Social media & consumer behaviorPresentation Transcript
Social Media & Consumer Behavior Kobe, Japan by Adam Acar, Associate Professor of Communication http://emergingmedialab.wordpress.com/about/
Myth 1: ROI of social media can be measured • Fact: All these things can be done through social media: advertising, promotions, SEO, customer support, Market research, PR. Only some short term effects of advertising, promotions and SEO can be measured. Most of the effects cannot be measured and not even necessaryROI can’t be measured ROI can be measured Customer Support Advertising •Post-sales support (e.g. •Outcome: 1-Brand answering customers’ Awareness 2- Brand Image questions on Facebook) Improvement 3- Sales 4- •Training customers Building trust (e.g. higher number of followers=more trust) Marketing Research Promotions •Understand what •Outcome: 1- Sales, 2- customers want (e.g. Brand awareness asking fans what kind of flavor they like, etc.) Public Relations Search Engine !!!!How to measure pre-post •Protect/support brand Optimization brand image change is image (e.g. posting about •Outcome: Higher ranking subjective and difficult brand’s sponsorship on Google, BingOther things can also be done through social activities)media including •Informing publics-training employees-impressing shareholders !!!Not necessary for most of-tracking competitors-e-commerce (so far failed) etc… the big brands
Myth 2: Social Media drives more traffic than search engines• Fact 1: Most of these companies are media companies (not ordinary B2C companies)• Fact 2: Studies show that only 2% of online sales are driven by social media• Fact 3: Only 2% of the people say they’d buy on Facebook.
Myth 3: We can have a universal social media model• Fact 1: It works differently for high involvement and low involvement products (because for some products you care what your friends do and for some products, you don’t)• Fact 2: It works differently for companies who sell online and who have brick & mortar stores (because e-commerce companies heavily rely on SEO and many other companies don’t)• Fact 3: It works differently for commercial entities and non- profits (non-profits are perhaps the best beneficiaries of social media, that’s why there’s a term called “slactivism”)• Fact 4: It works differently for services and manufactured products (services tend to focus more on image building and educating consumers while manufactured products might not need these)• Fact 5: It works differently for B2B and B2C companies (many social networks are built for relationship between people not other entities)• Fact 6: It works differently for downloadable apps/software and other online services (Facebook has the best success rate for apps because they are immediately available and they are part of the platform)• Fact 7: It works differently for local and nationwide brands (getting personal with a small number of fans vs. servicing the needs of a large number audience)• Fact 8: It works differently for small-mid-size companies and big brands (need for getting new customers vs. need for increasing repeat customers)• Fact 9: It works differently for industries with high consumer loyalty rates and low consumer loyalty rates.• Fact 10: It works differently for products geared towards women and men.
Not a surprise here: First timemothers are asking their friends aboutstrollers on Facebook. Would they asktheir friends about which chewinggum to choose???Sourcehttp://mashable.com/2011/12/18/social-consumers-infographic/
Myth 4: Social Media always has a positive impact on sales• Fact: No. This study shows that it has a negative impact for 12% of the users and zero impact for the 48%, especially when it comes to the fashion industry. Source: http://hbswk.hbs.edu/item/6185.html I don’t want to wear what everyone is wearing!
Myth 5: Facebook is the best social media tool to drive sales• Fact: This may not be true. These studies indicated that Twitter is better to attract new customers:• http://www.webknots.com/facebook-vs-twitter-which-is-better-sales-optimizer-for-brands/• http://www.exacttarget.com/uploadedfiles/resources/SFF6_Future_Final.pdf• http://asiajin.com/blog/2012/04/02/a-summary-of-the-latest-studies-about-japan-social-media/ I am cool…
Myth 6: People follow brands in social media to get information • Fact: This is not true. Most of the time people follow brands because they are either a) current customers b) interested in getting discounts. • http://www.kullin.net/wp-content/uploads/2011/09/chart-why-follow-brands-twitter.png • http://allfacebook.com/infographic-why-we-follow-brands-on-facebook_b49585 • http://www.kullin.net/wp-content/uploads/2011/09/why-we-follow-brands-on-twitter.jpg • http://mashable.com/2011/10/20/twitter-brands-purchase-intent/
Myth 7: Consumers are interested in engaging with brands in social media • Fact: Nope. Only 12% of 18-24 year olds and 6% of 12-17 year olds are interested in friending brands in social media. • Source: http://www.adweek.com/news/technology/young-users-hating-brands-125949
Myth 8: We can measure the effects of social media byLikes, shares, comments, retweets, coupons redeemed, applications downloaded, photos/videos uploaded/tagged, photos pinned, campaigns participated, so on…• Fact: No scientific proof (yet) that more likes/shares/comments equal to more sales (Remember the problem of causality? Do likes drive sales or do sales drive likes?). Most of the companies report using social media because their competitors are using it. ≠
Myth 9: Social Media Ads are more effective because they are based on Open graph & Interest graph • Fact: Facebook ads have even a lower click-through rate than avg. banner ads (.1% vs .051%).
Myth 10: Social media has no impact on sales• Fact: This is perhaps is not true either. For instance according to this study …” “Researchers surveyed customers of Dessert Gallery (DG), a popular Houston-based café chain. Prior to the study, DG did not have a Facebook presence. Surveys of more than 1,700 respondents over a three-month period found that the companys Facebook fans made 36 percent more visits to DGs stores each month, spent 45 percent more of their eating-out dollars at DG, spent 33 percent more at DGs stores, had 14 percent higher emotional attachment to the DG brand and had 41 percent greater psychological loyalty toward DG--compared to typical Dessert Gallery customers.” Source: Science 2.0• http://www.science20.com/news_articles/how_effective_facebook_marketing_very_new_survey_says