Likes Don't Translate To Loyalty On Facebook, 8 Stocks With Great FB Engagement

Obtaining a stranglehold on social media and effectively marketing your brand, most would agree, will be key in achieving long-term results in the current economy. However, new insights are showing that effectively utilizing social media does not just mean obtaining more ‘likes’ on Facebook (FB) than your competitors. Increasingly we are learning that social network denizens need to be engaged in a nuanced way, and certain retailers are much better at it than others. [Related:  The Facebook Index: 83 Million Fake Accounts Don’t Affect Most “Liked” Stocks ]

A recent study showed a significantly strong correlation between the number of "likes" a company has and customer engagement. So does a larger presence on Facebook translate into better business performance? Here is a social index comprised of the top nine companies with the most "likes" on Facebook. 

Somewhat surprisingly, Internet giant Amazon ( AMZN) has not done an effective job engaging their audience on Facebook. While the company has sixteen million likes, a figure most would envy, it has not been able to motivate those fans to take tangible action to buy products. In fact, Amazon is not even in the top ten as measured by ‘Fan Actions’ in a new study by Expion, a social media marketing management company, even trailing much smaller companies like Footlocker ( FL) and Applebee’s. In their recap of retailers’ performance during the holiday season, Wal-Mart ( WMT) and Victoria’s Secret, a subsidiary of Limited Brands ( LTD), performed the best.

Beyond likes, new evidence points suggests people on a social network want to be entertained and engaged by retailers they follow, not just shown a promoted deal. Instead, retailers are most successful when they can establish a consistent story or narrative about their brand with unifying themes in a way that makes it seem like the brand is speaking to the user.

Business Section: Investment Ideas

What significance does this have for the way companies are marketed on social media? Well, for one, it may tell us that rather than trying to push products on websites like Facebook and Twitter, retailers should try to focus on building affinity for their brands.  Taking the results of Expion’s study, we have a compiled a list with the top eight companies on Facebook based on fan engagement, not just likes.

-1

Chart Source: Business Insider

1. Wal-Mart Stores Inc. ( WMT): Operates retail stores in various formats worldwide. Market cap at $238.55B, most recent closing price at $71.31.The company had 478 posts on Facebook during the 4th Quarter.

2. Limited Brands, Inc. ( LTD ): Operates as a retailer of women's intimate and other apparel, beauty and personal care products, and accessories in the United States and Canada. Market cap at $13.62B, most recent closing price at $47.24.The company had 237 posts on Facebook during the 4th Quarter.

3. Macy's, Inc. ( M ): Operates department stores and Internet Web sites in the United States. Market cap at $15.61B, most recent closing price at $39.48.The company had 216 posts on Facebook during the 4th Quarter.

4. Target Corp. ( TGT ): Operates general merchandise stores in the United States. Market cap at $40.8B, most recent closing price at $62.69.The company had 127 posts on Facebook during the 4th Quarter.

5. Kohl's Corp. ( KSS ): Operates department stores in the United States. Market cap at $10.64B, most recent closing price at $46.25.The company had 311 posts on Facebook during the 4th Quarter.

6. Starbucks Corporation ( SBUX): Operates approximately 16,858 stores, including 8,833 company-operated stores and 8,025 licensed stores. Market cap at $42.B, most recent closing price at $56.05.The company had 51 posts on Facebook during the 4th Quarter.

7. Foot Locker, Inc. ( FL ): Operates as a retailer of athletic footwear and apparel. Market cap at $5.22B, most recent closing price at $34.60.The company had 182 posts on Facebook during the 4th Quarter.

8. GameStop Corp. ( GME ): Operates as a retailer of video game products and personal computer (PC) entertainment software. Market cap at $3.05B, most recent closing price at $25.20.The company had 248 posts on Facebook during the 4th Quarter.

 

 

( By KAPITALL Contributor Dan Connelly)

null

More from Stocks

Jim Cramer: Advanced Micro Devices CEO Lisa Su Saved the Company

Jim Cramer: Advanced Micro Devices CEO Lisa Su Saved the Company

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations

Intel's First-Quarter Earnings Report: 4 Key Metrics to Pay Attention To

Intel's First-Quarter Earnings Report: 4 Key Metrics to Pay Attention To

UPS Has Plans to Deliver Shareholders a Higher Stock Price

UPS Has Plans to Deliver Shareholders a Higher Stock Price

Your Questions Answered on How to Play Earnings Season

Your Questions Answered on How to Play Earnings Season