The CEO Who Tried To Cash His Facebook Likes At The Bank

by | Nov 21, 2018 | Customer Growth

Not too long ago I spoke with a business owner who was spending a lot of time and money on building a following on Facebook.  He saw a decent amount of success as his business grew their page likes into the thousands.

Yet, there was a big problem… he wasn’t seeing any financial gain from the platform.  

What do you think would happen if this business owner—the CEO of the business—walked into a bank and tried to cash in his Facebook likes?  What do you think the teller would say?

They’d laugh him right out of the bank, of course!

 

Social Media Past vs. Present

Back in the early days of social media, the number of page likes and followers meant a lot to a business or brand.  A business could show a direct correlation between the number of followers and an increase in sales. (This is assuming the business was running its social campaigns correctly.)   

However, this has decreased dramatically over the past couple of years.

So, what changed?

The number of followers you reach with any given post is now a small fraction of the total followers.  In the early days, when you would post content, ALL of your followers would see the post on their respective timeline.  

The only way to accomplish this today is by spending money—sometimes a lot of money—to boost each post.  

Your posts won’t organically reach all of your followers as it used to in the past.

The reason for this change is due to Facebook (and a number of other social media platforms) looking to increase advertising revenue.  You can’t blame them for doing this because it’s worked. It just makes things much more difficult (not impossible) for business owners to successfully navigate.

 

Don’t Fall Victim To The Illusion Of Fantasy Metrics

You hear gurus comparing the size of their lists, page likes, and followers all the time.  It’s a great way to boost their egos.

But, these are fantasy metrics.

Analytics

Who are these people on their lists?  

Are they target consumers who are looking to make a purchase from them?  

Do they match their target demographics?

There are a couple of things you need to take into consideration if you’re all in on Facebook (or plan to go all in):

  • Analyze metrics such as sales and profits from your activity on Facebook.  Don’t waste time focusing on misleading metrics such as likes and impressions.   
  • He (or she) who owns the data (and can interpret the data correctly), wins.  Get prospects and leads into your own customer database. If you only leverage social media, your customer data stored on each platform is owned by the platform itself… not you.  If a social platform decides to shut down your page or account for whatever reason, your business could be done.

You May Also Like: 5 Ways To Increase The Average Lifetime Value Of Your Customers

 

Are Facebook Groups A Good Investment?

Facebook GroupsFacebook Groups have recently increased in popularity.  This is largely due to the fact that the reach from business page posts has decreased so significantly.

Groups are a much better investment at this moment in time than an actual business page.  So, getting some of your followers into a private Facebook group will allow you to reach many more of those individuals.

However, use caution.

Just as Facebook reduced the reach a business gets with its page posts, Facebook could do the exact same thing with Facebook Groups.  What’s going to stop Facebook from implementing the same “pay for reach” concept in Groups—just as it did with Facebook Business pages.

The argument you’ll hear quite often is that users who join groups want to see the content.  Because of this, why would Facebook not want those individuals to see all group posts? They joined for a reason, right?  The problem with this logic is that these same people chose to like a business page. Yet, the business page content is treated as though the individual has not chosen to see it.    

So, a Facebook Group can be a great way to interact with your community.  But, you need to get any prospects or leads from your private groups into your own data ecosystem… outside of social media.

 

Does This Mean Social Media Is A Bad Investment?

Phone CallThe answer to this question is… absolutely not!

Social media is still a great way to market your business if done correctly.  You can leverage a number of different social platforms to generate prospects and leads, yet you need to get those prospects and leads back to your business.

This could be accomplished by getting them to your website.  

It could be done by getting them to call you.

It could be done by getting them to physically visit your business.  

Regardless of what approach you take, getting your prospects and leads into your own customer relationship management (CRM) software is critical.

Once you accomplish this, you now own the data.  

And once you own the data, you have much more control over the destiny of your business.  

Ryan has been heavily involved in the world of Information Technology and entrepreneurship since the early 2000s. From small business consulting to Fortune 500 IT leadership, Ryan has a wide array of industry knowledge. He earned his BBA from the University of Iowa in 2004 majoring in Management Information Systems and later earned his MBA from the University of Iowa in 2009 with a focus on Management and Marketing. When he's not spending time with his wife and three young children, you'll find Ryan pounding away at his keyboard, spinning on his Peloton, or listening to a good audiobook or podcast.

Connect with Ryan on Twitter or Instagram.

Ryan Glick

Co-Founder, Pixelayn Innovations

Ryan has been heavily involved in the world of Information Technology and entrepreneurship since the early 2000s. From small business consulting to Fortune 500 IT leadership, Ryan has a wide array of industry knowledge. He earned his BBA from the University of Iowa in 2004 majoring in Management Information Systems and later earned his MBA from the University of Iowa in 2009 with a focus on Management and Marketing. When he's not spending time with his wife and three young children, you'll find Ryan pounding away at his keyboard, spinning on his Peloton, or listening to a good audiobook or podcast.

Connect with Ryan on Twitter or Instagram.

Ryan Glick

Co-Founder, Pixelayn Innovations