Discovering the Facebook Like Button

Harry Gold, CEO of Overdrive Interactive, gave a great guest lecture in my SMM class last week. The wide-ranging presentation was based on his Advanced Social Media Marketing seminar. I can’t do justice to the entire presentation, but there was one part that particularly struck me.

I’ve seen the Facebook Like button on web pages and thought, “Isn’t that cute?” Well it turns out that it’s a lot more than cute; it essentially makes a Facebook fan page out of every product to which it’s attached.

A recent study of brand-related Facebook behavior for Constant Contact by Chadwick Martin Bailey has stunning data. Here are some key factoids:
• 78% of people who like brands like fewer than 10, so they are engaged with those brands.
• They mostly read brands’ posts and newsfeeds.
• 51% of fans are more likely to buy the brand
• 56% are more likely to recommend the brand to a friend after becoming a fan.

As you might expect, 59% don’t interact with brands on the big social nets but 56% of people under 35 do, and it’s primarily on Facebook. Don’t ignore older demographics; they may be more loyal and more likely to purchase. Check it out for yourself.

The Facebook Like button for web pages has been around since March 2010 but some quick research says that many sites like retailers who target teens and young adults aren’t yet taking advantage of it. Levis is a brand that gets it. Here’s what you need to know.

First, you don’t put the Like button on a home page or a page with multiple product thumbnails. I suppose you could, but it would be meaningless because there are multiple items of content and the “likes” would be meaningless. Encourage viewers to like your brand; that is valuable as the CMB data shows. In the case of individual Like buttons, you want them to like a single product like the skinny jeans pictured. Now that jean product has its own fan page!



When a visitor likes the product is when the action begins. As Harry’s illustration shows, the user activity shows up on the Facebook News Feed of her friends, with detailed information about the product and a link back to the product detail page. That’s already great visibility, but there’s more! Now the marketer can easily message the likers. That goes to their News Feeds, thereby reaching their friends. That is huge! Inside Facebook says,

Millions of websites and social games have implemented Facebook’s Like button social plugin, yet relatively few are taking advantage of the capability to publish news feed stories to users that click buttons that represent real-world objects. That creates a lot of capacity to reach fans and friends of fans that marketers like Levis are beginning to use.

Surprise, surprise—there’s a privacy issue also! The tool allows Facebook to collect web browsing data for its likers; this WSJ article has a link to all the articles in their What They Know series, which is excellent. The collection of user data has come to the attention of the authorities in Germany where it has been declared illegal in one German state. Wonder who will be right about privacy concerns about Facebook in the end—Zuckerberg or Germany?

In case you were wondering, Google is following a similar path with its +1 button. That adds another tool, which shows up in a number of places including search rankings for friends identified on the user’s Google profile. Apparently if you want to it to go to one of your Google+ circles, you have to share it manually—for now at least.

Marketers may need to exercise some caution in communicating with likers. In particular, all the data seems to agree that you shouldn’t overwhelm even your best friends with posts. Make them relevant and control the frequency.

This is fascinating stuff! Many thanks to Harry Gold for bringing it to my attention!

The Power of Customer Reviews

The e-tailing group and Power Reviews did an interesting study that was published in September—something else that has been sitting around on my desktop. An article in Ad Age (subscription may be required) on small marketers who were successfully using reviews to get their products noticed motivated me to get the report out and look at it again.

Here’s some of the data from the 117 retailers interviewed. They respondents were distributed over large and small firms and their perceptions are interesting. Here are some of the primary ones:


Retailers are most concerned that people will trash their products; don’t have much faith in their own business, do they? It’s interesting though that, when you combine Rank 1 and Rank 2, just about as many are concerned that customers will leave their site for a more socially engaging one. Even more are concerned that they are using outmoded marketing and merchandising techniques. Hear, hear!

Of course retailers want to sell things! But, according to these data, they also want to engage their customers, drive brand loyalty, and stimulate word of mouth. Those all make sense. They also point out that social media isn’t an immediate solution to any marketing issue. It is an investment of time and energy that pays off over time.

Which of the social media efforts are most effective, in increasing sales? Reviews; nothing else comes close. All retailers should ask themselves what they are doing to provide an opportunity for customers to review their products and experiences. What are they doing to encourage customers to provide those reviews?


Which of the social media efforts are most effective in mobilizing advocates and spreading the word about their brand? Facebook! Reviews are at the bottom of the list and Twitter is next to the bottom. People do say that reviews influence their purchases; is that not spreading the word? I hope these retailers were paying attention to this year’s Black Friday/Cyber Monday Twitter efforts. The good news is that Twitter can have an immediate impact on sales. The bad news is that it takes time and effort to build a base of Twitter followers that permits impactful marketing. Bear in mind that it takes time and effort to build a following of Facebook friends also!

The Ad Age article gives examples of issues. Let me briefly tell the story:

• Shane Faerber is an individual developer who wrote an app, Mall Maps, for the competitive iPhone applications space (over 80,000 of them the last time I looked).
• When the app was launched he wrote the first review—with complete transparency. He said he was the developer, provided a video and invited feedback. He even put his email address in the app itself.
• He reached out to professional reviewers and media outlets, getting some positive notice and a ranking of 26 (out of about 18,000) in his category.
• Apple paid attention and on Tuesday before Black Friday named the Mall Maps a must-have. By Wednesday it had moved up to number 1 in its category. It was originally priced at $2.99. Today it’s on sale for $1.99 but I don’t see a current downloads stat.

