Facebook likes and why you should care a lot more than you do

  • 1,108 views
Uploaded on

This whitepaper provides a compelling argument for brands to cultivate consumer relationships through a Facebook page. The primary point of discussion compares collecting Facebook Likes with …

This whitepaper provides a compelling argument for brands to cultivate consumer relationships through a Facebook page. The primary point of discussion compares collecting Facebook Likes with collecting names for a proprietary database or "house list."

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,108
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1.     S  O  C  I  A  L    M  E  D  I  A    I  N  S  I  G  H  T  S   Facebook  Likes  and  Why  You  Should  Care     a  Lot  More  Than  You  Do     Not  a  panacea.    As  of  late  there  has  been  much  debate  about  the  value  of  a   Facebook  Like.    It  has  been  suggested  by  many  that  Facebook  Likes  are  over-­‐hyped   ego  strokes  that  don’t  contribute  measurably  to  sales.  This  type  of  assertion  could   arguably  be  applied  to  anything  we  do  in  advertising  simply  because  there  is  no  one   single  thing  that  leads  to  sales.  It’s  always  a  concert  of  effort  that  includes  brand   positioning,  advertising  message,  media  placement,  and  salesmanship  at  the  point  of   sale.  Nothing  works  100%  of  the  time.    There  is  no  certainty.  There  is  no  magic   bullet.     Despite  the  uncertainty,  there  are  best  practices  in  advertising  that  enjoy  a  long   history  of  producing  marketing  success.  Among  those  practices  are:  using  product   endorsements  by  satisfied  customers;  prominently  placing  strategic  messages  in   targeted  media  channels;  collecting  consumer  data  and  intelligence;  retaining  good   customers;  and  maintaining  a  competitive  brand  position.             That  may  read  like  the  fundamentals  of  advertising  —  just  your  basic  marketing   blocking  and  tackling.  But  what  it  accurately  describes  is  the  net  result  of  building   Facebook  Likes.  Stated  simply,  acquiring  Facebook  Likes  is  fundamental  to   advertising.     Product  Endorsements.  When  a  person  Likes  a  Facebook  page  –  call  it  Brand  X’s   Facebook  page  –  they  signal  to  everyone  in  their  personal  network  that  they   approve  of  Brand  X.  This  amounts  to  a  product  endorsement.  And  a  very  powerful   product  endorsement  since  it  comes  from  somebody  they  know.    Plus,  it’s   understood  that  this  endorsement  was  freely  given  —  not  paid  for  by  the  advertiser.   This  is  very  different  than  a  celebrity  endorsement  where  it’s  assumed  that  the   celebrity  cares  more  about  the  money  involved  than  they  do  about  the  product   being  advertised.     numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com  
  • 2.         In  2009  Nielsen  conducted  research  that  highlights  the  value  of  these  endorsements   from  people  we  know.    These  endorsements  top  the  list  of  the  most  trusted  forms  of   advertising.  Based  on  this  insight,  getting  somebody’s  friend  to  recommend  Brand  X   to  them  would  be  much  more  valuable  than  getting  Tom  Arnold  to  recommend   Brand  X  to  them.    And  with  Facebook  Likes,  the  most  valuable  endorsements  are   both  logistically  possible  and  entirely  affordable.     Media  Placement.  Now  thanks  to  Facebook  Social  Plugins,  these  endorsements  can   be  found  everywhere  on  the  Internet.  When  a  person  searches  for  something  Brand   X  related  on  Bing,  they  will  see  that  their  Facebook  friends  Like  Brand  X  in  the   search  results  (Bing  search  result  example  shown  below).    They  will  also  see  how   many  of  their  friends  Like  Brand  X  as  well  as  which  of  their  friends  Like  Brand  X.         numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com  
  • 3.             And  Facebook  Social  Plugins  are  showing  up  on  thousands  of  popular  websites  that   include  BarnesAndNoble.com,  ABC  News,  Huffington  Post  (as  pictured  above),   Wordpress  blogs,  and  many  others  including  of  course  Facebook  search  results,  the   most  visited  website  on  the  Internet.      Consider  for  a  moment  the  popularity  of  search  marketing.  It  makes  total  sense.  You   have  millions  of  people  using  search  engines  on  every  website  out  there  to  help   them  find  what  they  are  looking  for.    Naturally,  marketers  have  jumped  all  over  this   so  they  can  have  their  listing  appear  at  the  top  of  the  search  results.  That’s  true   prominence.    And  since  it’s  the  result  of  the  consumer’s  specific  search,  it’s  supposed   to  be  relevant.  Of  course,  when  a  consumer  sees  that  their  friend  Likes  a  specific   search  result,  that’s  irresistible.  Facebook  Likes  are  poised  to  becoming  the   number  one  factor  in  helping  people  decide  how  to  choose.     Collecting  consumer  data.   In  the  1990s,  tobacco   powerhouse  R.J.  Reynolds   set  out  to  acquire  actionable   data  on  every  cigarette   smoker  in  America.  Name,   address,  phone  number,   brand  preference,  age,   sports-­‐team  affiliation  —   you  name  it.  Whatever  they   can  learn  about  their   consumers  is  added  to  their   database  so  they  can  be   more  effective  advertisers.       numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com  
