ondango marketing project

7/29/2019 Ondango Marketing Project

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Ondango Facebook

Marketing Proect


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ABOUT ONDANGO

ABOUT THE AUTHOR

Carolin Schlenther is a Social Scientist with Customer Ser-

vice experience. She has a Masters in Social Research

Methods and is currently lling the position o Manager

Customer Experience at Ondango.

Ondango is a beautiully designed shopping system that helps you sell your pro-

ducts on your Facebook page, by leveraging Facebooks viral eatures.

Sell your products directly on your Facebook Page and com-

plete the transaction within Facebook.

Engage your ans with an-only promotions and Daily Dealsto oer a world-class shopping experience.

Increase your reach on the worlds biggest social network

and use viral eatures to spread the word, as easy as this.

Monetize your Facebook presence through this additional

sales channel & turn ans into customers.


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At Ondango we believe that Facebook marketing is a great way to improve

companies relationships with their customers and ans. Being at one level with anson Facebook allows or a much more personal user experience and the possibility

o direct communication, which increases trust, brand awareness and brand

loyalty. Facebook commerce ts into this concept seamlessly with the chance to

reward the most loyal customers and ans with great oers. When companies can

communicate this message o exclusiveness they can use Facebook commerce to

deepen the relationship between themselves and their customers; and make their

customers eel appreciated.

Facebook commerce is relatively new. Little and conicting inormation existsabout how Facebook marketing works best. The experiences o our customers

in particular have shown: Every brand, every Page has a dierent an base, target

group or an/customer commitment level. Thereore, experiences with Facebook

commerce vary widely. In order to better understand the processes Facebook

commerce, we decided to take on Facebook marketing ourselves.

INTRODUCTION

Project Description

Actions

Findings

Conclusion


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PROjECT DEsCRIPTION

The aim o our

marketing project was

to demonstrate that

regular marketing

results in a rise in shop

visits and sales. We

were also interested

in possible variations

in results between the

shops as they targeted

dierent age groups,genders and interest

groups.

While we still depended on the shop owners to post their usual updates, we

provided product posts, Fan Discounts, Daily Deals and Coupon discounts 2-4

times per week. We oten promoted posts or turned them into Ads.

The Ondango marketing project lasted rom the end o November 2012 until the

end o January 2013. During this period we took on the marketing o ve shops

that had either closed due to lack o sales, were about to do so or mentioned low

sales via Facebook.

The Pages associated with the ve shops had dierent an counts, sold very

dierent products and had varying Facebook marketing backgrounds. The values

in the table below were taken at the beginning o the marketing project.

Fan Count ProductFb marketing

score (0-5)Price range

Shop 1 327 Cakes 2* 8.30 (8.30)**

Shop 2 1,986 Boxer shorts 5 11.95 - 29.95 (17.11)

Shop 3 4,782 Cosmetics 2 1.79 - 19.99 (5.08)

Shop 4 54 Cotton bags 1 10.00 (10.00)

Shop 5 70Handmade

jewellery1 18.46 - 62.75 (39.19)

* Previous Fb marketing experience. **Brackets indicate the price average.


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The ocus o the project was on exposing the products to existing ans and the wider

Facebook community. The shops that had already closed or were about to close, had

none or very ew sales in the past. Those shops had also done little or nothing to market

their Facebook products. The big advantage o the Facebook shop is to give loyal ans

and customers the opportunity to get great deals. Those shops mentioned were not

communicating this message to their ans. Shop 2 had the most marketing experience,

but also reported low sales. An extra marketing boost seemed like the perect strategy

or it.

Fan Discount Daily DealProductAlbum

ProductPost

ShopPost

PageAd

CouponDiscount

Shop 1 1 (1) 2 (1) 1 3 (1) 1 (1) - 1 (1)

Shop 2 4 (3) 6 1 7 (2) - - 1 (1)

Shop 3 4 (3) 7 (1) 1 7 (2) 1 (1) - 1 (1)

Shop 4 4 (3) 7 (1) 1 7 (1) - 1 (1) 1 (1)

Shop 5 1 (1) 4 (1) 1 4 (2) - - 1 (1)

Brackets indicate how many actions rom each category have been turned into paid Ads or Sponsored

Stories.

The most common marketing actions were the posting o products and the setting up

o Daily Deals. Fan Discounts were also regularly set up. All three methods are ideal or

urther advertisement, such as Facebook Ads or Sponsored Stories. The graphic displays

each action per shop and the costs involved.

ACTIONs


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FINDINGs

The most noticeable changes were in an counts and visitor numbers. The an counts

increased by 8% to 126%. The number in shop visitors increased by 110% to 1608%. Sales,

however, did not improve or most o the shops.

Posts*Fan

Count**Shop Visitors** Orders

Income

Sales

Ads

Costs

Shop 1 23 (10) 23% 400%** 1 28,48 35

Shop 2 115 (22) 126% 110% 92** 2585,45*** 44

Shop 3 50 (23) 8% 1608% 4 64,71 61

Shop 4 27 (22) 85% 600% 2 22 60

Shop 5 21 (12) 39% 500% 0 0 40

240

*Brackets indicate the amount o posts rom the overall number done by Ondango. **Increase rom week

prior to the marketing project to the last week o the project. ***Including shop outside o Fb.

Shop 2 was an exception and had by ar the highest number o orders. This the owners

o this shop also had the most Facebook marketing experience and had built up a large

and active an community. A recent article on the blog Social Media Talk points out that

its not only the number o ans that decides i a Page is successul. Its rather the talking

about (comments/shares/likes) and reach that are key perormance indicators. The reach

will be high organically, i lots o ans interact with the Page.

