How FMCG companies should run their facebook brandpages effectively

Florian MichahellesETH Zürich

Dallas, March 18, 2013

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Florian MichahellesMarch 2013

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2

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 medium

Lack of established strategies

Lack 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/fmichahellesfmichahelles@ethz.ch

+41 (44) 632 7477

Florian MichahellesETH Zurich

Thank you very much!

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Spearman Correlation Coefficients Matrix (H7 – H10)

 

Growth

Rate

Commu

nity Size

Engage

ment

Rate

(per

moderat

or post)

Engage

ment

Rate

(per fan

post)

Fan

Posts

(per

user)

Returnin

g Fans

(%)

Talking

About

Rate

Positive

Fan

Posts

(%)

Negativ

e Fan

Posts

(%)

Neutral

Fan

Posts

(%)

Growth Rate 1.000

Community Size 0.003 1.000

Engagement Rate (per moderator

post)

-0.078 -0.291** 1.000

Engagement Rate (per fan post) -0.036 -0.769** 0.297** 1.000

Fan Posts (per user) -0.461** -0.402** 0.313** 0.573** 1.000

Returning Fans (%) 0.117 -0.446** 0.250* 0.577** 0.754** 1.000

Talking About Rate 0.896** -0.104 0.074 0.084 -0.294** 0.267** 1.000

Positive Fan Posts (%) -0.217* -0.202* 0.047 0.336** 0.210* 0.018 -0.279** 1.000

Negative Fan Posts (%) 0.030 -0.057 0.151 0.262** 0.372** 0.396** 0.065 -0.108 1.000

Neutral 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