How FMCG companies should run their facebook brandpages effectively

How FMCG companies should run their facebook brandpages effectively

Florian MichahellesETH Zürich

Dallas, March 18, 2013

© ETH / HSGFlorian MichahellesMarch 2013

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Facebook is the largest SN and provides several opportunities for engagement with the customers ...


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Despite the popularity, social media marketing has not yet reached the high expectations set ...

Problem:Lack of understanding of the communication mediumLack of established strategiesLack of methods for effectiveness evaluation

Stelzner MA (2012) 2012 Social Media Markebng lndustry Report


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How to increase the level of customer engagement?

Post Type: Photo Posting Time

WHEN?WHAT?Topic*

Moderator

LikeComment

Share


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Method: Data Collection

Java application based on Facebook Graph API

Daily data collection January 2012 – March 2012

100 Facebook brand pages: Food/Beverages Category English language

posts from moderator

Request:https://graph.facebook.com/ID

Response:


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Method: Operationalization of the Variables

Brand Engagement:

Loyalty: number of returning fans (posted more that once) Word-of-mouth: “People Talking About This Rate” Community Growth:

Vividness & Interactivity: post media type (status, photo, video, link) Page Interactivity: communication policy (posting or commenting only) Frequency: rounded value of average number of posts per day Weekday: weekend vs. workday Community size: average value of fans Content categorization: coding development strategy (Glaser and Strauss 1967)

Fans/#)Shares#Comments#Likes(#RateEngagement

)2t(Fans/#))t(Fans#)t(Fans(#GrowthRate 12

Dependent

Independent


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Model Estimation Results for Engagement (H1 – H5)

7


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Summary of the estimation results: supported and non-supported hypotheses ...


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Managerial Implications (1/2)

Content• Increase reach and engagement of users by entertaining content.• Non-interactive content (i.e. photos and status updates) increases the total

level of engagement.• Vivid content (i.e. videos, photos and links ) increases the volume of WOM

communication by stimulating the sharing activity of the fans.• Post shorter content in order to increase the total level of engagement.

Timing• Post on workdays in order to increase the number of comments.• Post up to once per day in order to receive the highest level of engagement.

more than once per day would decrease the total level of engagement.more than twice per day will significantly decrease the number of comments.


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Managerial Implications (2/2)

Communication Policy:• Create highly interactive Facebook brand pages to increase the WOM

volume through fan posts.• Highly interactive Facebook brand pages receive more comments.

Focus:• Rather focus on brand as a whole than on a single product, in order to

increase the level of engagement.

Engagement as Factor:• Higher level of engagement increases the number of loyal users, the volume

of WOM communication and ultimately, the number of fans.• Increased level of engagement yields higher percentage of positive user

posts.

Community Size as Factor:• Encourage interactions between the fans as the community grows.


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Limitations and Future Work

Limitations:• Selection of Facebook as a platform• Selection of Food/Beverages brand page category

Future Work:• Explore external factors:

• including elements of offline marketing campaigns• Expand to other brand page categories• Expand to other social media platforms, e.g. Twitter

• Experiment: apply the model and measure effects


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How FMCG companies should run their facebook brandpages effectively

Credits to: Dr. Irena Pletikosa Dissertation: Evaluation Framework for Social Media Brand PresenceDecember 2012

http://florian-michahelles.blogspot.comhttp//www.im.ethz.ch/people/[email protected]

+41 (44) 632 7477

Florian MichahellesETH Zurich

Thank you very much!

http://florian-michahelles.blogspot.com/


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Spearman Correlation Coefficients Matrix (H7 – H10)

Growth

RateCommunity Size

Engagement Rate (per

moderator post)

Engagement Rate

(per fan post)

Fan Posts (per user)

Returning Fans

(%)

Talking About Rate

Positive Fan

Posts (%)

Negative Fan Posts (%)

Neutral Fan

Posts (%)

Growth Rate 1.000Community Size 0.003 1.000Engagement Rate (per moderator post)

-0.078 -0.291** 1.000

Engagement Rate (per fan post) -0.036 -0.769** 0.297** 1.000Fan Posts (per user) -0.461** -0.402** 0.313** 0.573** 1.000Returning Fans (%) 0.117 -0.446** 0.250* 0.577** 0.754** 1.000Talking About Rate 0.896** -0.104 0.074 0.084 -0.294** 0.267** 1.000Positive Fan Posts (%) -0.217* -0.202* 0.047 0.336** 0.210* 0.018 -0.279** 1.000Negative Fan Posts (%) 0.030 -0.057 0.151 0.262** 0.372** 0.396** 0.065 -0.108 1.000Neutral Fan Posts (%) 0.218* 0.113 -0.210* -0.003 0.057 0.208* 0.230* -0.421** 0.007 1.000* p < 0.05, ** p < 0.01


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Content Categorization - Coding and Examples

Documents

How FMCG companies should run their facebook brandpages effectively