Posted: Chase Sagum | June 13, 2013


Why Businesses Want You to "Like" Them on Facebook

When you log onto your Facebook account, you will see the inevitable column of "suggested friends" available for you to add as well as dozens of advertisements lining the website targeted at you based on the information you post and share. Although it can be excessive at times, both of these features have a purpose. Facebook wants you to connect with people "you may know" so that more information can spread, while the advertisements are there to get you to purchase something based on your interests.

What is not necessarily clear is why companies have you "Like" them on Facebook. By clicking the "Like" button, you do not have to buy anything from the company, so what could they possibly be benefiting from?

It makes sense for the consumer because often times there are discounts and deals associated with liking a business' Facebook page. But what does it do for the company and why would they create a page in the first place?

The answer is this - companies expect results. Companies want their name to get out there, which in turn, will convert to profit.

What Companies Want:

  • Brand Popularity: If you like a company's Facebook page, your friends could see it. Those same friends could also like the company's page, which means all of their friends could see it. A brand name can spread quickly, almost like a wildfire, through social media outlets. They want people to notice and recognize their brand, because more recognition can lead to more profit.
  • Loyalty/Insight: When a customer clicks the 'Like' button on a company's page, they are demonstrating a level of loyalty to that business, otherwise they would have never bothered to 'Like' it in the first place. Upon demonstrating that loyalty, those customers then provide a level of insight for companies which allow them to better cater to their consumer base.
  • Increased Profit: Company Facebook pages are going to offer deals and discounts because they want you, as the consumer, to spend more money on their products and services. If offering an additional 10% off on their items will get people to buy their products, the Facebook strategy was worth it.

Companies do benefit from engaging with their customers through social media outlets big time. They can smell the potential profit, but that is not always in your best interest. Before you 'Like' a company on Facebook, make sure it is a 'friend' you want to have. Odds are, advertisements and post updates will swarm your news feed.  You like a page because you want the deals. However, the company has an entirely different motive.


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Written by Chase Sagum

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