Case Study: How Dell Sold 3,887 PCs on Renren
RenRen provides brands with a platform for communication with fans, and in this self-defined space companies can post physical store information or promotion activities on the brand page. The key is figuring out how to generate fan interest and transform it into sales.
In our recent executive whitepaper ‘Anyone Can Be Your Brand Ambassador‘, our experts Stephy Liu, Enson Hu, Phoebe Li and Catherine Cao in China studied how Dell used China’s micro-blogging platform RenRen to sell 3,887 computers.
To facilitate sales, Dell moved its entire flagship store onto its Renren brand page. Currently, Dell maintains daily interaction with over 730,000 fans (as of May 2012). Keeping close ties with fans has generated real sales.
Building a flagship store
In order to encourage fans to interact with the Dell brand page, Dell set up a flagship store on its brand page. Fans can use coupons to buy products from the online flagship store, gather product information or talk with sales associates.
Building up a network
Accompanying the flagship store, Dell also set up an online “campus ambassador” page. Dell posted company agent information directly on the brand page which allows users to click on an icon and enter each ambassador’s personal page. On the page, users can make inquiries, interact, and make appointments.
Exclusive offers for fans
In December, 2010, Dell launched a Christmas promotion combining an interactive game on their brand page with a coupon promotion, marking the first time coupons and an interactive event were combined on Renren. The event attracted many first-time fans to the page. Users played onsite games and earned points. Fans then converted their points into coupons for Dell products.
Turning relationships into sales
In April 2011, Dell launched the “Dell Money Jar” program. The event took advantage of Renren’s real life user relationships and converted them into actual sales. “Dell Money Jar” encouraged fans to use Renren to earn points and buy Dell products.
Fans could complete tasks and gain the support of others to earn credits and then convert them into coupons. After 15 weeks, Dell gathered 125,179 new fans and successfully sold 3,887 computers, generating over $US2.88 million. Most surprising is that over 300 of the computers sold through the event were high-end gaming laptops—this reflects the purchasing power and brand recognition of social media users.