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Dell rakes in $3 million in overall sales due to Twitter

Sam Alderwick   on 15 June 2009 - 11:45 · 7 comments & 2796 views

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In a blog post by Dell last Thursday, it was revealed that the computer manufacturer has made $3 million from overall sales (since 2007) as a result of their Twitter usage. Since using the service in 2007, @DellOutlet has been providing exclusive deals to its followers, as well as answering questions from users.

Whilst only $2 million of revenue has been brought in as a direct result of @DellOutlet's Twitter activity, the blog states that $1 million was brought in as a result of users going to Dell Outlet (by following the Twitter links) and then buying a new Dell system from elsewhere on the Dell site, bringing overall sales to $3 million.

At the time of writing, @DellOutlet had over 640,000 followers, an amount which has steadily increased since the company began using Twitter to promote its products.

"Deal-hunters are especially attracted to Dell's Twitter presence. Dell Outlet sells refurbished Dell products at great prices, but inventories fluctuate, making it difficult to know when products are available or on sale," Stefanie Nelson wrote in her blog post. "Dell Outlet uses Twitter as a way to message out coupons, clearance events and new arrival information to those looking for Dell technology at a discounted price."

For a company that describes its business model as being "in a research phase", Twitter has had numerous opportunities to bring in revenue. However, they currently do not charge companies for the usage of their service. With a growing amount of companies embracing the web (and more specifically, Twitter) in order to reach out to customers and promote their products, this could be one of the better opportunities for Twitter to make money, should they decide to take this one up.

Post a comment · Send to friend Comments · There are 7 additional comments
#1 neelj on 15 Jun 2009 - 13:07
Good on Dell for adapting to change and taking initiative. I know gadget sites in the UK (such as Firebox.com and IWantOneOfThose.com) are adopting the same idea by tweeting new products and special offers too. I bet hundreds more jump on the same bandwagon now. As long as I (the end customer) see a benefit, I encourage it! :-)
#2 Magallanes on 15 Jun 2009 - 13:20
3 million per 2 year (where Dell manage around a billion x year, and if you count that the expenses and most of the sales can be canalized by another means.
Then, such resultants are meh.
Take note that Dell have 0.64m followers but 1.5m sales so, mostly followers are nothing but annoying not-buyer.

#3 C_Guy on 15 Jun 2009 - 14:57
I wonder how much higher sales would be if Dell re-directed resources away from Twitter and towards something else like traditional advertising or product development.
(2 replies) #4 Sam Symons on 15 Jun 2009 - 20:20
But wait, I thought Twitter was useless and for those with no lives!
#4.1 toadeater on 15 Jun 2009 - 22:12
Sam Symons said,
But wait, I thought Twitter was useless and for those with no lives!


It's great for marketers selling products to people with no lives. Doesn't really help the people with no lives much, does it? I guess unless they want to talk to Dell's Indian tech support about why their stuff is busted.
#4.2 vetbangbang023 on 16 Jun 2009 - 02:04
$3 million in a two year span, for a company like Dell, is a drop in the bucket and not all that amazing.
#5 ShiZZa on 16 Jun 2009 - 12:25
Market share is still market share in the end. 3m pays bills and wages for some part of dell. If this product was to be junked out or something and now they made a little bit back vs 0. I bet this is a 1 person show that makes about 40k-80k a year. So over head for a test project is very low and very profitable.

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