Great as the success of the app is, that’s not what I found most impressive. Here’s the quote from Ad Age:

along the way, Mr. Faerber's hand turned a handful of dissatisfied customers into positive endorsers. One customer, whose initial review started with the opener: "SO FAR STINKS!" eventually wrote that he was "impressed with your customer service" and wished Mr. Faerber "the best of luck" after a series of e-mail exchanges with the developer.

What works?
• Reaching out to potential customers.
• Reaching out to the media, especially the online media for an online product.
• LISTENING to your customers. Even more, ENCOURAGING THEIR FEEDBACK!

Starbucks Listens--and Acts!

Earlier in the week Michael Estrin had a good advice in iMediaConnection for those who want to have a good blog, either personal or corporate. The graphic from Starbucks caught my eye. It perfectly captures the concept of a community being involved in idea generation for a brand.

I always wonder whether companies follow up on good ideas so I checked it out. Here’s what I found.
















The My Starbucks Idea site seems to be the home page of the enterprise. It’s where you can sign up to be part of the idea generation process. It’s on a SalesForce.com platform, so clearly it’s intended for CRM. Do the numbers in the Categories section represent posts and comments—5,483 for Tea & Other Drinks, for example. Probably. I checked some of them and there are active postings, comments and discussions.

The Idea page links to the Ideas in Action blog where Starbucks employees give feedback. I captured a post that’s reporting on the number of ideas launched in a given week. Posts are frequent.

What’s really interesting is that there tend to be 2 or 3 comments on those employee blog posts—agree, disagree, whatever—there are a few comments on each post. Comments on the Idea site tend to be more active, and assuming that a point for a post represents a vote, the voting is very active. My point is that there seems to be more action on the site that’s mostly UGC than on the blog where employees, chosen for their expertise according to the site, blog about what they have actually done. Worth thinking about! Does it mean that brand enthusiasts enjoy talking with one another even more than they enjoy talking directly to the brand?

All in all, it’s a site—and a concept—worth exploring. Starbucks has created a community around something everyone loves to do—telling you how they think you should run their business. They’ve found a way to involve and engage, and they are following up in a disciplined fashion.

I’m not saying any of this is particularly easy, especially the follow-up. I am saying that it’s worth seeing what you can learn from Starbucks about engaging customers in your own brand.

The Meaning and Importance of Engagement

A few days ago I thought I’d do a quick search to find out how we marketers are defining and measuring engagement. It had been awhile since I checked this out and I assumed there would be greater unanimity about what we mean. The IAB has a working group considering related issues, but I didn’t find any public information, so I went looking. I came up with enough for several posts!

Along the way I ran across a relatively new firm that specializes in what Allegiance calls Enterprise Feedback Management. Its Engage Platform facilitates measurement of both customer and employee engagement as a driver of business results. We all know that happy, motivated (read that “engaged”) employees deliver better customer service and create happier customers, but it doesn’t hurt to be reminded that customer loyalty and employee loyalty are two sides of the same coin.

So with that perspective in mind, what is engagement? We don’t have a commonly-accepted definition yet. Some of the popular definitions are oriented to the impact on the brand, others to how we actually measure engagement. I’ll look at branding issues in this post and metrics in a follow-up.

Let’s start with the idea that it’s more than loyalty. We all know that many satisfied customers defect. I asked a group of students last week how many were “for sale” to better offers from marketers. Almost all of us are. So, as the caption of the graphic indicates, we need to go beyond satisfaction in our effort to prevent defections. Here’s Allegiance’s definition of engagement:

Allegiance considers engagement the emotional bond or attachment that a customer develops during the repeated and ongoing interactions accumulated as a satisfied, loyal and influencing customer.

Peppers and Rogers add that all definitions of engagement have three basic components; intellectual, behavioral and emotional. That’s the basic components of attitude in sociological theory, which tells us something about the concept of engagement. (You can download both Allegiance’s Discover Engagement and Peppers and Rogers Engagement, The New Competitive Advantage papers here.)

The thrust of the Peppers and Rogers paper is that engagement can and should be measured. Their engagement chain concept shows the major drives of engagement for both customers and employees. The drivers are measurable and the paper notes they can be divided into engaged, swing and disengaged customers. They don’t say so, but it seems most efficient to target swing customers in an attempt to increase their level of engagement.

Is it worth the effort? This chart says that it emphatically is. Performance is significantly better on a variety of financial metrics measured over various business units in 10 different companies when customers are engaged. Little surprise there! Similar outcomes for engaged employees are reported on page 4 of the report. Firms with both customers and employees who are engaged are roughly “twice as effective financially” as those who excel on only one type of engagement (page 5), so the combination is potent.

One thing that strikes me is that this is the update to the Bain loyalty studies that made such an impact on marketers in the 90s. Those studies helped realize the importance of customer loyalty and retention marketing programs. Even then we recognized that loyal customers recommended, referred and, in general, were advocates for the brand.

We have now invented the term “engagement” to help explain what happens beyond loyalty. I’ll come back to how to create engagement and more on engagement metrics in days to follow—stay engaged!