The Official Fluid Blog

Fluid (@Fluid) recently launched two customization-themed shopping experiences for Sears: Craftsman Custom and The Garage Planner.

Craftsman Custom delivers a premium experience for consumers to tailor a pro-quality tool storage solution to their specific needs and tastes. The experience leverages 3d visualization to deliver a blueprint-like experience that progressively builds into a photo-realistic vision of the consumer’s ideal product, all in real time.

The Sears Garage Planner experience is built on inspirations and “starting point” ideas. Consumers are presented with an interactive photo gallery of shoppable and customizable garage storage solutions. The experience is simultaneously inspirational and actionable, injecting the consumer with ideas and empowering them to make them their own.

Our team has a long history designing shopping experiences for customizable products, including …

• FunStamps (the first personalizable stamps offering)
• Timberland Boot Studio (custom footwear)
• Your Reebok (custom footwear) + facebook configurator
• Design Within Reach FLOR Designer (custom carpet configurator)
• Fine Stationery (card & stationery customizer)
• Vans Customs (custom footwear)

We’re fortunate to collaborate with such great brands to innovate new shopping experiences in such a nascent field. We’re proud to be among the first who have created configurators delivering consumers real-time visualization, product rotation, share-to-phone and integrated social sharing tools.

The business benefits of a better customization experience: 200%+ increase in sales, 16+ minute average consumer engagement on-site, spikes in sharing & heavy engagement with social media customization tools.

Some recent observations, field notes, and expectations looking forward:

• Before the “economic downturn” (or whatever it’s called now), Fluid was seeing RFPs for customization up approx 5-10x showing a sharp increase in interest across industries. The recession put most of those projects on hold.

• Those brands that continued forward became increasingly strategic around customization, seeing it as a brand and business building opportunity. In many cases increasing scope and decreasing timelines in an effort to get to market quickly with robust offerings (a differentiation/barrier strategy).

• Interestingly, over half of these brands are in verticals outside of footwear.

• Embedding up-sells in the customization experience has proven so effective that some retailers are pricing base models at-or-under cost and attaching costs per attribute selection (e.g. premium colors, extra set of laces, etc.).

• Providing the consumer with simple, intuitive social tools — both providing the ability to chat real-time with friends & ability to engage one’s facebook network without ever leaving the customization experience — has become a priority among most of our clients (and now considered a best practice within Fluid).

Finally, three predictions:

1. Customization experiences will take shape in ways that are more subtle and less overt – more about great digital shopping and less about “configurators” per se. This is what most consumers want. Thoughtful experiences that embed customization vs. customization being the main draw will help launch this consumer-driven approach to digital shopping into the mainstream.
2. Customization will make the notion of a crowd-sourced economy a reality. Champion and Keds are first movers (and got a lot of brand benefit as a result + some satisfaction at beating Nike to market I’m sure
3. Customizable shopping experiences will increasingly be deployed exclusively to social channels like facebook. Customizing something lends itself superbly to a community atmosphere – expect to see brands fully leveraging all that facebook has to offer in that regard.

As Kenmore’s social media agency of record we get a fair number of trips in to Chicago. Here are seven observations from our latest:

1. Fluid’s Rachel Roy fan-only Facebook shop resonates – with fans and with clients. Andrew, our CXO, explains why it works here. A 25% increase in fans in the first 24 hours is worth talking about.

2. Lucky magazine is integrating digital into publishing and fashion in great ways. In this month’s issue: Daily Deals for their At Your Service, QR code promos and ads using ShopText (think text-to-give becomes text-to-buy or sample).

3. Social media expertise is excelling in-house. As more brands hire community engagement or social media managers we’re finding big opportunities for strong partnerships. Client understanding will lead the shake out of social media vendors and offerings. Yay.

4. It’s time to upgrade my iPhone. Why? Video. What sparked this thought? I watched a guy clean and squeegee the windows near SFO security with more gusto, style and love than can ever be imagined. It was awesome. He needs to be seen.

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Fluid (@Fluid) launched a fan-only pop-up store on facebook for Rachel Roy last week. The insider shopping event gave the brand’s facebook fans early access to Rachel Roy’s new jewelry line collaboration with British r&b artist Estelle.

The pop-up store was live for 5 days only delivering fans a uniquely branded shopping experience around the limited edition jewelry collaboration plus one facebook-only exclusive item which sold out within the first 12 hours (all the items sold out completely before the 5 days were up). The insider event was a marketing success as well, increasing Rachel Roy’s fan base by 25% in the first day alone.

We had a fun time designing this: great brand + great clients + thoughtful use of social media = meaningful customer experience that delivers real value, makes them want to buy and love the brand more as a result.

