Over the past month, I’ve noticed an overarching trend: social media has become a necessary part of a brand’s strategy for communicating with customers – and retaining them.
Marketers who view social media as something in which they must be actively engaged (vs passively creating a presence) will become the winners. This involves understanding what makes your customers tick, while also creating brand loyalty and advocacy. On any given day, according to Zappos.com, 75% of orders are comprised of returning customers. What Zappos does – as ALL brands should – is to listen and engage.
So is creating a Facebook Page or a Twitter account enough? Empirical data shows that businesses must not only create a social media presence, but actively engage their followers. Brian Solis, one of the foremost social media experts, concludes that brands that actively engage with their prospects and customers will increase brand awareness.
Think about it. There are approximately 450 million Facebook users and 100 million registered Twitter users. A Chadwick Martin Bailey study shows that 50% of the Facebook and Twitter users who are actively engaged with a brand are more likely to refer them to people they trust.
The possibilities are endless. For large brands interested in shortening the sales cycle, retaining customers and prodding those current customers to refer to new ones, it is time to think proactively. The reactive approach to social media marketing is seeing your customers jump ship and become brand loyal to your competition because you you did not view social media as a novel way of speaking directly to your customer base. Social media should be placed in the same category of importance as, say, e-mail or search.
Retention has become the new acquisition. It’s been shown that a brand’s Facebook and Twitter followers will be more inclined to buy from a brand that’s engaged with their customers. Solis contends that an astounding 60% of both Facebook and Twitter users said they’d buy and refer.
I have begun to use social media, specifically to research travel and hospitality. When it comes to finding the best flight deal or place to dine, I’ve instinctively gone to Twitter or Yelp to see what certain brands are saying to the populace and what other social media users are saying about these brands in particular. I also check to see how these brands are incorporating user sentiment in what they are pushing out on these channels.
After I recently dined at a restaurant here in New York City and checked in on Foursquare, the restaurant started to follow me on Twitter and Foursquare. Smart? Maybe. Clearly, the restaurant is hoping that their digital face leads to engagement which leads to larger awareness – and more visits to their restaurant. Businesses retaining their customers will be handsomely rewarded. Chadwick Martin Bailey also showed that 80% of Twitter followers of a brand will be more likely to refer that brand compared to if they did not follow them. I’m eagerly anticipating some incentive from this restaurant as a way to not only entice me and keep them top of mind, but to instinctively refer the people I trust.
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Great Article Eric! I think all of us are starting to now realize how important Twitter and Facebook are. I have invested much time into my Twitter account, as I feel Twitter has the “upper” hand in Social Media right now. Micro blogging is where it is at!!