By Jacqueline Renfrow
Facebook (NASDAQ:FB) fans of retailers spend almost 50 percent more than non-Facebook fans over time, according to new data revealed by Collective Bias, a shopper social media company.
Results of the study proved that Facebook fans directly affect the bottom line of grocery stores in a positive manner. The YetiData study, Social Engagement and its Impact on a Buyer’s Purchases, examined the purchasing habits of a large regional grocery chain’s more than 600,000 loyalty card members before and after they became Facebook fans.
Results revealed that Facebook fans who posted 10 or more times on a grocer’s Facebook page spent more than $1,000, or 95 percent more annually than a typical customer. These same customers visited the store 40 more times than a typical customer, for 2.5 times more visits.
Looking at items purchased, fans bought 125 more items, 35 percent more than a typical customer.
“We’ve intuitively known that an omnichannel marketing strategy is the most effective way to increase sales,” said Bill Sussman, CEO of Collective Bias. “This study was conducted to help marketers solve measurability challenges when it comes to social’s role in driving sales. Identifying the link between a strong social program and bottom-line revenue helps clients better allocate their future marketing budgets.”
Other key findings show a direct relationship between the length of time a customer is a Facebook fan and the average amount he or she spends each week at the grocery. In addition, while a majority of Facebook fans were female, male fans visited the store 7 percent more than female fans.
Retailers are just beginning to see the value of social media as companies learn to leverage platforms such as Facebook. Macy’s (NYSE:M) was one of the first retailers to experiment with Facebook’s auto-play video ads on mobile. And social shopping site Soldsie recently entered into a partnership with Facebook that provides retailers with a platform used to transform the social community into a revenue-generating channel.
-See this Collective Bias press release
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Jarrett Neil Ridlinghafer
Founder & CEO
Synapse Synergy Group, Inc.
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