The reach o the project shops was high, despite low talking about values. This can

be credited to the Ads and Sponsored Stories that had been set up. It also shows that

a high reach alone is useless when interaction with the Page is low. The two shops that

were selling most during the time, Shop 2 and Shop 3, both had a high reach. They were

making posts that encouraged ans to interact and thus increased their reach organically.

Consumers tend to buy products their riends like and recommend. Thereore, a high

reach generated organically in combination with a high talking about value is a goodway to generate sales. This also resonates with Facebooks EdgeRankstrategy, which

ranks Pages in relation to their ans interactions. A high EdgeRank allows ans to see

more updates, including the product posts. Pages, whose ans interact very little and thus

have a low EdgeRank may post product ads in vain as those go by unnoticed.

The question remains: Why did Shop 2 sell more than Shop 3? For one, the target groups

dier. Shop 2 targets mainly men, while shop 3 targets predominantly women. Ondangos

own Social Commerce Trend Report o December 2012 states that men are more likely

to order on Facebook than women. 65% o orders on Ondango Facebook shops are

placed by men. As an explanation we ventured that men may be more likely to try out
http://www.socialmedia-talk.com/10-key-performance-indikatoren-fur-erfolgreiche-facebook-seiten/http://www.socialmedia-talk.com/http://socialcommercetoday.com/word-of-mouth-still-most-trusted-resource-says-nielsen-implications-for-social-commerce/https://www.ondango.com/blog/2012/06/05/white-paper-understanding-facebooks-edgerank/https://www.ondango.com/blog/2013/01/14/ondango-social-commerce-report-december-2012/https://www.ondango.com/blog/2013/01/14/ondango-social-commerce-report-december-2012/https://www.ondango.com/blog/2012/06/05/white-paper-understanding-facebooks-edgerank/http://socialcommercetoday.com/word-of-mouth-still-most-trusted-resource-says-nielsen-implications-for-social-commerce/http://www.socialmedia-talk.com/http://www.socialmedia-talk.com/10-key-performance-indikatoren-fur-erfolgreiche-facebook-seiten/


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new Internet technology. Men also shop by

specically targeting products and appreciating

the efciency o e-commerce.

Furthermore, a strategy o low shipping prices

is a more attractive deal to buyers than one ohigh shipping ees; despite the act that product

prices tend to be higher in the rst scenario

(check here and here). Shop 2 meets the criteria

o competitive pricing and low shipping costs.

Regular discounts o 20 - 25% are also oered.

Shop 3 sells a high-quality product or a very low

price, but shipping costs are high. Discounts are

very limited as the margin is already very low.

By the end o the project the owner o Shop

1 reported an increase in orders on the

conventional web shop. This shows, that the

marketing on Facebook did have an impact

on the ans shopping behaviour, but did not

convince them enough to pursue this on

Facebook directly. In the case o Shop 1 shipping

ees may have been too high and discounts too

low in order to generate sales on Facebook

instead o the conventional web shop.

In regard to Facebook Ad costs, we invested

between 35 and 61, an overall sum o

240. Dierences in Ad costs were a result o

dierent lengths in marketing periods. Shop 1

and 5 let the project early, which resulted in

lower costs. The only shop, or which the Ads

and Sponsored Stories paid o in terms o cost

and win, was Shop 2.
http://www.entrepreneur.com/article/220588http://www.powerretail.com.au/getting-started/diary-of-a-start-up-part-6-pricing-strategy-make-or-break/http://www.powerretail.com.au/getting-started/diary-of-a-start-up-part-6-pricing-strategy-make-or-break/http://www.entrepreneur.com/article/220588


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CONCLUsION

Prolonged Facebook marketing draws attention to the products and the brand. It has a

positive eect on shop visitor and an numbers, so all shops have the potential to sell.

However, Shop 2, the most successul shop, has additional advantages. The shop owners

have been building up a large an base with highly engaged ans or some time. They

achieved this by regularly posting content that animated ans to interact, which in turn

improved their EdgeRank and the visibility o their posts. Turning many o their posts into

Sponsored Stories and setting up Ads has helped them gaining more ans and increasing

their popularity. Furthermore, the shop is selling a product with a large target market (all

men), and is using a pricing strategy that is attractive to consumers: competitive prices,

low shipping, big discounts. Concerning the an base, the Page on which the shop is

integrated has more emale than male ans, but men have nevertheless been responsibleor the majority o orders, which underlines the advantage o having a male target group.

In addition, the reach and talking about values are skewed towards a very young age

group: 13-17 year old ans are the most engaged age group in these areas. The Page Likes

are skewed towards 25-34 year old ans. A younger age group may be more likely to try

out new shopping channels.

In conclusion we can point out 4 areas on which shop owners wanting to sell on Facebook

have to concentrate their eorts:

Fan bae

Build up a community o at least 1000 ans, who interact with the Page.

Post meaningul content at least 3 times per week.

Post questions to get ans to comment, and images that ans will want to like and

share.

Pricing trategy

Oer a pricing strategy that allows or competitive prices and low shipping ees,

or the waiving o shipping ees altogether.

I you charge shipping ees, keep costs below the cheapest product price on your

shop.

Give considerate discounts o at least 20% on a regular basis; or example, every

Wednesday and Friday, or every weekend.

Product pot

Post about products rom your Facebook shop at least 3 times per week; in

addition to your regular updates, not instead o.

Paid advertiement

Turn at least 1 product post every week into an Ad or a Sponsored Story.

Set up an Ad or your Facebook Page or shop once a month over a period o at

least one week in order to generate trafc and increase your an base.

ondango marketing project

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