • Responding quickly is important because unresolved issues tend to fester. Responding publicly is important because it gives the merchant the chance to address at one time a concern that may be shared by many customers.
  • Actively participating is the only sure way to get the merchant’s perspective into the conversation. Both the manner and the substance of the merchant’s response can help customers determine how much weight to give a negative review, while the absence of a response does nothing but add credence to the reviewer’s complaints. A measured, factual response may not erase the impact of a negative review, but at a minimum the merchant will have extended the relationship with the customer and demonstrated both interest and respect.
  • Simply committing the time and effort to engage customers in conversation sends a positive message to all customers and can go a long way toward shaping perceptions of the customer experience. This can reinforce the positive experiences of current customers and build loyalty, but it also can lead non-customers to have a favorable impression of what it would be like to be a customer. In other words, an impressive response to a negative review can actually bring in new business.
Creative Commons 2.0

Reviews (via fengergold)

In benchmarking Zavee against other sites that feature reviews we observed a wide disparity in the treatment of key issues. Some sites filter reviews while others list them all chronologically. At least one site that uses filtering algorithms has had to defend itself against allegations that it improperly manipulated the placement of reviews. We decided not to filter or change the placement of reviews, because we believed that the less we intervened in the substance of reviews, the more confidence shoppers would have in them and, ultimately, in the Zavee brand.

We also observed that some sites permitted reviews (both positive and negative) that described experiences that had occurred long before the review was written. We thought reviews that were dated were so likely to be inaccurate that it would be unfair to both merchants and shoppers to have them on our site. We also were concerned, as many merchants seemed to be, that on some review sites there there were insufficient safeguards against fake reviews or even fake merchants.

We addressed these problems by requiring that any shopper who wanted to review a merchant had to have made a purchase from that merchant within the previous 30 days and by permitting only one review per purchase. Zavee solicits a review after every transaction, and the shopper’s My Zavee page lists recent transactions and the time remaining to submit a review. Zavee automatically rejects reviews that do not meet these rules.

We also were concerned about reviews that, while perhaps not fraudulent, seemed hostile or malicious. We initially considered moderating reviews, the way we moderate comments on Zavee Thinking, but we decided not to. There is nothing wrong with having editorial standards for reviews – we are, after all, responsible for the content on our site – but we thought the better way to deal with potential problems was to let shoppers and merchants have their say but remove reviews that violated our Terms of Use.

Because we passionately believe that reviews should be a dialogue, we also made it easy for merchants to post responses to shopper reviews. Merchants are automatically notified whenever they are reviewed and have 7 days to post a response. Responses appear with the original reviews and always show up together in a search. Shoppers can respond the the merchant’s response, and the entire conversation is threaded so it can be seen by everyone who sees the original review.

The Zavee takeaway:

  • You can’t control what your customers say, but you can listen, learn and respond to concerns – almost in real time.
  • Use negative reviews as a conversation-starter, not a relationship-ender.
  • How you handle unfavorable reviews can shape perceptions about your business, for future as well as current customers. Treat reviews as an opportunity to be impressive – you may be surprised by the results.

Update (4/14/10): MediaPost’s Marketing Daily reports that S.C. Johnson has been receiving substantial negative feedback, including reviews, about a new pet care product – and tells Marketing Daily that it is bringing the feedback to its product development team for consideration.

Juliet Was Wrong

by Ron on Tuesday, March 23rd, 2010

In Shakespeare’s Romeo and Juliet, a frustrated, frightened and ultimately doomed Juliet wonders aloud, “Wherefore art thou Romeo?” Why, she pleads, must her beloved bear the one name – Montague – forbidden to any of her Capulet clan.

Juliet argues to her unseen Romeo that names themselves have no meaning:

‘Tis but thy name that is my enemy;
Thou art thyself, though not a Montague.
What’s Montague? It is nor hand, nor foot,
Nor arm, nor face, nor any other part
Belonging to a man. O be some other name!
What’s in a name? That which we call a rose
By any other name would smell as sweet ….

Romeo and Juliet via HL42

Romeo and Juliet (via HL42)

But Juliet was mistaken. Montague and Capulet are brands, as surely as if they were Coke and Pepsi. And like Coke and Pepsi they have brand equities, which are the attributes (values, personality, meaning, etc.) that are the essence of the brand, and brand promises, which is what the brand will do for its audience. (Part of the tragedy of the play is that both families have the same brand equities – pointless jealousy and excessive self-regard – and the same brand promise – the destruction of the other).

