Can You Ever Put a Price Tag on Friendship? Yes… and Apparently it’s $136.38
As more qualitative and quantitative studies are being released about the value of earned media, marketers are finally wrapping their heads around the true value of the social network “fan”.
We are so impressed with the latest study from Syncaspe that we wanted to share. The study focuses on the value a brand receives – on average – by each “Fan” on their brand’s Facebook page. Value was determined by five different (frankly, in our POV, well-chosen) factors, since we’ve been measuring the effectiveness of Facebook by the same standards.
1. Product spending- $71.84
2. Brand loyalty- $43.71
3. Propensity to recommend the brand to others- $13.67
4. Brand affinity- $6.79
5. Earned media value-$0.47
It is important to note, that $137 represents the average value. For some brands, Syncapse found a brand’s Facebook Fan to be worth as much as $316, and as little as $0. As we have coached our clients, just because you build a Facebook page and consumers come does not mean the social networking box can be checked. A brand must now engage with these MVBP (most valuable brand participants…yes, another Ootemism).
The study found the average brand’s Facebook fan engages 10x per year with the brand. More important, these MVBPs will recommended the brand at least once per year to someone in their trusted circle.
As we know, lifetime value of a consumer is key to brand health, financial success, and ability to evaluate marketing efforts. Facebook Fans are 28% more likely than non-fans to continue using a brand. Additionally, the power of MVBPs is quite clear when you consider they are 41% more likely than a non-fan to recommend a product to their social network circle.
The importance of inserting a brand in between trusted conversations is clearly demonstrated by the fact 38% of Facebook users are likely to become a fan of a brand after they see a family member or very close friend being a fan of a brand; and the metric only drops to 34% if the person known through Facebook is not a family member nor very close friend. More importantly, the likelihood to try a product if somebody else became a fan is 44% if it was a close family member or friend, and 36% for a Facebook friend.
From a brand health perspective, Facebook fans have “warm fuzzies” for their favorite brands. 81% of fans said they feel connection/empathy with the brand, compared to 39% of non-fans. Another 87% said they felt warmth, gratitude, happy or satisfied, compared to 49% of non-fans. For most marketers, especially those in the CPG space, brand recall and awareness are key in having productive conversations with consumers. From Nielsen they found that consumers had a +10% higher ad recall, +4% higher brand awareness and +2% increase in purchase intent than the non-exposed group. These metrics should be apart of any evaluation of Facebook/Social Networking efforts – DR, Brand or Brand-DR.