German researchers from the University of Mainz and the Technical University of Darmstadt have conducted a study on the monetary value of Facebook likes in online shops. The study found that 300 Facebook likes in an online shop are worth approximately 6 cents. The researchers discovered that users were more likely to purchase items when the number of social recommendations was higher. The study also revealed that social recommendations play a dual role in online commerce. Likes measure the quality of products, and high-quality products receive more likes than others. Additionally, many likes generate additional purchases from shop visitors. The researchers found that social recommendations and likes are valuable intangible assets for companies.
The researchers conducted an experiment in which an online shop was prepared to randomly divide visitors into two groups. The first group was shown Facebook and Google plus buttons on product pages, while the second group could not see the recommendations. After four weeks, the researchers evaluated the results and found that the group that could see the social recommendations had a sales increase of approximately 13% compared to the control group. The study also found that the likelihood of visitors purchasing items on product pages with social recommendations was approximately 22% higher than on comparison pages without recommendations.
According to Jörn Grahl, a business informatics expert at the University of Mainz, the study observed significant differences in purchasing behavior. Additionally, new customers are more likely to be won over by customer recommendations such as likes. The study also found that the value of a like is low, but over time, the amounts can quickly add up. Large online shops with more expensive products benefit even more from this effect. The study concludes that social recommendations and likes are valuable intangible assets for companies.
