June 7, 2013
MarketingCharts: Retailers’ Facebook Updates Aren’t Being Ignored by Online Shoppers
Through a special arrangement, presented here for discussion is a summary of a current article from MarketingCharts, a Watershed Publishing publication providing up-to-to-minute data and research to marketers.
A study of online shoppers by UPS and comScore reveals that the vast majority of those who have "liked" a retailer on Facebook pay either a little attention to its updates (i.e., briefly skim for information — 52 percent) or a lot of attention (i.e., by reading the update as if it were from a friend — 34 percent). That leaves just 14 percent of respondents either skipping over the updates (8 percent) or claiming to not notice them at all (6 percent).
Among the two-thirds of respondents who reported having liked a brand on the site, the top reasons given were because the retailer occasionally offers special promotions for its Facebook fans (60 percent) and because the retailer incentivized the respondent to like its Facebook page/application (47 percent).
Scoring lower as a reason to like a brand or retailer was to stay up to date with a brand or retailer, 36 percent. Thirty-two percent indicated they’re a fan of all or most brands they’re associated with while 25 percent said they liked a retailer or brand on Facebook because they want to actively voice their opinion to a brand on Facebook.
The UPS study analyzed data from a survey of more than 3,000 U.S. online shoppers conducted in February 2013.
The findings come as the latest quarterly report from Monetate covering Q1 activity indicates that these updates don’t seem to be leading to much direct downstream traffic. According to Monetate, search (31.4 percent) is easily the primary driver of direct e-commerce traffic, dwarfing social media (1.6 percent) as well as e-mail (2.8 percent). Share of e-commerce traffic coming from both social and email actually decreased in Q1 compared to a year earlier. But the researchers made a valid point that is bolstered by other recent studies: these findings are based on a last-touch attribution model, which typically undervalues social’s role significantly.
- Retailers’ Facebook Updates Aren’t Being Ignored by Online Shoppers – MarketingCharts
- UPS Pulse Of The Online Shopper – UPS
- Search Dominates as E-Commerce Traffic Driver, But Social’s Probably Undervalued – MarketingCharts
- EQ1 2013- Monetate
- Display, Social Play More of an "Assist" Role in the Online Purchase Journey – MarketingCharts
- Search and Display Biggest Budget Beneficiaries of Attribution – MarketingCharts
BrainTrust
Recent Discussions
Discussion Questions
Are Facebook “likes” a value to retailers and brands? What are the most effective means of driving meaningful likes?
Poll
Facebook “likes” do have value for a brand. For some reason a consumer chose to visit that brand’s FB page and interact with the company. The key for a marketer is to discern why and to provide the consumer with reasons to visit again and again. The reason may be promotional, it may be to continue a dialogue or it may be to gather information.
Facebook is one tool in a marketer’s tool belt. It’s best used in with other tools as part of a coordinated marketing plan. By itself, FB is not a marketing end all and be all.
We need to see the composition of the survey respondents in order to make effective interpretations of the findings. For example, what does it mean for a Baby Boomer versus a Millennial to pay “a little attention” to Fb updates of retailers/CPG Brands?
Does “skimming” the update result in any tangible actions by the reader? What do those actions lead to?
Yes, I believe there is POTENTIAL value in Fb presences for brands, however, few have developed a true strategy, let alone an execution approach to that strategy, to determine ROI of their social channel efforts.
The key is to leverage some of the tools available today as some others have recently, as I have read in a few public case studies.
I was on the train this morning, looking at an advertisement, and noticed the social media directives of “Like us on Facebook, follow us on Twitter.” And I thought, why? What is this going to do for me? What does it do for the company? The 34% of people that pay a lot of attention to retailer updates are probably the same 34% that open their emails from retailers, sign up to be on lists, are part of loyalty programs, and a host of other customer opt-in features that I normally don’t buy in to.
The study shows good numbers for likes, but I’d like to know how many people then go on to purchase something based upon a company’s Facebook post. Search, or demand, is still the most important variable in a customer’s decision to visit an purchase from a site.
We’re still all learning about social media and how to leverage it for marketing and sales purposes. Only 14% say they are paying practically no attention to the sites they “liked.” Compare that to the huge numbers of consumers who say they don’t watch or pay attention to TV commercials or advertising in general.
Marketers who pay attention to their customers’ behavior regarding communication channels have the opportunity to stand out and influence. “Likes” may not yet be offering the prizes brands want, but they may just be the ticket to greater opportunities in the future. “Stay tuned” is probably good advice.
First of all, we need to understand that social is not a form of direct marketing with anticipated conversion rates. Social is a means to share your brand and perhaps create dialogue.
Let’s say I followed a brand on FB and they recently sent a team on one of RetailROI’s missions. They post pictures and talk about the computer lab they are building for under-served children. Hmmm. That would not only be fodder for my next conversation, I would also remember that this brand has a heart too.
I would also be happy to use their promotions when they come about and even participate in crowd sourcing should they ask.
Just look at social as another sort of channel for keeping the brand fresh and relevant.
Yes, Facebook ‘Likes’ have definite value. Once you like a retailer or brand, you receive their posts on your Facebook page right there beside Cousin Bob and Aunt Sara. These posts (ads, promotions, coupons) are delivered directly to people who have already shown an interest. Arguing that this audience would have opted in to other forms of advertising misses the point. By Liking an entity the individual has shown a high degree of interest in the product/retailer.
This customer-encouraged relationship has great value for a retailer who understands that continuous engagement of the shopper is critical if they are going to successfully address issues such as showrooming.
It all boils down to the true benefit of what the retailer offers in return. If there is no reward or engagement from the retailer, why would a consumer spend their time with any social channel? Social media is still a work in progress in many ways so more to come as this continues to evolve.
