E-commerce grew 20% for Costco in fiscal 2015—20 times faster than store sales.
Since adding the Like button, the retailer’s average order value has jumped 50%.
Outdoor gear and apparel retailer GiantNerd.com launched in May, intent on offering consumers a variety of ways to socialize around its brand.
To foster dialogue, the retailer provides shoppers with its Powered By Love community where consumers can post comments, engage in discussions, post reviews and ask questions. They can also pose questions on every product page.
To entice consumers to take part in its community, the retailer offer GiantNerd Rewards to shoppers who review products, ask and answer questions, upload photos, join groups, share products on social networks such as Facebook and Twitter or start, or comment on, a conversation.
“We want the wisdom of the crowd to help consumers make more educated purchases,” says the company’s president, Randall Weidberg, whose official title is nerd in charge.
But while spurring conversation is helpful to consumers already on the site, the retailer also wanted to engage those who didn’t know of the GiantNerd or weren’t regular shoppers on the site.
That’s where the Facebook Like button comes in.
In August the retailer added the Facebook Like button to each of its product pages. Allowing a consumer to click that he Likes a particular product expands the breadth of the site’s reach because the consumer’s click of the Like button shows up on Facebook where his family and friends can see it, as well as on GiantNerd.com , says Weidberg.
“It draws targeted traffic back to our site,” he says. “Recommendations are incredibly powerful. I want, and our members want, recommendations from like-minded people and that’s what the Like button gives them. Most people have friends who have similar interests, so when they see that their friend likes a particular product it has a real impact.”
Since adding the button, the retailer has increased traffic coming from Facebook 100%. Moreover, the number of those consumers who place an order has jumped 30% and the average order value has risen 50%.
The Like button’s success is leading the retailer to introduce a number of other initiatives that build on the links Facebook and other social network provide, which are called application programming interfaces, or APIs. For instance, the retailer earlier this week launched an application that allows a consumer who asks a question on GiantNerd.com to post the query on Facebook, Twitter, LinkedIn and other social networks.
The program seeks to increase the chances that the consumer will receive a response, as well as to improve the retailer’s visibility.
“Most people spend most of their time on social networks,” he says. “This gives them a chance to get feedback from a wider breadth of people than just those on GiantNerd so they can make a more educated purchasing decision.”