Real Value of a Facebook Fan
Undoubtedly, social media has changed the way we do business. It is increasingly being seen as a smart investment by startups, small businesses, and corporations. Not only does your brand performance send strong signals to major search engines, but also draws you more fans, most of who become your customers on the basis of the reviews, experiences about the brand shared by others. Social media is thus the new standard of communication for all. Businesses are certainly using social media platforms, especially Facebook, to attract target audience and generate revenue. It is increasingly being seen that an average Facebook fan makes a crucial contribution to the brand by liking, sharing, advocating, and commenting on a specific product or service.
According to a survey conducted by social media marketing firm Syncapse and research firm Hotspex, a Facebook fan generates about $174 – the value varying from brand to brand. The research was based on comparison of fans with non-fans, besides taking into consideration the following key factors:
- subsequent product spending – average spending on
a brand by a fan
- acquisition cost – efficiency of existing fans in acquiring/ attracting new fans
- propensity to recommend – future sales prospects based on word-of-mouth recommendations
- brand affinity – emotional bonding between fans and brands
- brand loyalty – fans loyalty to a brand
- media value – marketing efficiency in attracting new fans through the Facebook platform
Rising Facebook Fan Value
The study reveals that fans are more active in social media than non-fans, with an average fan being a fan of at least 10 business or brand pages. Moreover, two-thirds of fans like to share their bad experience on Facebook, while three quarters of them share good brand experience and like to share, discuss, and advocate about special deals, promotions, and discounts with their Facebook friends. Compared to the 2010 data, the average value of brand fans seems to have increased by almost 28% in 2013, according to Syncapse study, thus highlighting the importance of Facebook marketing for businesses. This increase in average value is attributed primarily to the tendency of fans to be “super consumers,” who are brand users themselves and don’t hesitate in showing their loyalty to the brand by advocating more about it.
Brands or businesses should
- Identify “key customer segments” in order to cultivate a loyal fan base on Facebook.
- Determine the offers and campaigns that are more likely to become popular with a specific group of users and draw more customers to your brand so as to reap better returns and brand loyalty.
- Seek input of the brand’s social media community so as to identify the strategies or campaigns generating positive feedback.
- Understand the factors of fan value for better planning and measurement. Monitor relevant conversations between fans about your brand and use the information to develop interesting, relevant content that will be used to engage the core audience that you would like to convert into fans and then loyal customers.
- Appreciate and nurture your brand fans, who want to talk about your brand to their friends and relatives and everybody alike and share their opinion.
- Give your fans plenty of reasons to spend on your brand.
- Identify key customer fan segments and create custom messages and introduce relevant offers to encourage them to spend more and thus drive loyalty.
- Instead of chasing illusive influencers, engage with customers on Facebook on a regular basis to find out more about their likes and dislikes, solicit their input, and create shareable experiences.
- Focus first on converting existing customers to Facebook fans and then draw attention to prospects.
- Prioritize brand personality attributes and offer product trials for most valuable fans and customers instead of using fan acquisition tactics through direct response offers. Any such tactics can devalue your brand, resulting in a low quality fan membership.
Though Facebook fans spend more than nonfans, as per the Syncapse study, the monetary value of a brand fan varies dramatically, with some more active than others. On average, a Facebook brand fan spends at least $71.84 more annually than non fans. On average, a brand fan spends 11 hours on Facebook, with 39% of them using the social media platform to research products or services before making a purchase decision and 18% more satisfied with their favorite brands. Compared to non-fan users, 11% of fans are more likely to continue using the brands. In addition, for 50% of fans, importance of social media in their lives can be measured between eight and 10 on a 10-point scale. Facebook marketing is increasingly gaining importance and fans becoming more valuable to brands because they easily spread the message to others.
Are you still wondering whether Facebook likes are like cash in the bank?
Copyright © 2013 Volume Technologies Inc.