Study: Half Of Top Web Retailers Have No Meaningful Facebook Presence

facebook retailersWith 400 million active users worldwide, it's hardly surprising that Facebook would be the best option for retailers trying to reach consumers via online social networking sites. More than half of all online shoppers use Facebook, and among those shoppers who engage in social media, 81% are on Facebook.

But according to a new study by ForeSee Results, which specializes in customer satisfaction research, only a quarter of the top 100 online retailers by sales volume have a formal Facebook presence, and another quarter have less than 10,000 fans.

"In other words, half of the top online retailers have a minimal to nonexistent Facebook presence," reads the study authored by Kevin Ertell, vice president of retail strategy at ForeSee. He suggests that this is a mistake, since far more people use social networks with retailers to learn about special offers (49%) and product information (45%) than, say, getting customer support (5%).

The findings underscore those of a social media study late last year from Razorfish, which concluded that special offers, more than "shared passions," drive engagement on social sites.

To that end, "Get a Facebook page!" exhorts ForeSee. "Make sure you have someone to monitor it and post good, timely information. Promote it to your most loyal customers through your regular communications venues (emails, ads, stores, coupons, etc.)."

Among chain retail brands, Starbucks in particular has used various promotions and deals to help make its Facebook page one of the most popular. As of Monday, it ranked No. 7 with 5.7 million fans, according to Inside Facebook's PageData site.

That doesn't mean marketers should focus on Facebook to the exclusion of other social media services. Its study, based on a survey of nearly 10,000 visitors to the 40 biggest U.S. retail sites, found 56% of shoppers at these online stores "friend," "follow" or "subscribe" to a retailer on a social networking site including Facebook, Twitter, or YouTube. The video hub attracts 22% of online shoppers, MySpace, 15%; Twitter 11%, LinkedIn, 8%; and Flickr, 5%.

The best way to figure out how to market via social media, ForeSee advises, is to turn to customers themselves for guidance. "There's a lot about social media and online marketing initiatives that is really hard to figure out, but asking customers what they want from you is a great way to begin," wrote Ertell.

3 comments about "Study: Half Of Top Web Retailers Have No Meaningful Facebook Presence".
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  1. Jennifer Osbon from MegaPlayer, February 9, 2010 at 8:08 a.m.

    I agree that for retailers, a Facebook presence is anti for the game just as much as a .com site is required for legitimacy. However, it is ill-advised to "just get a presence." Retailers must consider how they will engage with their audience and create a content plan aimed at building and sustaining community over time.

    Like a farm, you can't just plant and leave. There is a natural cycle to social engagement. Hopefully, retailers are slow to pull the trigger because they are considering how their presence will ultimately deliver value to their audience.

  2. Liza Hausman, February 9, 2010 at 11:55 a.m.

    Mark, a Facebook page is certainly a touchpoint that should be addressed, but retailers need to bring the social experience to their own sites. Of the half of retailers that have a facebook page, the majority have a "join our community" button on their own sites which simply redirects potential customers who have found their site away to a social network where they can't buy anything - the biggest no no there is. Not only are retailers losing customers by sending them away, they are also missing out on all the benefits of word of mouth they could have by integrating Facebook Connect, Sign in with Twitter, LinkedIn's new platform etc. in appropriate ways - the social networks all offer platforms that enable retailers to get this value with out sending people away, and which reinforces their own site's value. Our clients see enormous value in connecting their own site to the social networks.

  3. Mary Spio from Next Galaxy, February 9, 2010 at 1:55 p.m.

    I agree. Many retailers are not taking advantage of their loyal customers and new ones on social media platforms.

    A quick and impactful way for retailers to drive engagement is integrating online video on their social media platform to offer useful information and promotions. It is also a commitment to progress and consumers are likely to be loyal to a brand they anticipate will be changing with the times and the needs of their customer.

    By turning their social media pages into mini branded networks, they engage fans in a meaningful way, not to mention this is a fun creative way to drive sales.

    Many retailers struggle with what type of content to deliver and if they can keep it fresh and ongoing, and the answer is YES. Every retailer is a legitimate expect on their products and services, and how to videos on using these products and services can be both informative and entertaining if done properly. Fans can also post questions, and are the biggest source of inspiration for the type of content that should be served up.

    Product demonstrations and fun ideas that drive shopping are a few more examples of content that retailers can use to engage users on their social media pages. Wouldn’t it be great to watch the Top 10 Valentine’s Day Gifts Under $25 from Barnes & Nobles?

    A few tips for retailers on creating content to leverage Social Media

    Keep it engaging and entertaining. Plan your content so that it’s fun and exciting. Do not yell at your audience like a bad local car dealership commercial; keep the tone conversational and non-threatening.

    Be Helpful – People seek out solutions. There is a reason why they are on your page; they are looking for a solution that they believe you can help them with or have helped them with previously – they are on your page because they like you.

    Keep it simple and short. People have short attention spans.

    Be Professional. Bad grammar, bad video quality and unprofessional content reflect poorly on your business. Your customers are looking for content from a trusted source, and a lack of professionalism translates to a lack of credibility.

    Call to Action. Make it extremely easy for your customers to get to your cash register. Video overlays are a great non-intrusive way to hold your customer’s hands lovingly and guide them to the cash register

    I also agree with Mark Walsh when he says
    ‘To that end, "Get a Facebook page!" exhorts ForeSee. "Make sure you have someone to monitor’

    Creating relevant content that engages your audience on an ongoing basis is a full time job, so hire a company such as Gen2Media (www.Gen2Media.com ) that focuses on exactly this, so that you can focus on your core business.
    --Mary Spio

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