Fan Culture

What is the primary reason you friend a brand on facebook or myspace?

Not surprisingly, the other significant driver of brand engagement in social media is customer service. Thirty-three percent of consumers who “friend” a brand on Facebook or MySpace report doing so because they are a current customer, as do 24% on Twitter. These consumers, already customers, clearly are fans—there’s little reason to “friend” a brand you’re indifferent about, after all. For example, Comcast, Zappos, and Virgin have all earned high marks by using Twitter as a customer relationship management (CRM) tool, solving customer problems in real time and building loyalty through special offers.

The Promise of Twitter

Interestingly enough, Twitter may turn out to be a game-changer in the ongoing relationship between brands and consumers. According to our findings, those who follow a brand on Twitter seem to be engaged beyond deals or customer service: 23% cite “interesting or entertaining” content as their main reason. Perhaps this points to the emerging trend of brands needing to become content providers to better connect with consumers. Given a recent report from Penn State’s College of Information Sciences and Technology (IST) published in the Journal of the American Society for Information Science and Technology, which found that 20% of all “tweets” mention specific brands or products, Twitter may play a larger (and more intriguing) role in moving the brand marketing mix forward.

Fans and the Future of the Funnel

Facebook and Twitter may be the darlings of the social web today, but fan culture spreads far beyond these platforms and well beyond social media in general. Consumers are engaged broadly with brands, both online and offline; those interactions are having a profound effect on the traditional purchase funnel. Beyond social activity, 70% have participated in a brand-sponsored contest or sweepstakes; 24% have produced content (photo, video, story, etc.) in order to participate in a contest held by a brand; 26% of consumers have attended a brand-sponsored event such as Nike’s Human Race or Red Bull’s Flugtag; and 24% have downloaded a branded application for their mobile phone.

Have you ever participated in a brand-sponsored contest or sweepstakes?

Those numbers in and of themselves are surprising. But the figures have even more impact when you correlate consumer brand engagement with activity across the marketing funnel. Adding it all up, it quickly becomes obvious that consumer brand engagement creates customers. On average, 97% report increased brand awareness; 98% show increased consideration; 97% will likely purchase a product from the brand; and 96% may recommend the brand to their friends.

When you have participated in a brand-sponsored contest or sweepstakes, does it generally do the following?

For example, of the 70% of consumers who have participated in a brand-sponsored contest or sweepstakes, a staggering 96% are more aware of the brand; 96% are more likely to consider that brand when in the market for a product or service; 96% are more likely to purchase a product or service from that brand; and 92% are more likely to recommend that brand to others.

Experiences Build Brands

The best companies of our generation understand how engagement and positive experiences create customers. Google and Facebook are experiential brands, as are Zappos, Twitter, Netflix, Amazon, Apple, Starbucks, and Nike. These companies understand that we are living in a world where consumer preference isn’t formed in reaction to a message, but through a series of experiences over time. Ultimately, it’s a dialogue of interactions that’s stunningly effective when done right.

As Jeff Bezos, Amazon’s CEO, has been known to say: “Your brand is formed primarily, not by what your company says about itself, but what the company does.” Experience, as we will see, not only matters—it drives results to the bottom line.