To many marketers, social media is still finding its footing compared to longer-lived channels such as email. How much customer retention can it account for, how do I leverage "the buzz," and can it really drive conversions? These are the questions on the lips of many marketers.
This is the first of a series of articles that concentrates on Facebook (the largest social network, with more than 800 million users), highlights some key findings showing just what real revenue social media can deliver, and offers some tips for your social media playbook. The goal? Curating your Facebook fan base and driving revenue.
First, some key facts*:
- On average, a Facebook fan spends $71.84 more on products than a non-fan.
- Evangelists spend 13% more than the average customer and refer business equal to 45% of the money they spend
- Of Facebook users who "like" at least one brand, 17% say they are more likely to buy after "liking."
- 43% of users "like" or are fans of at least one brand on Facebook.
- The percentage of active social media users across ALL age groups is growing year on year
- The top 4 motivations to "like" a brand on Facebook are:
- Show support for the company -- 37%
- Get a "freebie“ -- 36%
- Stay informed about company-- 34%
- Get updates about products -- 33%
Let's say getting customers to click on the humble and ubiquitous "like" button is up first in the social playbook. What opportunities exist to take advantage of this powerful icon?
- Special Offers
Whether these are communicated via email or posted on your wall, encourage customers to promote these offers to their peers by offering a discount or other incentive to the customer if he or she "likes" your offer.
- Viral Email
If you’re already tapping into your social sentiment by creating shareworthy emails, ensure you’re including a prominent "like" button and call to action to help your advocates increase the visibility of your message.
- Targeting Advocates
Use social-sharing metrics to identify your key fans, assess the likes, dislikes and demographics of these advocates, and then craft messages to appeal to them. Secret sales or exclusive discounts are two easy ways to thank your advocates, incentivise a "like" and encourage higher spends and referrals.
Drive up entry rates by offering an incentive for "liking" a contest, sweepstakes, etc. and benefit from the additional exposure these "likes" generate.
- Post-Purchase Emails
If customers are stoked because they’ve saved 15 percent off the latest iPad, allow them to share that happiness with their peers by placing a "like" button on the post-purchase survey, potentially galvanising others to take advantage of this deal.
- Location Check-in Services
Sending a discount email to customers checking in to places near your store is a great motivator for a sale. Include the "like" button on that email and increase the potential footfall to your store. (Read more about check-ins.)
These are all simple tactics to implement, enabling you to quickly begin driving revenue from your social fan base.
There are plenty of others, and I hope you’ll take the time to share those techniques that work most effectively for you.
Stay tuned for my next article in this series, which will address the topic of "buzz" marketing and how to gain advantage from peer-to-peer recommendations.