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By Jordan McCollum on February 18, 2010
Last month, Facebook announced a conversion tracker tool to help marketers determine the value of their efforts on the world’s most popular social network. The tool would help marketers track conversions (obviously) and determine the value of brand fans. And now researchers at Rice University have examined the real-world value of Facebook fans.
They surveyed customers at a local restaurant chain, Dessert Gallery, that had no Facebook presence before the study. Naturally, as part of the study, they created a Facebook Page for their fans. Over the next three months, they surveyed 1700 customers at the chain and found that FB fans:
- Made 36 percent more visits to DG’s stores each month.
- Spent 45 percent more of their eating-out dollars at DG.
- Spent 33 percent more at DG’s stores.
- Had 14 percent higher emotional attachment to the DG brand.
- Had 41 percent greater psychological loyalty toward DG.
To which I say, “Um, whoa.” But, says one of the researchers, there are a number of cautions here, too: only 5% of the 13,000 customers actually became Facebook Fans. He says this “indicates that Facebook fan pages may work best as niche marketing programs targeted to customers who regularly use Facebook.”
Y’don’t say! Is radio advertising more effective when targeted at radio listeners, too?!
Okay, while that statement may be a bit of a “duh,” it is a good reminder that marketing’s not a one-size-fits-all proposition. They concluded that Facebook marketing programs may be especially effective for iconic brands, which appear to attract a higher percentage of their customer base as Facebook fans.
Of course, I have to wonder what the restaurant did to promote its Facebook Page, both on Facebook and in the real world.
What do you think? Have you seen Facebook Page affecting your bottom line? And most importantly, have you joined Marketing Pilgrim’s Facebook Page yet?
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Frank Reed Says:
February 18th, 2010 at 3:28 pm
Y’don’t say! Is radio advertising more effective when targeted at radio listeners, too?!
Classic, Jordan, classic.
.-= Frank Reed´s last blog ..Social Media Requires A Learner’s Mind =-.
SEO News Round Up for February 19, 2010 | The Adventures of SEO Boy Says:
February 19th, 2010 at 6:02 pm
[...] and might be a good means to communicate with them. Marketing Pilgrim brings up this point in their article on the fan pages. As many know, marketing is not a one size fits all shoe and neither is [...]
The Biggest Stories: HuffPo Likes Me! Edition — Social Pollination Says:
February 20th, 2010 at 10:35 am
[...] if all this social media stuff really works? New research from Rice University shows that Facebook Fan pages actually work as a marketing tool… when targeting Facebook users. Click through to read the results from the survey about local restaurant chain, Dessert [...]
Facebook Fan Pages: Why the Heck Not? Says:
February 20th, 2010 at 10:11 pm
[...] 20th, 2010 Thanks to Marketing Pilgrim, I just found out about a nifty little study by Rice University about the effectiveness of [...]
Heidi Passey Says:
February 20th, 2010 at 11:30 pm
One of my facebook friends runs a restaurant in Seattle and he posts quite frequently about specials they are doing. I can see how it would help bring more people in. I have a facebook account, but I haven’t started using it to promote my business. I need to get on that.
Take Care – Heidi Passey
.-= Heidi Passey´s last blog ..Building A List Fast Through JV Giveaways =-.
Michael Erik Says:
February 22nd, 2010 at 4:56 am
Is it worth marketing via MySpace anymore? Will they ever make a comeback?
.-= Michael Erik´s last blog ..Twitter Weekly Updates for 2010-02-21 =-.
The Biggest Stories: HuffPo Likes Me! Edition — Social Pollination - Development Says:
February 25th, 2010 at 2:24 pm
[...] if all this social media stuff really works? New research from Rice University shows that Facebook Fan pages actually work as a marketing tool… when targeting Facebook users. Click through to read the results from the survey about local restaurant chain, Dessert [...]