Wednesday, June 27, 2012

Facebook has potential to deliver 'fans' - and customers too

Business owners in their fifties are among those flocking to Facebook to generate more sales, prompting the social media giant to launch a guide this week.

Facebook used by driving instructor Jeff Allen to target teenagers
Around 10,000 small businesses a day are creating Facebook pages – business profiles that can feature news, competitions, pictures and links. Facebook has made
it easier for businesses to collect followers, known as "fans", which can then be kept informed of new promotions.
In the past, Facebook users – there are more than 24m in the UK alone – had to chose to be a fan but now they automatically become one if they say they "like" an advert that appears on the user's profile page. These adverts could be competitions or promotions or simply attractive images that appeal to the person.
Once someone has become a fan any interaction they have with the page is posted in their news feed. This information is seen by the fan's Facebook friends and appears a tacit endorsement of the business.
Businesses can also target ads at fans and their fans' friends as well as particular groups of people selected by what hobbies and interests they disclose on Facebook.
Among the older business owners flocking to Facebook is Jeff Allen, 58, who has been a driving instructor for 20 years in Tonypandy, South Wales.
Letting 17-year-olds, and their parents, know about his services is crucial and he previously relied on word of mouth advertising.
But competition has become fierce during the recession with two new national firms setting up in the Rhondda Valley and hundreds of local jobs lost as factories close down. "I have always had too much work. So it's really odd not to have the work," said Mr Allen.
To stand out he is trying Facebook. He set up a page last month and has attracted almost 100 fans so far. His daughter encouraged him to join Facebook last year and his son has helped him set up his business page, which acts as his website. "I am getting the hang of it," he said. "I was not really on the computer [before]."
His page contains information about offers as well as news and advice. He also has five ads running, targeting locals as they turn 17. "I have not had any work from it yet," he says. His son Gavin thinks it will take time for such a targeted campaign to reach enough young people living in the area.
Another Facebook fan is Susan Cropper, 50, from north London-based Loop Knitting. She was already active online, using a website and blog to keep customers updated with the latest news from her business.
"We have definitely generated additional sales from Facebook," she said. "I put on some information about a yarn coming in called 'KnitCollage' and we have had calls to the shop saying 'Can I pre-order?' I don't think that would have happened by just putting it on our website."
Loop was launched in 2005 and sends out a newsletter to 3,000 people on its database. Her Facebook page, created a month ago, already has 1,000 members. The speed has surprised her. "Facebook is very quick," she said.
"Traditionally, we advertised in knitting magazines and craft and textile magazines and it's quite expensive. I am not going to stop doing that. But Facebook is so inexpensive. My budget has been £240 and there's been over 1.7m impressions on my ad and out of that there's 1,688 click-throughs. It's quite cheap as the click rate was on average 14p. I am targeting women in the UK that had an interest in knitting or crochet."
Marketing experts said Facebook was a good way to raise the profile of a business and talk to customers. However, they warned that it would not suit all businesses.
Will Critchlow, director of internet marketing firm Distilled, said niche businesses such as wedding caterers could target ads and engage customers using Facebook. But he said: "It is not clear that every business will benefit from having lots of fans on Facebook. You need a reason to be doing it. And conversion rates tend to be very low unless you offer something spectacularly targeted.
"Most small businesses should be doing Google Ads before Facebook. Even though they are more expensive per click they tend to be more effective in driving sales because people are in buying mood when searching on Google and they are not in Facebook."

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