are marked with a green circle for salt while salty soups get a red circle.
Anyone can immediately pick up on the system and understand how to
behave as a result.
—————
Many contests also involve game mechanics. Burberry created a website
called “Art of the Trench” that is a montage of Burberry and all the people
who wear it. Some photos were taken by the world’s leading photographers,
but people can also send in photos of themselves or their friends wearing
the iconic Burberry trench coat. If you’re lucky, Burberry posts your image
on its website. Your photo then becomes part of a set of images reflecting
personal style from across the globe.
Imagine if your photo was picked for the site. What would be your first
impulse? You’d tell someone else! And not just one person. Lots of people.
As apparently everyone did. The Burberry site
garnered millions of views
from more than a hundred different countries. And the contest helped drive
sales up 50 percent.
Recipe websites encourage people to post photos of their finished meals.
Weight loss or fitness programs encourage before-and-after photos so
people can show others how much better they look. A new bar in D.C. even
named a drink, the Kentucky Irby, after my best friend (his last name is
Irby). He felt so special he told everyone he knows about the drink and
along the way helped spread the word about this new establishment.
Giving awards works on a similar principle. Recipients of awards love
boasting about them—it gives them the opportunity to tell others how great
they are. But along the way they have to mention who gave them the award.
Word of mouth can also come from the voting process itself. Deciding
the winner by popular vote encourages contestants to drum up support. But
in telling people to vote for them, contestants also spread awareness about
the product, brand, or initiative sponsoring the contest. Instead of marketing
itself directly, the company uses the contest to get people who want to win
to do the marketing themselves.
And this brings us to the third way to generate social currency: making
people feel like insiders.
MAKE
PEOPLE FEEL LIKE INSIDERS
In 2005, Ben Fischman became CEO of SmartBargains.com. The discount
shopping website sold everything from apparel and bedding to home decor
and luggage. The business model was straightforward: companies wanting
to offload clearance items or extra merchandise would sell them cheap to
SmartBargains, and SmartBargains would pass the deals on to the
consumer. There was a broad variety of merchandise, and prices were often
up to 75 percent lower than retail.
But by 2007 the website was floundering. Margins had always been low,
but excitement about the brand had dissipated, and momentum was
slowing. A number of related websites had also sprung up, and
SmartBargains was struggling to differentiate itself from similar
competitors.
A year later Fischman started a new website called Rue La La. It carried
high-end designer goods but focused on “flash sales” in which the deals
were available for only a limited time—twenty-four hours or a couple of
days at most. And the site followed the same model as sample sales in the
fashion industry. Access was by invitation only. You had to be invited by an
existing member.
Sales took off, and the site did extremely well. So well, in fact, that in
2009 Ben sold both websites for $350 million.
Rue La La’s success is particularly noteworthy, given one tiny detail.
It sold the same products as SmartBargains. The exact same dresses,
skirts, and suits.
The same shoes, shirts, and slacks.
So what transformed what could have been a ho-hum website into one
people were clamoring to get access to? How come Rue La La was so much
more successful?
Because it made people feel like insiders.
—————
When trying to figure out how to save SmartBargains, Fischman noticed
that one part of the business was doing incredibly well. Its Smart Shopper
loyalty club allowed people who signed up to get reduced shipping fees and
access to a private shopping area. Deals that no one else could see. It was a
small
part of the site, but growth was through the roof.
At the same time, Fischman learned about a concept in France called
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