Here are some thoughts from the strategy & design team on why it worked…

• Differentiated brand + shopping experience. There have been some research reports circulating lately that show consumers want to be able to shop on social channels. Importantly though, consumers do not want your ecommerce site pasted into facebook. They want a layered experience that blends a differentiated brand experience with awesome content (like the shareable photo & video gallery) with a great product experience.

• Not an “e-commerce” template. Fluid’s launch for Rachel Roy is built on a productized software-as-a-service solution (Fluid Social) but consumers would never know it. The technology is designed from the ground up to be easily customized and uniquely branded (proof coming in 2 weeks when we launch another one – stay tuned . Consumers and retailers hate templates and for good reason: nobody wants to shop someone who is indistinguishable from their competition. When you look at some of the templated “facebook lookbooks” out there that deliver an identical experience for athletic footwear as they do for womens fashion, it’s an easy prediction that consumers will devalue those brands that embrace generic sameness, especially in social media.

• Authentically social. We were surprised to see so many self-described “social shopping” implementations out there that completely lacked basic social functionality. Fluid integrated standard facebook “like” and “share” functionality throughout the entire experience, delivering users the social elements they expect. It makes for a great shopping experience to see that 90 other people “liked” the Petal Ring – far more meaningful in this context than product reviews.

• Limited to fans only. It’s impossible to overestimate how much consumers value insider status and benefits. As long as you are serving up real value – and avoiding exclusivity for exclusivity’s sake – your consumers will appreciate it, share more and have a stronger urge to buy.

It seems like you can’t open The New York Times lately without seeing Vic Gundotra touting Google’s latest innovation or acquisition (disclosure: Fluid worked with Vic when he was at Microsoft — we’re fans).

In addition to Google dominating all-things-mobile, some recent significant announcements:

•    Goggles
•    Acquiring Yelp (almost)
•    Selling direct to consumer (beginning with the Nexus One)
•    Real-time search

Any of the above looked at individually are significant and innovative but not a game changer in their own right.

But when you look at them as a coordinated whole, what begins to emerge is that Google is assembling a new breed of multi-channel ecommerce platform with the potential to deliver consumers a complete shopping experience without ever needing to interact with a retailer’s website, app or social presence.

Whether this is master plan or strategic by-product is up for discussion. But add to the above list the foundation that Google already has put in place:

•    Search UPC codes
•    Shop Savvy
•    Package tracking
•    Google Checkout
•    Google Analytics
•    Catalogs
•    My Shopping List, Gallery View, parametric filtering, etc. etc.

It’s an easy leap to envision this scenario:

A consumer searches Google for “spring trenchcoat belt.” Google returns her a product grid of trenchcoats in interactive merchandising displays allowing for zoom and multiple views across a range of brands. More interesting is tagged user-generated content (e.g. my colleague Vanessa’s twitpic of herself trying on a red Ledstone Trench at Burberry on Spring Street). Real-time results deliver relevant posts/tweets from other similarly focused shoppers. User reviews (courtesy of Yelp or similar) deliver a trove of ratings and geo-located user opinions including the best places to buy online and the best local stores in your area.

Sound familiar? Sounds like your ecommerce site except with more choice, more functionality, and more options making it better for the consumer. Sounds like a pretty awesome digital shopping experience to me – one that decidedly shifts the balance of power to the consumer and turbo-enables the digital shopping patterns we all saw emerge this holiday.

Perhaps most interesting is that Google is not bound to the need to convert. Instead, they benefit most by embracing a new paradigm of the shopping funnel as a non-linear, cross-brand, multi-branched journey. What makes this so powerful is that this is what consumers want and, most often, is in opposition to what individual retailers want to control.

The scenarios get more interesting and paradigm-bending:

• Find the perfect chair while browsing a home design magazine in airport lounge at JFK  >  use Goggles to identify the product  >  mobile search for best prices online + local availability in Seattle  >  share my shopping list to my wife who goes to see them in person and buys from our local design store.

• A Patagonia brand loyalist is shopping in a Patagonia store  >  decides on the jacket he wants but wants to make sure he isn’t overpaying  >  mobile UPC search returns not only best prices but comparable jackets from other outdoor brands  >  even more relevant is the user-generated content, specifically one outdoor enthusiast’s tweet linking to a mobile video where he demonstrates the advantages of The North Face Mercurial Jacket  >  former brand loyalist is now comparison shopping.

There are many more scenarios, all plausible, readily possible and direct outgrowths of consumer behavior patterns that are already happening (brands and retailers are catching up).

The most interesting thing here is that consumers are driving this. They want this new shopping paradigm to fuel their rapidly evolving digital lifestyles. Google’s genius is their relentless commitment to a user-centric strategy and ultimately leading consumers to a vision of their own creation.

