As more retailers look to develop effective social-media strategies, a new study finds that Facebook is by far the most effective way to woo would-be shoppers.
And chains that use their Facebook pages to promote new products and special sales are most appealing, with brands like Victoria’s Secret leading the way.
“What surprised us most was how many customers say they really wanted to hear about sales and products,” Kevin Ertell, VP/retail strategy for ForeSee Results, tells Marketing Daily. “Yet many retailers aren’t doing that — conventional wisdom is that fans want things like engagement, with polls, or pithy comments or customer services tools. This study found those things are actually far less important.”
ForeSee says that of the 69 percent of online shoppers who are social media users, 56 percent have chosen to “friend,” “follow” or “subscribe to” at least one store. But they are selective, he says, and 61 percent of this group is connected to fewer than five companies. Another 21 percent is made up of more serious shoppers who follow between 6 and 10 stores, while just 18 percent is hardcore enough to have friended more than 10.
Typically, he says, customers who interact with a store brand through social media tend to be the most satisfied, creating a chicken-and-egg situation: “The most satisfied and loyal customers are seeking out their favorite stores’ pages, and then if those experiences are rewarding, they become even more loyal.”
Facebook is by far the dominant player: Among online shoppers who engage in social media, more than 80 percent are using Facebook. YouTube comes in second at 31 percent, followed by MySpace with 22 percent, Twitter with 16 percent, and LinkedIn at 12 percent.
Yet 25 percent of the top 100 online retailers have no formal presence on Facebook, Ertell says, and another 25 percent have fewer than 10,000 fans. Winners include companies like Limited Brands’ Victoria’s Secret, with some 2.8 million fans, and its teen brand Pink, with 1.8 million fans. “If you look at those pages, they are giving Facebook users exactly what they tell us they want — information about new products, and special prices and promotions,” he says. The study found that 49 percent of those who follow companies through social media want to hear about deals, and 45 percent want to see products. Only 5 percent use social media primarily for customer support.
Still, he concedes, it would be easy for stores to go overboard on sales and promotions. “It’s like emailing customers about special deals. That is also effective, but if you send customers too many in a single day, they’ll just stop responding.”