Brands communicate their equities and promises in many ways, from their logo to their tag line. Their names can have branding value, too. Many brands have names that describe their business. This naming strategy has several advantages, not least that it makes it easy for consumers to understand what the brand is and does. It also frees up marketing resources to communicate brand messages rather than focus on the basics of the business.

The problem with descriptive names, however, is that similar businesses can use similarly descriptive names. At best descriptive names risk diluting a brand’s uniqueness (unless it has a unique description) and at worst they can lead to consumer confusion. Also, descriptive names tend not to be memorable and, inherently, they do not do much to convey brand messages. We should not forget, however, that many of the world’s strongest and best-known brand names, from IBM to UPS, are (or began as) descriptive.

The other end of the naming spectrum is often referred to as “evocative” names. As the term suggests, these names are meant to evoke a response that relates to the brand’s positioning. There are many ways to do this, which makes naming something of a black art. Names can consist of real or invented words, with real or invented spelling; words from modern or classical languages; single or compound words; and so on. Some names try to embody the entire brand while others focus on one key aspect of the positioning, such as the consumer experience. In addition to their messaging component, names have to be easy to read and say and have a look and sound that is appropriate to the brand.

Evocative names are the flip side of descriptive names: they are unique and can be memorable, but it takes more resources to communicate what the brand is and does as well as the essential brand messages. However, once that is accomplished the name is more likely to remain in the audience’s consciousness and be associated with the desired brand positioning. Many newer brands, from Amazon to Google to Yahoo, have evocative names, but this naming strategy is far from an online-only phenomenon. Several companies have used evocative names as part of a re-branding strategy, such as Altria (ex-Phillip Morris), Tenet (ex-National Medical Enterprises) and Accenture (ex-Andersen Consulting).

Why did we choose an evocative rather than a descriptive naming strategy? And how did we come up with Zavee? Our company was originally called Charge Rewards, which is still the name of our holding company. That name accurately describes one important element of our business – a rewards program that uses registered credit/debit cards – but was unsatisfactory for several reasons. First, it says nothing about social shopping, online marketing or social giving, all of which are elements of our business that are both very significant and highly differentiating. Second, it might be difficult to protect against another registered-card loyalty program that wanted to use a similar name. Third, it simply isn’t very memorable or exciting.

We wanted our new name to be unusual and memorable, and suggest in some way what we were trying to accomplish. We weren’t convinced that any descriptive name could easily encompass our business, and we didn’t want our name either to limit us (like Charge Rewards did) or confuse our audiences. We worked with two agencies to develop a new name, briefing their teams with both a description of our business and a statement of our brand positioning. They came up with literally scores of possibilities, which we discussed and analyzed before coming up with three finalists. We ultimately decided on Zavee. One of the things that sold us on the name was the way it embodies a key brand promise. Our platform helps merchants market smarter; helps consumers shop smarter; and helps causes raise funds smarter. That focus on making communities smarter led one of our agencies to the notion of “savvy”, which they transformed into the more unique, interesting and memorable “Zavee”.

The Zavee takeaway:

  • Juliet’s wrong. Names matter.
  • Descriptive names are generally more intuitive for the consumer and less expensive to market, but less memorable, harder to protect and less valuable to the brand.
  • Evocative names are generally less intuitive for the consumer and more expensive to market, but more memorable, easier to protect and more valuable to the brand.

Social Giving Meets Social Shopping

by Ron on Tuesday, March 9th, 2010

We have written about social shopping, which is the heart of the Zavee platform, but are you familiar with “social giving”? Social giving is Social Media used for philanthropic or other non-profit purposes. Social giving wasn’t widely discussed even a year ago, but two events – the disputed elections in Iran and the earthquake in Haiti – gave rise to a tremendous amount of Social Media activity, which in turn got people thinking about the role of Social Media in the non-profit sector.

According author Geoff Livingston, who follows social giving closely, social giving can be a source of both new donations and newly engaged donors and activists. Social giving also can engage consumers in corporate philanthropy campaigns.

