Is Social Media the Way to Customers’ Hearts… and Wallets?

Retailers are always looking for ways to connect with consumers and create brand loyalty, and consumers are always looking for ways to save money without sacrificing quality. Could social media be the solution for everyone? I recently came across a great article on the J&R blog addressing this topic, entitled Social Media and Customer Loyalty Merits ROI?, written by J&R blogger Dr. Iz.

(As a testament to the use of social media, here’s how I came across the J&R blog posting:

• Back in March, I saw a cab pass by the office window with a sign reading “J&R: Complicating Divorce Proceedings Since 1971”
• I tweeted about said sign and the clever slogan
• Jrblog re-tweeted and followed me
• I followed jrblog
• Jrblog tweeted about their blog post
• I read said blog post and created my own blog entry referencing it

It’s a social media love connection, right? Anyway, back to the subject at hand…)

In his post, Dr. Iz analyzes the ACSI E-Commerce Report done by Fore-See Results, in which they surveyed nearly 10,000 e-retail visitors and finds that:

• 56% of shoppers to top e-retail websites who interact with social media websites have elected to “friend” or “follow” or “subscribe” to a retailer on a social networking site like Facebook, Twitter, and YouTube.
• Facebook is, by far, the best place to reach shoppers–both because it’s where they already are, and it’s where they want to hear from retailers.
• Customers mainly interact with retailers on social media sites to learn about products and promotions – a marketer’s dream come true.

Dr. Iz believes these results validate the use of social media by brands, and I agree. He continues:

Of the 69% of online shoppers who say they use social media sites, more than half (56%) choose to proactively interact with companies on social sites by “friending” or   “following” at least one retailer. This is an amazing testament to customer loyalty and interest in social engagement.

Personally, I always look up my favorite brands on Facebook and Twitter. As an avid online shopper, I love finding brands that understand how to engage with their audiences- especially in the form of discounts and incentives. Nothing gets me to spend money more than the lure of free stuff, because I really love free stuff. I also love being privy to private sales and feeling as though my favorites brands are looking out for my best interests. And let me tell you, sales and free stuff are quite relevant to my interests. Have I mentioned that yet?

Creating an open connection with brands via social media also brings about customer satisfaction, according to Iz:

The highest levels of satisfaction with retailers’ own sites were found among shoppers who interacted on the largest numbers of social media sites. In fact, site visitors who also interact with a company on a social media site are more satisfied, more committed to the brand, and more likely to make future purchases from that company.

The consumer has the advantage when they have a public social media relationship with a brand. For instance, if I complain about a brand on my Twitter page, that complaint will be permanently stamped on the web and will come up in searches of the brand name for years to come. Obviously, brands do not want this to happen, and they will make sure any recorded complaints are followed up with recorded resolutions. Better yet, brands will work harder to prevent these issues from occurring at all within their loyal, publicly vocal customer base.

Defining social media ROI will always require further study, but creating a following of loyal customers is certainly a step in the right direction for any brand. Social media platforms like Facebook and Twitter facilitate the connection between brand and consumer by providing both with a channel for open communication. Now it’s up to brands to leverage these social media connections to translate loyalty into sales.

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2. AllyseL (Allyse L.)

   
   09/8 2010

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