GigaOM published a summary of the Syncapse study that estimates the value of a Facebook fan – in real dollars. Syncapse, a marketing measurement firm, took the top 20 brands on Facebook, then polled the fans about their purchase behavior, brand perception and referral levels. The study can be read in full here.
Mambo’s Take:
The Syncapse study is one of the best we’ve read – in terms of methodology and delineating behavioral indicators. But, the authors do not address why this sort of exercise is important: to build brand advocates. That may seem like just another buzzword, but it is a critical strategy when a company endeavors a social media effort.
Organizations have limited resources (money, talent and materials) to market their goods or services in this competitive market. If they build strong relationships and a loyal following, organizations can activate these “brand advocates” to help market the company through word-of-mouth activities and sharing with their personal or professional networks. Viola! Without spending an additional dime, the company has gained exposure to a new audience and has the chance to convert other prospects. This is Branding 2.0.
So, when Syncapse reports that:
- On average, fans spend an additional $71.84 on products for which they are fans compared to those who are not 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 fanned product to their friends
the stats quantify the successful brand advocate strategy described above.
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