1. A Forrester Consulting
Thought Leadership Paper
Commissioned By Wildfire
(A Division Of Google)
September 2013
Engaged Social
Followers Are Your Best
Customers
How Marketers Can Leverage Social
Tools Throughout The Customer Life
Cycle
3. 1
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.
1
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.
2
KEY FINDINGS
Forrester’s study yielded three key findings:
› People turn to social media throughout the customer
life cycle. Our survey shows that customers do indeed
use social media primarily to engage with brands after
they’ve made a purchase — but they also use social tools
at every other stage of their customer life cycle. For
instance, social ads and word of mouth create awareness
and discovery. Prospects also turn to social networks and
peer reviews when they’re exploring and considering a
company’s products and services.
› People who frequently engage with companies in
social are better customers. When we modeled the
relationship between customers’ social media
engagement with companies and their value to those
companies, we found that social media engagement has
a strong positive correlation with people’s preference for a
brand, their likelihood to have purchased from that brand,
and their willingness to recommend that brand. And the
more frequently people engage with companies in social
media, the more valuable they are likely to be as
customers.
› Companies must see social tools as part of a larger
puzzle. To get the most value from social tactics,
marketers must fit those tools into the larger context of
their customer’s journey and their own marketing
programs. Mapping each social tool to the stage of the
customer life cycle where customers use it will let
marketers better support those customers. And
considering which nonsocial touchpoints customers are
using alongside each social tool will help companies
design better-integrated marketing programs.
People who engage brands in social media are
significantly more likely to buy from and
recommend those brands.
4. 2
Your Audience Turns To Social
Media Throughout The Customer
Life Cycle
The growth of digital media has changed how both
consumers and business buyers interact with companies.
Today, most people don’t simply move through a traditional
sales funnel that starts with awareness and ends with
purchase. Instead, your customers and prospects most
commonly follow a circular four-stage customer life cycle in
which they: 1) discover your company and the products and
services you sell; 2) explore whether your offerings are right
for them; 3) buy your products and services; and 4) engage
with you, and with their friends and peers, after their
purchase (see Figure 1).
And while you may consider social media primarily a tool for
creating engagement, our survey shows that your audience
turns to social tools throughout the customer life cycle:
› Social advertising and word of mouth create
discovery. Marketers commonly turn to reach tactics
such as TV advertising and in-store promotions to drive
awareness of their latest offerings — and consumers
report that these channels remain an important part of
how they discover products and services.
3
But social
tactics can also play a key role in helping marketers
create discovery. In fact, people who engage with brands
on social networks say that paid social ads are the most
common way they find out about new products and
services online (see Figure 2). Likewise, both online and
offline word of mouth play a leading role in driving
awareness of new brands and offerings.
› Social networks and consumer reviews support
exploration and buying. When people seek out greater
depth of information about the products and services
they’re exploring, they most commonly head online —
especially to search engines. But once again, social plays
an important role at this stage of the customer life cycle.
More than one-third of people who engage with brands on
social networks say they typically turn to those social
networks when they’re researching products or services
(see Figure 3). Detailed reviews from other consumers —
on retailer sites, manufacturer sites, and consumer review
sites — also play an important role when people are
exploring your offerings and making purchases. In fact,
one recent survey showed that 43% of all online users
prefer to buy products or services from websites that
allow customers to post ratings and reviews.
4
› Branded social networking pages foster engagement.
People have many options for staying up-to-date with
their favorite brands and companies — including signing
up to receive email and postal mail, as well as visiting
those brands’ websites and retail stores (see Figure 4).
But over one-third of people who engage with brands on
social networks say the reason they do so is to stay in
touch with the company or brand. And while many of
those customers are looking for special offers or
discounts, four in 10 say they also visit branded social
networking pages to hear about companies’ latest
products and offerings. Customers also report that
branded communities and blogs play a role in how they
engage after the point of purchase.
FIGURE 1
Most Buyers Follow A Four-Stage Customer Life
Cycle
Source: “Win The Social Marketing Measurement Game,” Forrester
Research, Inc., November 21, 2012
5. 3
FIGURE 2
Social Ads And Word Of Mouth Play A Leading Role In Driving Discovery
Base: 1,684 social networkers who do engage with brands on social media (select responses shown)
Source: A commissioned study conducted by Forrester Consulting on behalf of Wildfire, May 2013
FIGURE 3
Social Networks And Consumer Reviews Are Vital
When People Explore And Buy
Base: 1,684 social networkers who do engage with brands in social media
(select responses shown)
Source: A commissioned study conducted by Forrester Consulting on
behalf of Wildfire, May 2013
FIGURE 4
People Turn To Branded Social Networking Pages
To Engage Their Favorite Brands
Base: 1,684 social networkers who do engage with brands in social media
(select responses shown)
Source: A commissioned study conducted by Forrester Consulting on
behalf of Wildfire, May 2013
6. 4
People Who Engage With Brands In
Social Media Are Better Customers
Not only does your audience use social tools throughout
their customer life cycle, but the people who engage with
you in social media are likely to be among your very best
customers. In fact, a recent survey of 1,811 US social
networkers shows that social media engagement positively
affects the likelihood of several key brand events, including
purchase, recommendation, and brand preference.
5
For our analysis, we used logistic regression modeling to
quantify the relationship between a social media
engagement and the quality of a customer. (This study
focused on five leading brands from a range of product
categories, including several Wildfire clients, who boast
enough social media fans to provide a usable survey
sample.) These models assess the impact that drivers like
engaging with a brand in social media have on such metrics
as making a purchase from, recommending, and preferring
that brand. By specifying characteristics of an individual or
target, a logistic regression model predicts the probability of
occurrence of an event.
