Monday, February 25, 2013

Fab.com Rules in Internet Marketing

I kept seeing the little internet ad on the side of my facebook page. During Christmas, I must have seen the "The Beardo -Bearded Knit Cap" over a hundred times and eventually clicked.  Fab.com rules internet marketing!

Since it's website launch in 2011 Fab.com is on track to their projected $150 million in online sales. According it InternetRetailer.com 1/3 ($50 million) of its sales from social media. How did they do it? They are essentially an e-commerce site based on Facebook. Specializing in "flash sales". You can easily create an account and log in through facebook. Their website is not based on pushing sales but browsing and clicking your "faves" when you do this, it feeds to your friends that you liked or purchased the item. The images have more of a Pinterest feel. Their products are usually modern designs and range from gadgets, trinkets, magazines, dog clothes, furniture, human clothes etc. They have over 15,000 products on sale every day.

The beauty of their marketing lies in their Feed. They have thousands of products on special everyday so you can see them, share, like and purchase them. If you have a friend join through clicking through your feed, you are rewarded with points. $30 for 10 friends, 25 gets another $30 and if 50 friends join you get free shipping for 2 months. In 2011 Fab.com has granted over 5,000 $30 credits, of those issued there were 1500 secondary $30 credits and nearly 900 in free shipping.

The viral sharing brings in more than half of Fab.com's new customers and they are higher-quality traffic. According to Jason Goldberg, the founder, the consumers who come through as result of social media buy 5.5% of the time, a rate about 30% higher than traffic that comes from a search or other sources.

They also focused on "mobile first" they created a simple mobile app for the "flash-sale" merchandise. Every day, the app accounts for 30% of its daily sales, 50% on certain times of the day. They kept it simple by highlighting the products and made the app easy to navigate. With this proven success they now focus on creating a simple mobile experience first then they move it to the online experience.

Fab.com is an online marketing success simply because they used the power of Facebook.

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