Deep in the heart of the north woods near Rhinelander, WI, lies an aberration of nature so shocking that zoologists and marine biologists could become faint at the mere sight of it. The key question is: What is a coral reef doing in northern Wisconsin? The answer: It’s serving as one of a variety of tools being used to drive online sales in 2006 by pet supplies retailer Drs. Foster & Smith Inc., where sales of all things fish are on the rise.
“We have one of the largest domestic coral farms in the country,” says Internet marketing and analysis manager Gordon Magee. “The demand for coral in home aquariums is growing, and it’s putting a lot of pressure on ocean reefs.”
Drs. Foster & Smith began bringing the web-based coral service online last year and sees it as a way to differentiate the company among its competition. It also is betting that the environment-friendly service will improve customer service and loyalty.
“What you see is what you get,” Magee explains. “If you look online or in the catalog at a dog bed, for example, you know you can get one that looks just like it. In the case of our live coral, you can actually purchase the very piece of coral you see online. The customer gets exactly what they want.”
Shoppers can go online at LiveAquaria.com and select a specific piece of coral, typically based on size and color, that they wish to purchase for their home tanks. Purchasing domestic coral does not harm the natural environment in which coral grows; this greatly appeals to most company customers, who are environmentally conscious, Magee adds.
Also this year, Drs. Foster & Smith, No. 80 in the Internet Retailer Top 400 Guide to Retail Web Sites, is seeking to boost sales through new customer acquisition and affiliate marketing. It has signed an agreement in principle with a potential affiliate, but declines at this time to provide the name. It also is exploring furthering its interactive e-mail marketing by placing links to educational articles on its PetEducation.com site within e-mails, says Magee, who will speak at the Internet Retailer 2006 Conference & Exhibition in an educational session titled Search Engine Marketing: The No. 1 Online Marketing Tool.
Additionally, the company just started a business partner program that gives pet rescue organizations, humane societies and other not-for-profit organizations 10% discounts on orders that exceed $100. The company also operates DrsFosterandSmith.com and Etropicals.com.
About 58% of the company’s business comes from its online channel. The rest stems from its catalog and one retail store. Drs. Foster & Smith dug up plenty of virtual bones last year, reaching $115 million in online sales, a 28% jump over 2004’s $90.1 million.
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