{{ searchResult.published_at | date:'d MMMM yyyy' }}

Loading ...
Loading ...

Enter a search term such as “mobile analytics” or browse our content using the filters above.

No_results

That’s not only a poor Scrabble score but we also couldn’t find any results matching “”.
Check your spelling or try broadening your search.

Logo_distressed

Sorry about this, there is a problem with our search at the moment.
Please try again later.

Dell has provided further proof of the potential of Twitter for retailers, revealing that it has earned $6.5m in worldwide revenues from Twitter over the past two years.

Revealed in a blog post today, This figure includes sales from the @DellOutlet Twitter account, which now has almost 1.5m followers, and its equivalents outside of the US.

I've been looking at the figures, as well as talking to Dell's Richard Binhammer about the company's approach to Twitter and social media in general...

While the original @DellOutlet Twitter account was revealed in June to have generated $3m for the company, the growth of revenues outside of the US is also impressive. 

The Canadian @DellHomeSalesCA account has generated $150,000 in less then a year, while in just seven months, the Brazilian equivalent (@dellnobrasil) has driven $800,000 in sales.

Dell also talks about its reach on various forms of social media, and by aggregating its presence on Twitter, YouTube and other community sites, as well as its own forums, it calculates its worldwide community at 3.5m people.

I talked to Dell's Richard Binhammer (aka @RichardatDELL) about the figures, and the reasons for Dell's success on Twitter:

How has Dell approached selling via Twitter?

In our case, the Dell Outlet Twitter account is attractive because of what it offers. Customers never know what inventory we will have, and offers will change from day to day, and this appeals to significant numbers on Twitter that are looking for special offers.

So, the value is there for consumers, but Dell also gets involved in conversations on Twitter, it's not all about selling. With the Dell Outlet account, it's clear what its purpose is to people, but it's not just a one way thing.

People can contact Stefanie, who runs the account, with any questions, or follow her on Twitter, and her personal interactions with customers has to be attributed to the success.

The success is down to a combination of a) being there on Twitter for people who are looking for us or our products. b) offering sales opportunities that are meaningful to consumers, and c) interacting with people.

What is Dell's approach to social media?

We believe fundamentally that our involvement in social media and the community we have reached gives us a competitive advantage. The company was founded in 1997 on a direct business model.

While some people may assume that it is all about manufacturing and customisation, it is really about going direct to the customer, and social media is perfect for this. 

For example, if two people are sitting in Starbucks talking about Dell computers, that conversation is happening without us. On the web though, we can become a part of it, and this is a huge strategic asset for us.

Apart from the very tangible rewards in terms of sales, how else do you approach social media measurement? What are the other benefits from Dell's social media engagement?

We have measured a significant improvement in overall sentiment towards us online. We know that we've made improvements to business processes and products thanks to the web.

Also, by listening carefully, we have been able to harness social media as an early alert system. For example, if customers are having issues with a new product and we nee to develop new drivers, then we can get this information early through the web.

This enables us to react quicker, and means we often get this information six weeks earlier than we would have done otherwise. Customers can raise issues directly to us online, and we can make changes quickly.

Business are often looking for one single ROI from social media, but people chasing this are misguided. It's about setting business objectives and using the web to measure these.

So at Dell, as well as selling through Dell Outlet, our objectives are to listen to what is being said about us and our products online, to learn from this, and use it to improve, as well as talking to and interacting with people.

Graham Charlton

Published 8 December, 2009 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

2565 more posts from this author

Comments (6)

Comment
No-profile-pic
Save or Cancel
Remiz Rahnas

Remiz Rahnas, Head of Production at WebCastle Media Pvt LTD

Doesn't it make you think that everyone is making money out of twitter and twitter guys are not getting paid ? A successful business model gone wild ?

~R 

over 6 years ago

Avatar-blank-50x50

Mike Stenger

Yep, more proof Social Media isn't something businesses should look into...

It astounds me at businesses and companies looking at Social Media like it's some game or childish thing. Dell is just one of many examples of successful Social Media campaigns.

@Remiz Twitter is eventually coming out with paid accounts as well as introducing advertising. What they did by having everything free and free of advertising was to build some serious value in their little "test" phase and as you can see, they've done a ton of that.

There will still be free accounts, just also paid accounts with more features such as analytics and things like that.

over 6 years ago

Ed Stivala

Ed Stivala, Managing Director at n3w media

I wonder what percentage of global annual revenue $6.5m represents for Dell? Of course that figure was for TWO years not one. Also lets not lose sight of the fact that this is a revenue figure not margin. 

I wonder how much Dell spend on office consumables globally in a TWO year period?

Whilst it is an interesting post (thanks Graham!) it doesn't sound like a very exciting figure when taken in context. I am sure that the "social media bandwagon" will hail this as a huge success story, but in reality it isn't much to write home about in my opinion.  

over 6 years ago

Graham Charlton

Graham Charlton, Editor in Chief at ClickZ Global

Hi Ed,

I agree, it's probably a small percentage of overall revenues, but it seems that sales are growing, and $800,000 in seven months from Brazil alone is impressive.

over 6 years ago

Simon Magee

Simon Magee, Social Media Consultant at SiM Media Ltd

Any idea of the trend line?

over 6 years ago

Avatar-blank-50x50

Elijah

Twitter client developers will be pleased to note that popular light blogging platform Tumblr now supports a Tweetie and Twitterific compatible API. In a recent blog post, the company explains.

I also like the http://tinyurl.com/y8wqgap/ at the end, like you have it

over 6 years ago

Comment
No-profile-pic
Save or Cancel
Daily_pulse_signup_wide

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Daily Pulse newsletter. Each weekday, you ll receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.