Engaged Social Followers Are Your Best CustomersHow Marketers Can Leverage Social Tools Throughout

The Customer Life Cycle

Presentation by: Colin Haas

December 2013

Table of Contents Executive Summary……………….………................................………..3 –

4

Methodology…………………….……………………..………………………..5

Your Audience Turns To Social Media Throughout The Customer Life Cycle………………….……………………………………………………...6 – 9

People Who Engage With Brands In Social Media Are Better Customers………………………………………………………………..10 – 13

Key Recommendations…………………………………………………….…14

Appendix A: Endnotes from Study……………………………………...…..15

Reference Page ………………………………………………………………16

Executive Summary Nearly every online consumer now uses social media, and nearly every marketer has followed

its audience into social channels. More than 85% of US online users engage with social media on a regular basis. Likewise, more than 90% of online marketers say they’re already using social tools to reach these social audiences.

In May 2013, Wildfire, a division of Google, commissioned Forrester Consulting to more closely evaluate how people use social tools to discover, explore, buy from, and engage with five category-leading brands and companies -- and how valuable those socially engaged customers are to companies. Then to further explore this trend, Forrester developed a hypothesis that tested the assertion that customers primarily use social media to engage with the brands they already know, and that these socially engaged audiences are among companies’ most loyal customers.

In conducting an online survey of 1,811 US social networking users, Forrester found that people actually turn to social channels and tools throughout their customer life cycle – and that people who engage with a brand in social media are more likely to prefer and buy from that company and recommend its products to others.

Executive SummaryKEY FINDINGS (Forrester’s study yielded three key findings)

People turn to social media throughout the customer life cycle.

People who frequently engage with companies in social are better customers.

Companies must see social tools as part of a larger puzzle.

Methodology In this study, Forrester conducted an online survey of 1,811 US

consumers.

Respondents to the survey were screened on their use of social networking sites.

Questions in the study related to their awareness of specific brands, their interaction with the brands on various social networking sites, and their buying history/plans.

Respondents were offered an incentive as a thank you for time spent on the survey.

The study began in May 2013 and was completed in June 2013.

Most Buyers Follow A Four-Stage Customer Life Cycle

Social Ads and Word of Mouth Play a Leading Role in Driving Discovery

Social Networks And Consumer Reviews Are Vital When People Explore And Buy

People Turn To Branded Social Networking Pages To Engage Their

Favorite Brands

Purchasing is the Largest Social Factor For Some Brands

Brand Preference is the Biggest Social Factor For Other Brands

Those Engaging With A Brand Daily Are Likely To Make Twice As Many Purchases Than Monthly Engagers

Branded Perception And Likelihood To Recommend Are Stronger From Those Who Engage More

Frequently

Key Recommendations To get the greatest value from social media, marketers must both see the

broader picture and learn to focus on the right specific tactics. Follow these five rules to build successful social programs.

1. Use social tactics throughout the customer life cycle.

2. Utilize multiple social networks.

3. Give people what they want from social sites.

4. Post regular updates to keep your followers coming back.

5. Use social in concert with other channels.

Appendix A: Endnotes from Study 1 Source: “Global Social Media Adoption,” Forrester Research, Inc., June 27, 2012 and “Integrate Social Into Your Marketing RaDaR,” Forrester Research, Inc.,August 7,

2013.

2 The sample of our survey represents a social media-savvy audience and consists of US social networkers who engage with brands on various social media websites.

3 In fact, TV and promotions are among the top offline methods for consumers to discover new brands, products, or services: 71% of US online adults report using TV

and 51% report using in-store promotions as ways they typically discover new brands, products, and services. Source: North American Technographics® Consumer

Deep Dive: Investigating The Customer Life Cycle (Discover Phase) Survey, Q3 2012 (US), Forrester Research, Inc.

4 Source: North American Technographics® Retail Online Benchmark Recontact Survey, Q3 2012 (US), Forrester Research, Inc.

5 Note: Purchase refers to having made a purchase from the brand in the past 12 months, recommendation refers to recommending the brand to a friend or family

member, and brand preference refers to preferring the brand over similar brands.

6 Note: Social media engager refers to individuals who engage with the brand on Facebook, Twitter, Google Plus, YouTube, or Pinterest.

7 Sixty-three percent of US online adults who engage with brands on social networking sites look for deals, discounts, or special promotions, the top action taken by

consumers engaging with brands in social media. Source: North American Technographics® Online Benchmark Survey (Part 1), 2013 Q2, Forrester Research, Inc.

8 Effect size is measured by the odds ratio. For example, the odds ratio for being a social media engager of a large entertainment brand in the purchase model is 3.7.

This means that the odds that an individual who engages with the large entertainment brand in social media will purchase a product from that brand or service are 3.7

times higher than the odds of someone who does not engage with that brand in social media (all other things being equal). Do not confuse odds with probability.

ReferenceForrester (2013). Engaged social followers are your

best customers: How marketers can leverage social tools throughout the customer life cycle (Sept. 2013). Retrieved from http://go.wf-social.com/rs/wildfire/images/REPORT_forrester_Best_Customers.pdf