Tuesday, November 9, 2010

Why 'Like' A Brand or Company?

Ever wondered why people become Facebook fans of a company or brand? Understanding the motivating factors for  why people become fans can help you develop better social media/brand strategies.

A recent study by ExactTarget and CoTweet found that there are two main reasons for 'liking' a business online: To make use of discounts and special offers; and  to demonstrate their support for a particular brand to their friends.

Some other helpful facts from the study:

  • 43% of Facebook users surveyed like at least one brand
  • 34% of Facebook users say they like brands in order to keep up to date with company activities
  • 33% like brands to get updates on future products
  • Among those who like at least 1 brand, 17% say they are more like to buy after Liking the brand on Facebook.
So, what can we learn from this study? Liking a brand does not necessarily equal a sale. Liking, engaging and wanting to associate with a brand is the motivating factor. This should be created and harnessed by companies. Fan pages should not serve as sales pages where you bombard your fans with BUY BUY BUY. Instead, brands should work on building a community, a place where sharing content is encouraged with entertainment, competitions and informative content. The fans already like your brand, so give them an additional reason to like your company.

[via Social Media Examiner]