Tocquigny - A Measured Approach

Social Media Marketing Increases Purchase Intent

Posted 03.17.2010 by Colin Gilligan

Social media marketing really can boost the bottom line. 51% of Facebook fans and 67% of Twitter followers said they are more likely to make a purchase from at least a few brands since they became engaged with those brands on social media. eMarketer’s report on the new study from Chadwick Martin Bailey and iModerate not only reveals the power of social media as a purchase driver but, also, as a springboard for electronic word-of-mouth.

In fact, 60% of study respondents reported that their status as a Facebook fan would increase the likelihood of recommending a brand to a friend. 80% of respondents said the same thing about following a brand on Twitter.

Could the business case for social media be clearer?

Customers are already there, so businesses should be too. The top reasons users decided to follow or fan brands in the first place were because they are current customers (49%) and wanted to show support (42%). In addition, this information-savvy group is looking for deals, discounts, and promotions (40%) from their status as follower or fan. Social media is a direct, open, transparent channel where all this communication can take place.

And, transparency is a must in today’s marketplace. According to the 2010 Edelman Trust Barometer, 83% of informed publics reported that transparent, honest, and trustworthy practices was the most important factor in corporate reputation.

We live in an economy of trust. And, just like the traditional marketplace, the market is often volatile and fragile. While trust in businesses is on the rise this year, we saw a huge dip in public trust of business and government in 2009.

But, how is all that related to social media marketing? Simple: social influence marketing is critical in promoting positive sentiment about brands. Just last year, Nielsen reported that recommendations from personal acquaintances or opinions posted online are the most trusted forms of advertising.

So, strategically engaging on a channel that yields both increased recommendation likelihood and purchase intent is practically a no-brainer.

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