March 13, 2015

Online videos power customer engagement

Knowledge, it has been said, is power. Sharing knowledge, if you’re a retailer, can be a powerful way to connect with consumers and ultimately drive sales. No chain is more aware of this connection than Michaels, the largest arts and crafts retailer in North America. Yesterday, the chain announced the launch of online arts and crafts classes through an exclusive deal with Creativebug, a premium provider of DIY content.

The Creativebug content on Michaels is available for free for a limited period of time and covers a wide variety of topics. Video classes running through March 14 include paper crafts for weddings, baking a naked chocolate layered cake, art journals, making a beret, a beginning class on painting with watercolors, calligraphy and more.

[Image: Michaels and Creativebug]

"Creativebug offers Michaels customers classes that capture the spirit of in-person teaching, so they feel like they are learning alongside their instructor, but at their own pace," said Steve Carlotti, executive vice president – marketing at Michaels. "The partnership with Creativebug provides a tremendous resource for our customers who are interested in making a project but are looking for step-by-step instruction and encouragement to make it a reality."

The new video program dovetails nicely with the retailer’s educational mission, according to Mr. Carlotti.

"As North America’s largest arts and crafts retailer, with a website that receives millions of visitors each month, we are the most accessible resource for craft instruction and education," he told RetailWire. "We provide customers with in-store as well as online classes that offer the encouragement and instruction they need to finish a project. Our educational program is continually updated to remain relevant for today’s modern crafter, ranging from simple, three-step projects to more complex crafts."

In addition to the free videos offered through Michaels, customers who sign up by March 22 will receive a free two-month trial subscription to the hundreds of videos classes available through Creativebug.com. Michaels customers who subscribe to Creativebug also get a 25 percent off coupon for all regular price purchases in the chain’s stores or on Michaels.com through March 25.

Discussion Questions

How important a factor is consumer education in retailer efforts? What do you think of Michaels’ use of Creativebug’s online videos to enhance its internal educational program?

Poll

8 Comments
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Dan Raftery
Dan Raftery

Internet video instruction has proven itself quickly. From cooking to assembly to playing a musical instrument to planting a garden to fixing a broken [fill in the blank]. Yes, even craft instructions have been available online for quite awhile.

The key for retailers is the link between the education piece and the retail piece. Should be straightforward for non-perishable retail, tougher but not impossible for perishables. This is not new, folks. Only new angle here is Michaels becoming a content aggregator and presumably a validator of accuracy.

Joan Treistman
Joan Treistman

Michaels has an education program that is broad and free. Adding the Creativebug’s online videos is a way for consumers to experiment with an alternative resource for learning. I think this bonds Michaels and its customers even more.

At first I thought the month free trial followed by a fee to continue was counterproductive, but it’s not. Michaels and Creativebug are differentiating the level of instruction available which reinforces Michaels as a source for learning at different levels and products that are applicable across a wide array of projects. And of course the 25 percent discount for all the products purchased within the month is a huge advantage for the customer and a repeat visit insurance premium for Michaels.

Not all retailers are in a category that can simulate this strategy, and that doesn’t mean they suffer for it. Here are two examples at opposite ends of the spectrum.

Recipe instructions by supermarkets come to mind of course. On the one hand I don’t think the level of interest for recipes offers as much potential return for a paid video program as the Michaels/Creativebug alliance. On the other hand Apple offers in-store educational support without discounts, but its customers and prospects use and evangelize the support while buying more products.

And I’ve run out of hands.

Zel Bianco
Zel Bianco

The importance of consumer education will vary slightly by what’s on the shelves — but it certainly can’t hurt. For stores that are about serving people’s passions and interests (arts and crafts, home improvement, fashion, cooking) these classes are a great way to serve both the customer, providing them with the ability to learn new skills that they are always seeking out, and yourself, by promoting brand loyalty not only through emotional attachment and getting people to your site or store, but also by encouraging the use of exclusive products.