In other words, with everything else being equal, this
analysis shows the influence of one variable on other
variables — and found that social engagement with brands
has a strong positive influence on other key behaviors
throughout the customer life cycle:
› Social media brand engagers are more likely to
purchase from the brands they engage with. For all
five brands in our study, individuals with a social media
engagement with the brand have a higher probability of
having made a past purchase.
6
For example, an individual
who engages in social media with one large
entertainment brand we studied has a 54% probability of
having made a brand-related purchase in a 12-month
period, compared with a 24% probability of an individual
who does not engage that brand in social media (see
Figure 5). Similarly, someone who engages in social
media with one leading consumer electronics brand we
studied has a 51% probability of having purchased their
products in the past year, compared with a 26%
probability of an individual who does not engage with that
brand in social media.
› People who engage with brands in social media are
also more likely to prefer those brands. Across the five
brands we studied, people who engaged with the brands
in social media have higher probability of preferring the
brand compared with nonsocial media brand engagers.
For instance, someone who engages in social media with
one quick-serve restaurant chain we studied has a 71%
probability of preferring it over similar restaurants,
compared with a 47% probability of an individual who
does not engage with that chain in social media (see
Figure 6). Likewise, an individual who engages in social
media with a consumer packaged goods (CPG)
organization in our study has a 65% probability of
preferring it over similar brands, compared with a 48%
probability of an individual who does not engage with that
CPG in social media.
FIGURE 5
Purchasing Is The Largest Social Factor For Some
Brands
Base: 1,811 social networkers
Note: Social media engager refers to individuals who engage with the
brand on one of five large social networks
Source: A commissioned study conducted by Forrester Consulting on
behalf of Wildfire, May 2013
7. 5
› Social users are more likely to recommend the
brands with which they engage. Individuals who
engaged with the five brands in our study also had a
higher probability of recommending those brands to
others. For example, someone who engages in social
media with one national retailer in our study has an 82%
probability of recommending the retailer to friends,
compared with a 65% probability of an individual who
does not engage with the brand in social media. And an
individual who engages in social media with the
entertainment brand we studied has an 81% probability of
recommending the brand to others, compared with a 60%
probability of someone who doesn’t.
› The more someone interacts with a brand in social
media, the higher their likely value to the brand. Our
surveys show that people who engage with a company
every day in social media are likely to make twice as
many purchases from that company as those who engage
only monthly (see Figure 7).Brand perception and
likelihood to recommend are also typically stronger
among people who engage with brands in social media
more frequently (see Figure 8).
One important statistical note: These findings suggest
correlation, but not necessarily causation. Our models
quantify the relationship between social media engagement
and brand metrics like past purchase, recommendation, and
brand preference. However, it says nothing about causation.
These social media brand followers may already be brand
enthusiasts who are already avid customers. But either way,
the large impact of a social media engagement on brand
metrics means that your social media followers are both
valuable customers and brand advocates.
FIGURE 6
Brand Preference Is The Biggest Social Factor For
Other Brands
Base: 1,811 social networkers
Note: Social media engager refers to individuals who engage with the
brand on one of five large social networks.
Source: A commissioned study conducted by Forrester Consulting on
behalf of Wildfire, May 2013
FIGURE 7
Those Engaging With A Brand Daily Are Likely To Make Twice As Many Purchases Than Monthly Engagers
Base: respondents who engage with brand(s) on social media
Source: A commissioned study conducted by Forrester Consulting on behalf of Wildfire, May 2013
8. 6
FIGURE 8
Brand Perception And Likelihood To Recommend Are Stronger From Those Who Engage More Frequently
Base: respondents who engage with brand(s) on social media
Source: A commissioned study conducted by Forrester Consulting on behalf of Wildfire, May 2013
9. 7
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:
› Use social tactics throughout the customer life cycle. Many marketers still think of social simply as a tool for
engaging their existing customers. But while many who interact with companies in social media are existing
customers, our data show that customers also use social touchpoints when first discovering companies and
exploring what they have to offer. To succeed in social media, it’s important that marketers map each of their
social tactics to the stage of the customer life cycle where customers use it — and then consider the messages,
content, and experiences they should offer customers at those exact stages of their journey.
› Utilize multiple social networks. Sure, the largest social networks play an important role in your customers’
social behaviors. But this survey shows that your audiences use a range of social sites in their customer journey
— and so should you. For instance, people often turn to consumer review websites when they’re exploring a
product, and many use blogs and communities on marketers’ own sites as a form of post-purchase engagement.
Smart marketers are using a mix of social channels and destinations to support the entire customer life cycle.
› Give people what they want from social sites. You probably know by now that most people who engage you in
social media are looking for offers, discounts, and promotions.
7
But many are looking for other types of value as
well. More than 50% of people who engage with brands on social networks say they want to hear about your
latest products and services — which shows that discounts aren’t required to upsell these followers. Likewise,
40% follow you in social channels simply to read entertaining or interesting content — proving the value of
engaging topical social content.
› Post regular updates to keep your followers coming back. Our surveys show that people who frequently
engage with a company in social media are likely to be among that company’s most important customers. So
keep your existing social audience active by posting at least once each day. Many large marketers now create
content calendars to ensure a constant flow of interesting and useful posts into their social channels.
› Use social in concert with other channels. Remember: While important, social is just one piece of the
marketing puzzle. At every stage of the life cycle, customers cited nonsocial channels that were also important to
them. And our regression analysis showed that while social media engagement is highly correlated with
purchase, recommendation, and brand preference, other brand interactions, such as visiting a website or
participating in a loyalty program, also show a strong effect size in our models.
8
The bottom line? Marketers must
use nonsocial touchpoints alongside social tools to craft successful integrated marketing programs.
10. 8
Appendix A: 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.
Appendix B: Endnotes
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.