Nexternal, a provider of e-commmerce software, recently launched new functionality to enable e-commerce companies (on its platform) to offer real-time discounts to customers for “liking” them on Facebook. E-commerce clients can opt to offer any size “Facebook Like & Save” discount to customers via the order process. The idea is a good one and offers a variety of benefits:
Facebook Like & Save Benefits
•Enhance Conversion: Offering an incentive during the order process has proven successful in boosting the conversion rate (orders/visits) of e-commerce sites. Providing an easy hurdle for customers to get a discount should offer an increase to conversion while not distracting them from the order they are placing.
•Build Social Media Presence: E-commerce companies gain a new method to build out their social media presence on Facebook. Getting the “likes” via a discount is the easy part, and needs to be followed up with a well thought out social media strategy.
•Tell a Friend: Recommendations have become an increasingly important way for e-commerce companies to acquire new customers. Rabid “brand fans” will actively post about their favorite products on Facebook, Twitter, and increasingly Google+. But what about those people who show their love or merely interest in products via their purchase behavior, but would never talk about it online? This feature captures that missed opportunity for e-commerce companies.
•Alternative Discount Mechanism: In a world flooded with daily deal offers from the likes of Groupon, Living Social, et al (seems there is a new one every day), discounting has become more than a recession busting strategy to increase/maintain sales as customers have come to expect it. Tying an incentive to a customer action is a way to reward customers for doing something and not just an everyday discount.