Does Facebook Translate To Sales For Businesses?

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I’m sure most of us know how powerful social media is as marketing tools to promote our businesses and connect with our audiences. However, knowing is only a part of the equation, what about results; successful ones? Two Rice University researchers found that Facebook fans of a social store chain 36% more visits as compared to their other customers.

Dubbed the One Café Chain’s Facebook Experiment, the research headed by Utpal Dholakia and Emily Durham takes a look at how much does businesses really influence customers when they launch pages on the site to attract ‘fans’ and to pepper them with promotions and messages.

The experiment took place by surveying customers of Dessert Gallery, a popular Houston-based café chain. Do keep in mind that prior to this experiment; they do not have a Facebook presence.

The study, based on surveys of more than 1,700 respondents over a period of three months found that Dessert Gallery’s customers who are also their Facebook fans:

- 36% made more visits to DG’s stores each month

- 45% spent more of their eating-out dollars at DG

- 33% spent more at DG’s stores.

- 14% had higher emotional attachment to the DG brand

- 41% had greater psychological loyalty toward DG

“We must be cautious in interpreting the study’s results,” Dholakia said. “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. Social-media marketing must be employed judiciously with other types of marketing programs.”

Sure the results are fantastic but cautious optimism seems wise at this point. Companies should see what Facebook can do for them but use it as part of a set of tools; not the sole one.

Do you know of any brands on Facebook that are enjoying a roaring success due to Facebook fan pages? Do share with us!