‘Why You’re Not Getting Customers From Social Media’ – Entrepreneur
Karen Tiber Leland says, ““I’ve got 10,000 likes on my Facebook page,” proudly proclaimed the business owner sitting next to me at the conference lunch I was speaking at. Not a bad start, but as it turns out, not nearly sufficient to translate into sales.
A recent study soon to be featured in the Journal of Marketing Research explores what Facebook likes are worth, and how they translate (or not) into sales and offline action. Author Daniel Mochon, assistant professor of marketing at Tulane University, and his colleagues found that likes alone don’t directly translate into purchases. Instead, the team concluded that to convert social media followers into customers, a business needs to engage them with, wait for it … advertising.
“Most companies think that those social interactions will lead to more customer loyalty and more profitable customers,” Mochon said. “That’s not necessarily the case. Customers rarely post on a brand’s page on their own and typically only see a fraction of a brand’s Facebook content unless they are targeted with paid advertising.”
The authors of the study proffered that advertising on Facebook is effective for the simple reason that it reaches more of a page’s followers”.
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