Consumers are increasingly inspired by brands that strive to broadcast their morals and creativity. However, people rarely form opinions of companies on their own. More often than not, a group comes to a collective decision on how to gauge a business and whether to buy from it in the future. According to the Zocalo Group, 92 percent of consumers credit word of mouth and recommendations from friends and family as the leading influences on their purchase behaviors.
Like most facets of communication, recommendations take place on new-media channels, especially through Facebook. In the report from Zocalo Group, 46 percent of surveyed consumers say a friend Liking a brand on Facebook goes a long way in helping form positive impressions of companies. Other influential actions include a positive brand review (46 percent) and a video content review on YouTube (47 percent).
More, 27 percent of people say Facebook is their most-trusted resource for recommendations. Because users develop honest representations of themselves online, Like Pages that reflect their interests and eventually convert through on-network stimuli, Facebook members have grown accustomed to engaging with unofficial brand ambassadors.
Studies also show Americans are more comfortable interacting with paid social media marketing ads on Facebook. A new report from Kenshoo Social found clickthrough rates increased 18.5 percent between Q1 and Q2 of 2013. Consumers are also buying more frequently via Facebook ads, with overall conversion rates up 56.9 percent quarter-over-quarter. These factors directly contributed to a 28.3 percent increase in revenue.
Facebook is an integrated technology that has become essential for communication today. Users cannot go 24 hours without logging into their accounts and engaging with updates from a variety of sources. The drive to stay in touch with the social world online helps companies increase profit margins through smart social marketing, whether consumers are aware of it or not.