Is a friend on facebook or a follower on twitter worth as much as you think?
With a little help from my friends actually doesn’t get you as far as it used to. We need a much larger submarine to pack in all the likes and online-only friends, and it tends to get lost a lot being driven in so many different directions. Social Media Marketing is starting to settle someone into its own and thankfully with it, we’re realizing that the race to the top of the friends list is a bit more difficult to monetize that the craze first promised.
How much is a facebook fan worth?
Syncapse released a report that estimated the value of a fan of a facebook fan page is around $136; important to note that it claims that fans will spend approximately $74.00 more than non-fans; whether this is due to promotions on the fan pages, the pre-loyalty or spending habits before they actually became a fan, etc. are not entirely clear. There are also plenty of studies claiming it’s as low as a single dollar or a few cents. There are a lot of variables based primarily on the level of your interaction and if your product is something that promoted continued purchases so that you get the most out your fan base.
A lot of the brands in this Syncapse are huge and set at low to medium price points: easy products for people to recommend to their friends. If you are a restaurant owner located in a small town in Ohio… their discrete value numbers aren’t accurate, but the message might still be. My main point is to be realistic, and also be VERY aware that there is a definite saturation happening in social media. As such, the value will natural go down
But does all this really translate to all types of products and services? How much time and money should you invest in getting more fans of your page?
The answer, of course, is that it entirely depends, however, the prediction can be a logical one. First we must also assume that you will always be actively engaging fans of your page. If all you do is seek fans, but then don’t give them anything to keep them interested, then you’re definitely wasting your time in social media marketing. Remember that fans are not there for you, you are there for them. Social Media Marketing has somewhat turned that original concept on its head to now businesses assume fans are only there to help the “thing” they like – they forget fans are looking for something out of the deal as well.
Another important point of the “a facebook fan is worth $136” idea is that there is no way to measure the “pre-facebook-fan” level of customer loyalty. It’s entirely possible that those who become fans are simply more vigorous customers, so naturally are prone to spend more. That, coupled with discounts offered via facebook pages… which can just as easily be offered elsewhere to promote more purchases… makes the argument somewhat grey.
I don’t want to imply that social media is a waste, but I do want people to be realistic about what sort of real return it can give your business.
Businesses that sell smaller products that have new models can do well. Facebook fans can refer to products to their friends and you can offer discounts. Restaurants that offer coupons for fans can do well. Real Estate agents… you have to work really hard. It’s not like people want to be a fan of a real estate broker so they can read updates about mortgages and new listings. But if somehow you keep them, then you can generate a decent word of mouth and get a sale or so a year out of it, in which case you have a good return. (Just don’t expect massive amounts of pople to like your page in short periods of time. It’s not like you’re rock star or have tiger’s blood.) As I sad earlier: be realistic. Just because you have a facebook page doesn’t mean magic will happen.
You must also be weary, as with any marketing, of the combination of quality and quantity. Inexpensive products quantity is a good thing. Expensive ones, not so much; that just means more work for you interacting with people who will never buy your product. (You can sense that I’m a fairly frank in my belief that where businesses invest time and money ought to get them a return. When you make your millions, then donate like crazy, but that’s not the motivation that brought you to find this post.)
Facebook friends do have value, just don’t OVERVALUE them in and of themselves. They have value when combined with something else, most often a dedicated discount offer or as a tool for customer research. Be wise in how you intend to use their input. Be consistant with your engaging them on your page. And be realistic about what you really expect to get…
… because after all… all they did was hit a like button…. they don’t have much invested in the friendship.
