Author Archive for David Thiel

Woot.com: Brand Membership in Action (reposted 10-18-07)

The etail site I talk about the most is Woot.com. They best embody the concept that Auragen calls “Brand Membership,” and they have in a single year amassed 500,000 registered users, despite their small size.

Woot’s online catalog contains only a single item each day, and they do not tell users how much stock is on hand. This strange sales concept is a powerful conceit which enables Woot’s domination as a web marketer, allowing Woot to achieve the “holy grail” of Internet retail marketing: daily visits by users eager to buy. How do they do it? They leverage the promise and purpose of the Internet in a way which demonstrates a deep and abiding understanding for how the Web works.

Woot’s copywriting is reason enough to visit the site. Funny and irreverant, it epitomizes Internet culture through self deprecation, dry wit, and tell-em-like-it-is bravado. They often qualify their products as “mediocre” “ridiculous” or “unecessary” even while asking the user to buy. Add to this the daily “Wootcast” an original song (yes, a song) recorded about each day’s product. In addition, Woot uses other techniques to get people to return to the site each day:

Scheduled Features:

  1. On Mondays, Woot announces the winners to its weekly Photoshop contest, in which users are encouraged to submit photo-edited images which incorporate Woot products into a particular theme. (Monday typicallys brings a creative reference to Woot’s weekly sister site wine.woot.com.)
  2. On “YouTubesday” Woot posts a blog entry highlighting the most exciting and noteworthy YouTube posts made during the last week. This YouTube redux is the best on the Internet. Tuesdays also feature “two-fer” deals, where products are offered in pairs.
  3. Wednesday witnesses “Worst Woot Ever” contestants. The products featured on this day are truly awful. It’s like passing an accident on the highway: you can’t look away. Woot also uses Wednesday to post its own PR and provides an overview of Wiki activity on the Web.
  4. Fridays see the announcement of the secret theme of Woot’s weekly photoshop contest, and user submitted entries to the contest sustain the site through the weekend with comments on Woot forums.

Real and Implied Contests:

  1. Woot’s weekly Photoshop contest allows participants to demonstrate their skills and viewers to see side-splittingly-funny visual jokes. Contest entries and comments typically amass hundreds of comments on the Woot forums.
  2. Many of the items Woot sells are highly desirable and offered at a low price. They can sell out quickly. (Sometimes, literally, in seconds.) Being the first person to buy the new item grants bragging rights in Woot’s online forums. (As an added wrinkle, Woot posts each day’s item at midnight central-standard-time requiring most die-hard customers to stay up late in order to get in on the fun.) Woot publishes who bought the first item (”first sucker”), who bought the last (”wooter to blame”), and how much they sold per hour (”woot wage”).
  3. Purchaser Experience is a factor as well. Woot publishes statistics on its purchasers to show how many of them have, for example, bought ten Woots or more. Users list their woots in the signature attachments to their forum posts: a point of pride and community standing.
  4. On user account pages, it reads:
    • Heading: “Your Account”
    • Tiny Subprint immediately underneath: “…secretly determines whether you get into heaven.”

“Blockbuster” Events

  1. “Bag of Crap” is Woot’s biggest blockbuster. Occasionally (and on an unknown schedule), Woot offers an item titled “Random Crap.” This item is a contest of sorts. Typically available in a few thousand units for “$1 for each crap” (limit: three craps per order). Users who order “random crap” truly have no idea what they will receive. While typically worth more than the $1 entry fee, items received range from broken toys, powercords, and empty boxes to the rare and significant “bags of crap” which have contained 61 inch plasma televisions, X-Boxes, DVRs, and more. Users are encouraged to photograph their shipments as they arrive. Crap deliveries are anticipated with no less than Christmas-eve levels of excitement.
  2. “Woot-Off” is an event (signified by flashing lights on the home page) where Woot, upon selling out of its posted item, immediately posts another item (instead of waiting until midnight). Woot-Offs can last for days, and Woot takes pains to offer particularly desirable items during the middle of the night, just to torture its users. There is even an original “Theme for Wooting Off” musical score delivered via downloadable podcast.

The ultimate measure of consumer Brand Membership is how quickly an oversight or mistake will be forgotten. In Woot’s case, their site regularly crashes at midnight as the new item is offered. But customers quickly forgive: if the site is overwhelmed, it must be a great Woot tonight!

In Woot’s case, Brand Membership has translated into rocketing sales, strong loyalty, and a network of word-of-mouth referrals which can’t be beat. Perhaps you’d be interested in the same results for your etail site?

[techtags: woot, bag_of_crap, brand_membership, etail_design, ecommerce_design, brand_experience]

Etail Site Design Link Roundup

Some links to carry you through the weekend.

Joho Rants on Gevalia: a Lesson in Email

I am a bit of a coffee nut, so the reference in this rant on Joho the Blog caught my eye. The lesson here is that email support matters, and while some guy named “Joho” may not seem to be “all that important” he is, quite.

Now, here’s the etailer’s dilemma. How do you know who’s behind the email? (Answer: you don’t, so treat everybody right.) Not treating your customers wrong is perhaps the most right thing you can do for your online marketing.

Sale Price Format Affects Conversion?

Crazy.  True?

Why I Love Shopping Comparison Engines… and Why I Hate Shopping Comparison Engines

Comparison Engines are an Important Ingredient in Your Etail Marketing Strategy

I’ve been meaning to post about comparison engines for some time now. Comparison engines are, of course, one of the core etail marketing channels, And yet, comparison engines remain relatively underused by smaller retailers and unoptimized by large ones. There is a general lack of understanding of how shoppers really use these engines, and as such, opportunities for improvement are large.

Etail is 180 from Old Fashioned Retail

Ultimately the rise of shopping comparison engines is an indication that retail strategy has turned a complete 180 since the time of our grandparents. At the turn of the century (the last one, not this one :-) it mattered not what brand/product you bought — rather, it was the relationship with the retailer which mattered most. You bought bread from your grocer, not “Wonder” from whomever. You went to the tailor, rather than choosing a brand of suit and finding someone who sold them. Brands did not exist in their current format.

If You Can’t Beat Em, Join Em (but Still Try to Put them Out of Business)

No more. Now, it’s all about the brand of the product you want to buy, rather than the relationship you wish to have with the retailer. (This has the unfortunately side-effect of making price comparisons the largest factor in determining where to buy.) While we all work hard to reverse the trend, participation in Shopping Comparison Engines is both a tacit acceptance of this change and an appropriate hedging strategy in case our efforts to change the game ultimately fail.

While the death of comparison engines has been widely and (I think) erroneously reported, I would very much like to see them change dramatically. Right now, while outstanding results can be generated, they require careful and time-consuming management as well at a good tactical approach. For small businesses, this almost always means outsourcing feed management (which may be a better solution for larger retailers as well).

Already, BazaarVoice, Shopify, Buzzillions, and PowerReviews seem to be developing the next generation of comparison engines. The other guys just hope you’ll discover every little feature and manage them carefully. I hope that this next generation of entrants provides comparison options beyond the typical (cost, shipping, tax) — so that we’ll all be able to compete on things other than price.

There you have it: my roundup on comparison engines. Now, while you deal with these CSEs, don’t forget to build an incomparable brand.