Web 2.0-- ModCloth

In the era of Web 2.0, e-commerce has become a driving force in content creation and customer relations for businesses. One company in particular that I think has done a good job utilizing the resources available through the Internet is ModCloth, a vintage clothing store based solely online. Without a brick and mortar retail store, ModCloth has relied heavily their advertisements and word of mouth to attract new and retain past customers. 

ModCloth’s website includes a large collection of clothes, shoes and accessories as well as an extensive home décor section filled with retro inspired items. The website also has a section called “Be The Buyer” where users can flip through dresses, skirts and shirts that have been designed specifically for the ModCloth customer. Users can vote to “Pick It” or “Skip It” based on their tastes. Items that receive mostly “Pick It” votes will be created and sold on the website. Users that voted for the item to be created then receive an email when the clothing is available for purchase.

ModCloth's "Be the Buyer" Program

Marketing Style

ModCloth’s marketing is heavily customized to each consumer that visits their website demonstrating their use of the one-to-one marketing approach. This form of marketing gives the consumer suggestions tailored to their personal tastes and shopping habits. For example, after viewing items on the site, a cookie is attached to the viewer’s web browser that triggers ModCloth banner ads on other sites featuring the items that that particular customer was interested in. These ads also feature new arrivals that they might like based on their taste. By tailoring their marketing to each customer, visitors get a better experience while shopping and tend to feel more connected to the brand.

Principles of Wikinomics

ModCloth’s adaptation to the mass collaboration aspect of Web 2.0 is part of what makes their business so successful. Of the 4 principles of wikinomics, ModCloth incorporates two into their regular business strategy: openness and peering.

• Openness: The openness principle encourages consumers from outside the organization to make contributions to the creation of new products. The way that ModCloth demonstrates this is through their “Be the Buyer” program that I described earlier in this blog post. Customers can go online and vote for which looks they would like to see available in the online store. One thing that is particularly unique about this program is that the consumer, after voting on the product, can offer suggestions about how to improve it. Customers can critique any aspect of the piece including: price, quality, fabric, color, available sizes, length and details. This information lets the ModCloth designers know what their customers are looking for so they can better design to their consumer’s changing tastes.

  

  Customers critique a "Be the Buyer"  item

• Peering: ModCloth strongly encourages its customers to go on the website after they purchase an item to give feedback on their items, whether it is positive or negative. Users can rate an item based on their satisfaction with the fit, length and quality of the garment. Pictures are also encouraged so users can show the fit of the item as well as showing options of how to accessorize the item. Any negative feedback on the customer review section of the site is addressed by a moderator, who helps each unhappy user contact customer support for a quick resolution to their problem. This element of the site is very useful to any customer who is considering a purchase but is unsure of what size to order or is concerned about the quality of the item.

Customers give feedback on a dress

Negative feedback is addressed by moderator

Because they primarily sell clothing, ModCloth does not exemplify the sharing element of wikinomics, which involves the sharing of proprietary information for general use. ModCloth also does not demonstrate the fourth principle of wikinomics, acting globally. While ModCloth does offer international shipping, the company is located in the United States and does not officially operate outside of the United States.

Effectiveness of Business Model

Personally, I believe that ModCloth does a great job with their marketing strategy and utilizing Web 2.0 to generate brand loyalty among its customers. There have been many times where I have been on the fence about buying an item and reading the peer reviews persuaded me to make the purchase. I have also had great experiences interacting with the ModCloth team as they take time to respond to all customer feedback, whether it is positive or negative. Other ModCloth customers that I have spoken to regarding the company’s marketing all responded positively to the ads and marketing strategies. One aspect that people particularly appreciated was the tailoring that is done to each customer. Users stated that they felt that these ads were less intrusive and they were more likely to visit the website if the ads were tailored to their personal taste.

Overall, I think ModCloth is doing an excellent job using the elements of Web 2.0 to make their shopping experience memorable and enjoyable for their customers.

Sources:

http://www.modcloth.com/about_us