Brand Discounts Win Facebook Fans

Brand Discounts Win Facebook Fans

A new study by ExactTarget and CoTweet finds that while consumers primarily turn to Facebook to connect with friends and for entertainment, discounts and 'social badging' are the primary reasons consumers 'like' brands on Facebook.
However, the prospect of receiving discounts is the number one driver for consumers to "like" a brand on Facebook, according to a new study from ExactTarget and CoTweet. 40% are motivated to like a brand on Facebook by discounts and promotions. 39% are motivated by showing support for the brand.
In addition, getting free samples or coupons, and updates on upcoming sales, tie into the discount/promotion motivation. Other popular drivers include staying informed about the activities of a company, getting updates on future products, and fun or entertainment.
Motivation to "Like" Company or Brand on Facebook
Facebook Motivations % of Respondents
Receive discounts and promotions 40%
Show support for the company 37
Get a "freebie" 36
Stay informed about company 34
Get updates about products 33
Get updates on upcoming sales 30
Fun and entertainment 29
Access to exclusive content 25
Recommended 22
Learn about company 21
Source: ExactTarget, August 2010
The survey of more than 1,500 consumers finds that 39% of Facebook users who become fans do so to publicly display their brand affiliation to friends,
nearly twice as often as consumers follow brands on Twitter and nearly four times more often than consumers subscribe to email communications for the same reason.
Results from the study demonstrate that for most consumers, Facebook is far more about personal, rather than professional, interaction. 63% of Facebook users are there to reconnect with old friends and friends who live far away, and 59% use Facebook to maintain personal contacts.
Reasons for Consumer Use of Facebook
Reason % of Respondents Who Agree
Reconnect with friends 63%
Maintain personal contacts 59
Stay on top of social life 37
Fill downtime 30
Play games 30
Log in to read friend's messages 23
Keep current on children/grandchildren 16
Maintain professional contacts 15
Source: ExactTarget, August 2010
Jeff Rohrs, principal, ExactTarget's research and education group, said "Consumers use Facebook to interact with friends, be entertained, and express themselves through their public affiliation with brands... "
Expanded findings of the research include:
• 64% of all U.S. consumers, and three quarters of Millennials, have created a profile on Facebook making it the "default" social community
• 30% of consumers use Facebook to occupy their down time citing it as a "guilty pleasure," and 31% say they monitor the amount of time spent on Facebook because of its addictive nature.
• 65% of Facebook users say they login only before or after work/school and 69% use the site on weekends or off-days, requiring marketers to engage with consumers on nights and weekends as well as during normal business hours.
• Women are more likely than men to use Facebook for maintaining personal relationships (63 versus 54%), connecting with old friends (68 versus 56%) and managing their social lives (41 versus 34%).
• Half of all fans "like" only one to four brands, and only 17% of consumers say they're more likely to buy after becoming a "fan" on Facebook.
Additionally, a Syncapse analysis of five factors per fan: product spending, brand loyalty, propensity to recommend, brand affinity and earned media value, finding that the average value a Facebook fan provides a brand is $136.38, but it can swing to $270.77 in the best case. On average, says Syncapse, a Facebook fan participates with a brand 10 times a year and will make one recommendation.
Tim Kopp, ExactTarget's chief marketing officer, concludes that "... Facebook provides a unique opportunity for marketers to creatively connect with motivated audiences online... "