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Archive for September, 2010

  • Sep
  • 15

Why Do People Follow Brands on Social Media?

As marketers, our customers needs and wants should be at the heart of everything we do. But what does a somebody want when they sign up to follow your brand on Facebook or Twitter?

The obvious answer is ‘discounts’, which is part of, but not the whole story.

Certainly, research shows this is by far and away the primary motivation for people to follow a brand on Twitter, as you can see from the table below. Reasons such as ‘I am a Current Customer’ and ‘Interesting or Entertaining Content’ trailled in a poor 2nd and 3rd behind ‘Exclusive Deals or Offers’. 

Reasons Internet Users Follow a Brand on Twitter

Reasons Internet Users Follow a Brand on Twitter

But for Facebook, the picture is a little more complex.  Recent research from ExactTarget shows that although the desire to ’Receive Discounts and Promotions’ is the no.1 motivation for Facebook users to follow a brand, it’s very closely followed by the desire to show support for a brand to others.

Motivations for Liking a Company, Brand or Association

Motivations for Liking a Company, Brand or Association

This contrast in motivations between the users of the 2 social networks is a reflection of their differing functionaility.   On Twitter, people are likely to follow more brands as the visibility of those connections is low and therefore those connections are likely to be looser. Twitter clearly recognises that most of the ‘person to brand’ associations on its platform are offer-driven, hence the launch of their own @EarlyBird service earlier this year.

On Facebook, however, ‘liking’ a brand creates a wall post that is fed into a fan’s friend’s newsfeeds and leads to a permenant listing of that brand alongside other interests such as Movies, Books and Music on their profiles. Hence, a Facebook ‘Like’ is more likely to be a venue for personal self expression than a follow on Twitter, or an even an email sign up.

This would suggest that Facebook followers are more likely to be brand advocates, with potential to spread valuable word of mouth. Of those brand advocates, some will be ‘max connectors’, those with over 500 connections, looking for more and deeper engagement than just deals – perhaps as fuel to enhance their role amongst their friends as a social recommendation hub.

So what does this mean in terms of social media strategy?

Well it’s suggesting that a Facebook Fan may be of more value to your brand than a Twitter one, certainly in terms of online and offline word of mouth. 

In addition, you should be aiming to offer a mix of content, with offers dovetailed with further information such as product previews and insights into what goes on behind the scenes.

And you should be considering a separate strategy for those you identify as ’super advocates’ – those for whom their level of interaction or level of personal connections suggest could be especially valuable in spreading positive word of mouth to a wide audience.

But this research is also suggesting that you shouldn’t bombard your users with content on Facebook in particular.  Twitter users are habituated to searching long streams for relevant information but Facebook’s primary function for most of it’s users is to keep up with personal contacts.  Too many posts can clutter up a fan’s newsfeed, distract from their primary purpose for signing in and become an irritant. The research authors suggest not only a ‘less is more’ approach but also recommend initiatives that facilitate interaction between fans, thus multiplying the opportunities for brand advocacy.

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By: Carla Burgess

  • Sep
  • 2

How Do Luxury Consumers Use Their Mobiles When Shopping?

Some thought-provoking research has just been published by the Luxury Institute over in the US regarding how affluent (income over $150,000) and ultra-affluent consumers (income over $200,000 and net worth greater than $5m) in the US use their mobiles while shopping.

In terms of what mobiles they’re using , the adoption of smartphones is accelerating. Nielson estimates that 25% of the US mobile phone audience were smartphone users in Q2 2010, up from 23% in the previous quarter and 16% in the same quarter in 2009.  Despite this increased penetration, smartphone users are still more likely to come from the wealthier demographics.

In terms of what they used a mobile for when shopping, the Luxury Institute research showed that affluent consumers didn’t differ much from the rest of the population.  Calling someone about a planned purchase topped the list.  Looking up product information on the go was also a common activity, with a view to comparing prices, finding out about products, looking for deals and checking shop information. However, ultra-affluents were less interested in some of these activities, like price comparison, which is unsurprising.

What_Affluents_Use_Their_Mobiles_for_When_Shopping

Where the affluent and ultra-affluent consumers surveyed differed from the rest of the population was in the likelihood of them using their mobile for purchasing goods and services and what they were prepared to purchase using their mobile.

Affluent and ultra-affluent mobile users were found to be more likely to make purchases from their mobile devices. 20% of affluents said they did so at least rarely, and for ultra-affluents this figure rose to 27%, with 17% stating they used their mobile to make purchases frequently.

M-Commerce_Usage_Amongst_US_Affluents

Although the most popular purchase categories for affluents were similar to the overall US population – with cinema and event tickets and technology and personal electronics at the top of the list – for ultra-affluents the findings were different.  This audience were more likely to use their phones to buy fashion items such as designer bags, shoes, jewellery as well as automotive products than the population as a whole.

The survey also found that affluents were less likely to worry about security, with the primary barrier to increased m commerce adoption being that most felt no need to purchase via mobile.

We should treat these figures with a hint of caution as they apply to the US not the UK, but trends have a habit of transporting themselves across ‘The Pond’ and the UK is Europe’s fastest growing market for smartphones.

So what do these results tell us? Well, that premium and luxury brands, and particularly those in the fashion accessories sector, should be looking at how they can enhance the shopping experience of their customers via mobile.  At the very least, this would involve a m commerce enabled site allowing customers to easily research and purchase goods via their mobile. But retailers should also think about how that site can enhance the experience of shoppers who are in-store too – giving them easy access to product information and product lines and colours that aren’t available in store for example.

Luxury brands are often bringing up the rear when it comes to embracing new technology. This research suggests that with regard to m commerce at least, they should be firmly in the vanguard.

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By: Graham Painter