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The Like Effect: The Power of Positive Marketing

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This chapter explains where and how Facebook fits in with marketers - and how those marketers can benefit from understanding how to use it to interact with customers.
This chapter is from the book

Likes Decrease Costs and Increase Profits

When more people like your Facebook 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 Facebook 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 Other studies have found the value of a like to be $3.60,2 $136.383 and $214.81.4 The actual value to your company depends on how effectively you monetize them, and how accurately you can measure the revenue and other value they bring you.

Figure 1.1

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

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