Foiled Cupcakes launched in June 2009. Based in Chicago, their offer is simple: gourmet cupcakes. Instead of a traditional storefront, Foiled Cupcakes chose to focus on online orders and marketing via Twitter. In fact, they started using Twitter even before officially launching their website; something that might be worth considering for your next marketing launch.
Owner Mari Luangrath will join the online communication track and share three easy, applicable and effective strategies she found to be effective as she launched Foiled Cupcakes as a social business: 1. help others; 2. facilitate fun; 3. do it again. These might sound remote from your traditional marketing or communication strategies so to assist you in translating her lessons to your organization, she’ll provide concrete examples of social media campaigns following this methodology along with real outcomes and actual numbers.
Having set up a business where about 90 percent of customers have come directly from our mentions on Twitter, Mari has some real-world experiences of what works and what doesn’t when it comes to effective usage of Twitter. Clearly, Mari is using Twitter in a different way than I am which has been very rewarding for her small business. As of writing @foiledcupcakes has 5,463 followers and 16,542 tweets.
Have you been successful in using Twitter for a recent campaign? Come to Philadelphia and exchange experiences with your peers.
Gini Dietrich March 31st, 2010 13:44
You should talk her into bringing cupcakes with her. I order them at least once a week…they are that good! So, while she has done a killer job of promoting her business via social media, she has an amazing product to back it up and create repeat orders.
http://twitter.com/ginidietrich
Mari Luangrath April 1st, 2010 13:44
Thanks, Janus, for this post. We’re definitely excited to be able to rub shoulders with those speaking and attending your conference in May.
Gini, thanks for the shout out! While we do love cupcakes, the best part of our business is interacting with people like you.
Happy weekend to you both.
Lisabeth Rosenberg April 4th, 2010 13:44
I think that it probably can work for things like cupcakes. Everyone can afford a cupcake -it’s something for the masses even if it’s a high-end cupcake. Business owners have been mislead into thinking that all they have to do to perk up business is to have a FB business page and a twitter account. These things take knolegde and business savvy to implement effectively.
Yes, you can outsource that to someone but no one works for free. Many small businesses cant’s afford to divert funds that are needed for mor vital goals -like staying current with your expenses. You don’t want to lose your core business -or your core audience. Mine are NOT twitter people & I have yet to get business as a result of twitter or FB. However, that does not necessarily mean that, that won’t be true in the future.
I’m participating in Social Media to enhance my knowledge of the internet and how people are communicating. I’m not looking at it short range. Frankly I’m not sure that it’s appropriate for Luxury Linens which is what I do. Perhaps to promote an event. But so far no one has responded to any of my twitter offers. I can not track it. Only time will tell.
It’s a BIG time suck but I’m making connections and having fun! La Vita e`Bella! Enjoy Life.
Mari April 4th, 2010 13:44
Lisabeth, I totally understand/appreciate your comments about how SM may not be for higher-end/price point products. Obviously I’m not a social media expert; I just know what my experiences have taught me. So can I ask a few questions?
1 – I took a look at your site and it looks like the average bedding set is around $800-1200. Is this correct? (Fitted/flat sheets, pillowcases, duvet, bedskirt).
2 – What sort of people are you connecting with on SM?
3 – It looks like you’re located in Chicago – on North Wells Street. Correct?
4 – Is your Twitter account twitter.com/lisa1linenlady ?
Based on my above assumptions, if you don’t mind, I’ll throw out a few things to help get the conversation going:
1 – Our target customers aren’t individual buyers, but businesses. We tend to get (on average) $4-600 transactions from each of our customers because we’re targeting those who will purchase cupcakes in volume, rather than the individual consumers who will buy a dozen here and there. We also focus on wholesale, weddings/event planners, and industry events. I’d say that the 80/20 rule absolutely applies here.
