The May issue of Fast Company Magazine features a great article by Ben Paynter on the proliferation of social media tools and how major consumer brands are using them to build customer loyalty. The article, entitled “Five Steps for Consumer Brands to Earn Social Currency”, is also very applicable to non-consumer brands, including many of the B2B technology companies we work with at the Bateman Group.

The impetus of the story was a new study by Vivaldi Partners and Lightspeed Research examining how companies create true value from social media and online community. Not surprisingly, the study revealed that many brands are still using social media to drive buzz, often too fixated on the numbers, i.e., “We’re up to 100,000 Facebook fans now, how cool are we?”

The study offers great insight and real-world cases on what works. Even better, Fast Company’s Paynter did an excellent job dissecting the study for the best five lessons. If you haven’t abandoned this post yet to go read the full article, you should! If you’re too lazy or pressed for time, here’s the Cliff Notes version:

It Ain’t All About the Numbers – Just look at Dunkin’ Donuts and Starbucks. The former has 80% fewer Facebook and Twitter followers than Starbucks. Yet Dunkin’ Donuts fans are 35% more likely to recommend the brand, according to the study. This is because Dunkin’ takes a more advocacy-driven approach. Their create-the-next-doughnut contest drew nearly 300,000 different entries this year and has become an annual event.

Context is King – Beer drinkers don’t give a rat’s ass if their beer tastes great or is less filling. At least they don’t talk about it with their drinking buddies. This means bottle packaging holds little relevance and that the bonding or “social context” during consumption is what’s most important, according to the study. Anheuser-Busch’s bud.tv encouraged being a solitary Web potato and failed. On the other hand, Bud’s attempt to brand “fan cans” in collegiate colors for tailgating was on the right track. Unfortunately for Bud, it was foiled by college administrators who viewed the campaign as condoning underage drinking.

Not All Brands Need a Facebook Page – Mass-market utility brands such as Gillette aren’t likely to see much upside in social currency, says the study. Gillette has loyal users: 96% of respondents in the study touted its good quality and reliability. Yet Gillette jumped on the social media bandwagon, producing a series of YouTube videos giving tips on how to “manscape” down below. One video shouts, “When there’s no underbrush, the tree looks taller”. Really, Gillette? Really?

Social Tools are Just That: Tools – Axe definitely pushes the envelope with its racy ads and viral videos on CollegeHumor. But does the body spray product really help guys close the deal? Because Axe’s social media strategy is pure goofball, the study concludes that it doesn’t translate as strongly compared with a more serious brand such as Clinique. Clinique’s educational YouTube how-to tutorials on applying makeup have earned it stronger social currency in the end.

Social Media Stunts are for the Birds – Two social media campaigns launched by Wendy’s and Burger King prove this point. Wendy’s “You Know When It’s Real” campaign featured commercial spots, online games, and contests about how it’s never-frozen patties are cooked to order. Burger King’s much buzzed “Whopper Sacrifice” asked fans to drop 10 friends on Facebook to get a free hamburger. Today, BK’s fans have moved on, but customers trust Wendy’s products much more, concluded the study.

To download the full report, visit: http://www.vivaldipartners.com/pdfs/Vivaldi_Partners_Social_Currency_US_Report_2010WEB.pdf.

For those of you social media pros in the know or brand marketers with good common sense, none of these lessons should come as a big surprise. What they all remind us is that any social media initiative needs to be authentic to the brand’s identity and engage its audience in the way they expect and want to be engaged with. If you’re an irreverent brand, it’s fine to perhaps push the limits a bit further. Just be mindful that all the buzz (Facebook fans, YouTube views, etc.) might not translate into more engaged, brand advocates in the end.