Study Shows Facebook Likes Could Be Worth Millions

A new study confirms online sales are enhanced by social recommendations.

When online retailers display customer recommendations next to their product descriptions, it can significantly increase the sales of these. This is the conclusion reached following a study undertaken by academics at Johannes Gutenberg University Mainz (JGU) and the Technische Universität (TU) Darmstadt.

In the test visitors to an online shop were shown products either with or without recommendations in the form of Facebook likes or Google +1 next to them.

After 4 weeks of trials the shop showed a 13% higher sales where Facebook Likes were present.

Customer recommendations influence the buying behaviour.

Overall there was a 22% greater chance that a visitor to an online shop will buy something if web pages display recommendations than if they do not. "This means that by displaying social recommendations such as 'Likes' companies acquire more new customers," concluded Grahl. "It appears that recommendations actually counteract some of the uncertainty that new customers initially experience when visiting a site.


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