Michaels is making a great move by partnering with Creativebug. This allows them to outsource the content creation while creating a mutually beneficial relationship with a company that is a great fit for them.

Adrian Weidmann
Adrian Weidmann

Hollywood has changed the way we communicate. From charcoal drawings on the wall of a cave, the invention of the printing press and now video. Video has become the core form of communication. Who reads anymore? We’re moving towards communication by emojis! In order to communicate your brand message or educate your brand ambassadors, a video campaign is an absolute must.

Gordon Arnold
Gordon Arnold

Putting the right information in the right places is always good for business. But this type of effort may not create business for the company paying to put it out there and keeping it current. Today’s consumers are willing to show me all day long what they have learned about doing it, whatever it is, themselves. Amazingly much of the information comes from the sites built by the makers and sellers of products and services they have ruled out of their buy equation. What does work is creating an experience that allows for buyer and seller to understand the needs and wants of each other. There is plenty of fourth and fifth generation software that can be used to build for this opportunity but little initiative to venture in this direction. This is surprising with how social media demonstrates every day that consumers respond to live interaction applications more than any other software type other than games. I guess that might indicate a need to make the software fun and easy to use as well.

Shep Hyken

Videos are some of the best ways to engage and add value to the customer experience. The free videos that Michaels is offering are “freemiums” that will help build brand awareness, drive additional traffic to their stores or online offerings and create loyalty through good will.

Doug Garnett
Doug Garnett

In this situation, education can be a powerful adjunct to some product sales. However, I’ve rarely seen sponsored educational content drive the same consumer action as the spontaneous “how to” work that’s generally available on the web.

Why? No sponsor is going to produce the video without ensuring it follows their brand and communication guidelines. And that leads to errors that consumers really hate. For example, in a DIY category, when the video recommends a specific product (e.g. an adhesive) because (a) it’s from the brand or (b) it’s from a brand partner that DOESN’T match the known industry best practices, the viewer calls BS on the video.

Further, sponsors always worry first about the creative values. But the spontaneous DIY video are concerned first and foremost with saying what’s important—and quite often succeed by ignoring “best practice” creative values (yup…many are ugly).

The most valuable (and therefore successful) educational content has to develop from a solid user viewpoint where brand is in the background. So when it’s developed by the brand owner, marketers just can’t help taking those steps that lose consumer trust.

Will Micheals succeed? I doubt it. Their ad is so sanitized that, as a consumer, my first thought is “looks like useless videos to me.” And I’ll go find how to do things elsewhere.

COULD they succeed? Yes. But only if they were willing to radically release the brand handcuff’s in order to have the video be exceptionally lightly branded and put communication ahead of arbitrary communication values.

Cathy Hotka
Cathy Hotka

One look at the explosive growth of YouTube and the incredible popularity of how-to videos shows video’s staying power. Good for Michaels for climbing on the bandwagon, and appealing to younger customers.

8 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Dan Raftery
Dan Raftery

Internet video instruction has proven itself quickly. From cooking to assembly to playing a musical instrument to planting a garden to fixing a broken [fill in the blank]. Yes, even craft instructions have been available online for quite awhile.

The key for retailers is the link between the education piece and the retail piece. Should be straightforward for non-perishable retail, tougher but not impossible for perishables. This is not new, folks. Only new angle here is Michaels becoming a content aggregator and presumably a validator of accuracy.

Joan Treistman
Joan Treistman

Michaels has an education program that is broad and free. Adding the Creativebug’s online videos is a way for consumers to experiment with an alternative resource for learning. I think this bonds Michaels and its customers even more.

At first I thought the month free trial followed by a fee to continue was counterproductive, but it’s not. Michaels and Creativebug are differentiating the level of instruction available which reinforces Michaels as a source for learning at different levels and products that are applicable across a wide array of projects. And of course the 25 percent discount for all the products purchased within the month is a huge advantage for the customer and a repeat visit insurance premium for Michaels.

