Building on last week’s topic of the diffusion of innovations, this week’s topic is on interpersonal communication and opinion leaders.There are certain steps each new idea goes through before it reaches a wide audience. These steps involve interactions not only within an organization, but with outside consumers as well. Why do some products trend more than others? How do companies keep their customers interested? Communication is an extremely large factor in elevating public interest, and there is much behind the scenes work in getting the right information out there.
Word of mouth (WOM) communication is a powerful tool for in sales. In fact, Okazaki states in his study using the social influence model that as much as “67% of sales of consumer goods are based on personal information sources.” WOM was increased with the Internet sensation, but has now reached a new level through mobile devices. Consumers can take these mobile devices anywhere, so what better strategy than to have mobile advertisements and information readily available to anyone, anywhere?
Ford embraced mobile WOM by rewarded active social media users with a free Ford Fiesta. It is safe to say that receiving a free car will get a customer to talk about a company’s product. However, it is important for a company to do more than a one social media campaign. A company cannot just have one big social media event and think it will stay relevant in this fast-paced world. Starbucks has succeeded in the art of social media posts that continually impact the in-store experience. They have revamped their pages to invite customers to share their ideas, as well as to announce in-store promotions on each of these sites. The pages are thriving on the idea of a social culture and influence: friends will go to the coffee shop together; an individual will go to see live music or attend a special event knowing people will be there.
Today was my last day as an intern at the Shoe Carnival corporate office. To say the past five months have been a learning experience would be an understatement. Working in the corporate office allowed me to see how everything in each department comes together to ensure success in the stores. Shoe Carnival has mastered the art of interpersonal influence by supporting the community and participating in nationwide charities. The company is also run by opinion leaders, those who aren’t afraid to try out the next big thing, or those who have a strong influence on others.
Simon Sinek’s TED Talk discusses the attributes that make a great leader. Throughout the talk he repeats the idea that “People don’t buy what you do, they buy why you do it.” Shoe Carnival’s leaders are more than willing to try something new to improve their stores and give families more opportunities for affordable merchandise. Their stores are expanding to states they have never inhibited before, and their advertisements have recently reached a national level. Their Instagram account is updated weekly along with fresh Facebook posts. They have also adopted better shipping techniques to ensure customers will get their products in a timely matter. The biggest change seen in the stores is the increased amount of higher quality brands over the past year. Many were concerned introducing higher-priced brands would take away from the affordable, family values, but they found a way to bring higher end brands to more affordable prices. The company is truly thinking from the inside out by focusing on the purpose of their shoe sales, and not just the fact that they have products.
Shoe Carnival is known to be a family-friendly store, and the company takes pride in its family values. How do customers know about these values? When you enter a Shoe Carnival store you will see a basketball shooting game for children/teens to play. Each store features a person on a microphone that announces deals and a wheel for customers to spin to receive additional savings. This fun atmosphere is directed towards families and makes their shopping experience more enjoyable. I have friends who have never set foot in a store, and when I told them about the Mic Person and the spinning wheel, they said they had to see it. Even something as small as describing an atmosphere of a place allows interpersonal communication to influence someone’s decision to enter a store.
The company also engages in a variety of community events. Shoe Carnival supports charities that are centered on families and children. For example, in Evansville, IN, where the corporate office is located, there is an organization called CASA (Court Appointed Special Advocates), which provides guardian ad litems for foster children. Each year Shoe Carnival hosts a Walk the Runway event where they have school aged children modeling the latest fashion trends in shoes. Shoe Carnival employees volunteer to run the show and handle the silent auction and donation tables. Their logo is posted on the volunteers’ t-shirts and on banners throughout the event.
This year an incredible thing happened. Once the show was over, an auctioneer came onto the runway to offer a testimony and ask for donations starting at $1,000 and counting down. A man in the crowd suddenly raised his hand to speak, so the auctioneer handed him the microphone. This man began to talk about how he’s been shopping at Shoe Carnival for years and felt they always had the best prices and deals. His story ended with the following sentence: “Over the years I’ve probably saved up $10,000 by shopping the deals at Shoe Carnival. If Shoe Carnival supports this organization, it must be good, so tonight I would like to donate $10,000 to CASA.”
You can imagine the chills that ran throughout the building and the jaws that dropped! This man felt grateful to Shoe Carnival and passed his gratefulness onto a valued, non-for-profit organization. This also inspired even more people to donate, and CASA is proud to report they shot past their donation goals. CASA took time to post on their Facebook page to thank Shoe Carnival for being the title sponsor. All of this attention and WOM posting has made Shoe Carnival’s reputation stronger. Once again, “people don’t buy what you do, they buy why you do it.”
Shoe Carnival shows leadership in the world of family-friendly retail through the store environment, merchandise, marketing, and by WOM from community events. Businesses that aren’t afraid to try new strategies and participate in the community will consistently attract valuable customers.