New Syncapse empirical research on Facebook fan value, additional product spend and brand loyalty
"A fan base is a self-segmented group of highly valuable customers."
After all the buzz about the value of a Facebook fan, Syncapse just released the first proper empirical review on this topic which I encourage everyone to read (and it's free anyway). Especially the figures on average additional product spending by brand are pretty interesting (see below chart).
Summary of key findings
- Fans spend an additional $71.84 on average compared to non-fans
- Fans are 28% more likely than non-fans to continue using the brand
- Fans are 41% more likely than non-fans to recommend a product
Many brands overcomplicate their measurement requirements by tracking dozens of independent variables. Many oversimplify by trying to apply a single number concept of value, and far too many fail to quantify ROI in such a way as to convince a CFO of the merit of increasing or shifting investment towards Facebook marketing. [...] This study will examine the five leading contributors to Facebook fan value. (1) Product Spending (2) Brand Loyalty, (3) Propensity to Recommend, (4) Brand Affinity and (5) Earned Media Value.
Download the full Syncapse research report here
