Have you ever clicked on an ad on Facebook?
Which social network is more valuable for marketing: Facebook or Twitter?
The Case For Facebook
Social commerce, of course, is still in its infancy. But according to a study from Adgregate, introducing a Facebook storefront (which it builds) leads many people to visit a brand’s Facebook pages, thus providing opportunities for converting them into customers.
In fact, the study found that e-commerce conversion rates on Facebook, for Adgregate’s customers, averaged between 2% and 4%, which puts it on par with the average e-commerce website. Perhaps the future of marketing and sales via social CRM, then, is with Facebook.
The Case For Twitter
Compared with Facebook, however, Twitter boasts a higher average click-through rate, of 3% to 5%. Furthermore, Lies, Damned Lies and Statistics says that:
According to Twitter, a new dashboard providing data on how people are responding to tweets (and so gives intelligence about how to change tack if necessary) drove 65 million impressions and an engagement score of 8.8% when U.S. electronics retailer Radio Shack tried it out when it sponsored a trending topic.
Compare that to an average click-through rate of just 0.2% for Internet advertisements, says the blog.
Put Social Media In Perspective
The Radio Shack campaign was a trial run, but then e-commerce via social media is still a trial run. Indeed, a recent Forrester Research report by Sucharita Mulpuru studied Facebook’s benefit for retailers. According GigaOm, the report found that:
E-business professionals in retail collectively report little direct or indirect benefit from Facebook, and social networks overall trail far behind other customer acquisition and retention tactics like paid search and email in generating a return on investment.
As Gawker so succinctly summarized, “Nobody Actually Likes Your Brand’s Stupid Facebook Page.” But according to Mulpuru, the same might be said of Twitter, or any other form of social marketing or e-commerce.
Experiment With Social CRM
Even if it’s early days, businesses must have an online presence, which today includes not just a website, but Twitter and Facebook — for starters. Accordingly, where should you direct your social networking energy: Facebook or Twitter?
It’s not a copout to say, “it depends,” especially because an e-commerce business’s strategy will necessarily differ from that of a health insurer. Furthermore, early experiences of many organizations are difficult to parse.
For example, the Adgregate study found that when Delta began allowing customers to book tickets via its Facebook page, it gained 1,000 new fans in just three months. But in the same timeframe, it lost more than a million unique visitors to its website. Now, the Adgregate report spins Delta’s new-found Facebook popularity as a positive, noting that Delta’s experience “is an early sign of declining website popularity in the future.” But I’m not convinced.
Apply CRM Marketing Best Practices
Clear answers may not be immediately forthcoming. Accordingly, begin by evaluating — and regularly reevaluating — the best way to maximize your social CRM marketing mojo, by applying Innoveer’s five CRM marketing best practices:
- Marketing strategy: Whichever social network you use, start by creating top-notch marketing campaigns.
- Campaign management: Which channel offers the best opportunity for converting prospects into actual customers? Early data would seem to favor Twitter — though airlines, for starters, might be a big exception.
- Lead management: Tough to say. How much did Delta cannibalize its website to boost Facebook throughput? Personally, I’ve never, ever clicked on a Facebook ad. But then again, combining your existing customer data with Facebook profile data could be a goldmine.
- Event management: Without a doubt, Twitter works better for events, at which you’re trying to connect with people you don’t already know well. Of course, they’re also relying on PeerIndex and Klout to see if you’re worth their time.
- Marketing measurement: Track your social marketing program success to decide where to invest more time and resources — especially for honing loyalty programs and marketing campaign results.
Neither Twitter, Facebook, or any other social network — available or forthcoming — is the one right answer for companies’ social CRM pursuits. In fact, expect the calculus to continue to change, as social networks compete directly for valuable marketing dollars. So choose wisely, and keep reevaluating.
Learn More
How can companies master Twitter and Facebook to not just boost their brand appeal, but generate more sales? Start by mastering marketing best practices. To help, we’ve assembled a list of the top 10 questions that any chief marketing officer or manager should be asking about their CRM program.
