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Study: Socially Engaged Facebook Fans Spend More on Groceries

2 Min Read
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Collective Bias, a shopper social media company, released data that reveals the relationship between Facebook fans and bottom-line revenue for grocery stores. The results help answer a primary question faced by marketers: can social marketing impact a business' bottom-line? The recent study looked at the purchasing habits of a large regional grocery chain's 600,000 loyalty card members before and after they became Facebook fans. It found a direct link between social engagement and sales, demonstrating the integral role social media is playing in today's marketing mix. The full study conducted by Yeti Data, "Social Engagement and its Impact on a Buyer's Purchases," revealed that a Facebook fan of the retailers spent almost 50% more than a non-Facebook fan over time. Incidentally, this 'customer signal' became stronger over the last three years, instead of weaker, in the face of other social marketing options.

  • Facebook fans who posted 10 or more times on the grocer's Facebook page spent over $1000 more annually than a typical customer, 95 percent more than a typical customer;

  • Facebook fans who posted 10 or more times on the grocer's Facebook page visited the store 40 more times annually than a typical customer, 2.5 times the visits of a typical customer;

  • Facebook fans bought 125 more items than a typical customer, 35 percent more than the typical customer.

"We've intuitively known that an omni-channel marketing strategy is the most effective way to increase sales. This study was conducted to help marketers solve measurability challenges when it comes to social's role in driving sales," said Bill Sussman, CEO of Collective Bias. "Identifying the link between a strong social program and bottom-line revenue helps clients better allocate their future marketing budgets." "We are thrilled to be able to validate Facebook as a key factor in driving in-store sales," said Victor Szczerba, CEO of Yeti Data. "This gives our customers what they really need: social media with quantified results." Additional Key Findings:

  • A direct relationship between the length of time a customer is a Facebook fan and the average amount he or she spends each week at the grocer;

  • Facebook fans visited the store 30 percent more than a typical customer per year;

  • A majority of Facebook fans were female, but male Facebook fans visited the store seven percent more often than female fans.

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