Recently, shares of Etsy hit a record high and rallied about 70% year to date, giving the company a market capitalization of close to $9 billion – reported Barron’s financial news magazine. The stock is rising, Barron’s explains since Etsy has become the best play on homemade masks amidst the COVID-19 crisis.
Etsy, or “Easy to sell yourself,” is a brand that we particularly appreciate for so many reasons. Besides the fact that they offer handmade goods from sellers worldwide (Jewelry & Accessories, Clothing & Shoes, Craft Supplies & Tools, etc.) – they do it right on so many levels.
As far as CRM goes, which is what we’re always particularly interested in – they’re following some of the best practices. We used our “Seven Commandments for CRM in a Post-Corona World” checklist, once again, to find out their score.
1. Be Transparent 7/10
There are now about 20,000 shops on Etsy selling face masks, CEO Josh Silverman told CNBC. “Our sellers can produce hundreds of thousands of masks per day.”
What we found to be particularly interesting is this:
“The CDC itself has said a fabric face mask is probably better than nothing, but please do not assume that this keeps you or the people around you safe. It’s an additive measure. It’s not preventative,” Silverman stressed.
Etsy has listed items such as masks and hand sanitizers for sale – they did make it very clear that these aren’t medical grades and that sellers can’t make medical or health claims about the items they sell.
The fact that Silverman chose to announce it publicly makes for a trust-building move.
One thing that we find crucial at this time is missing on Etsy’s homepage, though. We would like to see a COVID-19 related banner showing a bit of direct support for those affected. Though there is a COVID-19 Safety page, you have to go through the help center to find it.
Also, we couldn’t find any mention of shipping, operations, and deliveries on their homepage either. Making it hard for shoppers to know whether they’ll be experiencing potential delays.
2. Give Discounts 0/10
No discounts from Etsy. At this point in time, we would have liked to see some sort of special offer from the brand.
Offering coupons, promotion codes, or some other form of a sale can encourage customers to make their next purchase, and we think that times like these call for more flexibility.
Customers need you now. This kind of gesture will be particularly appreciated and remembered by them far down the road.
3. Be Relevant 10/10
There’s no better way to show brand relevancy than all American sweetheart, Drew Barrymore, giving a shout-out to the Etsy seller community – and right off the bat mentioning that it’s not a paid advertisement. “The Etsy community is so thoughtful and connecting in such an art form in this time that I couldn’t be more appreciative.” She said on her Instagram feed.
“I am just sending this out to say thank you to each and everyone of those people who is getting stuff done and getting it to you quickly and incredibly thoughtfully and shout out to being able to support the economy from a place and in a way that feels very life-affirming,” she finished off the message.
Etsy’s “Craft Supplies” category sales are growing rapidly. DIY kits are increasing in popularity as a home activity during the lockdown. In reaction, the company prompted sellers with the following message: “With this in mind, you can disassemble any of your products and offer them as an activity.”
Etsy sellers also know how to cope with the new reality by focusing on the creation and production of what people need most when stuck at home: bath and beauty products, comfort wear, and DIY crafts. That’s a great example of a timely reaction to keep up with its customers’ needs.
If that’s not enough, Etsy sellers also know how to show that human touch. One seller wrote, “Quite a few customers are sending gifts to health care workers with messages of support… It’s an honor to make them.”
4. Be Helpful 8/10
Being helpful is a significant part of Etsy’s brand value. “As a company, we strive to lead with our guiding principles and to help spread ideas of sustainability and responsibility whose impact can reach far beyond our own business,” reads their “About Us” page.
Etsy supports a new law that sets the state of New York, where the company is based, on a path to zero emissions by 2050. It also offsets carbon emissions from every delivery sent to customers. And is currently working with other retailers to figure out “what we can do to move toward a zero-emissions delivery future,” says Chelsea Mozen, Etsy’s sustainability director.
On their website, it reads:
5. Personalize 10/10
Perfect score! Personal handwritten notes from sellers that come with most purchases and handmade labels are the most personal way to get, well, personal.
When browsing for swimwear and adding bathing suits to our cart – were retargeted with these items instantly. A massive swimwear banner appeared at the top of the homepage with similar items to those that we viewed. When scrolling down some more, a bunch of swimsuits were featured for further options we might be looking for.
The same thing happened after viewing a wool rug.
A shopper’s browsing and purchase history is an excellent indicator of their taste and interest. That’s why we particularly liked the featured items and the “recently viewed & more” slide banner selection of recommended products. Way to personalize!
6. Master User Experience 8/10
Few things we noticed.
- It was hard for us to find out how to clear our cart as the “remove” button was so small and unnoticeable we could barely see it. Not so user-friendly.
- Searching for the return policy and shipping details was quite simple. When entering the help center, there was an abundance of information to read about it there.
- When looking for Etsy’s contact details, it was pretty basic. However, they don’t provide you with an email address/phone number to contact customer service directly. But instead, you get the following details to fill in:
7. Leverage Social Media 10/10
The brand definitely has a strong presence on social media. With over 2.2 million followers on Instagram, they started a #StandWithSmall campaign about a few weeks ago to support Etsy shop owners. And it’s going great!
There’s no doubt that their Facebook page (+3.6 million followers) also has an active community of loyal fans and followers.
Overall, Etsy is getting a 53/70 here (76%).
For more brand analyses as such, check out Patagonia: Paving Their Own Path and what we can learn from Uniqlo’s communication efforts.