What is the empirical value of a Facebook fan? This month Syncapse in association with Hotspex put out a study digesting the ROI of a Facebook fan, and examined why fans are a good indicator of brand and product health. It’s a lengthy 18 pager, but if you’re into nerdy marketer stats like me, then you’ll love it!

The Study:

Syncapse looked at the top 20 consumer brands on Facebook and paneled over 4,000 Facebook users around the US. The subjects were questioned on their consumer behavioral patterns, their perceived feelings of others (friends, family, etc.) in relation to their consumer behavior, and whether they were a fan of each of the 20 brands. The variables used for understanding the value of a Facebook fan were product spending, loyalty, propensity to recommend, brand affinity, media value, and acquisition cost.

The Highlights:

There are key points of difference between Facebook users who are “fans” and are not “fans.” Fans voluntarily categorize themselves as brand advocates, and are extremely valuable for both campaign-based and long term business efforts.

Fans are your brands captive audience.

•They exhibit more affinity and loyalty to the brand than those who are non-fans.

• Fans are 28% more likely to continue using a brand than non-fan consumers.

• 81% of fans said they felt a connection/empathy with the brand, compared to 39% of non-fans.

Fans spend more.

• On average, fans spend an additional $71.84 on products for which they are fans compared to those who are not fans.

A Fan’s word of mouth -the best lead generator.

• Fans are 41% more likely than non-fans to recommend a “fanned” product to their friends.

•The act of “fanning” has incredible influence for converting non-fans to fans.

• 38% of the subjects paneled said they would likely become a fan of a brand if they saw a friend or family member do so.

• 34% reported they would likely become a fan of a brand if it was a person known though Facebook rather than a family member.  That’s only a 4% difference!

So what is the ROI magic number? Using the metrics of the 5 variables mentioned above, Syncapse calculated the average value of a fan as $136.38. But take note, the fiscal value of a fan has remarkable variance as some fans are extremely active and some are inactive.

As Facebook user base continues to grow, so will the need for a brand to understand, connect with, and influence the growing audience. Brands need to adapt from traditional marketing strategies and shift in the direction of social media platforms. Communication to your colleagues of the rationale for the shift is as essential as the shift itself. We’re all trying to understand the ROI on social networks.  And sure at times while reading I felt the “well duh” moment (ex. Fans feel more connection with a brand then non-fans), I also thought the report did a great job with validating why we should spend marketing dollars on Facebook.

It’s clear; there is empirical value in a Facebook fan.  I’m on board, are you?

-Mary “watching the World Cup in my cube” Baldwin

Social Media Account Manager