A new study released this week from Razorfish on consumer behavior, suggests all consumers really want from their favorite brands on social media is a good deal. FEED: The 2009 Razorfish Digital Brand Experience Report, posted November 8 on Media Post News (Walsh, 2009), surveyed 1,000 connected consumers about their attitudes toward social media marketing and how digital is changing the way they interact with brands.
The survey found that promotions and discounts were primary drivers of friending a brand for 37 percent of Facebook and MySpace users and 44 percent of Twitter users. The report points to companies such as Starbucks, which has amassed nearly 5 million fans and soared to the top of Facebook brand pages by offering coupons for free pastries and ice cream, and Dell, which has earned kudos for generating $3 million in sales from its Dell Outlet through Twitter.
The findings suggest social media marketing isn't so much about boosting brand awareness as enticing users with concrete offers. Garrick Schmitt, Razorfish group vice president of experience planning and editor of the study, said "That to me is a big 'Aha! What we're finding is that with Facebook and Twitter, marketers are assuming some deeper dialogue, but what's really going on is – people want deals" (Walsh, 2009).
Such results suggest that The Cluetrain Manifesto: The End of Business as Usual, released 10 years ago, may have missed the mark when it declared “markets are conversations” (Levine, Locke, Searls, and Weinberger, 1999). This series of 95 truisms about marketing in the Internet era almost immediately attracted a cult-like following, serving as a precursor to what we today know as blogs, Twitter, Facebook and other social media.
An excerpt reads, “A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter – and getting smarter faster than most companies. These markets are conversations. Their members communicate in language that is natural, open, honest, direct, funny and often shocking” (Cluetrain.com, 2009).
While consumers still value open and honest conversations, they also want something for their time in the form of a discount. The Razorfish survey is important to retailers like Deb because companies that use social media effectively are creating loyal customers. Razorfish found that the overwhelming majority of consumers who actively engage with a brand, by following them on Twitter or entering a contest such as Deb Shops Ultimate Prom Makeover Sweepstakes for example, can evolve from passive reactors to advocates almost instantaneously (Walsh, 2009). Such contests not only attract consumers but can be used to build databases by asking for op-in data, including e-mail addresses, Facebook fan status and cell phone information that can be used in other marketing approaches.
On average, 97 percent report increased brand awareness; 98 percent show increased consideration; 97 percent will likely purchase a product from the brand; and 96 percent may recommend the brand to their friends. Perhaps more importantly, 64 percent of consumers report making a first purchase from a brand because of a digital experience (Walsh, 2009). Read more about the study at http://feed.razorfish.com/.
To retain and add customers, Deb needs to shift focus from brand awareness and impressions to create campaigns that drive people to make purchases and spread the word to friends about products they buy. Deb is taking steps in this direction. For example, the same day that Wilson suggested a coupon, Deb announced its first Happy Hour special. Shoppers who bought a sweater between 7 p.m. and 11 p.m. got free leggings (Facebook.com, 2009). This is an interesting approach but it is limited to a specific item. A coupon, on the other hand, could have more wide-spread appeal because the decision about what to buy is in the consumers’ hands.
In addition, Deb could benefit from an increased presence on Twitter. To date, Deb is only mentioned on other sites, such as coupon sites. A new study released by Performics, the marketing arm of Publicis Groupe's VivaKi Nerve Center, and ROI Research, an analytics and technology firm suggest such inactivity is a poor marketing move (Sullivan, 2009). The study found that nearly 50 percent of people who saw a brand's name on Twitter went to a search engine to look for the product (Sullivan, 2009). The findings, presented at Ad:Tech, noted that about 44 percent of Twitter users have recommended a product on Twitter and 39 percent have discussed a product on Twitter (Sullivan, 2009). Twitter has evolved into one of the hottest social media platforms available and should part of Deb’s marketing arsenal.
References:
Levine, R., Locke, C., Searls, D., and Weinberger, D. (1999). The Cluetrain Manifesto. Retrieved November 4, 2009, from http://www.cluetrain.com/.
Sullivan, L. (2009, November 5). Consumers More Willing To Share Brand Info On Social Networks Than Previously Thought. Media Post News. Retrieved November 6, 2009, from http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=116866.
Walsh, M. (2009, November 7). Razorfish Study: Special Offers Drive Engagement In Social Media. Media Post News. Retrieved November 9, 2009, from http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=117008.
Wilson, A. (2009, November 8). Facebook.com posting. Retrieved November 9, 2009, from http://www.facebook.com/debshops#/debshops?v=wall.
Looks like we tuned into the same article!
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