Study Finds Facebook Fan Pages Can Increase Loyalty, Revenue

Ooo! Ooo! Facebook Fan Pages work for marketers! A recent study conducted by Rice University's Jones Graduate School of Business found companies that use Facebook fan pages can increase sales, word-of-mouth marketing and customer loyalty.

The study's researchers, Rice University Jones Graduate School of Business associate professor of management Utpal Dholakia and Restaurant Connections Founder Emily Durham who did the research for Houston-based café Dessert Gallery found the use of a fan page increased store visits by 36 percent, increased amount spent by 45 percent and increased loyalty by 41 percent.

While this sort of finding might cause all marketers to rush out and create fan pages, Dholakia was quick to caution, saying, "We must be cautious in interpreting the study's results. The fact that only about 5 percent of the firm's 13,000 customers became Facebook fans within three months indicates that Facebook fan pages may work best as niche marketing programs targeted to customers who regularly use Facebook. Social-media marketing must be employed judiciously with other types of marketing programs."

Edelman might have been wise to have included a caveat like this on in their recent study which claimed people don't trust their friends any more.