Sunday, September 5, 2010

Facebook Fan Pages Are Effective Marketing Tool


Retrieved from
http://hbr.org/2010/03/one-cafe-chains-facebook-experiment/ar/1
http://www.rice.edu/nationalmedia/news2010-02-18-facebook.shtml
http://www.physorg.com/news197093859.html

SUMMARY

Based on the articles, companies that use the popular social-media site Facebook and its fan page module to market themselves to customers can increase sales, word-of-mouth marketing and customer loyalty significantly among a subset of their customers. It is according to new research conducted by Rice University's Jones Graduate School of Business. The study is featured in the March issue of the Harvard Business Review. Research for the article, f Business, and Emily Durham, a Jones School alumna and founder of Restaurant Connections, a Houston‐based restaurant consultancy. Dholakia and Durham surveyed customers of Dessert "How Effective is Facebook Marketing?", was conducted by Utpal Dholakia, associate professor of management at Rice University's Jones Graduate School oGallery (DG), a popular Houston-based cafe chain. Prior to the study, DG did not have a Facebook presence. The study, based on surveys of more than 1,700 respondents over a three-month period, found that compared with typical Dessert Gallery customers, the company's Facebook fans:
  • Made 36 percent more visits to DG's stores each month.
  • Spent 45 percent more of their eating-out dollars at DG.
  • Spent 33 percent more at DG's stores. Had 14 percent higher emotional attachment to the DG brand.
  • Had 41 percent greater psychological loyalty toward DG.
According to Dholakia, the results indicate that Facebook fan pages offer an effective and low-cost way of social-media marketing. Dholakia said “The fact that only about 5 percent of the firm's 13,000 customers became Facebook fans within three months indicates that Facebook fan pages may work best as niche marketing programs targeted to customers who regularly use Facebook. Social-media marketing must be employed judiciously with other types of marketing programs." Facebook marketing programs may be especially effective for iconic brands, which appear to attract a higher percentage of their customer base as Facebook fans.
So, in a nutshell it can be concluded that Facebook fan pages:

• Can be very effective in increase sales, word-of-mouth marketing and customer loyalty
• Totally free and easy to set up.
• It can be quite rewarding and doesn't require a huge deal of effort.
• Have a greater opportunity to post contact details, a few photos graphics, videos and content detail as to what you're involved in.
• While posting specials promotional blurbs or posting product highlights regularly it is actually offers a great way to boost sales.
• Great way to stay in touch with your email newsletter subscriber list in between issues.
• Summaries and links are a great way to drive traffic to the pages and generate conversation. It’s all about creating value for fans to make the updates is something they feel is worthwhile to appear in their own feeds.

OPINION

Facebook are a little more "in your face” when people comment on what you have to say or information you post, it's there for all to see. This can be a bit of a double edged sword. While it can provide messages of support for your business or glowing reviews, it can also provide an avenue for people to criticize you. Sometimes the criticism is constructive, sometimes destructive. Unfortunately, people tend to be a little more savage in online feedback and have a greater tendency to exaggerate. There is also the element of total nutters that exist in the online world, along with a healthy chunk of people who like to argue purely for the sake of it. You can of course choose to delete these comments, but if it's a complaint from an angry customer, that could be counterproductive as it may be seen as an attempt to bury a problem rather than deal with it. In situations where complaints arise and bearing in mind people are watching what unfolds, it's important to post a follow up stating their concerns are important to you and commit to investigate them promptly. There's no need to admit any sort of liability at that point; just that appropriate action is being taken. Perhaps also try to shift the conversation from your Facebook Fan page into a more private communication via email or phone. You may also need to apply strategies in dealing with aggressive online customers. By the way, Facebook also provides some very interesting statistics regarding who your fans are such as age group and location, the rate of new fans being added and lost.

FACTS

It can be said that, social media such as Facebook and Twitter or blogging sites have become powerful tools. Facebook's popularity is such that in January 2010, USA traffic to the site was 134 million unique visitors bypassing Yahoo's results. According to the The Nielsen Company report, nearly three in four people worldwide who use the Internet have visited a social networking or blog, spending an average of almost six hours a month on them. Of the seven biggest brands online globally, three are social media networking sites; Facebook, Wikipedia and YouTube. It said in its latest report on social media trends in the Asia Pacific region. Meanwhile, according to Nielsen's findings, online product reviews are the third most trusted source of information when consumers decide whether to purchase a product, coming after recommendations from friends and family. From China and India to Australia, online reviews are a major influence in buying electronics items, cosmetics, cars and food, among other things.An average 32 percent access social media sites from their workplaces and 31 percent access them from the confines of their bedrooms.Charles Buchwalter, Chairman and Chief Executive of Nielsen Online Japan said Social media is having a larger and larger influence on purchasing decisions .Everyone understands that social media is hot, it's growing quickly and in very unpredictable ways everywhere in the world. Facebook is much more than a poster child for social media as businesses increasingly use it. Social media is for real. There's no turning back.



By,
MOHD FITRI GHAZALI, 2009696666, MC 2225c
ZAC FITRI :p

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