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Social media: A powerful way to reach consumers

By Gary Evans -- Furniture Today, December 14, 2009

NAPLES, Fla. — More people now use the Internet for social networking than to watch porn, and the video posting site YouTube is now the second largest search engine in the world behind Google.

While some may be hip to the power of social networking, a number of attendees at the Furniture/Today Leadership Conference here were amazed at what’s happening with Internet social media, as described by presenter Brian Thornfeldt.

Thornfeldt is marketing director for furniture for CSN, the third-largest online retailer of home furnishings and housewares in the U.S. ($200 million in sales). He said social media are an ongoing phenomenon and a key tool to doing business in the 21st century.

For instance:

There are over 350 million active users on Facebook, more than half of whom are 25 and older — the prime group from buying furniture.
Women over 55 are the fastest-growing demographic on Facebook; 20% of the users of Twitter are also in the same age bracket. Why? They’re effective ways to connect for parents and grandparents and other family members and friends.
Facebook users spend more than a billion hours per month on the site, according to Thornfeldt, with the average user spending 4.5 hours per month. Fifty percent of users log on in any given day.
Twitter grew to 18 million users this year and is projected to reach 26 million in the coming year.

The country’s top 20 retailers are tuned into social media, with almost all having a page on Facebook and about half using Twitter, Thornfeldt said.

The point of his numbers is to convey the power of interaction and real-time interest created by such sites. And retailers are recognizing that power, he said, with 47% increasing their use of Facebook and Twitter. Ikea has logged more than 53,000 friends on Facebook and Crate and Barrel has 10,000.

Since 73% of prospective buyers, meanwhile, use the Internet to research products online, Thornfeldt said. He recommended that retailers use every site available to drive customers to their store.

CSN, for instance, has embraced social media as an ever-evolving vehicle to reach existing and new customers, encouraging dialogue and reinforcing relations by sharing news, product tips, surveys and more. An online contest, offering prizes including products and design help from HGTV designer and host Angelo Surmelis, brought in 6,000 entrants and created $500,000 in incremental sales, he said.

Other the other hand, the online world also has a dark side. Some 38% of online bloggers post comments, which are sometimes negative about companies and products, Thornfeldt said. The auto service and parts store Pep Boys has received negative comments, and Comcast and Best Buy have been addressing consumers’ concerns posted in cyberspace.

One Leadership Conference audience member asked, “Can we weed out the bad comments?” The answer is no, said Thornfeldt.

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