Not all retailers are in a category that can simulate this strategy, and that doesn’t mean they suffer for it. Here are two examples at opposite ends of the spectrum.

Recipe instructions by supermarkets come to mind of course. On the one hand I don’t think the level of interest for recipes offers as much potential return for a paid video program as the Michaels/Creativebug alliance. On the other hand Apple offers in-store educational support without discounts, but its customers and prospects use and evangelize the support while buying more products.

And I’ve run out of hands.

Zel Bianco
Zel Bianco

The importance of consumer education will vary slightly by what’s on the shelves — but it certainly can’t hurt. For stores that are about serving people’s passions and interests (arts and crafts, home improvement, fashion, cooking) these classes are a great way to serve both the customer, providing them with the ability to learn new skills that they are always seeking out, and yourself, by promoting brand loyalty not only through emotional attachment and getting people to your site or store, but also by encouraging the use of exclusive products.

Michaels is making a great move by partnering with Creativebug. This allows them to outsource the content creation while creating a mutually beneficial relationship with a company that is a great fit for them.

Adrian Weidmann
Adrian Weidmann

Hollywood has changed the way we communicate. From charcoal drawings on the wall of a cave, the invention of the printing press and now video. Video has become the core form of communication. Who reads anymore? We’re moving towards communication by emojis! In order to communicate your brand message or educate your brand ambassadors, a video campaign is an absolute must.

Gordon Arnold
Gordon Arnold

Putting the right information in the right places is always good for business. But this type of effort may not create business for the company paying to put it out there and keeping it current. Today’s consumers are willing to show me all day long what they have learned about doing it, whatever it is, themselves. Amazingly much of the information comes from the sites built by the makers and sellers of products and services they have ruled out of their buy equation. What does work is creating an experience that allows for buyer and seller to understand the needs and wants of each other. There is plenty of fourth and fifth generation software that can be used to build for this opportunity but little initiative to venture in this direction. This is surprising with how social media demonstrates every day that consumers respond to live interaction applications more than any other software type other than games. I guess that might indicate a need to make the software fun and easy to use as well.

Shep Hyken

Videos are some of the best ways to engage and add value to the customer experience. The free videos that Michaels is offering are “freemiums” that will help build brand awareness, drive additional traffic to their stores or online offerings and create loyalty through good will.

Doug Garnett
Doug Garnett

In this situation, education can be a powerful adjunct to some product sales. However, I’ve rarely seen sponsored educational content drive the same consumer action as the spontaneous “how to” work that’s generally available on the web.

Why? No sponsor is going to produce the video without ensuring it follows their brand and communication guidelines. And that leads to errors that consumers really hate. For example, in a DIY category, when the video recommends a specific product (e.g. an adhesive) because (a) it’s from the brand or (b) it’s from a brand partner that DOESN’T match the known industry best practices, the viewer calls BS on the video.

Further, sponsors always worry first about the creative values. But the spontaneous DIY video are concerned first and foremost with saying what’s important—and quite often succeed by ignoring “best practice” creative values (yup…many are ugly).

The most valuable (and therefore successful) educational content has to develop from a solid user viewpoint where brand is in the background. So when it’s developed by the brand owner, marketers just can’t help taking those steps that lose consumer trust.

Will Micheals succeed? I doubt it. Their ad is so sanitized that, as a consumer, my first thought is “looks like useless videos to me.” And I’ll go find how to do things elsewhere.

COULD they succeed? Yes. But only if they were willing to radically release the brand handcuff’s in order to have the video be exceptionally lightly branded and put communication ahead of arbitrary communication values.

Cathy Hotka
Cathy Hotka

One look at the explosive growth of YouTube and the incredible popularity of how-to videos shows video’s staying power. Good for Michaels for climbing on the bandwagon, and appealing to younger customers.

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