Facebook - Which Luxury Brands are Getting it Right (and Why?)
''One in every 8 minutes spent on the internet is spent on Facebook...If the population of users and per capita consumption each double (aggressive, but doable) then Facebook's share of the internet could reach 50%...a new digital eco-system could evolve where, simply put, Facebook is the internet."These are the word of Scott Galloway, Clinical Professor of Marketing at NYU Stern. Back in 2009, Galloway and his team at digital thinktank L2 produced the Digital IQ Index, rating luxury brands for their performance in digital media. Now, he's taken his analysis a stage further, creating a 'Facebook IQ' for 100 prestige brands.Galloway's view is that luxury brands cannot afford to ignore social media in general, and Facebook in particular. He believes that their Facebook competence will be inextricably linked to their shareholder value in the future. His 'Facebook IQ' score is an attempt to quantify that competence.So how is 'Facebook IQ' measured? Galloway's methodology is to rate luxury brands by 4 weighted criteria:Size & Velocity, which accounts for 35% of the index, includes measures such as number of 'likes', growth rate of those 'likes' and frequency of brand posts.Programming, which makes up the next 25%, includes appraisals of the quality and quantity of content each brand is providing for their Facebook fans, whether that be customised tabs, interactive apps, landing pages, 'gated' tabs, brand photos/videos and/or e-commerce integration.The next 25% of the score is allocated to Engagement - that is, how much engagement is taking place between the brand and its fans? This measure includes an assessment of frequency of 'likes' and comments on brand posts and the frequency of fan postings and uploads.The final 15% is assigned to Integration, or how well the brand's Facebook page is integrated with other social media properties, other digital properties and company functions such as customer service.Once brands were allocated their Facebook IQ, Galloway and his team separated them into 5 categories - from Genius to Feeble.Only 12 brands made it into the 'Genius' category, including BMW, Clinique, Johnnie Walker and Tory Burch - the latter the only fashion brand to be allocated the top status. In contrast, 22 brands were allocated 'Feeble' status, including Rolex, Prada and Dom Perignon.So what are the 'Geniuses' doing right and the 'Feeble' doing wrong?The study found that successful Facebook brands had realised it wasn't just about size of following, but the level of engagment of those followers. Social media powerhouses in terms of fan numbers like Burberry, Gucci and Chanel were criticised for their lack of engagement with fans and the fact that they did not allow their fans to post to their walls. BMW, in particular, was praised for producing a wide variety of content to keep its fans engaged and for its encouragement of fans to create their own content.The most successful also realised that it wasn't just about sales messages. The study found that product related posts delivered 3 times the volume of interactions of promotional messages.'Glocalisation' was also found to increase the level of interaction from fans. Johnnie Walker in particular was praised for its wide range of regional pages, and BMW drew plaudits for answering fans queries in multiple languages.And finally, integration was also found to be key- strong external links with brand websites, including the ability to share and like content on them - was important in building fan bases and increasing interaction. Tory Burch was praised for its links to Facebook in both the header and footer of its site, and the ability of its visitors to share from every single product page.But even the best still had room for improvement. In particular, none of the brands in the study had yet embraced F-Commerce - offering fans the ability to browse and purchase products without leaving their Facebook pages.Although Facebook may never become as 'all pervasive' as Galloway and his L2 team believe, its rate of adoption and penetration remains remarkable. In short, luxury brands need to do it and do it well - to do otherwise risks missing an opportunity to build stronger relationships with existing customers and to recruit the customers of the future.Whether 'Facebook IQ' becomes the recognised measure of Facebook competence is a moot point but what Galloway and his team have achieved at the very least is to create a blueprint for successful strategies for luxury brands on Facebook.