Is brand participation in social networking really making a difference with customers? Two studies on consumer reactions to social networking were released on Wednesday that both tried to answer this question.
The first study, from Q Interactive and released at ad:tech Chicago, surveyed 1,000 women and found that they are “overwhelmingly uninfluenced” by a brand’s presence in social media. It found that 54 percent of women are likely to friend or fan a brand via a social network but that 75 percent said social networking sites don’t influence what they buy.
The second study was conducted in Australia and found that conversations on social networks about poor customer experiences are “severely harming” the reputations of organizations who are called out on these sites. The research indicated that 25 percent of respondents boycotted a particular organization after reading a negative review or comment about it on a social networking site, and of that quarter, 42 percent had been previous customers of the particular organization.
At first glance, the studies appear to be at odds with each other. I realize that it’s a fallacy to make a direct comparison here, but look at the broader picture. In the first example, the women are being asked about the brand’s activity on social networks and whether it influences them. In the second, the respondents are being asked about whether information posted by other users of the network influences them. Big difference.
People trust people more than brands. People will even trust people they don’t know when it comes to online opinions. A negative review or account of a poor customer service experience on Facebook or Twitter will carry more heft than a brand sharing its “story” on a Facebook fan page or campaign microsite.
Where the two concepts cross is the conclusion in the second part of the Australian study: Of social network users who claimed to have posted a negative review, 60 percent of them would welcome interaction from the organization to address the issue.
I may not be influenced to buy any/more of a product because I follow them on Twitter or are a fan of them and receive their updates on Facebook. But if I notice a friend’s blog post, Yelp review, or tweet about a terrible experience with the company, I’m likely to be turned off and choose to do business elsewhere. I give credence to my friends’ opinions. That’s still a case of being “influenced” by social media networks — just not in the positive way that the first study sought to measure. However, if I refer to that negative review and see that the company in question took the time to craft a thoughtful response and address the issue, I’m likely to give them a shot and may even respect them more for doing so.
Man, woman, American, Australian — it comes down to which side of the conversation is more effective for brands: talking or listening. Taken together, these two studies show that listening is clearly the winner.
Image via Flickr user kpishdadi
I guess a recent example of this could be the new Honda that will be coming out in the near future. Mashable did a story on this here http://mashable.com/2009/09/02/honda-accord-crosstour/ and much like the impact Twitter has had on movies, social media seems to be influencing the consumer in other areas as well.
I agree that the brand response to a negative post will help me decide if I will continue to use the product much more than plain Jane social media output by a brand.
Call me a skeptic, but I never trust people to know themselves. We say we’re not influence by social media. We also say we’re not influenced by advertising, or by media in general. Most of us want to imagine ourselves as independent thinkers, unswayed by the signs, symbols and suggestions around us, but I believe we grossly underestimate how things influence us.
I think the more important point, though, is that a brand’s presence on social platforms may NOT be the most effective use of those mediums to influence buying decisions. Peer influence may be the driver. The Australia research seems to bear that out.
Gimmicks aimed at brand awareness (viral videos, apps, ads) or building a list (Facebook Fan Pages, Twitter), then, seem less important than influencing consumers to become advocates for your brand. Word of mouth praise for your product — expressed via social media, perhaps — will drive sales.
Of course, unless you have an unbelievably popular product with a fiercely loyal and passionate audience, it’s tough to spur word of mouth without engaging your customers.
Scott – thanks for your comment. I had a whole paragraph in the post about how I disagreed with the methodology of the first study and then axed it in the interest of space/cohesion/sanity. I agree with you that I think the way people answer a survey directly asking them if/how they are influenced by something is probably different than how they are actually interest. No one wants to think of themselves as a slave to advertising messages. I think we underestimate their influence, too.