Cross-Channel  Retailers to  Watch

overstockArt.com
Headquarters: Wichita, Kan.
Website: overstockart.com
Number of employees: 20
2009 revenue: $2 million
2010 revenue: $3,040,000
Projected 2011 revenue: Around $4 million

overstockArt.com has had its fair share of hard times during the past few years as a result of the economic downturn. But now the dog days are over. With a 52 percent year-over-year sales increase in 2010, overstockArt.com is certainly becoming a retailer to watch.

How will it sustain its recent success going forward in 2011? overstockArt.com will continue to send out e-newsletters, postcards and catalogs to its customers

After all, it's these types of campaigns that contributed to the company's record-breaking holiday season.

"We worked hard to segment our customer base and to pitch to our existing customers, who know firsthand the value we offer," says Amitai Sasson, vice president of marketing and technology for overstockArt.com. "Our ability to communicate the value and our quality to our customers via email, Facebook and postcards throughout the year had the desired effect that culminated in our holiday season success."

New initiatives for 2011 include deals on daily-deal site Groupon throughout the U.S. and newspaper campaigns.

Another fun aspect of overstockArt.com is "Artist Become," also known as ArtistBe.com, a social/e-commerce platform for up-and-coming artists to display their art.

"ArtistBe.com allows us to give an open stage to the next great artists of our generation and, in addition, offer our customers original and innovative art from around the globe at a fraction of the cost," Sasson says. "It's just a win-win for everyone. … It truly is a great platform to be a part of."

The last factor overstockArt.com attributes its success to is great people.

"This is the secret sauce to any initiative," notes Sasson. "We have a great group surrounding us, from the CEO to the production team. Everyone is in-tune to the customer's needs and the importance of the customer experience in our online art gallery — from landing page to the art hanging on the wall."

Tip: 1. Take care of your customer.
2. Surround yourself with great people
3. Give your customers a chance to be heard.
4. Give your employees a chance to be heard.
5. Give your people a sense of ownership and a stake in the company's success. — Meredith Cunningham

The Pond Guy
Headquarters: Marine City, Mich.
Website: ThePondGuy.com
Number of employees: 35
2009 revenue: $4.8 million
2010 revenue: $6.2 million
Projected 2011 revenue: $8 million

The Pond Guy is your quintessential small business success story. Company founder Jason Blake started working a summer job in high school cleaning and servicing ponds in his Michigan neighborhood. Upon going away to college, he realized the demand was there to make it a legitimate, full-time business. So that's what he did. The Pond Guy has grown from humble beginnings into an $8 million business.

Several factors have contributed to The Pond Guy's recent success, says Blake. They include the following:

Instead of cutting back on advertising, The Pond Guy has increased its advertising budget, most notably its catalog circulation.
In a difficult economy consumers decided "staycations" were the new thing. The Pond Guy encouraged this line of thinking by helping consumers turn their properties into "waterfront" real estate. The soft housing market also led many homeowners to decide to weather the storm in their current home and opt for spending money on things like additions or landscaping.
New online initiatives from The Pond Guy such as increased email campaigns and the development of a customer Q&A blog have helped the retailer to engage its customers and encourage repeat business. Investments in live chat and employee education have helped to create better customer experiences.
The Pond Guy expanded its product line to better serve niche segments of its market. This has allowed the company's wholesale business' incremental sales to increase, as well as open doors that were once closed.

To ensure future prosperity, Blake says The Pond Guy is investing time and resources into advanced online site search; tweaking personalized product recommendations; triggered email campaigns; loyalty programs; and making better informed marketing decisions via its marketing database.

Tip: Make sure the feel of your brand is consistent across all channels. This is something we've struggled with but plan to change. — Joe Keenan