Last year Alicia Keys asked American Idol watchers to text-to-give. It yielded $450K – the largest portion of the $4M total donated via mobile texts in 2009.

That record has been broken. As of last week, the Red Cross alone has received over $25M in text-to-give donations for Haiti. $3M in the first 24 hours. 25% of the overall Red Cross funds donated.

A devastating event + human generosity + mobile technology equals:

- A broad base of in-the-moment givers
- A momentous moment for mobile

The money raised to positively impact Haiti relief efforts is the biggest win. The implications for e/mCommerce though are incredibly exciting.

Here are the top five things I see text-to-give teaching us:

1. The power of “virtual” currency
Disney has Disney Dollars. Facebook and online games have their own currency. Chuck E. Cheese has tokens. Casinos transact in chips. Credit cards aren’t the same as cold hard cash. Whether we like it or not, these all leverage the fact that people are likely to spend more money when they’re not transacting in actual dollars. Text-to-buy via mobile creates this same sense of distance.

[Haiti donations efforts were focused on $5 and $10 donations. My colleague smartly asked, what if they’d allowed text codes with varying cash amounts (HAITI25, HAITI50, etc.)? Would donations be that much bigger?]

2. Mobile providers as payment systems
Text-to-give means that providers become the payment method. The $10 donation goes on our mobile bills and the providers reconcile with the non-profits to ensure that the donations reach their end destination. This puts providers in a powerful position.

It’s not a big leap to think about facilitating mCommerce purchases via text messaging. Mobile providers could become the next PayPal – taking a percentage on the pass-through before the order is delivered to a retailer.

3. Social sharing after an action
Companies are consumed with how to make their commerce and brands more social. Much of it is focused on sparking purchases through the power of social networks. What about making them social post-purchase?
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A bronze to be exact. Or for those of you who once swam on a summer league team, a white ribbon. (Just for the record: In 2010 we’re going for gold!)

Social Commerce Today ranked the top 10 Social Commerce Highlights of 2009. In a list showcasing stiff competition, Fluid Social tied with Facebook Connect for allowing shoppers to shop together in digital commerce – quite nice company on the podium.

We edged out GroupOn. Which, in my opinion, is one of the smartest, most compelling companies currently gaining volumes of buyers. Commerce is now content and I’m cheering it on.

What’s particularly smart about this blog list? It markets the blog as much as it showcases the winners. If everyone on the list writes about being written up marketing is amplified by 10. Seth Godin recently showed the power of this tactic for the collaborative eBook What Matters Now.

We at Fluid hope your new year is off to a great start. We like the looks of what 2010 holds.

Side note: According to a Marist Poll, 48% of Americans say they are likely to make a #newyearsresolution this year. 33% remember making one last year. The delta may mean that the mind is quite forgiving of what slips.

Public accountability helps make resolutions stick. Writing on this blog every Tuesday is one of my resolutions. Now you know. More importantly, now I know you know. Bring on the Tuesday Musings…

New research from Mintel and publicized by eMarketer further reinforces the importance of friends and family members in buying process. This is exactly the type of authentic peer-to-peer feedback, both asynchronous sharing through Facebook and real time collaborative shopping, we enable with Fluid Social.

A nice piece by Jennifer Saranow Schultz ran in the Wall Street Journal this morning describing how retailers are increasingly leveraging a shoppers’ social network to move people through the conversion funnel. In it Jennifer does a great job of capturing the key aspects of the Fluid Social product.

The data we’ve been collecting from our customer installations is proving that comments from friends are the most effective way to drive immediate increases in engagement and conversion.  It is good to see this topic getting attention from the mainstream business press.

Fluid Social takes a fresh look at defining what social shopping is. It is the first product to focus on getting consumers the opinions that matter most – those of their friends and family – at the point they matter most – on your ecommerce site. The product’s genesis is from insights gained through years spent designing leading-edge ecommerce experiences on behalf of our clients. It has been in development for years.

We’ve written a whitepaper to articulate why this is such an important topic and how retailers can leverage existing friendships and social networks to improve the shopping experience, increase engagement and sell more. If you’d like to read the whitepaper please visit the Fluid website. If you need to read more about Fluid Social we can help you with that, too.

In this article from early 2008 Nick O’Neill predicts the existing social networks like Facebook with much larger audiences will overtake the shopping-focused sites like Kaboodle, Stylehive and This Next. We couldn’t agree more – we think the opinions of your existing friends will be more important to driving transactions than those of online “shopping friends.”

Customer and shopper response to date have told us that Nick was right. People are thrilled to finally have a way to get the opinions of their “real” friends directly embedded in the shopping experience. Want to see how? Checkout the latest on JanSport.com.