Articles, Business Models, Retail Design, Social Media, Web

A retailer’s primary role may be that of curator and tastemaker, but that doesn’t mean that the crowds can’t pitch in to help. Modcloth is a Pittsburgh-based online retailer that sells affordable, independent designer women’s fashion. With a recently launched initiative called Be the Buyer, ModCloth encourages its customers to help choose which items to take into production, effectively turning a customer into a virtual member of their buying team. E-commerce functionality + community participation = We-Commerce, and it’s a very efficient method of building both brand awareness and driving advocacy.

The retailer was founded by Eric and Susan Gregg Koger, a husband-wife team who are recent graduates of Carnegie Mellon University. Susan says, “Our customers know our brand best. They’re trendsetters, and we really want to take this opportunity to listen to them, and produce and sell items that they want to see on our site”. This is keen acknowledgment of brand ownership and the value of really letting the voice of the customer be heard — insights not always recognized by more established marketers. There are some designs that the owners think will be hits, but the designer can only put them into production and at a sell-able price if they’re made in a large quantity. As a small company, it’s difficult for ModCloth to make big inventory commitments without knowing if customer demand is necessarily in alignment with the owners’ tastes in style.

ModCloth’s crowd-sourced voting process is reminiscent of t-shirt retailer, Threadless. While t-shirts are almost a commodity from a manufacturing perspective, ModCloth sells dresses, shirts, jackets and skirts that are more complicated to produce. And this is where the virtual buyers come in.

ModCloth’s fans currently have 65 designs to vote on by selecting an item, then choosing whether to “Pick it” or “Skip It”, along with the option of submitting amplifying commentary each design, and to share their voting decisions on Facebook and Twitter, turning the voting process into a useful marketing tool for ModCloth. If a design is taken into production, customers who voted for it receive email notifications as soon as it’s available, allowing them to be the first to buy and wear it. Winning designs will normally be for sale a few weeks after voting ends.

This isn’t the only way that ModCloth involves their shoppers – periodically they invite customers to become fashion writers through their Name It and Win It contests, and features on their website, like reviews and ratings, equal even more involvement. Susan thought it would be wonderful for customers everywhere to get a chance to become a virtual buyer, which was the inspiration for Be the Buyer.

While the concept won’t work for every retailer or manufacturer, it’s definitely one that many could benefit from: by making customers feel more involved, by taking some of the guesswork out of buying decisions, and by empowering customers via social media channels to drive brand awareness and capture customer sentiment and insights. We-commerce initiatives like Be the Buyer are allowing savvy merchants to drive active engagements with their customers that can efficiently drive loyalty, advocacy, and truly meaningful relationships based on that participation.