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How Much Are Your Fans and Followers Worth?

Written by Jessica Miller   
Wednesday, 16 June 2010 14:07
Syncapse, a digital measurement firm helping organizations use social media to their advantage, recently released a study identifying the average value of a Facebook Fan. The magic number they came up with was $136.38. The Syncapse measurement model uses the following markers of brand interaction:


1. Product Spending
2. Loyalty
3. Propensity to Recommend
4. Brand Affinity
5. Media Value
6. Acquisition Cost

They surveyed 4,000 panelists representing fans and non-fans of 20 of the top companies on Facebook. What sticks out for me is that no two brand’s fan values are the same, and no two fans are created equal. So you can’t expect a fan of your small business to be worth as much as a fan of McDonald’s or Starbucks. Or can you?

If you break down the average value of a McDonald’s fan – $259.82 – and take that amount as a percentage of McDonald’s annual revenue – $23.5 billion in 2008 – that fan makes up just 0.000001105617% of the pot.

That’s an easier concept to comprehend when you’re considering the value of your fans. You can read the whole report here: http://bit.ly/alfPYX. Pay particular attention to page 17. The value of your fans depends on how you engage with them in this space. If you’re using your company’s Facebook page to share coupons or discounts that they can also pass along to their friends, you’ll probably find more sharing or promoting of your company’s Facebook posts.

If you’re using Facebook to create a sense of family or community, you may see less monetary return, but more authentic customer engagement that will outlast coupon fever.

The take-away is this: Your fan engagement tactics will determine the value of your fans. The clearer and more targeted your strategy for social engagement, the better results you will achieve.

 

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