In an era when it’s harder and harder for brands to reach social media users, you might be wondering what the value of a “fan” is on Facebook or other sites.
A couple of weeks ago, I wrote a post about why it’s time to implement a paid social media strategy to not only reach the fans you have, but other people in your target audience as well. Now it’s time to talk about why the fans you already have are valuable, too.
According to Mashable, social media marketing firm Syncapse and research firm Hotspex teamed up to study Facebook fans vs. non-fans and found that fans are worth $174 to a brand. That’s an average across several large brands studied, as numbers varied for individual brands based on the cost of their product. The study compared product spending, brand loyalty, propensity to recommend, media value, cost of acquisition and brand affinity to get that number.
For a more nuanced answer, the value of social media fans can be calculated in a couple of different ways:
The most basic way fans provide value is through pure traffic to the website. Depending on the size of your social media audience and the type of content on the page, social could be driving hundreds to thousands of people to the website every month. These are people who have already seen the product and were interested enough to take a step further in the purchasing process.
As Bob Loos, the Director of Analytics at Collective Bias, said in an interview, “If you have very good content, then by the time they’ve engaged with this really great content, they’ve already, in their minds, used [your] product. You can convert before you have to win them in-store.”
There’s also value in that people who follow brands on social are often very active social media users in general. They are likely to share good brand experiences, promotions and discounts with their Facebook friends. (Although they’re more likely to share bad experiences as well, so quality content and good in-store experiences are critical!)
So if you have 15,000 Facebook fans and 5,000 Instagram fans, that’s 20,000 people who are more likely than the general public to be advocates for your brand.
Even this study, which puts the value of a Facebook follower as low as $10, shows that fans are 291 percent more likely to engage with a brand than non-fans. That’s huge!
And it’s not an isolated statistic. In 2014, Ad Week reported on a YetiData and Collective Bias study of a major grocery store’s Facebook Page. The study found that Facebook fans who engaged with a brand page at least 10 times spent more than $1,000 annually than a typical customer. That’s a 95 percent jump.
While a paid social media strategy to a wide audience is still really important, don’t neglect to recognize the value in the fans you already have and capitalize on their interest and loyalty.
Written by: Kelsey Thompson