“Style. Delivered Daily.” Rue La La, demanded by the most popular brands, offering them Members-only prices. With their base on a webpage, they offer the best of men and women fashion, kids, travel, home, and many more. They offer daily deals, each lasting 48 hours.
With their base is Boston, Rue La La has expanded enormously specially through New York. They have a clear target market on focus, which is on long-lasting relationships with highly engaged members for innovative brands.
CEO Ben Fischman is working on a huge business based on e-commerce, but the key is very few ads. The company itself has focused on little traditional advertising, as a way of keeping their costs low, but at the same time taking advantage of their strategy by focusing on their target market. “We use minimal advertising for customer acquisition” – Fischman told Business Insider’s Social Commerce Summit. “We rely on word of mouth and viral marketing.”
Rue La La’s CEO is quite focused on keeping the advertising low, and on word of mouth and viral marketing (consists of individual people spreading the word rather than traditional ads; refers to marketing on the Internet). He explained as follows:
“If you’re visiting a city, stay in hotel and ask for a great restaurant, what the concierge tells you it doesn’t hold much credibility. If you’re going to a city and a friend tells you, you write it down and remember. Our membership buys so much and trust so much because the initial introduction wasn’t done through a search ad but through a friend.”
This seems amazing, that a huge company is taking the risk of truly believing they will succeed and meet their expectations with purely the support of customers. In my opinion, this gives them immediate positive values, since they are confident enough to know that the service they offer and their reputation is good enough to leave it to their customers. The company wants long-term customers and their loyalty
“Display ads on Facebook has been effective. I think Facebook advertising, as long as it’s contextually relevant, works.” – Fischman.
http://www.businessinsider.com/rue-la-la-ceo-yes-facebook-ads-work-2013-2#ixzz2K9qN1inX
Nice video embed! Interesting business to write about, too, and nice to see your opinion expressed.
For future posts, consider embedding a link to the company’s website, as well as embedding a link to the source of your quotes, rather than putting the URL at the end.