  • In the wake of the elections individual Iranians used Social Media to get news out of the country after the government had restricted conventional media access.
  • A post on Philanthropy Potluck discussed campaigns the author called “social giving contests”, in which consumers determine how companies distribute funds as charitable contributions. The post cites campaigns by Target and Tom’s of Maine, in which the public got to “vote” for potential recipients of donations.
  • Immediately after the quake in Haiti, the American Red Cross and other organizations launched texting campaigns that raised over $30 million from individuals who sent a text message that automatically added a donation to their wireless bill. More than $20 million was raised by the American Red Cross alone, a sum unlikely to be raised as quickly, if at all, by conventional solicitation methods. The Red Cross using the same text2give program to raise funds for victims of the earthquake in Chile.

Zavee’s social giving feature combines several social giving concepts. Like the social giving contests, Zavee shoppers control the distribution of the 20% of our fees that we have committed to donate to civic and charitable causes that have joined Zavee. The mechanism for directing Zavee contributions is called Care Shares(tm). In addition to their cash back rewards, Zavee shoppers earn points called Care Shares based on the amount of each purchase from a Zavee merchant. Zavee shoppers periodically select which causes will receive their Care Shares. Zavee contributes cash to those causes based on the Care Shares allocated to each cause, which means that shoppers who purchase more control a larger slice of the contribution pie. (Yet another reason for shoppers to purchase from Zavee merchants.)

Santas Race for Charity

Santas Race for Charity (via Lincolnian)

Shoppers make their own decisions about how to allocate their Care Shares, but the networking features of Zavee encourage shoppers to discuss the various causes in our program. We take networking a step further by putting the causes themselves in the network. That means that they can engage directly with shoppers to provide information, answer questions, announce events and otherwise enrich shoppers’ understanding of the value they provide to the community. The benefit to causes of communicating effectively is clear: greater awareness and understanding by shoppers can lead to greater allocations of Care Shares, which means greater contributions by Zavee. Causes also can encourage their own members to join Zavee, who presumably will be inclined to allocate their Care Shares to the cause to which they belong.

The Zavee takeaway:

  • Causes may not be as far up the curve as companies (to say nothing of individuals) when it comes to Social Media, but events like the Iran elections and the Haiti quake response demonstrate the potential impact Social Media can have for non-profits.
  • The non-profit sector is likely to develop uses for Social Media that are both creative and effective. Businesses should be watching.
  • Programs like Zavee, which combine the consumer-business integration of the social giving contest with the active participation of the causes themselves on the network, will be one way to for causes to gain a great deal of value from Social Media.

2010: The Year of Social Shopping

by Ron on Tuesday, December 29th, 2009

As we come to the end of a most unusual year I’d like to provide an update on Zavee’s progress, as well as offer some additional thoughts.

Our most important news is that Zavee is almost ready to go live. We are finalizing the launch release of our software and expect to begin processing transactions by mid-January. We began our merchant sales efforts in November and already have signed up scores of local businesses in our South Florida launch market. Our consumer acquisition program will begin in January and ramp up over the next several months.

Shopping with Friends

Shopping, Socially

One of the most gratifying – and, frankly, amazing – things about the process of creating Zavee is the extent to which people who know what they’re talking about are saying the same things we are about Zavee’s core concepts. In short, Zavee is in the right place at the right time.

When we describe Zavee as a “social shopping” platform we recognize that this is a new concept for most consumers and businesses. Social media marketers, however, say that social shopping is poised for growth:

“Social shopping is really still in its infancy,” said Andy Lloyd, CEO at Fluid, an e-commerce technology company. This means retailers and solution providers are still thinking about how people connect with other people around buying decisions in an online environment and how they can facilitate those gatherings. “The challenge is people don’t know what social shopping is or what it does,” Lloyd continued, which is why the adoption rate isn’t very high yet.

Search professionals have been quick to see the advantages of social shopping for merchants, including advantages we discuss with merchants constantly: the ability to connect with customers, enhance credibility and leverage word-of-mouth.

From a consumer perspective, social shopping taps into basic principles of human behavior. Marketers increasingly recognize the potential of social shopping and are aligned with Zavee’s perspective on integrating social networking functionality with search and review capabilities:

In social shopping, you see recommendations and reviews that your friends have shared. You see items that your friends have purchased or brands that your friends have shopped with. This matters a lot when you’re shopping for a digital camera and are stuck deciding between three different models. Of course, the last 10 years’ worth of people’s purchasing histories and written reviews on Amazon may help you narrow your choice – if you can filter out the noise. But those reviewers are entirely anonymous to you, even though they may use a real name and have a rating history with the site.

