Retailer Daily: Facebook Fans More Valuable Customers
Through a special arrangement, presented here for discussion is a summary
of an article from Retailer Daily, an online publication of Watershed
Whether recommending or using a product themselves, Facebook fans
of a brand provide significantly more value as customers than non-fans, according
to a study from digital consulting firm Syncapse Corp.
The average value a
Facebook fan provides a brand is $136.38, but it can swing to $270.77 on average
for “best” fans or go down to $0 in the “worst.” In
the case of Coca-Cola, the “best” case for fan value reaches $316.78,
the average was at $137.84, with some fans providing no value. This value is
based on Syncapse analysis of five factors per fan: product spending, brand
loyalty, propensity to recommend, brand affinity and earned media value.
“This degree of variability in the value of a fan must be a major
consideration in determining how brands address different types of fans in
efforts to move them up the value ladder. In short, the goal must be to reduce
fan variability while moving the average fan value to the active end of the
Syncapse in its report.
The study analyzed the Facebook interactions of 20
brands: Nokia, BlackBerry, Motorola, Secret, Gillette, Axe, Dove, Victoria’s
Secret, Adidas, Nike, Coca-Cola, Oreo, Skittles, Nutella, Red Bull, Pringles,
Playstation, Xbox, Starbucks and McDonald’s.
average spend an additional $71.84 across the twenty brands examined for which
they are fans compared to those who are not fans. McDonald’s
saw the largest variability, with fans spending $310.98 versus $150.39 for
non-fans — a
difference $159.79. Oreo saw the lowest value with a difference of $28.52 between
the groups. Factors influencing these differences may include both product
price and purchase lifecycle, Syncapse said.
Other findings in the study:
- On average, Facebook fans are 28 percent more likely to continue using
a brand than are non-fan consumers. Adidas had the highest variance of loyalty
between fans and non-fans with 42.5 percent of fans indicating a heightened
likelihood of continued product usage. Secret saw the lowest difference in
loyalty, only 15.8 percent between the two groups.
- Overall, 68 percent (on average) of Facebook fans indicated that they are
very likely to recommend a product across the 20 brands. This is contrasted
by 28 percent for non-fans. Gaming brand Playstation led overall Likelihood
To Recommend with 81.4 percent followed by Victoria’s Secret with 79.4
- Thirty-eight percent of respondents reported that they would likely become
a fan of a brand if they saw a family member or close friend do so. This
influence is slightly reduced to 34 percent if it is a person known through
Facebook rather than a family member.
- Eighty one percent of fans said they feel “connection/empathy” with
the brand, compared to 39 percent of non-fans.
The quantitative research was conducted in conjunction with Hotspex Market Research
and consisted of a 25-minute survey using their online panel. Data was collected
from over 4,000 panelists across North America in June 2010.
Do you think marketers are underestimating or overestimating the value of
Facebook ‘fans’ for a brand? What is the biggest benefit from a brand gaining
Facebook ‘fan’ status? What are the challenges of calculating ROI for Facebook
- Facebook Fans More Valuable Customers – Retailer Daily
- The Value Of A Facebook Fan: An Empirical Review – Syncapse