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Social media builds brand loyalty. 11 compelling case studies 1

Posted on June 28, 2015 by Rob Petersen

 

 

 

social media builds brand loyalty

  • 60% of Facebook fans and 79% of Twitter followers are more likely to recommend those brands since becoming a fan or follower.
  • 51% of Facebook fans and 67% of Twitter followers are more likely to buy the brands they follow or are fans.
  • Facebook users who ‘like’ a brand’s Facebook page are 33% more likely to buy a product, and 92% more likely to recommend a product to others. (source: Chadwick Martin Bailey)

These facts suggest social media builds brand loyalty. But does it and how?

See for yourself. Here are 11 compelling case studies that prove social media builds brand loyalty.

  1. CARS.COM. Encouraged rating, reviews and sharing (versus no ratings, reviews and sharing) and it showed that pages that had ratings and reviews had a 16% higher rate of conversion and a 100% higher rate of traffic through to dealer’s sites.
  2. DOVE: As women love to sing in shower, Dove launched a campaign titled “Showeroke”. The campaign “Showeroke”was designed to see the influence of music in the lives of younger women. And the brand preference for Dove because they connected with this value. Videos were posted on YouTube. Dove created a microsite called the “Shower Remixer” where users customized their shower experience selecting different fixtures, floor designs, shelves and window scenes and as they remixed the shower experience. The music changed along with it. Dove Bar annual penetration went up from 13.7% to 18.4%. Dove Body wash loyalty went up from 24% to 27.6%.
  3. FOLICA: A well-known retailer of health and beauty products, noticed they had many referrals to their website, but no way of tracking and identifying these referrals. By engaging their customers and encouraging them to share the secrets of great hair by Facebook, Twitter, email and personalized URL’s. There was a reward for both the referrer and the referee. Each party would receive $10. After 30 days of running the new Social Referral Program 6,000 brand advocates were identified. The average number of shares per advocate was four. 21,000 shares had been generated via Facebook, Twitter and email and a 16% conversion rate was driven by the program.
  4. GENERAL MILLS: on French Toast Crunch, wanted to get the brand into the hands of the company’s best and most socially connected consumers. A tweet was sent from the French Toast Crunch brand, basically saying, “Hey, who wants this?” The brand’s Twitter followers were urged to retweet to their followers and use the hashtags #sample or #MoreFTC to receive a free sample of French Toast Crunch in the mail. The popup window collected an email address and a physical address for delivery of the cereal. Once that social media attention died down, a follow-up email was also sent to the freebie recipients, giving them a coupon for 50 cents off a box of French Toast Crunch in-store as a reward for their social media engagement. Nearly 40% of those who received the 50-cent-off coupon opened the email. About 20% of those who received the email redeemed the coupon, 4X higher than the industry norm.
  5. J. HILBURN: A retail, apparel brand for men was receiving many referrals from existing satisfied customers. J. Hilburn wanted to identify their most valuable customers and reward them for their ‘word of mouth’ recommendations. By offering customers $50 for each friend referred and encouraging the advocates to share the offer using social media, they identified and rewarded brand advocates. Any referred customer who spent over $100 received a $50 discount on their purchase. Once again, a two sided offer for the referrer and the referee. After 45 days, 1,000 customers had made referrals. Averaging 12 shares per advocate, the referral program produced 10,000 social shares via Facebook, Twitter and email. The bottom line result was 600 transactions which created over $250,000 in sales.
  6. SENDGRID: An email delivery and transactional service company, created an offer for existing customers which could be shared socially. Customers received $20 cash and the referred customer would also receive a 25% discount on their first three months of service. By giving the existing customer a gift and the new customer a discount, a “Captive Offer” had been created. The share could be made using email, Facebook or Twitter. SendGrid achieved a 111% return on investment after the first six months of running the newly implemented referral program.
  7. SEPHORA: Tiers are one of the most effective ways a loyalty program can motivate a desired behavior. The tiers that Sephora has set ($350 for VIB and $1,000 for Rouge) have effectively segmented shoppers. The Rouge status is tough to reach, but obtainable, which leads to the most effective form of motivation. The tier rewards like exclusive events, access to the beauty studio, and early access to products and sales align perfectly with what Sephora stands for. These rewards create a sense of luxury and assign an exclusive status to members in the upper tiers. The rewards are announced on Sephora’s social media sites to build greater brand loyalty and let their already loyal customer know of special events and offers.
  8. STARBUCKS: Since 2008, MyStarbuckIdea.com has been advocate-driven idea tank where Starbucks drinkers submit ideas for new products and coffee concoctions. It has worked as a hub for all Starbucks customers to share all their ideas, suggestion and even their frustration.  “We used to launch a new product and it cost millions of dollars. Now, when we launch a new product, we already have millions of fans,” say Chris Bruzzo, Vice President Brand, Content and Online at Starbucks.
  9. SUBWAY: Sponsored the “Slim Down Challenge,”  a live speaking event consisting of some of America’s hottest speakers and celebrities. Its mission was to travel from city to city across America delivering powerhouse information that challenged your mind, heart, and waistline. They used social technologies and promotion apps to raise awareness of the Slim Down Challenge and recruit speakers. The strategy included a social competition. This was part of a full marketing strategy for the campaign. They found that 71% of site traffic that went to the registration page, came directly from Facebook.
  10. TREK: Offered customers a Trek Care loyalty and warranty package when they buy a new Trek bike, but cyclists can take coverage to the next level by purchasing the Trek Care Plus package. Trek used social media giving away free repairs for a widely read post to make customers aware of the Trek Care Plus Package. By tying in benefits with social media usage, Trek was at the forefront of consumers’ minds.
  11. US AUTO PARTS: Decided to shift marketing investment from customer acquisition to customer retention for its loyalty program, APW Rewards. Working with 500friends’ customer success team, U.S. Auto Parts began to leverage capabilities such as increased rewards for high-margin products, personalized post-purchase enrollment offers, a status tier, and triggered email campaigns based off of a person’s repurchase history to maximize customer lifetime value.  U.S. Auto parts increased its spend per member by 20%, its repurchase rate by 14%, and its enrollment rate by 45% after updating the loyalty program of its flagship brand,

Do these case studies convince use social media builds brand loyalty? Is one your favorite? Are you using social media to build brand loyalty for your business?

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