We believe that 2010 will be the year in which social shopping comes of age. This clearly is good news for Zavee. We believe that our social shopping platform, which also integrates a cash-back rewards program and a mechanism for raising funds for local civic and charitable organizations, offers a compelling value proposition for merchants, consumers and causes. We can’t wait to prove it.

From all of us @Zavee, a happy, healthy and prosperous New Year to all!

Who Uses Review Sites? You Do (And So Do Moms)

by Ron on Tuesday, November 17th, 2009

LexisNexis has issued its 2009 Online Ratings Survey, an online survey of 561 legal professionals, small business owners and consumers that was conducted by Lightspeed Research in April 2009. The survey has been reported on extensively online, including at XML Journal and WebProNews. The full results are available here. The surprising results of the survey are that small business owners are active users of these sites – even more so than consumers.

Here are some of the highlights:

  • 87% of small business owners surveyed and 63% of consumers have provided feedback on review and ratings web sites.
  • More than half of small business owners and 43% of consumers believed that review and rating web sites mean businesses are held to higher standards.
  • Businesses tended to trust independent third party ratings, while a majority of consumers considered reviews from actual customers to be more trustworthy.
  • Businesses’ greatest area of concern was false and malicious reviews.

More recently, a “mom-centered” site called momconnection.com surveyed 583 mothers with children under 12 (out of their panel of 5,000 moms) about social media and its role in helping them make buying decisions. The study found that utilization of social media was very high: 81% of the respondents said they were members of Facebook (but only 23% had Twitter accounts) and 60% reported visiting a social networking site in the previous 24 hours.

Moms Already Social Shoppers

via momlogic.com

The study also found that personal recommendations were by far the most powerful drivers of purchasing behavior, a phenomenon we have noted before. In its research brief on this study, Mediapost found it “surprising” that only 24% of respondents reported using Facebook in making a purchasing decision, and that far fewer used MySpace or Twitter.

We don’t find this data surprising and we certainly don’t find it troubling. First, social shopping is relatively new, especially on social networks like Facebook and Twitter which only recently have become business-friendly. Just as overall utilization of social networks has increased dramatically over the past few years, we fully expect that utilization for exchanging information and experiences about brands and products will catch up. Especially because, as the research indicates, moms interact with brands at a very high level. Not only did 81% report visiting a marketer’s web site for product information, 36% reported becoming a fan of a marketer on Facebook (which is a little difficult to reconcile with the 24% figure cited above).

What does surprise us is how many major brands haven’t fully committed to social networks as a marketing medium. How can moms be expected to use Facebook to connect with marketers if marketers in the categories moms care about aren’t using Facebook to connect with them? So if a mom says she doesn’t use Facebook to help her decide which breakfast cereal to buy, it may indeed be that she just isn’t comfortable using social networks to crowdsource purchase decisions, but it could be that the brands she cares about haven’t given her a reason to try.

Another interesting finding from this study is how moms get and share information about products. Although personal recommendations are by a wide margin the preferred medium, 41% of respondents report consulting “mom-focused web sites” for information (presumably including the sponsor of the research) and 34% get information from shopping web sites. 54% have shared their opinions by rating or reviewing a product online and 37% have posted about a product in an online forum or blog. For a group that doesn’t obviously include large numbers of early adopters, we think this shows a reasonably high level of engagement with social shopping.

If moms are already using socially-oriented web sites – but not Facebook or Twitter – to help them make better purchasing decisions, it may be that they have figured out which sites offer relevant content and a valuable experience and aren’t limiting themselves to the big social networking brands. That suggests two things: first, that as marketers make better use of Facebook and Twitter they will find a ready audience of social shoppers. And second, that consumers are willing to use social shopping web sites that don’t have the brand strength of Facebook and Twitter, at least so long as they provide value to the consumer. As observers of social media marketing we are confident about the first observation. As developers of a new social shopping platform we are optimistic about the second.

Update: This post about the Maclaren stroller recall illustrates how active moms are on social networks, and how much influence they can have over marketers.