Direct Marketing News Facebook Helps Indochino Tailor to Consumer Needs Direct Marketing News A few weeks before the Traveling Tailor arrived to a given city, Indochino used Facebook's geo-targeting and custom audiences features to message existing...
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Indochino is an industry leader in custom online menswear. They promote a brand of high quality, sophistication, convenience, and affordability. Their latest marketing ploy, which was addressed in this article, was to set up temporary pop-up shops in attractive geographical locations such as Chicago, New York, San Francisco, Seattle, Calgary, Vancouver, etc. However, they faced one major marketing problem- how would Indochino maximize their advertising efficiency in order to inform consumers about Indochino's limited time events as quickly as possible?
The ethical and social issues identified in the content in this article are untraditional in focus. In order to expand the reach of their company and target the most optimal consumers in order to advertise effectively and drive sales, Indochino has engaged in some ethically questionable arrangements.
By using Facebook’s Custom Audience and Look-Alike Modeling features, Indochino began to create targeted advertisements on this social media platform.These efforts would effectively target consumers that were more likely to purchase an Indochino product based on historical customer relations management (CRM) data. Indochino is exploitating their client’s trust by using the personal information given in confidence for business-specific purposes, to expose and contact the customers on a personal level through social media. Furthermore, Indochino has aggregated website and Facebook data to identify who has visited, but not interacted and reserved a spot at the pop up shop. With this, they further intruded potential consumer’s privacy by retargeting this group with online advertisements in order to boost conversion.
Ultimately, the success experienced by businesses such as Indochino when using these marketing tools is astonishing. For example, with the advertising tactics outlined in this article, Indochino was able to realize a 20-time return on ad spend, and streamline their registration processes for their pop-up shops translating into 50% lower booking costs through Facebook. The success of Indochino’s Custom Audience and Look-Alike Modeling efforts cannot be denied, however the means in which they chose to do so, and the ethicality of their use of proprietary client information remains in question.