2+2=4, or does it? Maybe two potential customers plus two potential
customers equals four potential customers, but those numbers have taken on a
whole array of new factors. Social media
offers tremendous new opportunities to analyze metrics for digital marketers. Insights
into user behavior, if identified well, provide creative platforms in which to
gauge ROI.
Fab.com, a growing design e-tailor owes much of its success
to this new social media math. Not only do investors want to see real time and
projected purchases, more notably, customers are interested. People are curious
to know what others like and are much more likely to recommend those items to
their friends. Simple math would recognize that one ad would yield a certain
number of members. Yet through the power of social media, one member invites a
group of friends of which some become members as well. As founder, Jason
Goldberg comments on ads “It was basically buy one, get one free. We were
looking at the viral coefficient of the ad, so suddenly your costs went way down.”
I think customer analytics companies have a very bright
future in this digital age. Information is everywhere and becoming more readily
available. How we creatively analyze the data to glean true insights will likely
separate those that succeed from those that don’t.
http://www.nytimes.com/2012/05/27/business/fabcom-and-the-value-of-online-word-of-mouth.html
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