value of a facebook fan 2013: summary of findings
DESCRIPTION
Brand marketers are sobering up and asking hard questions around the ROI of social marketing. Perhaps no question is asked more often than “What is the value of a Facebook brand Fan?” According to new Syncapse empirical research, the average value of brand Fans in key consumer categories has increased 28% to $174.17. Not only do they tend to be brand users first, they spend more, engage more, advocate more, and are more loyal. The significant and increasing value of a Facebook brand Fan affirms past social marketing investment and mandates deeper commitment and accountability in the future. Read the summary and download the full report on www.syncapse.comTRANSCRIPT
THE VALUE OF A FACEBOOK FAN 2013
APRIL 2013
REVISITNG BRAND CURRENCY IN SOCIAL MEDIA
Social Growing Up
2011SOCIAL AS A HOBBY
ChaoticReactive
Consumer In ControlDisconnected and Siloed
Platform-Led KPIs (“Likes”)Community Management
Faux FriendshipsSales-Phobic
2013SOCIAL AS A BUSINESS
SynchronizedProcess-DrivenBrand Sets DirectionConnected and IntegratedBrand-Led KPIsCustomer SegmentationGenuine CommunicationOpen For Business
Growing Up Means Asking Tough Questions
WHAT IS THE VALUE OF A FACEBOOK FAN?
The Value Of A Facebook Fan 2013
Value Of A Fan: 2010 Vs. 2013Fan Behavior: 2010 Vs. 2013
Brand Preferences & AttitudesReasons For Becoming A FanOutlook For Social Marketing
• Sequel to 2010 seminal report• Comparison of Fans and non-Fans• Insights and brand mandates• Featuring 20 global consumer brands
REVISITING BRAND CURRENCY IN SOCIAL MEDIA
Key Topics & Brand Mandates
Methodology
SURVEY METHODOLOGYConducted by HotspexU.S. Consumer Panel; N=2,00025-minute survey of brand users; Fans versus non-Fans
1. PRODUCT SPENDING: Spending habits on each brand and category
2. LOYALTY: Intention to keep purchasing the brand in the future
3. ADVOCACY: Probability for recommendations leading to sales
4. MEDIA VALUE: Efficiencies of earned reach and frequency via Facebook
5. ACQUISITION COST: Efficiency of Fans in enticing further membership
6. BRAND AFFINITY: Emotional draw felt by Fans towards their brands
SYNCAPSE FAN VALUE CALCULATION
FINDINGS
Value of a Fan 2013 vs. 2010
KEY FINDING Average Fan value increased 28% to $174.17 in 2013 versus 2010, while Fan counts doubled and sometimes tripled in 2013.
>>Brand Mandate: Apply Fan Value To Marketing Strategy• Understand the factors of Fan value for better planning, execution and
measurement. • Benchmark and track for frequent optimization and long-term
understanding of cause-and-effect. • Rally all stakeholders – from internal departments to agencies – around
factors of Fan value.
Value of a Fan 2013 vs. 2010KEY FINDING Brands with smaller retail prices have comparatively smaller average Fan values.
>>Brand Mandate: Drive scalable presence, everyday. • While Fan value is lower for many consumer brand categories, capitalize on
large Facebook Fan memberships to maintain everyday presence at scale, sensing user needs and wants, and introducing relevant triggers to buy.
Fan Behavior: 2010 vs. 2013
KEY FINDINGUsers of brands who are Fans are more receptive to those brands versus users who are not Fans.
>>Brand Mandate: Amplify positive brand attributes to Fans.• Convert users to Fans to reinforce messaging, amplify the experience and
extend a halo of positivity. • Create “New Moments of Social Brand Truth.”
Facebook Brand Fans: • 80% more likely than
non-Fans to be brand users. • 43% more spent in respective
categories vs. non-Fans, despite not having a higher income.
• 18% more satisfied with their brands than are non-Fan users.
• 11% more likely to continue using the brands than are non-Fan users.
Brand Preferences & Attitudes: Fans vs. Non-Fans
KEY FINDING Brand Fans are super consumers.
>>Brand Mandate: Delight your existing fans and users. • Brand Fans tend to be users and they are evangelists, so appreciate and
nurture them. They want to talk about your brand and share their opinion. • Use existing customer touch points – i.e., microsites, product packaging,
time of purchase, and customer service interactions – to convert brand users into Fans.
Brand Preferences & Attitudes: Fans vs. Non-Fans
KEY FINDINGFans spend more than non-Fans.
>>Brand Mandate: Give your Fans reasons to spend.• Identify Fans within your customer base and score them. • Customize message to key customer Fan segments to drive loyalty and
introduce the most relevant offers to spend more.
Brand Preferences & Attitudes: Fans vs. Non-Fans
KEY FINDING Fans advocate more.
>>Brand Mandate: Co-create value with your fans.• Interact with customers on Facebook to understand firsthand what they’re
passionate about, to solicit their input, enable a feeling of ownership, and create shareable experiences.
• Avoid chasing illusive “influencers” - who tend to be unfamiliar with the brand, have no vested interest, are skeptical and far from converting.
Purchase Intent, Loyalty & Emotional DriversKEY FINDING • Brands with longevity
have lower Fan value.• Polarizing brand profiles
attract higher value Fans.
>>Brand Mandate: Invest In social for brand longevity.• Invest in Facebook to reinforce
and extend brand leadership.
>>Brand Mandate: Segment loyalists and detractors.• Engage loyalists first while
approaching disenchanted users according to status and value.
The Coca-Cola brand is so strong that non-Fans appreciate and use it.
Polarizing brand has high usage of non-Fans.
Fans use and love the brand; non-users more likely to dislike, less likely to be Fans.
Reasons For Becoming A Fan
KEY FINDING. Fans tend to be brand users before they ‘Like’ a brand’s Facebook page.
>>Brand Mandate: Focus on customers first, prospects second.• Since being a user is a prerequisite to becoming a Fan (in most cases),
prioritize converting existing customers. • Capitalize on your high quality Facebook membership of existing users first
through word-of-mouth promotion and lookalike modeling.
On average, 80% of Fans use the brand.
Reasons For Becoming A Fan
KEY FINDING. Personal expression trumps coupons as reasons for Fanning brands.
>>Brand Mandate: Balance offers with brand attributes.• Prioritize brand personality attributes when acquiring Fans, and deploy
transactional offers (like product trials) for most valuable, Fans and users. • Avoid direct-response offers for Fan acquisition tactics for they can devalue
the brand and result in a lower-quality Fan membership.
2 Main Drivers of Fan Membership: 1) To get a coupon, a price discount or some type of purchase rewards (cognitive/practical) 2) To show support for the admired brands and to
receive regular updates (emotional/personal).
Summary
1. FANS MATTER2. SOCIAL BELONGS AT THE CENTER OF
MARKETING STRATEGY3. IT’S A “PAY-TO-PLAY” WORLD
Thank you.
Download the full report on Syncapse.com