1800Flowers says mcommerce comprises 1 percent of revenue
1800Flower’s mobile commerce sales comprise just 1 percent of the company’s total revenue, but the retailer has experienced huge mobile growth since last year.
The retailer reported $104.5 million for its fiscal 2011 first quarter ended Sept. 26, 2010, making its mobile commerce revenue less than about $1 million for the same time period.
“Mobile revenue is still very small said Joe Pititto, vice president of investor relations at 1800Flowers, Carle Place, NY. “A year ago we were doing less than $10,000 in mobile sales and it is a meaningful amount of money but small in comparison to what we make online and in-store.
“We are also finding that some of our mobile growth does cannibalize ecommerce,” he said.
1800Flowers is the world’s leading florist and gift shop. For more than 30 years, the brand has been providing customers with fresh flowers and the finest selection of plants, gift baskets, gourmet foods, confections, balloons and plush stuffed animals perfect for every occasion.
1800Flowers is known for early innovation. The company was one of the first to move into the 800-number space in the 1980s and had an Internet Web site in 1992 via CompuServe.
By 1994, the retailer was doing transactions on AOL by 1994.
1800Flowers’ mobile business began about three years ago. Today the brand has dedicated mobile-commerce enabled applications and a mobile Web site.
1800Flowers mobile customer
1800Flowers’ mobile and online audiences do overlap. But there are several difference between mobile and online customers.
To begin with, mobile consumers are more likely to purchase. They are on the mobile site because they need to buy something.
The 1800Flowers application used to be the main driver of mobile commerce growth for the company. Now, the brand is seeing its Web site traffic is higher than the traffic on its application.
For the remainder of 2010 and well into 2010, 1800Flowers plans to continue to invest and innovate for the future, including expanding its mobile commerce initiatives to grow its new 1800Baskets.com business with a mobile application and Web site.
“The 1800Flowers brand was the first to go mobile because it is our flagship brand,” Mr. Pititto said. “1800Baskets is growing fast and leveraging the brand strength of 1800Flowers.”
Social media craze
1800Flowers recently announced a partnership with DailyFeats.com, an online social platform for positive actions, to sponsor and promote actions about sharing smiles and positive feelings.
Visitors to DailyFeats.com can check in by Web, email or mobile.
Through Foursquare integration, every time consumers check-in they earn rewards for it from 1800Flowers and other national brands.
“This is part of our social commerce effort,” Mr. Pititto said. “We have been investing into social.
“This is part of our ongoing strategy to be everywhere customers want us to be,” he said. “We want to be relevant.”