The Government's newly released National Innovation and Science Agenda shows that for economic growth to continue within Australia, an 'innovation ecosystem' must be fostered, where new businesses with new ideas are encouraged to grow and flourish. With every company wanting to increase, retain or improve their customers’ experiences, this makes marketing vital to fuelling Australia's ideas boom.
When a Facebook user likes your brand page, that click is worth US$174.17 to your brand-a 28 per cent increase since 2010, according to a new report.
For its study, " The Value of a Facebook Fan in 2013: Revisiting Consumer Brand Currency in Social Media," social intelligence company Syncapse surveyed more than 2,000 Facebook users who have liked a brand. The research took into account factors such as product spending, loyalty, propensity to recommend, media value, acquisition cost and brand affinity to determine the value of a Facebook fan.
"The increase in average fan value is driven by fans' tendencies to be super consumers," the report says. "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."
Here's a look at some other key findings from the report.
Facebook Fans Spend More Money, Advocate More
According to the report, Facebook fans not only spend more money on the brands they fan ($116 more per year than nonfans), they also spend more within the brand's sector-43 per cent more, despite not having a higher income than non-fans.
Facebook fans are also 18 per cent more satisfied with their brands than non-friends, and 11 per cent more likely to continue using the brand than non-friends.
Because 20 per cent of customers represent 80 per cent of revenues, the report says, the better you can isolate key customer segments, the more relevant your messaging can be to drive loyalty and introduce the best offers to spend more.
Brand managers should aim to interact with customers on Facebook to understand what they're passionate about, solicit their input and enable a feeling of ownership, the report advises. Conversely, they should avoid chasing people who are unfamiliar with the brand, have no vested interest, are skeptical and are far from being converted, it says.
Brand Fans Are Super-Consumers
Facebook users who like your brand are much more active in social media, with two-thirds of brand fans also being a fan of more than 10 brand pages at any given time, the report says. Almost two-thirds of brand users who are nonfans have liked 10 or fewer pages.
Facebook fans are also vocal about what they do and don't like. According to the report, on average, 75 per cent of fans are likely to share good brand experiences, promotions and discounts with their Facebook friends. Two-thirds of fans are also likely to share a bad brand experience.
Because your brand's Facebook users are your evangelists, the report recommends prioritizing your marketing investment by ensuring they're happy: Make sure they feel appreciated and nurtured, and find ways to talk about your brand and share their opinion. Follow CMO on Twitter: @CMOAustralia or take part in the CMO Australia conversation on LinkedIn: CMO Australia.