On February 17, 2011 DIGIDAY:DAILY published an article, “Three Ways to Incite Mob Mentality Shopping Through Facebook”, by one of our research analysts detailing why companies should consider implementing a “brand badge” as a part of their Facebook strategy. The author goes on to explain how the badge would provide marketers with a powerful tool to increase post-purchase customer interaction with the brand, convert customers to advocates and earn valuable friend referrals. In addition, the author references findings from the S-Net study to demonstrate how social media can be an effective channel to leverage third-party reviews and as a result, assist social networkers during their evaluation process.

Social media can serve as an excellent platform to connect customer service representatives with social networkers because the representatives can address each individual problem while simultaneously sharing the solution with every other social media user. It would be like combining the FAQ section found on company websites, with the Q&A capabilities of email communication. Rather than respond to multiple emails or phone calls about the same problem, one tweet/post with the solution could serve as a guideline for all the other social media users. Companies could archive the conversation in a Facebook tab, so that social media users can review past problems that might relate to their current issues. If they are unable to find the solution, they could then reach out to a customer service representative without ever having to leave the social networking site.

Futhermore, social media users can assist one another without the involvement of customer service representatives. Someone could write about their current issue on a company’s customer service page and a fellow social media user could post/retweet the solution. Of course, allowing social media users to 'help' one another could expose the company to new risks, which is why monitoring the conversation is extremely important. Bringing customer service representatives into social media can also help diffuse the negative comments written about companies. 

According to a recent study by ROI Research, 27 percent of recent appliance shoppers and 25 percent of recent automobile purchasers say they already use social networking sites to connect with customer service. More importantly, social media users believe that communication through sites such as Facebook and Twitter is beginning to replace other forms of communication. In fact, 53 percent of recent home furnishing shoppers say they agree that fan-based communications are beginning to replace other communication channels (e.g., email, direct mail, etc.). 

Some companies have already created separate accounts on social networking sites so that social media users can reach out to customer service representatives. However, they may not be taking full advantage of this opportunity because they are only utilizing this feature on one of their social media accounts. For example, Bank of America created a Twitter account, @BofA_Help in order to help, listen, and learn from their customers, but they have failed to create a similar account on Facebook. It is rather surprising that companies have been so reluctant to add social media to the repertoire of channels they use to connect consumers with customer service representatives. According to the ROI Research report, 29 percent of Facebook members and 39 percent of Twitter users said they enjoy interacting with companies and products through their social networking site. Companies should take the initiative to train/hire customer service representatives who are proficient social media users.

With a rapidly growing number of consumers using social networking sites, companies should start leveraging social media as an additional platform to connect customer service representatives with over 500 million Facebook members and over 190 million Twitter users. As those numbers continue to grow, people will begin to look for companies to provide old services in this relatively new channel.

Social media is an excellent platform for consumers to both seek and share advice. It serves as a useful tool for consumers to navigate through the assortment of product choices by relying on their connections for guidance. Guidance can be a recommendation, exposure to a brand or product through an uploaded photo, or simply a reference made in a personal profile. Social media has also become a terrific channel for consumers to voice their opinions about companies and products. As a result of the large number of social media users who discuss brands on social networking sites, companies should assist social networkers during the purchase process, encourage satisfied customers to share their experiences with the social media community, and finally, monitor the conversations in order to optimize their marketing strategy.

According to our Social Media Research Services, S-Net, 20 percent of social media users say they seek advice on social networking sites prior to making a purchase decision. However, the types of products or services social media users ask about can vary. For instance, 47 percent of respondents look to other social media users when considering a home furnishings purchase (e.g. furniture, lamps, curtains, decorative items), but only 25 percent seek advice on social networking sites when contemplating an apparel purchase (e.g. clothing and accessories). Companies with customers who regularly turn to social networking sites for advice can utilize various strategies to not only assist those looking for advice, but also to make sure their company and products are part of the conversation.

Companies can assist social media users during the purchase process by making their sales representatives more accessible through social networking sites. By providing guidance to those in the purchase process, companies end up creating a more dynamic two-way relationship, similar to the in-store experience. In addition to helping consumers navigate through the assortment of product choices, customer service representatives can also help increase sales.

