I’ve Said it Before, FaceBook “Likes” Don’t Drive Sales- Now Harvard Business says it too!

April 25th, 2017

A couple of years ago I wrote an article about this subject.   It’s nice to see that the esteemed Harvard Business Review (HBR) is now ‘on the same page’ as me.  A recent HBR article shot holes through two flawed assumptions that lead brand teams to waste time, talent and money getting likes for their own Facebook pages:

  1. Attracting followers will drive sales,
  2. Followers’ endorsement will cause their Facebook friends to buy more. The article draws on 23 experiments involving more than 18,000 people.

So here are the most outstanding thoughts from the article:

1. Facebook followers are already brand users

There is data out there suggesting that liking a brand does drive sales. A recent study by comScore and Facebook suggested that people liking a brand’s Facebook page buy it more: people liking Starbucks’s Facebook page, or with a Facebook friend who liked it, spent 8% more a month versus the general population. However, as the HBR article says, “that study and others like it contain a fatal logical flaw. They confuse cause and consequence.” As they go on to say, “Its possible that those who already have positive feelings toward a brand are more likely to follow it“.

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“How Long Until My Ads Start Working?”

July 22nd, 2015

At a recent lunch with a colleague, the topic of digital advertising and the immediate nature it affords of seeing results, came up.  That was followed by a commiseration of how people (clients) have come to expect “immediacy” from all of their advertising investments whether online or via traditional means.

So, for all you “readers” (and client types) out there—here are a few things to think about when advertising your product or service…anywhere (and yes, even online).

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Revenue from Social Media? Less than 10%

July 22nd, 2015

According to a new study from Regalix, social media marketing today is largely used to build awareness and exposure, though 80% of respondents say revenue generated from social media marketing is less than 10%. However, the budget for social media marketing appears to be allocated more generously, with 28% of respondents claiming their social media spend to be between 10% and 25%.

The study spoke to senior B2B marketers to understand current trends in social media marketing and the challenges faced by them in implementing a social media strategy. The research was done globally with a fair mix of product and service companies.Key findings of B2B mobile marketing 2015 are:

  • 94% respondents choose increasing brand awareness as key objective of their social media marketing efforts
  • 93% marketers choose Twitter as the most used social media platform
  • 88 % respondents say they have integrated their social media marketing with their overall marketing program
  • 82% respondents say their organizations invest in social media marketing
  • 52% respondents say they expect their social media budget to go up in the next 12 months

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Existing Customers Spend 2/3 More, Cost 10 Times Less

June 24th, 2014

A joint study by BIA/Kelsey and Manta found that, for the first time, small businesses truly grasp the impact their customer base has on their long term business viability. The study surveyed nearly 1,000 small business owners (SBOs) and found they now spend more than half of their time and budget focused on existing customers, recognizing that it can be up to ten times more costly to acquire a new customer. Further, a repeat customer spends 67% more than a new one.

There are nearly 28 million small businesses in America, and they are making a formidable impact on the U.S. economy. Small businesses provide 55% of all jobs and account for 54% of all U.S. sales. Read the rest of this entry »

Insights From An(other) Digital Cave Dweller

June 24th, 2014

I am a social media skeptic.  There, I said it…again.  I believe it has it’s place in the marketing mix but sometimes it’s all anyone wants to talk about and honestly, I just don’t believe it warrants all the attention given it. My primary concerns are that a) the reach of social media for everyday brands is over-estimated and b) the enduring effectiveness of “old” media is under-estimated.

That’s why I always love finding someone smarter than me who agrees.  It’s the “agreeing” part that I love.  (It’s really not that hard to find people smarter than me.)

Professor Mark Ritson, in a recent column wrote about his thoughts on social media.  Here are some of the highlights.

The problem with Twitter is it’s basically clutter

“The average click-through rate for a corporate tweet is around 0.5 per cent. If only one in every 200 followers click on a hyperlink, it represents a depressing proxy for how many people actually notice your tweets in the first place. Second, given the poor general number of followers many brands have achieved on Twitter, the reality, when you multiply out this already small potential audience by 0.05, is a “whole lot of nothing.” Statistically speaking” Read the rest of this entry »