In last 6 years since its inception, Facebook has transformed from a fad to a global phenomenon. With more than half a billion users around the world, Facebook has altered our everyday lives drastically. Statistics reveal that 3 out of every 4 Americans (i.e. 75% of the entire population) use Facebook. Today Facebook is used by police to locate criminals, by individuals to find long-lost family members, by universities to attract students and by politicians to gain support in election campaigns. Even the White House has its own Facebook page, supported by a dedicated social media team. While people from all walks of life are is rapidly being won over by the potency of Facebook, the CPG industry is making its own strides in social networking.
Although it began as a way for college kids to stay in touch, Facebook has since evolved into a highly effective business tool. This global phenomenon has compelled all businesses–small and large, manufacturers as well as retailers–to ask the billion dollar question: “Does my company need a presence on Facebook? Do I need a Facebook strategy? “
Facebook can allow businesses to directly communicate with their target market to exchange product information, offer exclusive coupons and discounts, as well as enhance the overall consumer experience. Facebook can be leveraged by companies to build better relationships and to show consumers that they care about their opinions. The social network also has a major influence on shoppers’ purchasing decisions. According to a Morpace Omnibus Report, consumers are 51% more likely to buy from a brand they follow on Facebook. They’re also 60% more likely to recommend that their friends also follow the brands they do. Nearly 70% of consumers said a positive referral from a friend on Facebook would positively influence their purchase decision.
88% of all Facebook users are a fan of at least one retailer page and the average consumer is fan of 9 retailers. Receiving coupons and discount offers is one of the primary motivators for consumers to join retailer pages. Pizza Hut, Atlantis Resort and Pepsi are all examples of major companies that have parlayed their Facebook page into a genuine community for fans of their brand.
Social media is becoming a competitive advantage for the retailers that are participating, and an increasingly major weakness for those that aren’t. If a customer is Facebook savvy and can’t find one of his or her favorite brands online, that customer will perceive that brand as old fashioned, backward, or ill-adjusted to the emerging marketing trends.
There are many advantages of using Facebook to promote a company’s business and brand, but if it is not handled with a sound strategy, the pitfalls can be perilous. Facebook can be a powerful promotional marketing tool to reach millions of consumers worldwide, enhance brand visibility and exposure, engage with customers in real time conversations, aid targeted advertising and increase online traffic to the company website. However, any bad review or customers’ bad experience can also become viral, tainting the brand image incorrigibly. Also, using Facebook as an alternative sales channel has proven to be tougher to implement and as a result is still being explored by the industry.
While the tangible results from a Facebook initiative can take a longer time to become apparent, as followers trickle in, a Facebook presence is nonetheless critical for CPG brands that wish to appear forward-thinking and innovative and want to leverage multi-channel marketing media for a powerful impact. When used in conjunction with a strategy that matches the company’s long term objectives and brand image, Facebook can help CPG companies acquire new customers, retain and actively engage the existing clientele and build a loyal community of fans, helping them reap rich benefits in the long run.