2 – We’re focusing on making connections with everyone – because that’s how the word gets out – but particularly those who are thought and industry leaders in our target markets. Another area that we concentrate our efforts? Making connections with the press, whether they’re traditional media, bloggers, or speaking at conferences like this one. Because once someone who’s an industry leader vouches for your product (whether it’s cupcakes, luxury linens, web marketing services, accounting, or credit repair), you’ll be more viable with the general public, which leads to better testimonials/press, which leads to more people visiting your site (SEO), which leads to more of the RIGHT people visiting your site, which leads to conversion.
3 – I’m in Chicago as well, though we don’t operate out of a storefront. We bake in West Town, so I’m near old Town all the time. Would you like to get together for lunch sometime? I’m sure Gini will join us as well (one of the foremost industry/thought leaders in the country surrounding SM) – and her office is on Clark in River North.
4 – As far as promoting stuff on Twitter, I’m not sure it works either. Our company never promotes anything, because I’m pretty sure it wouldn’t be successful and would just come across as lame. We just engage in conversations, and like you said – have fun! I’ll start up a conversation with you on Twitter so you can meet some local Chicago people and get the ball rolling, if you choose.
Let me know what you think – about lunch, especially! (I want good Italian in the city – and it seems like you’re probably the gal to know
)
Janus Boye April 4th, 2010 13:44
Thanks for the great comments.
Twitter is a great tool for many things, but certainly not for everything. To me, a social business is a business that “speaks human”, connects with customers and build relationships over time. I don’t know much about cupcakes or luxury linens, but would expect that both have a relevant audience that uses Twitter.
If I remember correctly PC-maker Dell have had quite some success with special offers for their Twitter followers in a price range closer to luxury linens than gourmet cupcakes.
Still, Twitter is only one out of many social business tools. LinkedIn is also very popular for some use cases and early-day social media tools such as wiki or blogs, might also be worth looking into.
Having fun with all these tools is very important. Beyond tools, if you have any time left, I would recommend that you focus on creating quality content, wherever you publish it.
Unfortunately I can’t join a Chicago lunch in April, but look forward to continuing the conversation and hopefully a Chicago visit at some point.
Cheers,
Lisabeth Rosenberg April 6th, 2010 13:44
Marie,
Thanks so much for taking the time to give me your insights.
With regard to your first question you are on target about what an average purchase is: A fine quality sheet set consisting of a flat, fitted and pair of pillowcases is in the $400-1200 range; same for a Duvet Cover Ensemble with a pair of matching shams. Of course a complete bed ensemble can be much more if you consider all the elements including a goose down comforter, coverlet, sleep pillows, etc. Obviously we are talking about High-End Retail here, although the astute and creative individuals can find much that is heavily discounted at our store to decorate their home.
We also sell nice towels featured as “The Best” by the Wall Street Journal. One article placement featured in Departures Magazine (Dec 2006) resulted in $300K in sales -but that was a one off. (Departures goes to American Express card holders who charge 150K on their black card annually. That would be my ideal target audience with little price resistance and most our active internet buyers resulted from that press.)
Many people on our customer mailing list are part of the Who’s Who of Chicago elite. We are a mature business (the longest in Chicago) with a great reputation nationwide. We have a substantial out-of state and international clientele. In 1998 were presented The Retailer of the Year Award by the Home Fashions Products Association at the New York Home Textile Show together with Eddie Bauer Home, Pottery Barn, and Martha Stewart Living by Kmart. We are considered to be among the top 10 linen stores in the US and have continued to win awards. Yet there are people in Chicago who fly to New York to purchase the same linens that we offer being unaware that we do. Part of my strategy is to tap into that local audience. We are a word-of-mouth business.
Our core clientele are the affluent, but also aspirational buyers who have an appreciation for quality and beautiful textiles -really, a niche market. Everyone has heard of thread count and Egyptian cotton but, that doesn’t necessarily mean that they sleep on nice sheets or are willing to spend the money; nor can they distinguish what IS better quality. Surprisingly, this can also be true for those who can afford luxuries such as expensive wine, cars, travel, jewelry, etc.
