BW Confidential - Issue #14 - May/June 2013 - (Page 48)

Digital Facebook The importance of being liked How can beauty brands better harness the power of Facebook? by Naomi Marcoulet E ver since Facebook revolutionized the power of word of mouth, the emphasis on being “liked” has never been so great. “Facebook, with over one billion users, is an excellent option for marketers of products that benefit from ‘word of mouth’, and ‘personal recommendation’, such as beauty,” points out Alex Mendoza, partner at digital marketing services company, Stylophane. “Nearly every potential beauty consumer has a Facebook page and the vast majority use it several times daily,” he continues. However, compared to the fashion industry, beauty is a laggard in Facebook marketing. Among the 3,000 brands that are tracked by Stylophane, 100 fashion brands enjoy a base of over one million fans, while in beauty only 18 have such a following. “Fan acquisition is essential,” says Mendoza. “Many brands are impressed when they reach 10,000 or 20,000. However, in social media these numbers are considered quite small for effective marketing.” Building better branding Likewise, brands that focus solely on generating sales via social networking channels risk being disappointed: it is important to understand why consumers visit brands’ Facebook pages and why they shop elsewhere, like on e-commerce sites. “There is a lot of confusion about what social media can do for a company,” says Jen Mathews, president of Top TierMedia, a social media strategy company for beauty, fashion and lifestyle brands. “Obviously, sales are a driving factor, but company leaders should not overlook the value of social media for branding and visibility, customer service, networking and even SEO [search engine optimization].” Facebook fans are usually the brand’s most loyal consumers. It is therefore crucial that brands build on this loyalty with personalized responses, like quick-reacting customer service and personal advice. Mathews also explains that initiatives that involve consumers, like contests and promotions, work well. “Allow your fans to express their opinions and style. Your social media stream should not be all about you. It should be about 48 credit: istock your consumers,” continues Mathews. “Brands that are not engaging and listening to their fans and instead just broadcast their message over and over are missing the point of social media.” “ Brands that are not listening to their fans and just broadcast their message over and over are missing the point of social media ” Top TierMedia president Jen Mathews L’Oréal Paris focuses its marketing on strong visual content, like sneak previews, backstage videos, exclusives with celebrity spokespeople and experts and product tests. “What consumers are looking for on Facebook is content they won’t find elsewhere,” confirms L’Oréal Paris vp global integrated communications Marie Gulin. “For L’Oréal Paris in particular, it is above all exclusive advice from our experts; their tips are not just appreciated by our fans, but incite a lot of interaction either with the brand or among fans exchanging advice and personal comments,” adds Gulin. The need to evolve Meanwhile, Facebook continues to evolve with features like Facebook Gifts, which lets users send a gift from their profile page. In September 2012, the company finalized a deal to acquire Instagram that will encourage more sharing. However, it is still difficult to measure the impact on business. To address this, Facebook is developing tools that track purchases in response to ads or improve conversion. But it is hard being a free service to some billion users. As the social media giant grows, it will need to generate more revenue, with methods that may displease fans. Users are also wary of privacy issues. Following its acquisition by Facebook, Instagram announced new regulations which include sharing its network data with Facebook and using the data, including photos, for ads. The Timeline feature was criticized for making posts available to the public. “We are in a permanent state of testing and learning,” says L’Oréal Paris’ Gulin. The need to keep up with the fast-evolving medium has never been so great, and trying new strategies could make the difference between a Facebook strategy that works and one that doesn’t. May-June 2013 - N°14 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #14 - May/June 2013

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Clarins Group ceo Philip Shearer
Insight: Skincare
- Category overview
- Skincare devices
- Retail case studies
- The latest trends
Retail
- Amazon
- Store concepts
Digital Facebook
Market watch: China
- Country overview
- Industry viewpoint
- National domestic airports
- Department stores
- Third- & fourth-tier cities
Travel retail
- Emerging Asia analysis
- Passenger profiles
- Interview: King Power Group Duty Free & Travel Retail Hong Kong managing director Sunil Tuli
Radar Up-and-coming brands
Emerging markets Company profile: VLCC
Packaging
- Industry outlook
- Differentiation techniques
Last word Brand Keys founder and president Robert Passikoff

BW Confidential - Issue #14 - May/June 2013