Monday, December 6, 2010

Why Social Marketing Works, and Sometimes Doesn't...

Did you ever wonder how Papa Johns Pizza got to 1.5MM Fans on Facebook?  Do you wonder if they make money on Facebook?  Why does Ford run TV commercials pushing people to their Fanpage?  Are companies making money with Twitter?  The short answer is: Social Marketing pays... usually.

Papa Johns:
  They are incredibly consistent on their Facebook and Twitter Pages.  1 Contest or Sweepstakes a week.  At least 1 coupon per week... and all involving their fans.  As a consumer, it PAYS to follow Papa Johns (discounts/contests/more).  This study shows that 65% of daily followers want Deals and Sales! Papa Johns is capitalizing with REGULAR deals and sales... and it is working.

  Are 440,000 people following Ford on Facebook to get a deal?  Probably not, a cursory glance shows that most engagements on Ford's Facebook page are questions or comments for Ford.  Would Ford's fans enter a contest to win a Car... probably yes.  But Ford doesn't run such contests very often. If they did, they'd have a lot more fans.... but would they sell more cars?  Maybe.  But the direct line of sales success from couponing is not there for Ford like it is for Papa Johns.  So, is Ford making money on social?  Nobody knows... probably not even Ford!

I think companies need to wise up and realize that a small consumer purchase on Facebook (like Pizza) works only because it is measurable by coupons.   Cars, B2B, and other big purchases need to figure out a way to see if Social is worthwhile very fast!

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