Skip to main content

Companies Ask: What Does Facebook Mean to Business?

Ever since I began doing reach on social media, I have often heard from people asking me: “Yes, you can build a large group of fans on Facebook, so what?” “What does it mean to business?” “After spending all these money and time on building a large fan base, I want to see some green on the book. Where is it?” Unfortunately, (to my knowledge) there is no such an easy formula like “X number of Facebook fans = Y amount of revenue.”

This Mondy’s Wall Street Journal (WSJ) reported that companies are eager to dig into the “rich” demographic information of their Facebook fans and get some value out of it (report + video). Walt Disney, for example, hires an independent customer relationship marketing agency to track the profiles of their fans, their previous visits to Disney, and their plans for future visits. According to this WSJ report, Facebook does not share individual users’ information with advertisers. One way to attain Facebook users’ information is to have them sign up for an app and grant the permission of accessing their information by the app developer.

The “rich” demographic information of Facebook users is certainly very important to every marketer and business. Based on the Facebook data I have on hand, however, I believe that the value of Facebook means more than just Facebook users’ demographic information. Smart companies understand how to engage with their Facebook fans. If it is used appropriately, Facebook can be used as a free market research tool. The feedback a company can get from its loyal Facebook fans is priceless. On top of that, there are companies (e.g., Delta Airline and Design Hotels) allowing Facebook users to make reservations directly on their companies’ Facebook page. These companies should know exactly “how much” Facebook means to their bottom line.

In conclusion, It may not seem easy to measure the ROI (return on investment) of a company’s effort on Facebook, but it is not impossible. In addition to the examples I suggested, what are the alternatives that a company can use to measure the importance of Facebook?



References:
Steel, Emily (2011, October 3). Facebook’s brand of loyalty: Companies hope to learn more about fans by offering applications on site. The Wall Street Journal, B9. Also available online.
Picture was downloaded from Hotwebsinfo.Blogspot.com.

Comments

  1. Both your blog and the video clip posted introduce relevant questions regarding Facebook and its' purpose to marketing agencies such as Disney and Sephora. To address your question of alternatives companies can use to measure the importance of Facebook I believe the video clip suggested the use of apps on Facebook that can track the status of a user, demographic information, as well as need and satisfaction of the customer.
    The amount of advertisement of products to the public is exponential on Facebook as well as cost effective to companies. As the Wall Street journalist mentioned in the video, all the money invested in the creation of Facebook should be recycled into the system to prove to companies the success and return of revenue from their product.

    ReplyDelete
  2. As I began to search for internships last summer I discovered that many employers asked if I was capable of facebooking and tweeting. I agree that if facebook is used appropriately, it can be used as a free market tool and help the company generate revenue. One example of using a facebook as a advertisement of products is a famous youtube celebrity, Michelle Phan. She became famous off making youtube tutorials of how to apply make up and earned her a position as an Lancome make up artist. As a promoter of the luxury makeup brand she built a large facebook fan page to help advertise Lancome's products. People who are her fans will be able to see how products are used and when will new products be released. Hence, allowing facebook to be a cost effective way for companies to promote and generate higher revenue.

    ReplyDelete

Post a Comment

Popular posts from this blog

Social media engagement is immune to COVID-19 (by Steven Valenzuela)

In the unparalleled world of COVID-19, individuals are flooded with choices: whether it be what to eat or what church service to watch. While there are marketing strategies to get consumers to purchase products to immediately increase sales, it may be a more beneficial to engage with low spending consumers in the short term, so that businesses can keep them for the long term.   Social media game strong   During this time, it is crucial to keep social media posts constant and consistently more than ever before. A recent podcast by eMarketer reports that social media outlets such as Facebook have seen a significant rise in usage. The reality is that individuals have more time on their hands, which is why it is important for businesses to utilize their free time to create content for their social media channels. In a recent interview with the hospitality net, Leland Pillsbury stated  “Customers are going to come back...And if you allow your competitors to reengage with the guests before

The 7 Ps marketing mix of home-sharing services: Insights from over one million Airbnb reviews

The 7 Ps marketing mix framework is a widely used managerial tool that helps businesses identify the principal components of a service product. The 7 P elements include Product, Promotion, Price, Place, Participant, Physical Evidence, and Process.   The 7 Ps framework can assist marketers in making decisions regarding segmentation, positioning, and differentiation. Even for the same type of products with different brands, marketers can still drive higher sales through the improvement of a product’s marketing mix.     The empirical study about 7 Ps of home-sharing services   Building upon the 7 Ps marketing mix framework, I led a research team in a big-data, supervised machine learning analysis of over 1.14 million English reviews of 37,092 Airbnb listings in San Francisco (SFO) and New York City (NYC). We aimed to discover new meaningful business intelligence through the analysis of an immense quantity of online review information that is created by consumers in the cyber marketplace

The repositioning of Ten Ren’s Tea Time (by Eddie Long)

Ten Ren’s Tea was founded in 1953 and now operates one hundred retail stores globally, providing the finest teas to their loyal customers worldwide. Ten Ren’s combines modern technology and traditional methods when processing tea leaves to provide customers with the highest quality tea that aids in improving the quality of life and health for their customers. Ten Ren’s Tea Time, the restaurant, has a total of nine locations in the Southern California area. New Image: Ten Ren’s Tea Time recently changed its logo, as shown below. We can say that the marketing team wanted a change of the company’s logo to regain customer’s attention and regain their sales.  Just like they changed their logo, they also updated the website to fit the new theme. Their website appears more modernized than their previous design s, which can attract potential customers and returning customers. The company wanted to show its target market that they know what customers want and can accommodate any customer’s