Classic “Chicken Or Egg” Question
eMarketing & Commerce reports on a study of Facebook fans and their brand loyalty, as published in the March Harvard Business Review.
In this case, the study examined the behavior and attitudes of customers of Houston’s Dessert Gallery cafe chain who became the company’s Facebook fans. According to the study, as compared to regular customers, those customers who were the company’s Facebook fans:
- made 36 percent more visits to Dessert Gallery stores each month;
- spent 45 percent more of their eating-out dollars at Dessert Gallery;
- spent 33 percent more at Dessert Gallery stores;
- had 14 percent higher emotional attachment to the Dessert Gallery brand; and
- had 41 percent greater psychological loyalty toward Dessert Gallery.
So of course the question is: Do folks already disposed to be best customers become Facebook fans (simply as an extension of their existing loyalty), or does the Facebook fan platform somehow cause loyalty that might not otherwise occur? Is Facebook the "chicken or egg"? The cause or effect?
If Dessert Gallery’s customers were offered a loyalty card as opposed to the Facebook fan option, would you see the same result … cardholders outperfroming non-cardholders? I think so.
I see Facebook (and other social media) fan usage as a "deepener" or "facilitator" or "extender" of attitudes and feelings that already exist, whether toward a consumer brand or a charity or cause. But that just fine. Whatever facilitates engagement is good news!
Tom
2 responses to “Classic “Chicken Or Egg” Question”
Behavioral Science Q & A
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I think the biggest factor that being a fan enables those folks who check Facebook on a regular basis (boy is that the case for many!) to have a constant reminder if the Desert Gallery is making regular posts. Scotty’s Brewhouse in Indinapolis is an excellent example. The owner is terrific with his posts and building community!
Hi Tom,
I think you’re right in that a Facebook Page can be all that you described, “a “deepener” or “facilitator” or “extender” of attitudes and feelings that already exist,” but what also be interesting to find out is how many other new customers first heard about Dessert Gallery through a friend in Facebook who is also a fan of Dessert Gallery. Pages can be an indirect acquisition tool as well.