Interbike Blog

Nielsen: Discounts Drive Brand Love on Social Media

From our colleagues in the NM Incite division of Nielsen, who work with companies to measure and optimize their online brands (officially: “helps businesses harness the full potential of social media intelligence to drive superior business performance across their organizations.”), comes this report about the most important driver of brand loyalty in the social media world.

There’s been much discussion in the marketing world recently about what motivates consumers to “friend” or “like” brands on sites like Facebook and Twitter. Typically used as a way to stay in touch with, share and communicate with friends, what are we looking for in return for friending a brand? We don’t usually opt-in to receive advertising and branding messages in other media – unless there is an incentive. Think free weekend at the resort in return for sitting in on a presentation about purchasing a time share at the property.

And while it’s all good that we – as brand managers – have been able to use SM  to personalize our companies and interact with fans and customers in a more direct, human way, this study shows that, at the end of the day, discounts and deals are still a powerful driver. Other reasons, such as “showing support for the brand” and “be among the first to get news and information” are still significant, but are overshadowed by the almighty discount. Just look at the success of deal/coupon sites like Groupon and Living Social. In the bike and outdoor specific industry, we’ve seen the emergence of companies like The Clymb.

It’s interesting that in North America, this economic incentive is noticeably more powerful than in the rest of the world.

Do you offer deals or discounts to people who like or follow your brand online? 

Here’s the chart from the report:

Nielsen - Social Media for Coupons
Posted In: Interbike

1 Comment

  1. Interesting post, thanks for the mention.

    I don’t know that I correlate the rise of discounts sites with the rise of their following in social media.

    Do people opt in to our email campaign in order to stay up to date on deals? Yes.

    Do they follow us in social media for the same reason? Not so much.

    We don’t give anything additional away through social media and have had a pretty strong growth rate in that space. I think we are in the top 20 for outdoor brands on Twitter and we are growing rapidly on Facebook. The reason isn’t because of discounts but because we actually engage people to answer their questions, post interesting content, and use it as a way for people to connect with the brand on a human level.

    That is something that is so awesome about the outdoor space. (which I think is way different than a lot of consumer oriented spaces) There is a highly engaged and technically savvy audience that wants to connect with your brand because they think you are cool. It isn’t about the discount it is about your authentic voice.