|Facebook Fans More Valuable Customers|
|Thursday, 05 August 2010 22:00|
Average Fan Worth about $137
On average, a Facebook fan participates with a brand 10 times a year and will make one recommendation. Value can differ significantly by individual brand. For example, in the case of Coca- Cola, the best case for fan value reaches $316.78 but is $137.84 for an average fan. In the worse case scenario, a fan is worth $0.
McDonald’s saw the largest variability, with fans reporting spending $159.79 more per year than non-fans. Oreo saw the lowest value with a difference of $28.52. Factors influencing these differences may include both product price and purchase lifecycle.
Syncapse advises that these differences are less an indicator of marketing performance, and more a confirmation that Facebook fans are more valuable customers than those who are not. It is probable that these numbers can be influenced by a number of factors, including sales penetration, brand health, product health, as well as Facebook marketing success. This study did not investigate these mitigating factors as they could vary greatly depending on region, brand, and product category.
Adidas had the highest variance of loyalty between fans and non-fans with 42.5% of fans indicating a heightened likelihood of continued product usage. Secret saw the lowest difference in loyalty, only 15.83% between the two groups.
Fans Continue Use, Make Recommendations at Higher
Gaming brand Playstation led all brands covered in overall likelihood to recommend with 81.4%, followed by Victoria’s Secret with 79.4%. Notably, the lowest likelihood to recommend by fans was still quite favorable at 59.5% for Secret.
Facebook Fans Influence Others
Research indicates that 81% of fans said they feel connection/empathy with the brand, compared to 39% of non-fans. Another 87% said they felt warmth, gratitude, happy or satisfied, compared to 49% of non-fans. Most brands show a significant gap in results between those who are fans and those who are non-fans. Syncapse advises this provides further evidence of the value of an audience to an organization and the necessity of factoring in fans as a key aspect of long-term marketing value.
Social Engagement Aids Branding
Consumers who were exposed to a standard homepage ad on Facebook had 10% higher ad recall, 4% higher brand awareness and 2% higher purchase intent than consumers who were not exposed. In addition, consumers exposed to Facebook homepage ads with social context (i.e., the ad includes a list of people on the viewer’s “friend list” who are registered fans of the brand or product), had 16% higher ad recall and 8% higher awareness and purchase intent than non-exposed consumers.
About the Data: Syncapse partnered with Hotspex Market Research to conduct a 25-minute survey using their online panel. Data was collected from more than 4,000 panelists across North America in June 2010. Findings were then analyzed contrasting fans and non-fans for these top brands: Nokia, BlackBerry, Motorola, Secret, Gillette, Axe, Dove, Victoria’s Secret, Adidas, Nike, Coca-Cola, Oreo, Skittles, Nutella, Red Bull, Pringles, Playstation, Xbox, Starbucks, and McDonald’s.
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