Home > Week 10 > Retailers Find Facebook Advantage

Retailers Find Facebook Advantage

Digiday daily recently published an article about how retailers can achieve distinctive advantages by being on Facebook

This article talked about a report developed by a market research company called Morspace. It said that retailers who were actively involved in marketing their products and/or services on Facebook might get a competitive advantage over their competition in terms of product recommendations. Nowadays consumers are more likely to offer and receive product recommendations online than before. There has being a change in the purchasing-decision process from asking family and friends for word-of-mouth to discuss options via social-networking sites like Facebook.  Also, if a company knows that its target audience is on Facebook it could be an effective tool to directly communicate with this segment.  And by knowing what customers want retailers can offer them product information and discounts according to their needs to increase sales and create viral product buzz among Facebook consumers.

The study also showed that some of the reasons consumers join a Facebook fan page are: “To let my friends know what products I support,” (41 percent) and “To receive coupons and discount offers,” (37 percent). More than 36 percent of consumers consider Facebook to be a useful tool for researching products. Nearly 68 percent of consumers say that a “positive referral from a Facebook friend makes them more likely to buy a specific product or visit a certain retailer.”

I would suggest that before jumping into Facebook or other digital channels companies evaluate where there customers are. If its target market’s characteristics and behavior meet Facebook features then it is definitely a media channel to take into account. Facebook could be an important tool to know what your customers are doing and interpret what they are saying-mining online discussions and asking online feedback.

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