So much misinformation is in the marketplace. That’s where we come in: If it’s in our store, we endorse it. We have a high level of expertise and attention to detail. We are familiar about the changing status of our suppliers and the production mills. We have Customer Loyalty spanning 30 years. They trust and depend on us to guide them through their selection.
We have been involved in some interesting projects such as in 2004, furnishing the linens for Boeing’s fleet of private planes. This included embroidered guest towels, embossed leather placemats, damask napkins, custom-sized bed linens and cashmere/silk throws -all with a Boeing’s logo.
Nevertheless, certain sectors of the economy are forever altered. Home Furniture and businesses connected to the mortgage market or construction have been severely affected. ANd there are economic forces that are beyond our control.
This economy HAS changed the mindset of the wealthy: conspicuous consumption is out. The affluent are still in a, “Deer in the headlights” mode. Even if you can afford to spend frivolously it’s unbecoming and people feel embarrassed or guilty. The Luxury Market is in the tank, evidenced by the closing of Ultimo and spate of other high-end stores on Oak and Michigan Avenue. However, the very top designer clientele is keeping us alive. Ultimately we are selling something that, although i a bit expensive, it has value with enduring qualities like beauty and comfort – things that people want to be surrounded by in their home.
We’ve seen our retail (walk-in business) evaporate these last three years and although it’s picked up, it’s choppy and unreliable. Maybe instead of buying linens they are buying a $10 soap so our average sale has gone down. I browse the department stores like Macy’s and frequently I’ll see that there are more customers in our store. Sometimes the streets seem empty as if a bomb went off. But, I don’t know one business person, whether they are a retailer, a wholesaler, a dentist, a lawyer or a car mechanic, who hasn’t said the same thing. It’s time to be proactive.
These are strange times. Yet, there are many glimmers of hope .
Today’s Gordian knot is to figure how people now communicate and how the younger generation will be purchasing. We are a mom and pop store; our core clientele is age 50 and above. Our resources dedicated to marketing and advertising are limited. We’re not Bloomingdale’s or Zappo’s who can afford to experiment with the internet (Case in point: http://www.zappos.com/map/# ). The publication industry has been decimated, which in the past was a traditional way for business to get their message across via advertising or editorial. Have you noticed how magazines and newspapers are getting skinnier and skinnier –or just disappearing altogether?
So here I am on FB, LinkIn and twitter, like you, looking to make connections with everyone in Chicago -and beyond – because that’s how word gets around. We are all in the process of reinventing ourselves. That’s part of staying vibrant. I’m also indulging on my areas of interest which includes art, music, science, ceramics and a slew of other topics. I’m social and like to exchange ideas -and getting responses like yours, with other business people who want to connect, leads me to believe that I’m on the right track. And yes, it would be great to have lunch sometime -after all, we live in one of the greatest restaurant cities in the country –although I’m equally amenable to just having coffee. But if you want good Italian food, I might have to cook it myself; I usually make that myself at home.
PS. My personal twitter account is Lisa1LinensLady and our business account is @Arrelle where I post information which is strictly Home Décor oriented. But, lately I’ve been occasionally RTing and responding with Chicago businesses and relevant twitter accounts, etc. I work the two twitter accounts very differently. I also have my personal FB account which is Lisabeth Rosenberg and our business account which is Arrelle Fine Linens where we are just now starting to build up fans. Hey Become a FB fan at http://www.facebook.com/finelinens
Lisabeth Rosenberg April 6th, 2010 13:44
Janus,
A computer and things internet has become a necessary investment for both individuals and businesses. Most people can live without fine linens because they don’t miss the things that they have never experienced. Everyone has shifted down in the expectations of what is necessary when it comes to beauty and comfort in the home. It just has to be good enough.
When it comes to technology, software or hardware, people don’t even know what they really need. People are also purchasing because they feel that if they don’t they will miss out. The predators our out there snatching our dollars.
Learn how to make connections, invade conversations and much more | Aarhus 2010 News | J. Boye Conferences August 24th, 2010 13:44
[...] also spoke at our Philadelphia conference in May as part of one of the most popular sessions, where she shared the strategies she found to be [...]