Post #5 - Social Technology in Retail

In the past few posts frequent readers may have noticed a trend of topics revolving around the use of social technologies in corporate businesses and the importance of McKinsey value levers. This post will analyse both of these things in reference to a company dealing in the retail sector. Myer was chosen for this analysis as its Australia's largest retail chain and understands the importance of keeping ahead of its competition using growing trends. The chain merchandises a wide variety of products such as from clothing, accessories, footwear, cosmetics, fragrances, furniture, bedding, toys and electrical products.

As with all other major retail chains, Myer has invested in creating and maintaining pages on the major social media websites such as Facebook, Twitter and Youtube. However, there are many niches in the way they use social technologies that help them to stay ahead of the pack.

The Myer blog, although being a relatively recent page, has already had a significant impact on the sales of the store. The blog focuses on the clothing and beauty side of the merchandise to give it the appearance of a high-end fashion blog. The posts are all very well written to showcase the stores new products as if it were an article in a fashion magazine rather than being obvious advertisments. This ingenious writing style is combined with several social media plug-ins such as an Instagram image slider showcasing the products in use alongside Facebook and Twitter plug-ins. The blog has had noticeable improvements on store sales with the youth fashion sector experiencing double digit growth due to the Miss Shop Blogger Project, a project that has 15 high level bloggers promoting a new range of clothes.

Myer has invested so heavily into their blog as they know that the newer demographic is engaged primarily online whereas the previous methods of reaching customers were through magazines and television.The graph above shows the high engagement visitors to the website have as well as its high ranking. The Myer blog is currently Australia's most visited retail blog and its success  can be somewhat credited to its close following with the McKinsey value levers. The blog being an interactive environment applies to lever four, Derive customer insights. Allowing supporters to comment, share and even upload their Instagram photos creates an engaging environment that attracts a userbase and also allows the designers to take in this feedback to use to enhance future products.

Another use of social technology implemented by Myer, although not a blog or wiki, is the Myer one mobile phone app. The application is described as 'One less card. One great app.' as it is aimed at being a replacement for the regular plastic Myer one card and Myer one Reward card. This feature has a noticeable effect on customers shopping habits as it combines the typical retail store rewards with gameification elements. Having the Myer one icon on the users mobile home screen will act as a consistent reminder to shop at Myer and the collection of redeemable points for their purchases makes the shopping experience similar to a mobile game. The social technology element comes from the ability to display your points among your friends giving the shopping experience a competitive element.

The app also features other useful features such as access to the store catalogue, store locator and exclusive offers to encourage app usage. When referencing back to the McKinsey value levers it can be seen that the Myer mobile app represents lever five, 'Use social technologies for marketing communication/interaction'. It assists marketing interaction by allowing customers to return feedback to the store. This is important as it gives Myer invaluable research on customer desires and habits for no cost.

The use of social technologies to increase company awareness and product sales can be seen everywhere and the businesses who use them more effectively will ultimately have the competitive edge.