Social Media: How fans become customers!

Author Kurt Schauer

Most small and medium-sized companies 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 represented on Facebook, Google+, etc. For most companies, however, a presence on social networks seems to be a kind of end in itself. According to the study, only a third of them have a targeted social media strategy. It is particularly difficult to turn fans and followers into customers. Social media offers a number of technical options to overcome this difficulty.

The first step: What does the fan want?

Anyone who runs social media pages with numerous fans or followers has already taken a first important step: the people have a general interest in your company or your offerings. Now it's time to find out what the fan wants as an individual. It would be a mistake to assume that the entire fan base has the same interests in the products on offer. The response rates to special offers posted on social media, for example, can be used to draw conclusions about who became a fan and for what reasons.

Customer acquisition: Targeting fans

This knowledge of who is a follower and why can now be used profitably. Social media, especially Facebook, offer the possibility of target-group-specific, local advertising. For example, ads can only be placed in certain regions and given a little "local flavor." For northern German cities, for example, you choose the greeting "Moin," while for southern German cities you choose the "Servus" that is common there. Facebook, for example, also offers the possibility of evaluating additional information such as the age or gender of the followers and addressing the ads accordingly. If done correctly, fans have the impression that you are making them a targeted offer that represents real added value for them and has been tailored specifically to their needs.

Such ads are particularly effective when accompanied by relevant photos. For offline stores, for example, photos of exactly where a particular product is located in the shop have proven to be 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 means that hundreds or even thousands of fans can be reached directly.

Storytelling motivates fans to buy

It has also been shown that storytelling methods can motivate fans to become customers. Short YouTube videos from employees or authentic images of everyday life in the store, for example, have a big impact. This creates a feeling of familiarity. Customers are convinced that they are dealing with a family-run store. Such measures cost money, but the investment is worthwhile, many companies claim. Nine out of ten new customers are ultimately acquired through social media and internet marketing channels.

The success of the measures must be measured

Anyone who has a strategy to turn fans into customers needs to measure the effectiveness of the methods in order not to spend their money in the wrong place. For example, customers can be asked directly which channels they used to find the company. But analysis tools such as Google Analytics or Facebook statistics are also useful in this regard. This makes it possible to strengthen the measures that work and to stop or revise the methods that don't help.

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Any questions?

Eliana Gramer

Head of Web/Digital