Brands to Build Loyalty with Social Currency
Most brands are allocating at least some of their marketing budgets to social media. But they may not be using these networks in the right way to increase loyalty and revenue. Understanding why consumers connect with brands in the social media space is an important first step but enterprises must also take the next step, keeping consumers engaged.
A Vivaldi Partners Group study on this topic underscores what other studies on the topic have discovered: Consumers begin their relationships with brands because they want to get special deals or offers (74%) or they want to know the latest news (58%) in exchange for their social connection. While the stated purpose for most social networks is to help people connect with each other, consumers are not particularly concerned about connecting with other brand supporters. And, over 60% don’t care if their friends like a specific brand. Further, if brands don’t do enough to keep them engaged, up to 49% will unsubscribe. Of those that ‘unlike’ a brand, 22% say the problem was a lack of value.
Vivaldi says that if brands improve their social currency, consumers will be more willing to share the brand with others. The firm measures social currency in terms of Advocacy, Conversation, Affiliation, Utility, Information, and Identity. Currently, 62% of consumers say that brand are offering sufficient Utility to encourage online engagement. The other scores for social currency are lower and point to the need for brands to do more, especially to personalize their interaction with fans.
To learn more about Brand Friends and Followers, check out the Audience Interests & Intent Report available at the Research Store on ad-ology.com.[Source: Brands and Social Networks. Vivaldi Partners Group. 2013. Web. 7 Mar. 2013]