May 23, 2013
Chances are you fall into one of two categories – you either spend a ton of time on Facebook promoting your business or you feel guilty about how you’re not nearly utilizing Facebook like you should. With all the focus on building a Facebook following and getting fans to ‘like’ your business page, the question remains; does any of that actually pay off? Or, more bluntly, what’s the actual dollar value of a Facebook Fan?
One of the greatest benefits of Facebook is that it’s a free (from a cash standpoint, not a time standpoint) marketing tool that you can use to build awareness and brand loyalty for your small business. But just because it’s free and just because everyone’s using it doesn’t mean it’s actually effective.
That’s where Syncapse came in with their analysis of the value a Facebook fan has to a company. This report, the only one of its kind that surveyed more than 2000 Facebook users to understand their buying preferences, was first published in 2010 but Syncapse recently updated it based on their 2013 findings and there’s some interesting changes in consumer behavior that are worth noting.
A Note About The Report
First and foremost, it’s worthwhile to explain that Syncapse did not look at small businesses like yours and mine, but instead focused on large recognizable global brands like Coca-Cola, Starbucks, and Levi Strauss. Obviously, smaller brands may have a very different experience with Facebook so keep this in mind.
Facebook Fans & The Numbers
For consumer brands, once high-end luxury products like BMW was taken out of the equation, Syncapse found that the average value of a Facebook fan to the brand is $174.17. This is up 28% from 2010 when the value of a fan was found to be $136.38.
It’s worth noting though that not all brands are created equal. Syncapse found that brands that have lower priced products have a lower Facebook fan value. For example, Coca-Cola has a Facebook fan value of $70.16 versus Starbucks which has a fan value of $177.29.
The report also found that customers who were also fans had a much higher level of engagement with the brand than regular consumers. The fan consumers were more likely to be more satisfied with the brand (18% versus non fans) and more likely to continue using the brand (11% versus non fans). Facebook fans were also significantly more likely (85% versus 60% of non fans) to recommend the brand to others.
For the complete Syncapse Value of a Facebook Fan 2013 report click here (your information is required to download the report).
Is this an appropriate time to ask you to like the Small Food Business Facebook page?