Retailers use social media to dangle deals

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: Benny Evangelista

Retailers big and small have beefed up their presence on Facebook, Twitter and other popular social networks well in advance of this week’s traditional start to the annual holiday shopping season. With millions of people now flocking to Facebook and Twitter, analysts say it’s no surprise that social networking is this year’s holiday marketing trend.

“Last year was all about value and price reductions and deep discounts,” said Marshal Cohen, chief retail industry analyst for the research firm NPD Group. “This year, it’s less about the deep discounts and more about their attempts to use social media.”

The stage was set last year when computer-maker Dell Inc reported $1 million in holiday sales just through special Twitter promotions. This year, major chains like JC Penney, Sears-Kmart, Target and Toys R Us are leaping on the bandwagon.

In a recent survey by the National Retail Federation, 47.1% of retailers say they are increasing their use of Facebook and Twitter this holiday season.

The survey also said more than half of the retailers have created or expanded their Facebook and Twitter presence, while two-thirds added or enhanced blogs. Shoppers are also relying more on social media. A survey by the Opinion Research Corp. found that 27% of online shoppers planned to use Facebook and other social networking sites to find clues for gifts.

People who sign up as fans or followers of a retailer on a social media site provide a large base of shoppers who are already inclined to be customers. The largest retailer fan pages on Facebook include Best Buy with

1 million, Kohl’s with 7,29,000, and target with 6,38,000. Toys R Us started priming the pump by giving Facebook members who joined the toy chain’s fan page early access to its annual 80-page holiday catalog.

Chains such as Home Depot and Staples also have ‘leaked’ Black Friday deals that used to be reserved for the day after Thanksgiving, said David Berkowitz, senior director of emerging media & innovation for digital marketing agency 360i.