The growth of social media provides many new opportunities for brands, including the ability to identify best customers and influencers, and to actively engage those influencers to grow brand advocacy and community. Naturally, it’s this prospect that’s helped fuel the enormous growth in spending across and within key social communities like Facebook, YouTube and more.
But as always, marketers have been pressured to do more with less, particularly in today’s tough economy. That means even more pressure to track and measure marketing program success. For many marketers that success is increasingly defined by engagement and the ability to measure its value and impact on the brand. But what’s the value of engagement?
One of the best studies I’ve seen on this front was conducted by Aite Group. The study looked at the relationship between Generation Y and their banks. It dove into how the level of engagement impacted loyalty, influence, advocacy and sales. Specifically, Aite Group found that highly engaged Gen Yers are significantly more likely to use their debit cards, pay their bills online and receive email.
These users were also more than 3.4 times more likely to use their bank’s website and social networks to research products. Additionally, highly engaged Gen Yers were found to be high-value customers. Specifically, they were 86 percent more likely to open new accounts, 73 percent more likely to recommend their bank and 62 percent more likely to trust their bank.
While the value of engagement is likely to vary by industry and brand, one thing is certain: Social engagement is an important component to add to your integrated marketing tracking and it will have a profound effect on the way you plan, target, execute and measure marketing for many years to come. Here are some of the most important changes you’ll see as a result of realizing the enormous value of catering to highly engaged consumers who use social media and influence others:
1. Media mix allocation tools and research will include social channels. Social will take its rightful place in the marketing toolbox as media mix allocation tools and research include social media platforms and networks as viable options. Business goals, target audience, product type and targeting approach (e.g., geographic, behavioral, contextual) will be re-examined to help marketers prioritize and allocate budgets to appropriate channels, including social — e.g., when a new product launches.
More ambitious marketers will embark on customer research projects to customize these findings for their specific products and targets — i.e., prospects and customers — as social formally joins the budget and planning process.
2. Engagement filtering and targeting capabilities will emerge. The emergence and importance of engagement combined with the growth and increasing activity across social networks and communities will redefine how, who and when you target. You’ll see the emergence of next generation query tools that will allow brands to select and target consumers by applying channel and engagement weightings and filters based on the program or campaign objectives and goals. Highly engaged users will be tapped more aggressively to help launch new products and drive product adoption and sales across the social web.
3. Marketing plans and roll-out strategies will be reinvented. Product launch cycles will continue to be impacted by social channels and emerging technologies. Marketers will become better at not only identifying key influencers and highly engaged users across their respective communities, but also crafting more targeted messages to these audiences to encourage the desired behavior.
As a result, new product launches will be supported by a more formalized and sophisticated roll-out plan. Imagine a world where a new product launch will include a phased rollout. Phase one would include a roll out to key influencers where ideas are exchanged, feedback is collected and enhancements/revisions are made. Phase two would include a soft launch to loyalty or highly engaged users as advocacy and product education continues. Lastly, phase three would include a general or mass market-supported rollout. Communications and tactics within each of these audiences will also be customized to include various communication stages such as education, trial and feedback, and, hopefully, purchasing followed by advocacy.
There’s little doubt the emergence of social media and growth of social brand communities has impacted marketing as we know it. However, bigger changes are in store for marketers as communities occupy an increasing role and influence in the success of brands. This radical sea change requires new thinking and processes.
Marketers who can connect the dots by embracing these new channels and tying social interactions (i.e., engagement) to traditional CRM systems will be a step ahead. However, the real winners will be those that can leverage that data by implementing new strategies and tactics to support the social web and grow brand advocacy and marketing success.