Social media: The fans win

There has long been speculation and gut instinct that social media produced ROI. However despite many promises of being able to track online behavious accurately, there has been few statistics come forward. This has been primarily because of the weak link between online content and point of sale. However, this gap is quickly closing as brands pour more and more budget into digital and expect to see results. A recent study by Syncapse and reported by Haysam Fahmy in the blog Asia Digital Map shows, what all of us had thought true for a long time, people who invest energy in becoming fans of a brand in social media tend to spend more, be more brand loyal and are more likely to be brand amabassadors. Social media does payoff and in a big way.

Fans spend more!

On average a Facebook fan will spend almost US$80 a year more on a product than non-fans

Fans share more!

The most intreguing aspect of social media is converting customers to brand ambassadors. Fans of brand are 40% more likely to share brand information. This is powerful marketing.

The long and the short of this is that brands now have definite proof and measurement tools to show the clear value of social media. What is done with this is yet to be seen. Social media is still largely unknown and only few companies like Prosperity Research have the expertise to navigate social media effectively.

Social Media December 2007 to June 2010

I originally wrote this post in December 2007. In social media years that was a lifetime ago. However, the words are more true now then back then. Social media's progress got a set back, or kick start, due to the economic crisis. You can decide your opinion on that. What I know is I believed then and I still believe now.



Well, the 2007 year is wrapping up and the final numbers are coming in. These are the all important numbers which demonstrate online behaviour in general and more specifically the consumer spending habits during the peak holiday period.

Online Holiday Sales Ho-Ho-Hold Up - eMarketer via kwout

It is unanimous that Social Network Marketing continues to dominate the press and the pocketbook of consumers. With word of mouth becoming the new cred over traditional corporate spokespersons the individual reigns supreme. Prosperity Research continues to advance natural techniques to understand the behavioural mechanisms that guide Social Network models. There is little need for big media buy or fancy gimicks in the new democratic space on the internet. The old addage of "talk is cheap" has an all new meaning.

eMarketer's Predictions for 2008 - eMarketer via kwout

Social Media? 12 reasons plus 2 more

Social media is becoming an undeniable option for business. Some are still uncertain why or how they should use social media, but the tidal wave of users make the need to move into social media fell like a "must do". Fortunately there are good reasons and this article released by Social Media Today provides a compelling argument. Social media budgets are exploding and according to the author there are 12 reasons to jump in. That alone should be enough, but I can think of at least 2 more to add to this list that make the value proposition impossible to resist.

• Listening -- the single greatest differentiator between social media and traditional is the opportunity for engagement. To be able to receive customer comments and product information in real time is extremely valuable. Traditional media can not provide this. Brands that recognize the value of receiving customer engagement and leverage this will outpace their competitors.
  
• Community building -- social media is about community building and engaging customers. Many brands are still stuck in the "broadcast" mode of communicating and missing the great opportunity for becoming "friends" of their customers. When the shear volume of information that is pushed out into social media each day, the idea that someone "chose" to listen, opt in, comment on or subscribe to your message is remarkable. Once you have their attention, it is best not to lose it. Treat them well.

Social media is all about being "Social". The most successful brands recognize this. Brands that let their ego go for a bit and truly focus on their customers will enjoy success.

Much success,

Doug

Prosperity Research helps brands find their voice online. PRDA has significant experience and can help businesses find the value in all the
commotion.

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