Update – July 2011 Facebook Fan Value – Another Perspective
In the last post, we discussed that Facebook Fans are a different kind of customer. They have segmented THEMSELVES – because they self-proclaim their endorsement of your brand, your products, your service, and/or your company – they are VALUABLE. You cannot buy this type of customer.
According to EContent Magazine, Syncapse Corp., a Toronto-based social media management software provider , studied and quantified that the total value of a customer who is a Facebook Fan is worth $136.38 more than a customer who is NOT a Facebook Fan.
A Simpler Way for Marketing Managers to calculate the value of a Facebook Fan
Vitrue, Inc, an Atlanta-based provider of software for social media management, conceived another approach to calculating the value of a Facebook Fan page.
Vitrue’s formula is based solely on the number of impressions the fans enable.
For example, if a company has 100,000 Facebook fans and posts to Facebook two times every day, then the brand appears twice on every Fan’s newsfeed. This creates 200,000 impressions per day, and about 6,000,000 impressions per month. Using the assumed cost of $5 per thousand, those 6,000,000 impressions translate to about $30,000 in revenue per month, or $360,000 each year. Now divide this number by the 100,000 fans, and the resulting value per Facebook fan is $3.60 annually.
Compound the Value of a Facebook “Like”
Reggie Bradford, Vitrue’s CEO, claims that the twice-a-day messaging is only the beginning of the marketing value. Now that you have their “Like”, marketing efforts to boost this value could include:
Use these tactics to further engage your Fans. Get them to comment and share. Now “you’re creating enormous impression-to-earned media value.”
What are YOU doing to engage and exploit the marketing potential of your Facebook Likes?
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ABOUT Lisa M. Chapman:
Ms. Chapman’s new book has a name change! The Net Powered Entrepreneur -A Step-by-Step Guide will be available very soon. With offices in Nashville Tennessee, but working virtually with international clients, Lisa M. Chapman serves her clients as a business and marketing coach, business planning consultant and social media consultant. As a Founder of iBrand Masters, a social media consulting firm, Lisa Chapman helps clients to establish and enhance their online brand, attract their target market, engage them in meaningful social media conversations, and convert online traffic into revenues. Email: Lisa @ LisaChapman.com