Social media becoming newest holiday strategy for retailers

Need a holiday gift? There's an app for that.

Social media has become the newest holiday strategy for some retailers, who are hoping the technology can bring some luster to their efforts to reach customers who are holding tight to their money this year.

Retailers have created gift-giving games on Facebook and shopping applications for iPhones. They're pushing coupons and daily deals on Twitter. Even Santa is giving text updates from his North Pole workshop.

"Retailers are always looking for a way to stand out during the holidays," said Ellen Davis of the National Retail Federation. "This year, social media is the golden child of retail."

About 47 percent of retailers surveyed last month by the National Retail Federation planned to increase their use of Facebook, Twitter and other online social networks this holiday season. As for shoppers, three out of five say they're planning to use social media to look for discounts, coupons and sales, according to Deloitte Research.

David Hlavac is so there.

"I have friends who ask me, 'Is there anything you're not a fan of?' " said Hlavac, 37, of Edina, Minn.

Hlavac has joined 486 fan sites through his Facebook account, from retailers Creative Kidstuff, Clinique and Room & Board to restaurants such as Caribou Coffee, Broder's Pasta Bar and Baja Sol. He even has a towing service owned by a friend on his list.

"For me, it's about being part of something that your average, everyday consumer that walks into a store isn't a part of," Hlavac said. "It's more than discounts and coupons, which are great. But I want to know when a new store is opening, when they're having sales, when they're having a charity food drive. I might get a 'Come meet Jared Allen at the Baja Sol in Eagan' invitation. I might not go, but I like to know about it."

While retailers have high hopes of turning fans like Hlavac into customers, social media has proved to be better at building good will rather than boosting sales directly from sites.

"The amount of influence retailers get from consumers is very minimal," said Marshal Cohen, a retail analyst with market research firm NPD Group. "However, it's such an inexpensive form of communication with the consumer, you're crazy if you don't do it."

Gift-giving applications, daily deals and shopping sweepstakes using Facebook are the most common way retailers are aiming to connect with shoppers.

But there are plenty of variations on that theme. Guitar Center has a wish-list tool that lets people star in a rock 'n' roll poster (and highlight desired gifts) that can be uploaded to Facebook, Twitter and MySpace or e-mailed to friends. Best Buy's "Hint Helper" displays what looks like an advertisement ("Johnny really wants a digital camera for Christmas") onto a select Web page of anyone Johnny thinks might buy him that gift.

"It's the new golf course," said MaryAnne London, who owns the Glitz store at the Mall of America in Bloomington, Minn. "It's where people are building relationships."

London recently hired someone whose job is to blog, send out Twitter tweets and keep the store's Facebook site fresh for the 15- to 25-year-old crowd, which is the prime audience for the prom dresses she sells.

"Unless you've got a big budget for radio or TV -- which I don't -- you can't ignore social media," London said.

The cell phone is a frontier for retailers as well. Downloadable applications let shoppers browse, read reviews and, in some cases, make purchases from cell phones. Target's iPhone app works with a GPS system to tell people how many items are available at a certain store, offer a store map and then pinpoint the aisle where the item can be found.

But plenty of merchants are still sitting out the social-media trend. About one in five don't yet have a Facebook presence, and about three-quarters don't offer mobile text promotions, according to the National Retail Federation. About 28 percent don't use Twitter, and more than 40 percent don't use e-mail to promote store events.

One reason for the reluctance: losing control. A snarky posting from an employee could spread quickly, alienating customers. And well-meaning communiques could backfire. Whole Foods CEO John Mackey wrote a Wall Street Journal editorial-page article this summer about what he considered to be the company's generous health-care plan. Some customers didn't agree, and created a "Boycott Whole Foods" Facebook page that now has more than 35,000 fans.

Best Buy's question, "What do you think about offering Bestbuy.com in Spanish?," resulted in a torrent of racist and rude comments, Best Buy senior director Tracy Benson told a Shop.org industry meeting last month.

(Distributed by Scripps Howard News Service, www.scrippsnews.com.)

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