(FunkyOzzi’s notes: This is written by Riad Afyouni as a comment in response to the Milking Social Media post I had written earlier this month. I found the content of the comment very logical, informative and useful, that I thought they’re worthy of sharing. Enjoy.)
I believe those are not strategies, but rather tiny elements of a holistic strategy. The “LIKE” competitions, although not the core of a strategy, are not expensive and can create a hype on the page for a limited amount of time. Those can help in several ways, mainly:
- Building a “rapport” between the business and its customer – if handled properly those types of competition can help the brand become a “friend” of the follower with daily interaction
- Allow the business to give gifts, freebies and often discounts to increase loyalty
- Drive more sales by subtle promotions
- Enhance subscriptions to other digital presences (Whether it is to increase the newsletter subscriptions, mobile subscriptions, website subscriptions…etc…)
- Reduce the overall cost to get one new follower, for example if a business has a set budget of USD 100,000 to be spent on social media per year, 80% of that budget can be spent to build up major viral components such as micro-sites, videos…etc… and the remaining 20% can be used to build up the little stuff, such as “LIKE” competitions, sponsored stories..etc… Eventually those will reduce the dollar value of a follower.
Nevertheless, I do agree that “LIKE” competitions are growing largely similar, but if you look closely enough, different page administrators are handling it differently, some largely succeeding and others failing.