Facebook Fan Pages Can Increase Loyalty and Business RevenueAdmin | Friday, November 18th, 2011 | Comments Off
At Helm Studios we are huge supporters of social media networking because we know it is a great marketing tool for businesses and can increase loyalty and revenue. In a recent study conducted by Rice University’s Jones Graduate School of Business, it was determined that companies using Facebook fan pages were able to increase sales, word-of-mouth marketing and build long-term customer relationships.
The study’s researchers found that the use of a fan page increased store visits by 36 percent, increased amount spent by 45 percent and increased loyalty by 41 percent.
The Harvard Business Review ran an article about the positive effects of Fan Pages and even tested the theory out on a Houston based dessert company.
“Social media are all the rage in marketing, but should they be? Sure, Facebook is growing fast—it had more than 350 million accounts late last year, 50 million of which were added in the fall alone. But how much do businesses really influence consumers when they launch pages on the site to attract “fans” and to pepper them with messages and offers?
To begin to answer that question, we did the obvious: We set up one company’s Facebook page and measured the effect on customer behavior. Our partner in this experiment was Dessert Gallery (DG), a popular Houston-based bakery and café chain.”
One Café Chain’s Facebook Experiment
Harvard Business Review
Article by: Utpal M. Dholakia and Emily Durham
Read more about this article by clicking here.