Just Because I Like You Doesn't Mean I Like You

If you can't figure out your return on your social media investment, you are not alone. 87% of the chief marketing officers in Fortune 500 companies cannot quantify if their social media efforts create new customers.  The reason?  Most everyone who uses social media doesn't understand how to take advantage of the platform that not only can generate new customers but can quantify a return on investment, concludes Harvard University professor Leslie K. John, Tulane University professor Daniel Mochon, Freeman School of Business professor Janet Schwartz and Gutenberg University of Mainz professor Oliver Emrich writing in The Harvard Business Review.

 

Confusing cause with consequence is the biggest social media mistake most companies make, the professors write.  Customers who follow your brand on Facebook are likely to have had a positive feeling towards your showroom and some type of interaction with your business.  Why else would they want to follow you?  The professors conducted 23 experiments and found that liking a brand or following a brand on social media though does not impact purchasing behavior or the purchasing behavior of online friends.

 

Based on the experiments and findings of the studies the professors conducted, why should you spend resources on social media?  Becuase their research also found that pairing 21st century platforms such as Facebook, Instagram, Pinterest, Twitter and others with 20th century advertising techniques does indeed drive consumer traffic.  Promoting endorsements you receive from fans also can help move the marketing needle.  If a customer provides an endorsement, consider tweeting it to your network or adding customer photos of their completed projects to your Instagram, Facebook and web pages. 

 

Word of mouth also continues to have a powerful impact on consumer behavior.  When customers recommend your showroom to friends or neighbors, there is a strong likelihood that those receiving the recommendation will act on it.  Asking customers their opinion of new products to bring into the showroom or a new service you are considering can generate engagement and excellent feedback.  It can also create evangelists for new offerings.  If your customers are pleased with the quality of service that you provided, ask them to write a recommendation or endorsement and then post it on their social media pages.  You can then take their comments and post them on your pages as well.