The challenge of brand loyalty
Brand loyalty is harder to obtain than ever before. In fact, in our research study, Inside the Buy, AMP Agency found that only 3% of consumers say they are loyal to a brand and never buy anything else. A Contemporary Loyalty has been born where consumers are somewhat loyal to a product, but open-minded to similar products that are new or better. As such, companies need to differentiate themselves like never before to remain in the consumer’s consideration set at the time of purchase.
What’s in it for me?
The higher the perceived value a product or manufacturer offers, the more stickiness it has for a consumer. Consumers expect to be able to find information about products when they search, and where they search. In the same study, AMP Agency discovered that 43% of consumers always do research before making a purchase.
In the same way that consumers expect to be able to find information on products when they search, they also want and expect to be able to buy things where they want, when they want, and how they want – and yes, that means on Facebook and other social networking sites if they so choose.
Enter Social eCommerce
Companies that got ahead of this curve early on are seeing some great results in their consumer engagement, purchases, traffic, loyalty and word-of-mouth. Here are a few examples of successful social ecommerce stores on Facebook (also called f-stores):
1800Flowers f-store – the first f-store on Facebook opened in 2009
Delta Airlines f-store – Delta was the first airline to offer ticket purchase capabilities thru Facebook
Best Buy f-store – Given their mantra of “shop & share,” Best Buy is taking advantage of their fans purchases by encouraging them to share their purchases with their Facebook friends – a pretty neat word-of-mouth strategy.
NBA Fan f-store – Great place for their 10MM+ fans to shop for their favorite teams’ logo merchandise
Lady Gaga f-store – Lady Gaga is the 2nd most popular female celebrity on Facebook, so her store is sure to get some engagement
At the end of the day, It’s all about providing the right content to the right people at the right time in the right place! These are not new notions when it comes to the business and consumer landscape – the only thing that has changed is the storefront!
Questions to consider before launching your own f-store:
What do we hope to achieve?
You’ll want to define the goals you have for your f-store. For example, is it strictly a revenue generation too, or do you intend to use it to help generate buzz and awareness about your brand, as well? Be honest about the amount of revenue your f-store will actually bring in. It should be viewed as an opportunity to realize additional incremental revenue, but not a primary revenue driver. You’ll be able to determine trends after it has been live for a period of time.
How do we intend to measure success?
You’ll want to define your measures of success and tie them back to your goals. What measures will tell you that you made a good investment and how long do you intend to give them to see the trends?
How does this tie in to my larger social media marketing strategy?
Your Facebook store should complement your overall social media strategy, not be a result in and of itself. How can you use your Facebook presence, and therefore your f-store as a part of a larger strategy, campaign, contest, etc? You’ll also want to consider how you intend to market your f-store.