“The top reasons given were because the retailer occasionally offers special promotions for its Facebook fans (60 percent) and because the retailer incentivized the respondent to like its Facebook page.”
So, in other words, people were bribed to do something to facilitate receiving further bribes. I hope someone at some point bothers to find out if these promotions actually pay for themselves—without resorting to the old cliche that “they build brand equity”—because at this point they call to mind Woody Allen’s line about “engaging in an ever growing circle of meaningless activity.”
Facebook “likes” do have value; according to a study by Synacapse that found a fan who “likes” a brands Facebook page will spend $116 more per year on the brand than a non-fan. To get these “likes” a retailer or brand can start with special promotions and incentives but then they really need to consistently follow-up with a variety of interesting engagement opportunities.
JCPenney is one retailer that does this follow-up very well. The JCP Facebook page is colorful, highly visual and offers good product content, celebrity recommendations, surveys, contests and in-store demonstration information. It has over 3.9 million likes and more than 108,000 people talking about it through sharing, posting, etc.
I’m glad to see that JCPenney is getting this right.
Who uses Facebook? What are they using it for? What are their consumer demographics? Let’s put the horse before the cart and see what the real deal is!
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Facebook “likes” do have value for a brand. For some reason a consumer chose to visit that brand’s FB page and interact with the company. The key for a marketer is to discern why and to provide the consumer with reasons to visit again and again. The reason may be promotional, it may be to continue a dialogue or it may be to gather information.
Facebook is one tool in a marketer’s tool belt. It’s best used in with other tools as part of a coordinated marketing plan. By itself, FB is not a marketing end all and be all.
We need to see the composition of the survey respondents in order to make effective interpretations of the findings. For example, what does it mean for a Baby Boomer versus a Millennial to pay “a little attention” to Fb updates of retailers/CPG Brands?
Does “skimming” the update result in any tangible actions by the reader? What do those actions lead to?
Yes, I believe there is POTENTIAL value in Fb presences for brands, however, few have developed a true strategy, let alone an execution approach to that strategy, to determine ROI of their social channel efforts.
The key is to leverage some of the tools available today as some others have recently, as I have read in a few public case studies.
I was on the train this morning, looking at an advertisement, and noticed the social media directives of “Like us on Facebook, follow us on Twitter.” And I thought, why? What is this going to do for me? What does it do for the company? The 34% of people that pay a lot of attention to retailer updates are probably the same 34% that open their emails from retailers, sign up to be on lists, are part of loyalty programs, and a host of other customer opt-in features that I normally don’t buy in to.
The study shows good numbers for likes, but I’d like to know how many people then go on to purchase something based upon a company’s Facebook post. Search, or demand, is still the most important variable in a customer’s decision to visit an purchase from a site.
We’re still all learning about social media and how to leverage it for marketing and sales purposes. Only 14% say they are paying practically no attention to the sites they “liked.” Compare that to the huge numbers of consumers who say they don’t watch or pay attention to TV commercials or advertising in general.
Marketers who pay attention to their customers’ behavior regarding communication channels have the opportunity to stand out and influence. “Likes” may not yet be offering the prizes brands want, but they may just be the ticket to greater opportunities in the future. “Stay tuned” is probably good advice.
First of all, we need to understand that social is not a form of direct marketing with anticipated conversion rates. Social is a means to share your brand and perhaps create dialogue.
Let’s say I followed a brand on FB and they recently sent a team on one of RetailROI’s missions. They post pictures and talk about the computer lab they are building for under-served children. Hmmm. That would not only be fodder for my next conversation, I would also remember that this brand has a heart too.
I would also be happy to use their promotions when they come about and even participate in crowd sourcing should they ask.
Just look at social as another sort of channel for keeping the brand fresh and relevant.
Yes, Facebook ‘Likes’ have definite value. Once you like a retailer or brand, you receive their posts on your Facebook page right there beside Cousin Bob and Aunt Sara. These posts (ads, promotions, coupons) are delivered directly to people who have already shown an interest. Arguing that this audience would have opted in to other forms of advertising misses the point. By Liking an entity the individual has shown a high degree of interest in the product/retailer.
This customer-encouraged relationship has great value for a retailer who understands that continuous engagement of the shopper is critical if they are going to successfully address issues such as showrooming.
It all boils down to the true benefit of what the retailer offers in return. If there is no reward or engagement from the retailer, why would a consumer spend their time with any social channel? Social media is still a work in progress in many ways so more to come as this continues to evolve.
“The top reasons given were because the retailer occasionally offers special promotions for its Facebook fans (60 percent) and because the retailer incentivized the respondent to like its Facebook page.”
So, in other words, people were bribed to do something to facilitate receiving further bribes. I hope someone at some point bothers to find out if these promotions actually pay for themselves—without resorting to the old cliche that “they build brand equity”—because at this point they call to mind Woody Allen’s line about “engaging in an ever growing circle of meaningless activity.”
Facebook “likes” do have value; according to a study by Synacapse that found a fan who “likes” a brands Facebook page will spend $116 more per year on the brand than a non-fan. To get these “likes” a retailer or brand can start with special promotions and incentives but then they really need to consistently follow-up with a variety of interesting engagement opportunities.
JCPenney is one retailer that does this follow-up very well. The JCP Facebook page is colorful, highly visual and offers good product content, celebrity recommendations, surveys, contests and in-store demonstration information. It has over 3.9 million likes and more than 108,000 people talking about it through sharing, posting, etc.
I’m glad to see that JCPenney is getting this right.
Who uses Facebook? What are they using it for? What are their consumer demographics? Let’s put the horse before the cart and see what the real deal is!