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The Value of a Facebook Fan: An Empirical Review

The Value of a Facebook Fan: An Empirical Review. The Value of a Facebook Fan. Based squarely on key performance indicators Product Spending Loyalty Propensity to Recommend Brand Affinity Media Value Acquisition Cost. Product Spending.

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The Value of a Facebook Fan: An Empirical Review

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  1. The Value of a Facebook Fan: An Empirical Review

  2. The Value of a Facebook Fan Based squarely on key performance indicators • Product Spending • Loyalty • Propensity to Recommend • Brand Affinity • Media Value • Acquisition Cost

  3. Product Spending Facebook fans reported spending $71.84 more per year than non fans • Driving new and increased spending per customer • Understanding the differences in consumer spending patterns between Fans and Non-Fans • McDonald’s? $159.79 more per year

  4. Loyalty Facebook fans are more loyal to the fanned brand than non-fans • Facebook fans are 28% more likely to continue using a brand than are non-fan consumers • Loyalty is often viewed as a key indicator of brand and product health • Adidas? 42.5% more likely to continue product usage over Non-fans

  5. Propensity To Recommend 68% of Facebook Fans indicate they are very likely to recommend a product • Understanding Facebook’s ability, through continued engagement, to influence and impact a customer’s likelihood to Recommend, becomes a critical part of the methodology of assessing effectiveness • Research suggests that a large base of fans would result in an increase in consumers willing to participate in brand-based recommendations and discussions. • Victoria Secret? 79.4% of Fans willing to Recommend

  6. Brand Affinity Demonstrates the ability of a brand to drive repeat purchases and long-term success • Research indicates that 81% of Fans feel a connection/empathy with the brand, compared to 49% of non-fans. • Most brands show a significant gap in results between those who are fans and those who are non-fans. • Nokia? 51% difference (71.7 versus 22.7) in feeling of connection between fans and non-fans.

  7. Media Value The Average Value of a Facebook fan was $136.38 across this study • Spend = $ 71.84 • Loyalty = $ 43.71 • Recommendations = $ 13.57 • Earned Media Value = $ 6.79 • Acquisition Cost = $ 0.47 • Sum $136.38

  8. Conclusion As growing audiences migrate to social networks like Facebook, a brand’s ability to connect and influence these customers must shift from traditional marketing strategies. Facebook fans represent a significant opportunity to drive revenue enhancement, brand, and loyalty without incurring the considerable cost-per-person of conventional marketing. FanTools!

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