Social Media: How to turn fans into customers!

Author: Kurt Schauer

Most small and medium-sized businesses have long been aware of the importance of social media. A joint study by the University of Liechtenstein and the Vienna University of Economics and Business shows that 58 percent of them are now present on Facebook, Google+ and the like. For most companies, however, a presence in social networks seems to be an end in itself. According to the study, only one third of them have a targeted social media strategy. Turning fans and followers into customers is particularly difficult. Yet social media offer a number of technical options for overcoming this difficulty.

The first step: What does the fan want?

Those who operate social media pages with numerous fans or followers have already taken a significant first step: The individuals have a general interest in their company or its offerings. Now it is important to find out what the fan specifically desires as an individual. It would be a misconception to assume that the entire fan base has the same interests in the products offered. For example, conclusions can be drawn from the response rates to special offers posted on social media, indicating who became a fan and for what reasons.

Customer Acquisition: Targeting Fans Effectively

This knowledge of who a follower is and why they follow can now be used profitably. Social media, especially Facebook, offers the possibility of target group-specific, local advertising. Ads can, for example, only be placed in certain regions and be given some „local flavor“. For North German cities, one might choose the greeting „Moin“, while for South German cities, one would opt for the commonly used „Servus“. Facebook, for example, also offers the possibility to evaluate further information such as the age or gender of followers and to address the advertisements accordingly. When done correctly, fans will thus have the impression that they are being specifically offered a deal that represents real added value for them and has been specially tailored to their needs.

Such advertisements have a particular impact when they are flanked by relevant photos. For offline stores, for example, photos showing exactly where a certain product is placed in the shop have proven effective. The price for a regional ad on Facebook, for example, varies between two and 20 euros per day. However, depending on the fan base, this can directly reach hundreds or even thousands of fans.

Storytelling motivates fans to buy

It has also been shown that storytelling methods can motivate fans to become customers. Short YouTube videos of employees or authentic pictures of everyday life in the store, for example, have a great impact. This creates a feeling of familiarity. Customers are convinced that they are dealing with a family-run store. Such measures cost money, but many companies assert that the investments pay off. After all, nine out of ten new customers are acquired through their social media and internet marketing channels.

Success of measures must be measured

Anyone who has a strategy to turn fans into customers must measure the effectiveness of their methods to avoid spending money in the wrong place. For this purpose, customers can, for example, be directly asked through which channels they came to the company. However, analysis tools such as Google Analytics or Facebook statistics also provide good services in this regard. This makes it possible to strengthen measures that work and to discontinue or revise methods that do not help.

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Eliana Gramer

Head of Web/Digital