Can't Buy Me 'Like'

Facebook has more than 400 million active users, who spend over 500 billion minutes per month on the site and interact with 160 million features (i.e., pages, groups, events, etc.). While the typical Facebook user is connected to an average of 60 pages, groups and events, how is a brand supposed to attract fans and keep them interested? 

There is a surge of campaigns online that encourage users to ‘like’ brand pages on Facebook in exchange for a discount, product trial or charitable donation. As the pressure to show ROI on developing and maintaining a Facebook page mounts, marketers resort to these tactics to give their communities a boost. 

The reality is that Facebook is cluttered space and a brand needs a cohesive set of promotions and smart posts to break through and grow their fan base over a reasonable amount of time. The quid pro quo approach will create a spike for a week and then the brand may need a new idea.

Moreover, this approach is a big no-no if you read the fine print in Facebook rules for companies. As stated in this section, “you cannot administer a promotion that users automatically enter by becoming a fan of your page.” Brands cannot use native Facebook features to run campaigns. Instead, they need to build apps that sit on separate tabs to run their campaigns. The main reason behind this separation is data ownership and potential liabilities that come with it. Facebook wants the brands to handle their own data and provide the following disclaimer: "This promotion is in no way sponsored, endorsed or administered by, or associated with, Facebook. You understand that you are providing your information to [recipient(s) of information] and not to Facebook. The information you provide will only be used for [brand needs to disclose any way that it plans to use the user's information]."

Among brands looking to acquire fans with the quid-pro-quo tactic, Ann Taylor has a more refined approach. The brand is leading loyal customers (called the Insiders) to their Facebook page with an e-mail invitation and offering them a discount in a tab dedicated to this initiative. To get the discount, users need to ‘like’ the brand. Considering that they have already opted in to receive emails from Ann Taylor, these customers are bound to click ‘like.’  

Posted via email from dotwom's posterous

Ann Taylor's Smart Email

With the ongoing news about the declining economy and the dismal retail conditions, it is hard not to believe news that some stores will not be able to honor their discount coupons after January 1st. In fact, on Friday I got an email from a friend with a long list of retailers, the number of stores they were shutting down. The note indicated that any holiday deals, such as friends and family coupons/savings, would not be honored after the New Year's, since the stores would no longer be in business.

I am never coordinated enough to have the right coupon at the right store, but the email did create a short list of brands in my mind that I matched up to poor performance. Ann Taylor, one of my favorite clothing stores, was mentioned in that email.

Come Saturday, I got a note from Ann Taylor, debunking the rumors about honoring holiday deals and clarifying the reason behind the store closings.

Dear Valued Client:

It has come to our attention that false and misleading information, regarding our Company and our store closure program, is circulating on the Web, as part of a hoax to scare consumers away from purchasing gift cards. Ann Taylor is a financially strong Company that operates nearly 1,000 Ann Taylor, LOFT, Ann Taylor Factory and LOFT Outlet stores across the U.S. In January 2008, we announced plans to close some underperforming stores, as part of a strategic restructuring program to make us an even stronger Company that can continue to serve you in the future. Our gift cards continue to be a popular and great option for gifting this Holiday season and can be redeemed at any of our stores, as well as online at anntaylor.com and anntaylorLOFT.com. We look forward to serving you again soon!

Kay Krill
President and Chief Executive Officer
Ann Taylor Stores Corporation


Ann Taylor wins points for delivering a fast, online response from a top officer in the company. Being in PR, I can appreciate all the work that must have gone into crafting the right message and targeting the right customers. I am on Ann Taylor's Insights panel as a customer who cares about the brand. I had also signed up for a store card at some point. Not sure how they exactly selected the email recipients, but they surely reached the right audience.