NYTimes.com - Online Sellers Discover the Power of Video Clips

Online Sellers Discover the Power of Video Clips
By BOB TEDESCHI
IT was just a matter of time. Online retailers have begun capitalizing on the YouTube craze, offering a video platform for product demonstrations, rants and raves, sentimental messages and just plain bizarre behavior.
At this point there is little question that the videos, on sites like 1-800-Flowers.com, Buy.com, Blendtec.com and many others soon to come, have novelty value. Whether they will help build customer traffic and sales over the long term, though, remains an open question.
“The scary thing is that we don’t know the financial implications of this,” said Jim McCann, the chief executive of 1-800-Flowers, which recently began two initiatives to post user-generated videos on the site. “Does it have any benefit for sales? I can’t answer that. We’re just going on a leap here.”
Mr. McCann said the company would announce today its “Video Valentine” service (at 1-800-Flowers.com/videovalentine), where users go to the site and upload photos, write messages and choose musical themes and graphics. The site then meshes the various elements into a 60-second clip that, while not strictly video, includes enough motion and sound to approximate the experience.
The site allows users to send the valentines for free, and, after employees review them for inappropriate content, they may post the valentines on the site for others to view and rate.
Users will be able to integrate full video files in the coming months, said Mr. McCann, who caught the video bug after a conversation last year with Chad Hurley, one of YouTube’s founders. In the meantime, the site is relying on YouTube to broadcast other video clips from customers, through its Reconnections initiative.
With that, 1-800-Flowers asks users to film testimonials about instances when a gift from the site has caused or highlighted a reunion in the customer’s life. One video the site is considering posting in the future features a man who had lost touch with his high school sweetheart after the Korean War. Through the Web site, the man sent the woman a replica of the prom corsage he gave her 50 years before. The happy ending: 1-800-Flowers supplied the bouquets for their wedding. The Reconnections clips, which carry the company’s logo and links, are carried on YouTube, but links to the videos will also appear on the 1-800-Flowers site. Mr. McCann said he would feature the most popular videos in television ads, and has begun training employees in video production techniques to help customers refine some of the more promising testimonials.
The effort, he said, falls in line with the company’s increased focus on soliciting customer involvement on the site — whether through suggested gift card phrases, or less formal interactions with customer service representatives, where the site’s employees solicit feedback from consumers on product variations they might like to see.
“The irony is that we’re using technology to be much more personal with our customers, and recreate the relationship I had 30 years ago, where I knew all the customers that came into my shop on First Avenue,” Mr. McCann said.
The business itself is on the upswing. Late last month 1-800-Flowers announced record revenues of $330 million for the most recent quarter, an increase of nearly 19 percent from the same period in 2005. The company’s stock jumped by more than 10 percent last month to top $7, after dropping below $4.50 in August.
For at least one company, user-generated videos have led to a measurable boom in business. Blendtec, a manufacturer and seller of blenders based in Orem, Utah, started late last year posting videos of the company’s chief executive, Tom Dixon, blending random objects, including wood, marbles and Mr. Dixon’s iPod.
The company posted the videos on its own site, WillItBlend.com, as well as on YouTube, and promoted them on various message boards and blogs. The marble video, which can be seen at youtube.com/watch?v=3OmpnfL5PCw quickly rose to prominence on YouTube’s entertainment section, and since then, according to Blendtec’s marketing director, George Wright, the company’s 30 videos have been viewed more than 11 million times.
“We’ve seen wonderful improvements in sales,” Mr. Wright said. “Online, we’ve absolutely eclipsed our records, and it just continues to grow and grow.”
Still, the runaway success of the program has included some potentially troubling side effects. Users have taken to posting their own “extreme blending” videos, with about 600 such clips last week featured on YouTube.
Other sites, like the golf and tennis retailer Golfsmith.com, are employing user videos for reviews. According to Matthew Corey, the company’s vice president of marketing, Golfsmith.com will soon allow users to post clips talking about products for sale on the site.
Mr. Corey said this year’s new golf clubs include even bigger drivers than before, some with square heads. “It’s going to take people some time to understand the features of these,” he said. “What better way to do that than with videos?”
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Sites may need to offer incentives to entice users to post videos, according to some executives, because users are less willing to do the extra work to post videos than photos or text reviews. Mr. Corey said Golfsmith is considering rewarding users who create popular videos.
Videos also help increase Internet traffic. The more Golfsmith offers videos and reviews of its products, Mr. Corey said, the better the chances Google and other search engines will point users to Golfsmith when they type a product name into a search box.
Mr. Corey will still have to brace himself for the possibility of users posting mock video reviews on YouTube showing, say, the destructive capabilities of a club. But on Golfsmith.com, all reviews will be screened by BazaarVoice, an Austin-based technology vendor that helps Web sites post user reviews and screen them for offensive or inappropriate content.
Brett Hurt, the chief executive of BazaarVoice, said his company would start helping three of its 60 clients solicit, review and post video reviews.
“I’d expect a majority of our customers to adopt this,” Mr. Hurt said. “It’s just a matter of time before it becomes the norm online.”
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