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The Like Effect: The Power of Positive Marketing

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This chapter examines how Facebook "likes" can translate into increased earnings for your company.
This chapter is from the book

Facebook is a marketing tool unlike any the world has seen before. Facebook marketing is different because positivity is part of its DNA. The act of liking has far-reaching impact and a quantifiable effect on commerce.

Facebook likes

  • Decrease marketing costs.
  • Increase sales.
  • Give you control of the customer conversation.
  • Prove people are paying attention.
  • Solidify customer loyalty.
  • Create evangelistic customers who sell for you and defend you against critics.

Let's look at each of those in detail.

Likes Decrease Costs and Increase Profits

When more people like your ads, your click cost decreases and so does the cost to acquire each fan. When more of your page fans like your page posts

  • You get more visibility and loyalty from each fan.
  • Cost per impression decreases.
  • Cost per customer decreases.
  • The lifetime value of your customer increases.

ChompOn, a company that provides a white-label platform for Groupon-like deal websites, gathered data from numerous e-commerce stores to try to figure out how much revenue a company can expect on average from each person who likes a page. They found the value of each like to be $8.00 (see Figure 1.1).1


Figure 1.1 ChompOn's study of the e-commerce value of social actions.

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