Social Media Metrics

The Rise of Social eCommerce in an Age of Dwindling Consumer Loyalty

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.

Instant gratification

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

1800Flowers

Delta Airlines f-store – Delta was the first airline to offer ticket purchase capabilities thru Facebook

Delta

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.

BestBuy

NBA Fan f-store – Great place for their 10MM+ fans to shop for their favorite teams’ logo merchandise

NBAStore

Lady Gaga f-store – Lady Gaga is the 2nd most popular female celebrity on Facebook, so her store is sure to get some engagement

Gaga

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. 

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Jamie 

Blog: www.jamiepappas.com

Twitter: @JamiePappas

 

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Social Media Metrics: Are you measuring the right thing?

Photo Courtesy of: http://www.livingstonbuzz.com In all of the conversations I have in working with folks to create a meaningful and measurable social media strategy, I work thru a series of 5 basic questions to help them not only think thru what they want to do, but also think thru how they’ll know when they’ve achieved success. Amazingly, time and again, the one question that always stumps folks is the one around measurement.

(I’ll cover the first 4 in greater detail in a series of other posts, but wanted to share them here high-level now, as well.)

  1. What are you trying to accomplish?
  2. What topics are you prepared to talk about and who are the subject matter experts already talking about it?
  3. Who are you trying to talk to?
  4. Where are they currently talking?
  5. How will you measure success? 

How will you know you achieved your goals? What are your measures of a successful effort? What precedents have been set before, if any? How will you meet or exceed those?

Generally speaking, the first 3 questions are easier for most groups to answer. Although the answers may not be ideal in all cases, they’re at least prepared to discuss them and work thru them together. The metrics question, however, is the one that brings the most discussion and questions and debate and grief just about every single time.

A typical answer to that question goes something like this:

Me: How will you measure success? 

Them: Our success measures will be that we achieve XX followers or fans in the first 90 days. Our success measures will be that we tweet XX times or post on our wall XX times in the first 90 days.

Photo Courtesy of: http://bowlpickins.com Me: [INSERT LOUD “WRONG ANSWER” BUZZER SOUND HERE!]

Ok. Let's chat this thru. How are these metrics helpful to the goals you just identified? In my view, these are metrics that anyone can achieve and are, frankly, meaningless numbers when gathered alone.

Them: But what else can we even measure? 

Me: Well, there are lots of things you can measure. At the bare minimum, you need to focus on both audience and engagement numbers. Let me say it again – at the bare minimum, you need to focus on both audience and engagement numbers.

(I’ll get into all sorts of other useful measures in a later post.)

Me: While it may feel good to have 5,000 fans on Facebook or 10,000 followers on Twitter, what good is that to you (really) if those fans and followers never engage with you or your brand, never comment, never share the information with their networks by liking, commenting, retweeting, etc.? It’s not!

The sad reality is that you’re also not achieving your goals in any way, shape, or form. You’re not having a conversation, you’re not increasing awareness or share of voice, and you’re certainly not influencing anyone.

If they’re not engaging with you, they’re not really adding any substantial value to your brand, they’re not reciprocating any sort of information exchange or conversation – and you don’t even know if they like what they’re seeing, although I’d argue it’s a pretty safe bet that they don’t like what they’re seeing if they’re not engaging with you. This is the kiss of death because they’re going to tune you out sooner or later, if they haven’t already.

So, while fans and followers are a nice to have – they’re only part of the equation when it comes to measuring success in your social media efforts.

If you’re not measuring both – you’re measuring the wrong thing. And that means you’re delivering the wrong results.

Photo Courtesy of http://www.phillymarketinglabs.com


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Jamie 

Blog: www.jamiepappas.com

Twitter: @JamiePappas

 

 

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