In the last post, I outlined how we worked to determine who the coolest girls in Boston were for the Lily Pulitzer brand. With Social Value, that’s always the first step–who is who, how do we segment these people, and how much leverage is there to us? But that’s not enough. The next step is using that leverage to increase revenue, decrease churn, optimize UA and improve operations. This test was about revenue.
So we have these impactful young ladies. We know that when they move, others will also move. There’s a very straightforward “ripple effect” card to play. The question is how? Do you give them discounts? Free things? Those are indeed effective because they make the ripple larger. But, they aren’t inherently social. The expert-level move is to use some mechanic that leans into the very nature of the relationships we’re capturing. We have to also think socially.
What was tested here was a promotion that used social dynamics. They ran their annual sale routine, but then added a special add-on: Bring a friend and you both get a free gift at check out. Think about the social dynamic from the point of view of the cool girl, and of her friend. The cool girl gets to bestow her extra power alongside a friend. That feels good. The friend gets chosen by the cool girl. That feels good.
And it worked. Revenue, items in the basket, and new customers all went up around 15%.
It was just the first test, but it showed that there are a lot of levers that can be pulled when you have the right signal and the right mindset to use it. I’m excited to put this power in the hands of marketers who know their customers and their space. What will they come up with?
