WFM: A Leader in Social Media

I recently read a few parts of Groundswell by Josh Bernoff and Charlene Li, and found many useful tips for thinking about online marketing strategically. As people all over the world spend ever-increasing amounts of time on the internet, marketers need to discover ways to reach their consumers through this new medium. Many companies have made an effort by creating a Facebook page, setting up product review functionalities or establishing other forms of online presence; however, very few seem to have a clear goal for their online marketing programs. Rather, marketers put their brands and companies online because they are following trends or feel as if they have to be online in order to be viewed as “current.”

The authors of Groundswell take this desire to be online one step further by putting structure around where companies should be online and what online tendencies are for customers. The categorization of “creators”, “critics”, “collectors”, “joiners” and “spectators” presented in the book has particularly compelling implications for marketers. By conducting market research to determine customers’ online behavior, marketers can tailor their online presence to fit the needs and contribution comfort level of their customers. There are a few companies that excel in tailoring their online presence to fit their customers; nevertheless, marketers have much to learn from those companies that use social media strategically and thoughtfully.

Whole Foods Market (WFM) has done a noteworthy job in creating an online experience for its customers. It is unclear whether WFM discovered its customers online tendencies through market research, trial and error or luck, but the company has certainly honed in on what works and used the online space as a way to communicate with customers foster customer relationship with WFM. For example, the WFM website contains multiple recipes featuring products available in the stores and seasonal ingredients. Customers can rate or comment on the recipes. Many customers offer suggestions or modifications for the recipes, and interact amongst them selves as well as with the WFM online contribution staff. The recipes create a WFM community around food that provides a favorable environment for customers.

The vibrancy of the WFM online recipe community suggests that the company’s core customer segment consists of “critics”. Customers seem to enjoy commenting on recipes and rating them, but fewer offer recipe suggestions in separate online portals soliciting them. Consequently, WFM has recognized the online preferences of its consumers, makes considerable efforts to create online content and allows customers to interact with this content.

Facebook is another online channel that WFM has used successfully to interact with customers. WFM team members contribute regularly to the WFM Facebook page and receive hundreds of responses of recipes, pictures and other content loaded to the site. Facebook allows WFM customers to form a community around the company and food, which creates another favorable online experience for customers. WFM also uses its strong Facebook presence to combat negative press and respond to discontented consumers. When customers use the online channel to either complain about poor in-store service or product quality, a WFM employee responds directly to the consumer within days and attempts to rectify the problem. This type of outreach allows the company to control the sentiment online and proves to customers that the company is committed to maintaining a positive relationship with them.

WFM has also had success in using online spaces to promote the community aspect of its stores. WFM has a highly active Flickr account and posts pictures from store events all over the country. These events include cooking classes, cooking demonstrations, farmers’ markets and holiday celebrations that are aimed at making WFM an experiential product as opposed to a more common grocery store concept. The company posts these pictures to Flickr and then links them to the WFM corporate site, Facebook and other social media channels. This strategy is likely to be effective in raising the interest level of infrequent customers who are less likely to know about WFM non-core services. WFM loyalists are key in spreading awareness to peripheral customers since loyalists will comment on these photos and generate activities in their network’s news feeds related to WFM. Using techniques such as picture posting illustrates WFM efforts to link its social media strategy across different sites and create a holistic online experience for its customers that goes far beyond buying groceries.