The Facebook Customer Service Paradox
Q: You’ve mentioned something about the Facebook paradox as it pertains to using Facebook as a customer service vehicle. What does that mean, Robert?
Robert: It’s really simple. When you go to Walmart, one thing you’ll NEVER see is advertisements plastered all over their stores advertising Target, or Nordstroms, or any other competitors. It’s pretty clear what it would be insane for Walmart to promote its competitors.
So, why do people do the exact same thing on Facebook — allow for ads to one’s own customers from direct competitors?
Q: I’m not sure I understand.
Robert: Ok. If you don’t look carefully, or have never run Facebook ads, you probably won’t think about it. All Facebook pages have ads. Companies are able to target those ads by age, location, demographics, etc, and Facebook, knowing a lot about its users, will display those ads in the most relevant locations. So, for example, let’s say you sell shoes. Your competitors target keywords and demographics just like yours, and guess where the ads show up?
On YOUR pages, on YOUR Facebook updates. In effect, by using Facebook you actually provide marketing access to your customer base.
Q: So, how does Facebook benefit?
Robert: Almost all of Facebook’s revenue is tied to those ads, which are sold on a per click basis. If nobody clicks the ads, Facebook makes no money (with some exceptions). It’s in the interests of Facebook to make sure the ads occur on the most relevant pages where the most visitors will click. Every click is worth dollars.
So, that’s why, in fact, both Facebook and your competitors WANT their ads on your Facebook pages — so they can entice them to click, and thus to buy from THEM, not you.
Q: So, the paradox is what?
Robert: The more followers you have, the more people use your Facebook pages, the MORE they will be exposed to your competitors and their ads.
Q: That’s crazy. Are most people aware of that?
Robert: I doubt it, but it’s kind of obvious if you pay any attention at all. It’s the same idea as this: The more successful a company Facebook page is, the more valuable it is to Facebook. There’s no free lunch at Facebook. They pay for access to your customers, so they can sell to them.
I dunno. It’s a wild business strategy for Facebook. It’s almost like highway robbery for everyone else.
Q: Thanks Robert. It’s quite enlightening, and not just a little scary.
