Do Facebook Fans Provide ROI for Social Media? We’d Put Money on It!

June 17th, 2010

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

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Got an inchworm for my spider?

May 12th, 2010
Measure, measure, measure!

Measure, measure, measure!

Measure your results.  Travis and Barbara said that that was the one thing they really wanted everyone to take away from today’s webinar, Google Food Recipe:  Integrating Blogs, Website, and Social Media.

Measure your results.

That’s not the first thing that jumps to mind when I hear about Facebook or Twitter or blog posts.  It’s not the second or third, either.  It seems awfully mathy for something as relaxed and comfortable as social media, but it’s not.  When you are using social media tools for business purposes, you have to know that the time you spend is not wasted.

Barbara suggested a plethora of tools to use to get measurements for return on investment, including Google Analytics, Facebook and YouTube Insights, Radian6, ScoutLabs, Sysomes, and Webtrends.  What I found really interesting, however, was the way she quantified reactions to social media, giving various responses actual dollar values.  Someone tweeting you directly to ask about your products or services is obviously a higher-value contact than someone who just decides to follow you.  What value you actually assign to the different possible responses depends on your business, but conceptually, the idea holds.

Go get yourself a ruler or a scale or a calculator or all of the above and get measuring!

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Go Outside and Play

March 24th, 2010

That first recess at a new school can be awkward.  Do the kids play the same games here?  What are the unwritten rules for the swings?  Do the big kids meet on the blacktop or under the trees by the fence?  And, most importantly, will anyone want to play with me?

Social media marketing, for many companies, feels about as comfortable as that new playground.  Some companies suddenly feel the urge to hide in the library until recess is over and the understandable, bell-regulated classroom time begins again.  But hiding won’t make it go away.

The good news, as Barbara mentioned in the webinar, Social Media Marketing and ROI, is that you don’t have to jump into the middle of the playground right away.  It’s a good idea, in fact, to linger at the edge of the tanbark and watch what the other kids are doing, listen to what they’re saying, and begin to play once you know where the hot lava monster lives.  From a social media perspective, this means checking out what other companies are doing, soaking up the culture, and only then joining the conversations and starting your own.

It can be a challenge to companies who are used to dealing in websites, which are, as Barbara says, like resumes, clean and professional, to switch to the casual style of social media.  You don’t want to play tag in your suit, so to speak, and if you try, you may not get the results you want (although the embarrassment it would cause might make an engaging blog post…).  Social media requires a new level of integration between the professional and the casual, the business person and the everyday person.

School would be unbearable for even the most dedicated student without some time to play four-square.  Similarly, company marketing strategies need to add social media to their mix along with their other approaches to ensure a happy, healthy outcome.

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The Power of Social Media and Search Webinar – Highlights!

January 12th, 2010

Last Thursday, we held a webinar with HubSpot on how Social Media and Search work together.  If you read our previous post, you know that Google is updating their search engines to incorporate real-time searches–which have Social Media written all over it.  Social Media and Search are important in each other’s lives, so here are some highlights from the Webinar; you can find more on Twitter using #wm123!

Before we get started, a BIG thanks to Jeanne and her team at HubSpot for joining forces with us on this webinar.  We had a great turnout, and even better feedback!

Topics Discussed:

  • How Social Media and Search fit together strategically in your marketing plan
  • Why your business needs a blog for lead generation and brand building
  • The top 3 starting points for Social Media: Where your company should start and why

Top 10 Highlights:

1.  Make sure to integrate Social media and SEO to maximize your sales opportunity
2.  When starting a blog, keep in mind you should:

  • Read other blogs in your industry first
  • Comment on those blogs to state a presence
  • Write your own! You have the knowledge of your industry, you’ve started a conversation, now create your own.

3.  Blogs are very effective in link development and content development
4.  Blog content should be published on a regular basis
5.  Blogs can boost SEO rankings by either inbound link value or presenting fresh SEO content – use both! Or use whichever your site is more in need of (fresh content or inbound links)

  • Blog.mysite.com – adds inbound link value
  • Mysite.com/blog – creates new SEO content

6.  Use Social Media to increase both search engine traffic and referral traffic by linking visitors to your website
7.  Start Social Media with –

  • Twitter
  • Facebook Fan Page
  • Linkedin (Group for your company, and participate in Linkedin Answers)

8.  Twitter, Facebook and Linkedin ALL help with referral traffic
9.  Linkedin helps with BOTH referral traffic and search engine traffic
10.  TAKE THE PLUNGE. You know Social Media is out there, so start before it’s too late, and give your website a boost at the same time!

Post your questions in the comments and we’ll be sure to respond.  Hope you found our highlights useful for those who didn’t get a chance to attend the webinar.  And don’t forget to sign up for our free SEO webinar this Wednesday, January 13th – 5 Tips to Double Your Site Traffic in 2010 – http://bit.ly/6gIaAX

Thanks for tuning in!

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