Pinterest Whets Consumer Desire with Images That Turn Window Shoppers Into Online Buyers

Pinterest knows what you like before you do.

Earlier this month, Pinterest, the virtual pin-board for photo sharing, launched a weekly email newsletter designed to tighten its bond with an already loyal following. In just two years, Pinterest has captured the imagination of a legion of Web users to become the third most-popular online social network of 10 million-plus. Not bad for a startup that was operating out of a cramped Silicon Valley apartment just a year ago.

The newsletter offers Pinterest users with personalized leads on where to find “pins” of interest based on information that it collects on individual members. Previously, Pinterest users could only browse broad categories. The newsletter treats users to a gallery of “Pins You’ll Love,” tailored to their tastes.

It marks the first time the wildly popular social network is using its vast repository of member data as a marketing tool.

Courtesy: Mashable

Big Data has become a popular term to describe how companies are collecting reams of detailed information on the habits and preferences of current and would-be customers. Sophisticated technology is used to analyze that data to better understand these consumers so that e-commerce businesses will create advertising campaigns, products and services that will better meet their needs and appeal to their desires. A well-crafted personal appeal forges the kind of bond between consumer and supplier that can last a lifetime.

Facebook does not sell member data directly to advertisers. What it does do is organize members into defined demographic groups so that advertisers can target them with tailor-made pitches. As yet, Pinterest does not accept paid advertising. But the information that Facebook and Pinterest members willingly post on their member pages are a treasure trove of invaluable consumer data to be exploited by companies looking to lure and keep customers.

Pinterest is poised to become a powerbroker in online retailing. Its members are avid window-shoppers using the site to create virtual malls of their favorite shops. As it does in the physical world, window shopping often leads to the real thing: a recent Bizrate Insights study found that more than a quarter of those who buy goods online do so after seeing them on an image sharing site. Shopify, an e-commerce service, reports that Pinterest members spend an average of $80 each time they make an online purchase, twice the amount that Facebook members shell out on an average Internet buy.

Pinterest will extend its reach internationally with foreign language versions. In a recent blog post, the company said it is seeking translators to “make it easy for people all over the world to organize and share all the beautiful things they find on the Web.” Recently, Pinterest landed a $100 million investment from Rakuten Inc., a Japanese e-commerce company, another indication that retailers recognize its value as a marketing tool.

The Web has turned the world into a global village. If a picture is indeed worth a thousand words, Pinterest may be well on its way to organizing e-commerce into a collection of personalized shopping malls.