By RSA | November 25, 2013
Recently, Syncapse conducted a study titled ‘The Value of a Facebook Fan 2013: Revisiting Consumer Brand Currency in Social Media.’ The purpose of the study was to dig in, and associate an actual dollar value to a fan who ‘likes’ a business page on the social platform.
The study included a wide range of popular brands such as Adidas, Starbucks, Walmart, Subway, and BMW to name a few. Factors included in the study’s calculation were product spending, loyalty, propensity to recommend, media value, acquisition cost, and brand affinity. The findings were quite interesting.
The average value per fan was determined to be $174.17. Brands with products having a smaller retail value were proportionately smaller, while brands with more expensive products (such as BMW) were higher. This figure may seem surprisingly high to some, but the findings suggest some compelling reasons why fans contain such value.
A few of these reasons are:
• Users of brands who also are Fans are more receptive to those brands versus users who are not Fans. By becoming a Fan, users are declaring a commitment to the brand.
• Brand Fans are super consumers. They are more likely to use social media to ask and share opinions and experiences with others.
• Fans spend more than non-Fans. The study found that on average, Fans spend $116 more per year than non-Fans.
• Fans advocate more. Study findings indicate that 85% of Fans are likely to recommend the brand.
• Fans tend to be brand users before they ‘Like’ a brand’s Facebook page. Most consumers will try a product first before becoming a Fan.
• Personal expression trumps coupons as reasons for Fanning brands. By becoming a Fan, consumers are making an emotional statement about themselves.
The findings of the study indicate that the value of a Fan, while representing a dollar amount, also represent a word of mouth advertiser for the brand. Not only are they engaging with the brand, but with social media representing ‘water cooler talk’ of the past, they are developing social chatter within their own groups of friends about brands they like, use, and interact with.
By developing a Facebook strategy involving a specific ROI behind just ‘getting likes,’ businesses can utilize their Facebook page for a much more focused goal associated with dollar amounts and conversions. Contact us today to learn how we can help build a successful social media strategy for your business!
/ Kim Flick, Social Media Strategist at Robert Sharp & Associates