Why Facebook Likes are worth $174 to your brand

A new report from Syncapse details monetary and brand value of Facebook Likes today

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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: ABC's Leisa Bacon

In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.

More Videos

okay this a good newsmaybe i gonna try it

kenzopoker1

CMO's top 8 martech stories for the week - 9 July 2020

Read more

Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...

Abi TCA

CMOs: Let middle managers lead radical innovation

Read more

One failing brand tying up with another failing brand!

Realist

Binge and The Iconic launch Inactivewear clothing line

Read more

I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...

Nancy Tunick

The personal digital approach that's helping Vision RT ride out the crisis

Read more

I am 57 and diagnosed in June 2009. I had a very long list of symptoms, some of which were. Keeping right arm close to my side while walk...

Nancy Tunick

Gartner survey: CMO spending hit by COVID-19

Read more

Blog Posts

MYOD Dataset: Building a DAM

In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.

Kshira Saagar

Group director of data science, Global Fashion Group

Business quiet? Now is the time to review your owned assets

For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.

Olia Krivtchoun

CX discipline leader, Spark Foundry

Bottoms up: Lockdown lessons for an inverted marketing world

The effects of the coronavirus slammed the brakes on retail sales in pubs, clubs and restaurants. Fever-Tree’s Australia GM Andy Gaunt explains what they have learnt from some tricky months of trading

Andy Gaunt

General manager, Fever-Tree Australia and New Zealand

Sign in