The study, according to Syncapse, identifies and explains the significance of five key factors that marketers must consider when measuring the business value of their Facebook fans. The five factors are product spending, brand loyalty, willingness to recommend, brand affinity and earned media value.
Findings from the study:
Product Spending: Facebook Fans spend, on average, $71.84 more than non-fans over a two-year period
Brand Loyalty: Facebook fans are 28 per cent more likely to continue using a brand than consumers who are not fans on Facebook
Willingness to Recommend: 68 per cent of fans are ‘very likely’ to recommend a product to family and friends (as opposed to 28 per cent of non-fans)
Brand Affinity: 81 per cent of fans feel a connection to the brand (versus only 39 per cent of non-fans)
Earned Media Value: Incorporating all of the above factors, the average value of a Facebook fan is $136.38 to an organization
The research was conducted online among 4,000 panelists across 20 of the leading brands on Facebook. The study was conducted this June and was a joint effort by Hotspex Market Research and Syncapse. According to Syncapse, findings were analyzed contrasting fans and non-fans for 20 brands on Facebook to arrive at conclusions on how marketers can best measure the long-term business value of social membership.
“Marketers around the world are struggling to understand the ROI of Facebook marketing. Our goal is to help organizations build models that help quantify how their marketing efforts affect the bottom line,” said Michael Scissons, President and CEO of Syncapse Corp. “The research findings released today support the value that many of our clients are seeing through their investment on the Facebook platform. The findings provide a fact-based methodology towards improving an organization’s view of their financial performance via this critical marketing channel.”