Companies could also assist those social media users looking for help by taking a more grassroots approach and encourage satisfied customers to connect and share their experiences with the social media community. Companies can encourage advocacy by providing users with an incentive to share their positive experience with the brand by rewarding them for tweeting/posting about their latest purchase. Satisfied customers can serve as brand advocates by virally propagating the message and the product through social media.

In addition to seeking guidance on social networking sites, social media users actively share their advice with one another. According to the data, 32 percent of social media users say they have recommended a product/company to a friend through a social networking site. Furthermore, 32 percent of Twitter users and 20 percent of Facebook members say they have recommended a company/product/service once a week or more.



It is important that companies identify whether or not their target market shares advice on social networking sites, and listens to what consumers have to say. By monitoring the conversation, companies can revise their marketing strategy and gain a better understanding about how consumers navigate the purchase process.

Companies can take advantage of the fact that a large percentage of social networkers are turning to their social media outlets to both seek and share advice. They can begin to target social media users during the purchase process by making customer service representatives more accessible on social networking sites. In addition, companies can reward customers for sharing their positive experiences with the company/brand in order to help consumers navigate through the assortment of product choices. Lastly, companies can monitor what social networkers are saying about their brand and products in order to create a properly tailored marketing strategy.

"S-Net: The Impact of Social Media" is conducted so that we can gain a better understanding of how marketers can take advantage of emerging opportunities in the social media space by determining how various consumers use social networks in their daily lives. One opportunity we felt marketers could take advantage of was offering consumers the opportunity to opt-in through social networking sites to receive regular e-mail communications. More importantly, we felt that social media could really be leveraged to assist a wide range of marketers in their efforts to strengthen their e-mail lists. As it turns out, so did social media users.

On December 6, 2010 Multichannel Merchant published an article, “Social Media Having an Impact on Email”, by one of our research analysts detailing how marketers may want to consider using social media as an additional channel to build up their e-mail lists. The author goes on to explain how friend referrals can enable social media campaigns to trigger exponential growth based on the fact that customers are likely to follow brands that their friends follow. In addition, the author mentions how social media offers marketers with a unique ability to tap a robust set of demographic and psychographic information enabling marketers to boost the effectiveness of their e-email campaigns. Due to the articles strong implications for direct marketers, Mulitchannel Merchant also published the article in their Direct Newsline newsletter, which is affiliated with Direct Magazine. 

This week, we look at a specific vertical category of shoppers and the role that social networks plays in the purchase process. I chose appliances because there are some very interesting findings that illustrate how social media can impact purchases.

Appliance shoppers discuss appliance companies and products for a variety of reasons, but some of the highlights include:

• Appliance shoppers are most likely to compare prices (46 percent), talk about sales or special deals (42 percent) or seek advice on what to purchase (41 percent)
• Compared to the other ten verticals, appliance shoppers are most likely to provide feedback to a brand/retailer (33 percent) and connect with customer service (27 percent)
• Appliance customers are more likely to talk about where to purchase appliance products online rather than offline

Appliance shoppers are also very interested in receiving an assortment of content on social networking sites, ranging from printable coupons to new product announcements. Some of the highlights include:

• Thirty-five percent are interested in receiving new product announcements and product information on social networking sites
• Appliance customers are most interested in receiving some type of financial incentive whether it is an offer to win “points” or online currency redeemable for products or prizes (48 percent), or printable coupons (46 percent) 
• When it comes to receiving notifications about sales or special deals, appliance shoppers led all verticals, including apparel

In addition to being active social media users, appliance shoppers are also likely to connect with appliance brands/retailers on social networking sites. In fact, 35 percent of those questioned follow at least one appliance company on either Facebook or Twitter.

