The "F" Factor

THE F-FACTOR | Consumers are increasingly tapping into their networks of friends, fans, and followers to discover, discuss and purchase goods and services, in ever-more sophisticated ways. As a result, it's never been more important for brands to make sure they too have the F-FACTOR.


Why is the F-FACTOR important to consumers? It offers the promise of a consumption arena* that is more efficient, more relevant, and more interesting than before, where consumers either had to spend endless time and effort on trying to discover the best of the best, or had to rely on sources that were distant, unknown or untrusted (read: brand-driven), and therefore potentially unreliable or irrelevant.

Just a few recent stats demonstrating the reach and power of the F-FACTOR:

The F-FACTOR is currently dominated by Facebook, as over 500 million active users spend over 700 billion minutes a month on the site. (Source: Facebook, April 2011)

And its impact isn’t just on Facebook itself. Every month, more than 250 million people engage with Facebook across more than 2.5 million external websites. (Source: Facebook, April 2011)

The average user clicks the ‘Like’ button 9 times each month. (Source: Facebook, 2010)

And a couple of brand-related, F-FACTOR stats:

Three quarters of Facebook users have 'Liked' a brand. (Source: AdAge/ Ipsos, February 2011)

Over 50m users 'like' brands every day (Source: BrandRepublic, May 2011) 

Juicy Couture found that their product purchase conversion rate increased by 160% after installing social sharing features (Source: CreateTheGroup, February 2011)

Incipio Technologies, a gadget accessory retailer, found that referrals from Facebook had a conversion rate double the average (Source: Business Insider, March 2011)

But it’s not just about Facebook. Take for example the explosive rise of the daily deal site Groupon, which used referrals from friends and colleagues to drive sales of over 40 million deals in the two and a half years since it launched in November 2008, via email .

So, here are just five of the ways that the F-FACTOR influences consumption behavior:

1. F-DISCOVERY: How consumers discover new products and services by relying on their social networks.
2. F-RATED: How consumers will increasingly (and automatically) receive targeted ratings, recommendations and reviews from their social networks.
3. F-FEEDBACK: How consumers can ask their friends and followers to improve and validate their buying decisions.
4. F-TOGETHER: How shopping is becoming increasingly social, even when consumers and their peers are not physically together.
5. F-ME: How consumers’ social networks are literally turned into products and services