Social(izing) 
During 
the Holidays

RadioShack tracked each Foursquare transaction via a unique code in its point-of-sale system. The retailer is currently tying its Foursquare purchases back to its customer database to get a better understanding of the lifetime value of those customers.

As for what role social media will play in RadioShack's 2011 holiday marketing plans, Parker says that you can expect to see the company's employees take center stage. YouTube videos with store associates talking about the latest electronic devices and a corporate blog are just two examples of RadioShack investing its time and resources in its employees. Campaigns and promotions will be spread out across the various social platforms, including YouTube, Twitter, Facebook and Foursquare. And don't be surprised if you see RadioShack doing something with Instagram, the fast-growing photo sharing app, Parker says.

Ugly Sweaters Help Grow 
a Brand
A flash-sales site for U.S. college students, Kembrel was launched in September of last year — just in time for the holiday shopping season. The retailer figured what better way to connect with college students than social media, particularly Facebook, with 75 percent or more of the demographic (18- to 25-year-olds) active users. Seeking to take its store where its target audience was, Kembrel worked with ShopIgniter, a social e-commerce software company, to become the first private-sale site to launch a fully integrated Facebook store.

Kembrel's first holiday promotion took place on Cyber Monday and was a relatively standard refer-a-friend program. Members who referred 10 of their peers (along with their email addresses) received a voucher that they could redeem on Kembrel's e-commerce site. The promotion was broadcast via Kembrel's Facebook page and Twitter account.

The retailer's next campaign was a little more unique. Kembrel promoted an "ugly Christmas sweater sale" on Facebook. The ugly sweater sale was a success in two areas, says Stephan Jacob, co-founder of Kembrel: one, the sweaters sold very well and, two, it grabbed attention for the startup.

Initial analysis of social media's impact on the growth of Kembrel is promising. The brand's commerce-enabled Facebook app was responsible for 20 percent of the company's 2010 holiday sales, and customers who purchased via Facebook had an average order value 7 percent higher than Kembrel's dot-com customers. Jacob doesn't see this trend slowing down as the company prepares for its second holiday season.

"I'd expect that share to go up," says Jacob in regards to 20 percent of Kembrel's sales being captured via its Facebook storefront. "There's really no reason for people not to use Facebook's interface because it offers the same level of flexibility, convenience and user experience that you'd expect of a well-designed dot-com site. The apps are becoming significantly better and more convenient, which will ultimately drive a lot of consumer adoption to transact on Facebook."

While no specific social media holiday campaigns have been planned as of yet, Kembrel will be relying heavily on the channel once again. Giveaways based on a customer action — e.g., commenting or sharing on Facebook or Twitter about Kembrel — figure to be part of the mix, Jacob says.

Skeptics Remain
Despite all the buzz surrounding how social media is changing the retail industry, there are plenty of people who haven't bought into the hype. Yes, the channel has its place as a brand-building and customer engagement tool, they concede, but it won't have consumers abandoning shopping in brick-and-mortar stores and on e-commerce sites.