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Study Shows That Facebook Fans Become Valuable Customers

 

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How effective are Facebook Fan Pages? Are they actually generating customers and leads for your business?

Dessert-Gallery-StorefrontDessert Gallery, a popular Houston-based bakery and café chain, experimented with a Facebook Fan Page to measure how helpful the popular social media site really is. They set up a "sweet" Fan Page and updated it regularly with pictures, contests, reviews and other items designed to interact with their customers. Three months later, they surveyed over 13,000 customers on shopping behavior and store evaluations and received a significantly higher and more positive response from those customers who became Facebook fans.

In fact, the study found that compared with typical Dessert Gallery (DG) customers, the company's Facebook fans:

  • Made 36% more visits to DG's stores each month
  • Spent 45% more of their eating-out dollars at DG
  • Spent 33% more at DG's stores
  • Had 14% higher emotional attachment to the DG brand
  • Had 41% greater psychological loyalty toward DG

Creating a Facebook Business Page helped the bakery chain reach a wider range of people and connect with them on a more personal level. More people felt inclined to visit and spend more money, and a large portion of customers felt increased loyalty to the brand.

Dessert-Cups

 

Here are 5 key takeaways from Dessert Gallery's example:

1. Use Facebook and other social media sites to establish an online presence, reaching a larger audience and attracting potential customers, prospects, vendors and even media.

2. Engage with your community for free and easily post up-to-date information about promotions, new products, upcoming events, etc.

3. Strengthen customer relations by interacting with customers directly on a social level as opposed to a business level.

4. Listen to customers' feedback. Customers are more likely to share reviews about products/services as well as good or bad experiences online, so utilize the information presented for your company's benefit.

5. Keep expenses low by building a Facebook Fan Page for free. Take advantage of low-cost, online resources instead of spending money on direct mail and paper advertisements.

An Introductory Guide: How to Use Facebook for Business

Free eBook: How to Use Facebook for Business: An Introductory Guide

Let's face it: your prospects are on Facebook whether you like it or not.

Download the free eBook and learn to use Facebook in 2011 to achieve your business goals!

Posted by Roshni Mirchandani on Mon, Mar 08, 2010 @ 10:30 AM

COMMENTS

Nice post Roshni! I also read the original Harvard Review study. Seems like the converse of their hypothesis is probably (more) true - Your most engaged customers become your biggest fans. 
 
Companies should also use social media to identify who their most loyal customers are and engage in rewarding their loyalty! 
 
Good stuff!

posted on Monday, March 08, 2010 at 11:29 AM by Prashant Kaw


Just shows that that some of your most loyal customers are probably interacting on Facebook. It also helps you gauge where you should focus your marketing time and dollars.  
 
Be sure to engage and reward your top customers and your Facebook fans so they will become even more brand loyal. 
 
Mark K.

posted on Monday, March 08, 2010 at 12:03 PM by Mark Kilens


with 400 million users on FB, having a fan page is a great way to communicate with your readers and redirect some of that traffic back to your blog or site.

posted on Monday, March 08, 2010 at 12:19 PM by Jack | Online Marketing Blog


I agree with the previous comments in that Facebook fan pages are great to develop a deeper relationship with your already loyal customers. However, I disagree with the post in the sense that Facebook fans become valuable customers. They already are, and now firms have a new media to leverage that. Facebook fan pages can help reach out to potential customers through your already loyal customers though.  
 
Jose Guerra 
Principal 
<a>www.cornersix.com 
<a>blog.cornersix.com

posted on Monday, March 08, 2010 at 12:23 PM by Jose Guerra


I agree with the previous comments in that Facebook fan pages are great to develop a deeper relationship with your already loyal customers. However, I disagree with the post in the sense that Facebook fans become valuable customers. They already are, and now firms have a new media to leverage that. Facebook fan pages can help reach out to potential customers through your already loyal customers though.  
 
Jose Guerra 
Principal 
<a>www.cornersix.com 
<a>blog.cornersix.com

posted on Monday, March 08, 2010 at 12:24 PM by Jose Guerra


I'm not so sure facebook is a help or a hindrance when you're a writer ... I have nearly 150 people in my contacts list and it seems most turn a blind eye when you try and "push", even lightly, the craft of writing. 
 
 
 
Anyone else have a similar experience? 
 
 
 
Your writer friend, 
 
CJ Heck

posted on Monday, March 08, 2010 at 2:54 PM by CJ Heck


One thing you don't mention is that the initial invite to join the Facebook fan page was sent to DG's e-mail list. It was people who responded to those e-mailed surveys AND became FB fans that ended up becoming the best customers. So don't discount e-mail as part of your social media plan!  
 

posted on Tuesday, March 09, 2010 at 9:10 AM by Liz Lynch


Excellent reporting. Great use of factual stats to illustrate a strong point; Facebook is an excellent tool for building brand and loyalty.

posted on Tuesday, March 09, 2010 at 9:57 AM by Wynne


Comments have been closed for this article.