Some of the reasons why they fan or follow an appliance brand/retailer include:

• Thirty-six percent decided to fan/follow an appliance company because a friend recommended they do so, and 30 percent decided to fan/follow an appliance brand/retailer because a friend had already done so
• Forty percent of recent appliance purchasers decided to fan/follow a company because they are loyal customers to the brand/retailer
• They are most likely to fan/follow an appliance company because of a sales announcement (42 percent)

Social media can also greatly impact appliance shoppers during the purchase process. For example, 24 percent of appliance shoppers have made a purchase as a result of a friend’s recommendation on a social networking site. Some additional highlights include:

• Sixty-one percent purchase more from appliance brands/retailers they are fans of rather than other companies they are not fans of
• Fifty-two percent said that since becoming a fan of appliance brands/retailers, they make more purchases than they used to
• Twenty-one percent of appliance customers have switched or boycotted a brand/retailer based on negative information posted on a social networking site

The appliance report contains an array of findings that can assist companies in better understanding how their customers use social networking sites. Leveraging social media can increase sales, deepen customer loyalty and strengthen brand awareness.

Email has long been the primary channel for companies to connect with online shoppers and provide them with a variety of content ranging from new product announcements to printable coupons. However, social networking sites are beginning to provide marketers with a superior opportunity to reach social media users. According to a report conducted by The Nielsen Company, Americans are spending nearly a quarter of their time online on social networking sites and blogs and less than ten percent of their time online emailing. In addition, 38 percent of social media users said they access social networking sites on their mobile phone once a day or more according to a report published by ROI Research in conjunction with Microsoft titled “The Future of Mobile Advertising". As social networking sites continue to rise in popularity, marketers may want to reconsider what internet channel they're using to connect with social media users.

According to our Social Media Research Services, S-Net, roughly 60 percent of appliances respondents and automobile purchasers believe that fan-based communication on social networking sites are beginning to replace other communication channels (e.g., email, direct mail, etc.). Although email will still remain a viable option, it may be more effective to provide certain content through sites like Facebook, Twitter, and YouTube rather than using email.

Allowing social media users to determine which channel they receive various types of content could greatly increase customer satisfaction and bolster sales. For example, social media users could decide whether they prefer to receive product information, sales announcements, and printable coupons through social networking sites or through email. Companies can provide purchase history via email while keeping social media users informed about a new sales announcement or a special deal through social networking sites. Marketers who are skeptical of putting power in the hands of the consumers can always turn to market research to help guide their marketing initiatives.

The fact is; social media users are extremely interested in receiving various types of content and services through social networking sites. Between October 2009 and April 2010 there was nearly a 20 percent increase in the number of social media users who agreed that social networking sites are a good source of information about companies and products. More importantly, a large percentage of social media users said they enjoy interacting with companies on social networking sites and trust the information they receive through them more than the information they see in other channels (e.g., email, direct mail, etc.).

Companies have a terrific opportunity to reach social media users through social networking sites. Identifying whether or not your customers are social media users, evaluating the types of information they're interested in receiving and providing content though the proper channel could potentially increase sales, reduce costs, and strengthen customer awareness. Social networking campaigns used in conjunction with email communications enable companies to better serve their social media users.

Companies need to spend more time and effort incorporating social networks' proprietary tools and access to a vast pool of consumers into their websites. With the creation of Facebook Connect, members are able to "connect" with friends through other channels allowing users to identify their likes and interests on and off the social networking site. For example, the movie review website Rotten Tomatoes incorporated the Facebook Connect application into their website, allowing members to identify what movies their friends like. Perhaps it is not the number of "likes" that persuade shoppers to fan a brand, but simply a friend's decision to follow that brand.

According to our Social Media Research Service, S-Net, 34 percent of automobile purchasers and 30 percent of appliance shoppers say they follow brands because their friends are fans. Making that slight commitment to fan or follow a company is also likely to generate sales with just under 50 percent of electronics and home furnishing shoppers saying they purchase more from the brands they are fans of than any other company. Additionally, a quarter of apparel purchasers say that since becoming a fan of a brand, they make more purchases than they used to.

Integrating social media tools within overall marketing strategies allows for instant personalization. It provides users with more relevant information, and can generate infinite word-of-mouth buzz. Social networkers are interested in hearing their friends' recommendations, and by incorporating Facebook Connect into company websites shoppers no longer have to visit social media outlets to view their friends' interests. Perhaps it is time you consider making Facebook Connect part of your marketing initiative.