The Economical Value Of One Facebook Fan?
Since social media and Facebook have matured as viable dialogue marketing, CRM and customer service tools, my job as strategist is much more fun. My brand and business objective driven conversionista DNA is shaking in every cell. We have the value of one Facebook Fan…
I do know its pretty old wine in a new bottle. But I happen to know, that not all CMO’s know that satisfied and loyal clients do represent a tangible value to brands and business.
And since most consumers hate advertising anyway dear CMO, you can now focus on (social) CRM and gain as many Facebook Fans around your brand as you like.
In the era of media youcracy (I am the medium) consumer ratings, reviews and peer recommendations are first, advertising just second best. So if we agree from here, that advertising cannot buy you love nor loyalty, we can continue this journey.
What CRM managers already knew for decades, brand and marketing managers will have to embrace too: The future of marketing will be more and more about Customer Persona and CRM. Why?
Since in my opinion, the future of marketing will be mostly about:
1. How many customers do I have?
2. What’s the economical value of 1 relationship?
The back-up of my theory? Because the value of 1 relationship will create predictive companies, that can show their revenues and shareholder value based on the number of their relationships.
Here are some quotes from a very interesting study which I will refer to later on…
Brand marketers have been struggling to understand the impact of their Facebook marketing efforts contributing to their overall marketing success. Many of those marketers are attempting to establish the return through a campaign-based analysis, rather than bythe consideration of long-term business value.
Confusion in the industry is widespread and clear principles for Facebook measurement have not been commonly adopted. This has resulted in missed advantage across agencies and marketers, in fully realizing the potential benefits of Facebook marketing and fans.
Being an engagement strategist I need to explain brands, what the value is of having 10 million fans on Facebook. So I suggest you take a look at the digital strategy of Starbucks on Facebook first.
Understanding the long-term Facebook fan value is a complex undertaking with advanced calculations required across multiple variables. This understanding is rooted in the measureable differences
between users who have “fanned” a brand and those who have not.
The value is reflected not simply by the action of being a “fan” but rather by the value of the audience and the benefits “fanning” offers the brand. Below the visualization of the value of 1 Facebook Fan for a brand. Next I have summarized the 6 statements made in the study.
Statement 1 in the study:
A fan base is a self-segmented group of highly valuable customers.
Statement 2 in the study:
Facebook fans reported spending $71.84 more per year than non fans.
Statement 3 in the study:
Facebook fans are more loyal to the fanned brand than non-fans.
Statement 4 in the study:
68% of Facebook Fans indicate they are very likely to recommend a product.
Statement 5 in the study:
The Average Value of a Fan is $136.38.
Statement 6 in the study:
Monetary value of fans varies dramatically. Some are intensely active while others are totally inactive.
Well why did I show you these statements? Because this study from Syncapse in association with hotspex, just made my professional life much easier. So why don’t you let me show you the way?
The study proofs, what is old wine in new bottles for sure. But since not all in advertising are that ROI driven yet, the study offers proof that “tipping-pointers’ can use to: make it easier to predict and value the ROI of mechanisms, long term social marketing programs and engagement strategies on Facebook. So lets see if we can merge the world of brand and business objectives.
I assume that after reading the last paragraph, most old-skools creatives have already left our blog right now…
Anyway, suddenly a lot of marketers seem to understand the vision and mission of SocialMedia8. Yes you will probably not believe it, our VSPOT theory is finally being embraced. Okay: after 4 years. And by some. Honestly: by a few.
So I do hope you will take 15 minutes to read the full study. It will make your life much easier being a CMO – who has to answer all the questions about the ROI of his new investment – to his fellow board members.
And believe me or not, most CEO’s, CFO’s, CMO’s and COO’s are now having a new conversation on the golf course. They no longer brag about their great new and slick TV commercial. Today’s conversations on the fairway are about the number of Fans on Facebook.
Might it be, because Men have competition with peers in their DNA. They live by the “mine’s bigger than yours” principal at most male audiences. I doubt about the gay community, but lets give the guys a break for a while.
Back to the insight:
Most board members with an -O- in their short job title are Men. Most of those Men happen to play golf. And out of that group, a large percentage will brag a bit during their 18 hole tour. Brag about their new Facebook page. And next they will proudly drop their line: “I bet we do have more Facebook Fans, than you have”.
Last but not least: thank you for inspiring me again, Mister Michael Moon.
Hope you enjoyed the post. And that you’ll tell me how you see it…