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The Emerging Social Playbook—Liking the "Like"

Richard Austin, Silverpop
by: Richard Austin (@biggestof)
16 February 2012

To many marketers, social media is still finding its footing compared to longer-lived channels such as email. How much customer retention can it account for, how do I leverage "the buzz," and can it really drive conversions? These are the questions on the lips of many marketers.

This is the first of a series of articles that concentrates on Facebook (the largest social network, with more than 800 million users), highlights some key findings showing just what real revenue social media can deliver, and offers some tips for your social media playbook. The goal? Curating your Facebook fan base and driving revenue.

First, some key facts*:

  • On average, a Facebook fan spends $71.84 more on products than a non-fan.
  • Evangelists spend 13% more than the average customer and refer business equal to 45% of the money they spend
  • Of Facebook users who "like" at least one brand, 17% say they are more likely to buy after "liking."
  • 43% of users "like" or are fans of at least one brand on Facebook.
  • The percentage of active social media users across ALL age groups is growing year on year
  • The top 4 motivations to "like" a brand on Facebook are:
    • Show support for the company -- 37%
    • Get a "freebie“ -- 36%
    • Stay informed about company-- 34%
    • Get updates about products -- 33%

Let's say getting customers to click on the humble and ubiquitous "like" button is up first in the social playbook. What opportunities exist to take advantage of this powerful icon?

  1. Special Offers
    Whether these are communicated via email or posted on your wall, encourage customers to promote these offers to their peers by offering a discount or other incentive to the customer if he or she "likes" your offer.
  2. Viral Email
    If you’re already tapping into your social sentiment by creating shareworthy emails, ensure you’re including a prominent "like" button and call to action to help your advocates increase the visibility of your message.
  3. Targeting Advocates
    Use social-sharing metrics to identify your key fans, assess the likes, dislikes and demographics of these advocates, and then craft messages to appeal to them. Secret sales or exclusive discounts are two easy ways to thank your advocates, incentivise a "like" and encourage higher spends and referrals.
  4. Competitions
    Drive up entry rates by offering an incentive for "liking" a contest, sweepstakes, etc. and benefit from the additional exposure these "likes" generate.
  5. Post-Purchase Emails
    If customers are stoked because they’ve saved 15 percent off the latest iPad, allow them to share that happiness with their peers by placing a "like" button on the post-purchase survey, potentially galvanising others to take advantage of this deal.
  6. Location Check-in Services
    Sending a discount email to customers checking in to places near your store is a great motivator for a sale. Include the "like" button on that email and increase the potential footfall to your store. (Read more about check-ins.)

These are all simple tactics to implement, enabling you to quickly begin driving revenue from your social fan base.

There are plenty of others, and I hope you’ll take the time to share those techniques that work most effectively for you.

Stay tuned for my next article in this series, which will address the topic of "buzz" marketing and how to gain advantage from peer-to-peer recommendations.

*Statistics Sources:

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Comments

4
  1. Richard Austin

    Hi Bryan, thanks for an informative post. I agree that not all ‘likes’ are equal in value, as consumers are savvy and often follow a brand just to receive discounts. However, ‘liking’ a brand for that reason would imply intent to purchase, and the revenue figure quoted in the studies would seem to bear that out. My colleague Loren McDonald has spoken about the power of ‘shareworthy’ content, and its recognised value is the main reason for our Share-to-Social feature.I don’t dispute its value. I recommend utilizing social-sharing links as well, but doing so more strategically, creating stand-alone emails designed specifically to be shared for example. However, creating shareworthy emails requires extra resources: designers, copywriters, etc., whilst the ‘like’ icon can be inserted with just a few clicks into an existing email. In addition, the ‘like’ icon can be added to virtually all messages, while including social-sharing links in every email—even when the content isn’t shareworthy—is usually not advisable. So for companies looking for a low-cost way to start leveraging the power of social sharing, the ‘like’ button provides an easy entry point into a new revenue stream.

  2. Richard Austin

    Hi Jennifer, Thanks for the post, I agree wholeheartedly, it’s a great way to build on a point of happiness by providing the mechanism (the like) for the customers to share their excitement.

  3. Brian Lynch

    Hi Rich, First off, thanks for taking the time to write this great blog entry! I'd like to play Devil's Advocate for a second. You mentioned that 17% of users who "like" a brand are more likely to buy a product associated with the brand after "liking" said brand. A post-like purchase associated with a brand (i.e. Coca-Cola) that is already present on a consumer's radar would count. The study also suggests intent, rather than action, and I would imagine that if a longitudinal study of user buying habits were conducted, they'd find that a certain level of priming occurred in the interview used to assess liking habits - and that people may deviate from their "likes" a bit more often than we'd... well, like. (Seriously, you can't hear somebody ask you about "like" ten times in a row without thinking about what you like and possibly affecting the results, and let's face it, any study like this will include a BUNCH of those types of questions.) Additionally, you can't count on brand loyalty, as a user can "like" two competing brands at the same time. They may not be a fan of, say, Coke or Pepsi; they may just be a fan of soda. Case in point, the 83% who may not buy your product after liking your page on Facebook. Likes are fairly noncommittal, and as such, shouldn't be the main focus. Sharing should be. For a more effective way to increase sales via Social Media, I suggest that instead of including a "like" button in your special offer emails, put a Facebook Share button. Facebook Shares enjoy higher priority in the Facebook News Feed than Likes do, and they get more people involved because they can include a call to action (in addition to the link). Your attitude is right; Likes are advantageous. But customer Shares are how companies and individuals can capitalize on that relationship, expand it, and provide value to the customer while utilizing their network to increase sales and awareness. Likes are a necessary first step, but I would argue that any social media "guru" worth their salt realizes that counting "likes" isn't as important - or more closely relevant to ROI/conversion rates - as counting shares.

  4. Jennifer Dutcher

    Including social links in follow-up emails after purchases is a good idea, particularly since, as you mention, "customers are stoked because they’ve saved 15 percent off the latest iPad, [and would like to] share that happiness with their peers". There's something to be said for gentle boasting! Plus, there are companies beyond just those selling merchandise that have also started picking up on this trend. Ticketmaster in particular has debuted a feature which allows customers to post straight to their personal Facebook walls about their Ticketmaster purchase. By simply clicking a button, they can share what production they're attending, tag who they'll be going with, or even show where their seats are. It's an ingenious way to get people communicating through your own channels. These customers would likely be posting to Facebook about the tickets they've purchased anyway, but this way, the tickets and shows are directly linked to Ticketmaster and might spur future sales. Glad to see that marketers are catching on to this trend!

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