Researchers at Rice University think they’ve made a strong case that businesses with Facebook pages stand to gain increased sales, more effective word-of-mouth marketing and greater loyalty among existing customers.
A study from Rice’s Jones Graduate School of Business surveyed the behavior of café customers at the Houston-based chain Dessert Gallery. Researchers said the company’s marketing efforts proved much more effective after launching a fan page on Facebook.
The study was based on more than survey 1,700 respondents in a three-month period, according to a statement from Rice. Here’s what researchers said stood out about Dessert Gallery’s Facebook fans:
- Fans made 36 percent more visits to DG’s stores each month.
- They spent 45 percent more of their eating-out dollars at DG.
- They spent 33 percent more at DG’s stores.
- Fans had 14 percent higher emotional attachment to the DG brand.
- And they had 41 percent greater psychological loyalty toward DG.
The research will be published in the Harvard Business Review next month.
When I checked earlier today, Dessert Gallery’s fan page had fewer than 500 fans.
“We must be cautious in interpreting the study’s results,” lead researcher Utpal Dholakia said in a statement. “The fact that only about 5 percent of the firm’s 13,000 customers became Facebook fans within three months indicates that Facebook fan pages may work best as niche marketing programs targeted to customers who regularly use Facebook.”
He added: “Social-media marketing must be employed judiciously with other types of marketing programs.”
He also pointed out that this sort of marketing works best with iconic brands. Think Mill Creek’s Frost Doughnuts, or Seattle’s REI.
Know a small business you think we should write about? Contact Herald writer Amy Rolph at arolph@heraldnet.com.
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