Crowd sourcing is the process of gathering information into a specific project by enlisting the services of people. The services are paid or unpaid and are usually acquired over the Internet. Retailers have been using crowd sourcing to drive sales and gain customer loyalty. They also use it for:
- – product development
- – merchandising
- – marketing
- – customer engagement
Furthermore, companies initiate crowd sourcing through online focus groups and collaborations on social media. They then use feedback to make products and services that customers want. The following will explore how one retail company is using crowd sourcing to turn their customers into designers and boost sales.
How to Turn Customers into Designers
Julep is an online cosmetics company. They use crowd sourcing for product development via social media, online surveys and in-person meetup events. Julep also uses it to build a community based on women empowerment. Customer feedback enables them to create innovative products that sell much faster than traditional beauty brands. Julep only re-manufactures what their customers love.
Julep invited select customers to help with the initial product development of their Plié Wand nail polish applicator. This process began with partners at IDEO design firm. Julep also used a crowdfunding campaign to test support for the product. 6,000 customers pledged $75,000 toward toward the cost of making the applicator within 24 hours.
Julep discovered quick ways to get product ideas. They made fake ads on Google to promote the Plié Wand. Julep also created quick graphics. Once the ads were placed online, they compared the click-through rate with Julep’s ads for actual products. The results helped measure for customer enthusiasm. They also helped Julep feel confident about the product.
Crowd sourcing can help companies drive sales and convert new customers into repeat customers. It can also help create and promote new products. Companies like Julep have realized their customers’ potential. They understand that customers are a company’s biggest asset and should be utilized as much as possible.