How Much is a Facebook Fan Worth?
Every marketer knows that Facebook is a must for their advertising campaigns, and the Facebook Fan is one of the easiest ways to attract new consumers to your page with the click of a mouse, but how effective is it? What’s the ROI of a Facebook Fan? Robin Goad, UK Research Director for Experian Hitwise says, “Leveraging our unique data sets we now have an answer: for retailers, each [Facebook Fan] is worth 20 additional visits to your website over the course of a year.”
How Much is a Facebook Fan Worth?
There are many interesting ways that you can acquire a new Facebook Fan and this is obviously best handled by your creative department and research team, however Goad’s company is now providing a new service called Facebook Fan Acquisition and Analysis that could lessen some of the weight off of your shoulders. Goad found that a Facebook Fan is worth 20 more visits to your company’s webpage by taking a look at the top 100 retailers from the Hitwise Shopping and Classifieds section and benchmarking webpage visits against the number of Facebook Fans those brands then took a look at how many consumers would search for the brand after becoming a Facebook Fan.
According to Syncapse, your Facebook Fan is your most loyal consumer. They spend $71.84 more on brands they are a Facebook Fan of, and they are 28% more likely to continue using that brand than a non-Facebook Fan.
Michael Scissons, the CEO of Syncapse, says that a Facebook Fan is worth $136.38. Lets break that down:
- Spending: $71.84
- Brand Loyalty: $43.71
- Recommendations: $13.57
- Earned Media Value: $6.79
And the cost offset for a Facebook Fan acquisition is only .47!
The Facebook Fan Antithesis
Augie Ray at Forrester Research had a very interesting take on the value of the Facebook Fan that is worth checking out. She points out some problems with making generalizations about the subject:
- Assumptions: The methodologies for estimating the value of a Facebook fan rely on a host of assumptions, but every audience, brand and program is unique. For example, the value of a fan for big-ticket items cannot be the same as a fan for lower-consideration items.
- All fans are not equal: Every individual has a unique social graph and a unique voice. I might be considered influential on topics of social media and marketing, but my opinion on floor mops might hold little influence within my set of friends and followers. One’s value as an influencer varies from category to category.
- Acquisition matters: How a fan is acquired makes a difference. A fan that organically “likes” a brand has more potential value than one that is encouraged to click the “like” button in exchange for a coupon or some Farmville bucks.
- Cause and effect: Which came first, the chicken or the egg? Do Facebook fans spend more, or do people who spend more become fans? If the former, then Facebook fans are generating new value, but if the latter is true then Facebook fandom merely reflects existing value rather than creating new value for brands.
The Approach for Attracting A Facebook Fan
Nonetheless, Facebook is a must for all companies, and if you don’t have many Facebook Fans, you may be viewed as behind the bar or not as socially savvy as your competitors. Let’s leave with a few pointers from social media expert Brian Solis about how to strengthen not only our Facebook Fanbase, but our social media tactics in general:
1. Start by understanding who you’re trying to reach and what it is they value
2. Design programs that meet the needs of each segment
3. Dissect the keywords and clickpaths of your desirable segments and develop a thoughtful SMO program
4. SMO is only as effective as the content and destinations its meant to enhance. Develop content and click paths that matter and deliver value on both sides of the transaction.
5. Identify the individuals and organizations that influence your markets. Learn what it is they value and develop engagement programs that offer tangible value (what’s in it for them and their audiences).
6. #Engage