Case Study: Go through the case study and answer the questions that follow. How a small E-commerce site attracted 2,93,000 fans?

Diamond Candles is a company that offers scented, soy-based candles that has a ring at the

bottom. This has resulted in their customers spreading word-of-mouth about them due to the excitement of potentially winning the prize.

Instead of purchasing ads online to drive sales to their business, their predominant strategy has been to utilize referrals and social media.

WHAT THEY DID TO SUCCEED

The key strategy behind their success has been customer-contributed photos.

Without spending a single cent on ads, these photos grew the companys Facebook Fan Page to 469,661 fans while also boosting their product page conversion rate by 13%.

(Wow!)

Knowing that more customer-contributed photos essentially made them more successful, they then created an environment of encouraging their customers to share more photos.

Heres what they did:

• A call-to-action found on the candle urging customers to take a photo with the ring and share it on social media
• Giveaways that encourage customers to create and share images for a chance to win free products
• Share all the photos gathered on social media to create an impression that it is normal to share Diamond Candle-related photos

KEY TAKEAWAY

Your customers are your greatest ambassadors. Find a way to incentivize them to spread word- of-mouth for you.

Questions:

1. Based on your understanding of the above case, what is the business model of Diamond Candles?