  • 4.     Of  course  they  had  learned  what  most  smart  marketers  have  since  realized.    That   they  can’t  afford  to  simply  broadcast  their  message  out  to  the  masses.  Instead,  they   have  to  narrow  their  focus,  and  whenever  possible,  deliver  their  message  directly  to   an  individual.       A  person  who  Likes  a  Facebook  page  not  only  adds  them  to  that  brand’s  database.     But  they  do  this  in  a  system  that  allows  the  brand  to  market  directly  to  the   individual.    And  the  best  part  is  that  every  time  that  individual  responds  to  these   marketing  messages,  they  are  automatically  sharing  this  brand  engagement  with   everyone  in  their  personal  network.    When  it  comes  to  building  a  house  list  of   customers  and  prospects,  Facebook  Likes  are  gold.     Customer  retention.  Conventional  wisdom  tells  us  that  it  is  cheaper  to  keep  a   customer  than  to  go  out  and  acquire  a  new  one.  The  lifetime  value  of  a  customer  will   justify  the  cost  of  acquisition  and  retention  only  if  you  keep  the  customer.  And   keeping  the  customer  is  a  matter  of  effectively  serving  that  customer  over  time.  So   you  learn  as  much  as  you  can  about  each  customer.  You  communicate  with  them  as   often  as  they  will  allow  it.  And  you  listen  intently  when  they  respond.     Of  course,  none  of  this  will  take  place  unless  the  customer  opts-­‐in  to  receive  your   communication.  If  they  don’t  agree  to  receive  your  communication  then  what  hope   is  there  for  any  kind  of  long-­‐term  relationship  with  the  customer?       When  a  person  Likes  a  Facebook  page,  for  all  intents  and  purposes,  they  are  opting   into  that  brand’s  retention  program.  They  are  raising  their  hand  to  be  counted   among  those  who  prefer  that  brand.  And  they  are  opening  themselves  to  regular   communication  from  that  brand.  If  that  brand  manages  their  Facebook  correctly,   that  open  communication  will  lead  to  a  real  dialogue  between  the  brand  and  the   consumer  where  comments  are  made  and  answered.  Preferences  are  stated.  And   opinions  are  noted.  Facebook  Likes  are  the  beginning  of  a  beautiful  friendship.     Competitive  brand  positioning.  Over  4.5  million  people  Like  Pepsi  on  Facebook.     Seems  like  a  lot.    Over  31.7  million  people  Like  Coca-­‐Cola  on  Facebook.    What  does   that  tell  you?  More  than  9  million  people  Like  McDonald’s  Facebook  page  but  over   23.5  million  people  Like  Starbucks  on  Facebook.  Who  is  winning  the  hearts  and   minds  of  consumers?     What  do  all  of  these  millions  of  Facebook  Likes  mean  exactly?  They  signal  to   consumers  that  these  are  vital  brands  that  exist  in  a  space  that  their  customers  have   already  deemed  relevant  and  important.  They  suggest  that  these  are  the  kind  of   brands  that  are  open  to  interacting  with  their  customers  in  imaginative  and   attractive  ways.     numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com  
  • 5.         What  do  these  Facebook  Likes  tell  you  about  branding?  They  say  that  the  most   competitive  brands  in  the  world  consider  acquiring  Facebook  Likes  to  be  very   serious  business.       And  don’t  forget  about  those  Facebook  Social  Plugins.  Not  only  will  consumers  see   which  brands  are  winning  the  popularity  contest  when  they  are  on  Facebook,  they   will  also  see  which  brands  are  receiving  the  most  Likes  when  they  use  search   engines  and  visit  the  most  popular  sites  on  the  Internet.  And  if  the  term  “popularity   contest”  seems  negative,  don’t  forget  we  are  talking  about  branding.  Facebook   Likes  are  the  currency  for  today’s  most  significant  popularity  contest  between   brands.     The  real  value  of  a  Facebook  Like.  So,  as  it  turns  out,  you  should  care  a  lot  about   Facebook  Likes  if  you  care  even  a  little  about  branding,  advertising,  and  marketing.   But  there  is  one  catch.  The  real  value  of  a  Facebook  Like  depends  entirely  on  what   you  do  with  it.  Simply  acquiring  Likes  is  hardly  the  objective.  It’s  simply  a   measurement.  What  it  measures  is  your  potential.  You  have  an  opportunity  to  turn   all  of  those  hand-­‐raisers,  those  opt-­‐ins,  those  Likes  into  meaningful  long-­‐term   relationships  with  great  customers  and  brand  advocates.     What  you  need  now  is  a  strategy  —  a  strategy  that  combines  a  deep  understanding  of   your  brand,  your  customers,  and  social  media.  When  you  collaborate  with  Numantra,   you  work  with  experts  with  a  deep  understanding  of  brand  relationships  and  social   media.  Contact  us  today  to  learn  more  about  the  real  value  of  a  Facebook  Like  for   your  brand.   numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com