I became aware of this 30+ year old company when I switched from Prodigy to AOL as my internet service provider — Way back in the mid 1990s. I didn’t realize at the time how lucrative the flower business was until 1-800-FLOWERS began pushing ads all over AOL, radio and television.
1-800-Flowers revolutionized the flower delivery business by offering a generic easy-to-remember point of contact vanity telephone number for nationwide flower delivery. Where before, consumers had to visit multiple local flower merchants, or arrange for flowers to be delivered across the country via FTD, a sort of multiple listing service for flowers.
However, with less than 20 percent of orders coming in via touch-tone telephone, to capitalize on the sales potential of the Internet, 1-800-Flowers reinvented itself as 1-800-Flowers.com.
It was in the early days of 2000, when many so-called eBusinesses struggled to pay the bills ( DOT BOMBS THEY WERE CALLED )–ending multiyear and multimillion-dollar marketing deals on Yahoo, Excite and AOL that 1-800-FLOWERS.com multi-commerce vision aligned.
In early 2001, 1-800-FLOWERS.com partnered with 2Roam, Inc., a wireless application software and service provider, to make it quick and easy for customers to interact and make purchases from any handheld wireless device, such as mobile phones and PDAs. Again in 2006, 1-800-FLOWERS.com launched a mobile website which led to a partnership with Digby to develop a complete mobile commerce channel.
Today, with one of the most recognized brands in online retailing, 1-800-FLOWERS.COM is a first mover at providing a broad range of gift products including flowers, gourmet foods, candies, stuffed animals, popcorn, cookies, candy and wine, toys and games for children, home and garden merchandise, and gift baskets with different varieties of fruits, some with dry/canned goods (such as tea, coffee, crackers and jam). Customers can visit the company’s website, call its toll free number, or visit a company-operated or franchised store.
The company focuses all its marketing and promotions on driving customers to 1-800-FLOWERS.COM, and generating repeat business.
1-800-FLOWERS.com has enjoyed year-after-year growth since 2000 and averages a 40% gross margin. The economic slump of 2008-2009, however, has resulted in a revenue decline of $205 million, or $714 million from 2008′s $919 million.
Recently, 1-800-FLOWERS.COM recognized that the flower delivery industry is largely driven by major holidays — namely Mother’s Day and Valentine’s Day, and has re-invented itself by launching a new brand 1-800-Baskets to tap into the lucrative $16 billion gift basket industry.
In time we’ll know whether the new 1-800-BASKETS.COM is a natural extension of the 1-800-FLOWERS.COM product line, or drift from its flower focus business model.
Additionally, while the company’s natural advantage is its toll-free 1-800 vanity line, the benefits of a toll free number in today’s market could be less significant than ten years ago when telephone calling plans didn’t include free nationwide calling.
With over 281 area codes throughout the United States, any local flower shop can specialize and compete by acquiring the telephone number FLOWERS (356-9377) with the area code of choice. In short, it matters little to a consumer whether a telephone number is 1-800-flowers, 1-651-flowers, 1-770-flowers, or any area code flowers because today’s telephone plans include free nationwide calling.
1-800-FLOWERS.COM is a leading multi-commerce store, having reaped in the benefits of an integrated business model with toll free vanity, retail front, e-commerce, and m-commerce. Will toll free calling plans put a dent ( or more? ) to this category killer?
One could argue that the 2008-2009 economic crisis was egregious to the point that fewer people were sending flowers, or that multi-commerce and free calling plans were forces that haven’t been dealt with.
I just wanted to know if you recommend like an eBook or something like that. Also do you have an RSS Feed? I would like to subscribe to it so I can keep on receiving fresh information. Once again thank you so much for posting this information. Keep up the good work!
Welcome!
The goodtowow.com site is currently in pilot. eBook and/or hardcover recommendations may be included in the future, focusing on five areas of communication innovations towards maximizing demand for products and ideas.
Product
Process ( customer service, supply chain, standardization, etc. )
Marketing
Management
Revenue Model
RSS feed is available now. Many thanks for your feedback.
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When you’re a real estate agent, you are your own brand. It’s your own reputation, your own name, on the line. And it’s sad that some people don’t seem to care.
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