A new Business.com study of 3,000 businesses showed that 83% of respondents named Facebook as their favorite social network to engage with customers. So, if businesses find Facebook the best option when jumping into social media, how much value does a Facebook fan hold?
Well, according to two companies called Syncapse and Hotspex, the average value of a Facebook fan for the twenty largest corporate brands on Facebook is $136.38. Another company by the name of Vitrue said that a Facebook fan is worth $3.60 in earned media. The company developed this calculation based on impressions generated in the Facebook feed. Syncapse and Hotspex developed their value differently by looking at a series of attributes:
- Product Spending — Facebook fans spend, on average, $71.84 more than non-fans over a two-year period.
- Loyalty (meaning ability to influence and promote brand loyalty within a target audience) — Facebook fans are 28% more likely to continue using a brand than consumers who are not fans on Facebook.
- Propensity to Recommend — 68% of fans are “very likely” to recommend a product to family and friends (as opposed to 28% of non-fans).
- Brand Affinity — 81% of fans feel a connection to the brand (versus only 39% of non-fans).
So who is right? In my personal opinion any advocate of a brand is worth more than any dollar amount I can come up with. They are a producer of free media, WOM and brand loyalty. By offering an outlet such as Facebook for customers to voice their support and concerns for a brand displays the importance of the customer to the company’s success. So do you feel there is a $ value to a brand fan?