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Do fans equal value?

by Helen Dunne on 16/06/2010 11:49:00 in CorpComms Online | share me: del.icio.us | digg | reddit | Tweet

New research examines whether a fan-base can translate into sales

About the author:

Helen Dunne

Helen Dunne is the editor of CorpComms Magazine, follow her tweets here @CorpCommsMag

Do fans equal value?

McDonald's has the most valuable fans on Facebook with an average spend just under $160 (£108) per year more than non-fans on products from the fast food giant.

With more than 2.4 million fans, this implies McDonald's Facebook initiative translates into additional expenditure of more than £260 billion every year.

The findings, which are contained in a report 'The value of a Facebook Fan' by digital measurement specialists Syncapse, show that an average McDonald's fan was worth almost $260 per annum, although it had some fans worth more than $508.

The highly valuable fans were frequent visitors to a McDonald's outlet, who were highly loyal and regular participants in their Facebook communities, mentioning the brand regularly.

Syncapse surveyed more than 4,000 panellists in North America regarding 20 of the top brands on Facebook. It found that, on average, fans spend an additional $72 on products for which they are fans, compared to those who are not fans.

Fans are also 28 per cent more likely than non-fans to continue using the brand, while fans are 41 per cent more likely than non-fans to recommend their favourite product to friends.

The research found that the average annualised value of a Facebook fan is $136.38, although this is obviously dependent on the price of the product.

However, in some cases, a fan can be worth nothing to a company.

Syncapse observed that an average fan may participate with a brand ten times every year, but make one recommendation. However, an active fan may participate 30 times and make ten recommendations.

Driving new and increased spending is a key focus for most marketers, and the research reveals that Facebook fans are more valuable customers and spend more on average than non-fans. Across the 20 brands studied, fans spent on average $72 per annum more than respondents who were not fans.

Surprisingly, perhaps, BlackBerry fans spent on average just $35 more per annum than non-fans, but Syncapse believes this is due to the strength of its brand loyalty. 'Fan value is not simply a question of 'good' or 'bad' but rather must be understood in terms of the overall profile of a brand's loyalty inside and outside the social channel,' the report adds.

Almost seven out of ten Facebook fans would recommend their favoured brand, and this has implications for driving sales. Almost four out of ten people said they would become a fan of a brand if a family member or close friend did so, while 34 per cent of those who knew people solely through Facebook would follow their recommendation.

The research found that 81 per cent of fans feel a connection or empathy with their brand, compared to 39 per cent of non-fans, while 87 per cent felt warmth, gratitude, happiness or satisfaction.

More than 85 per cent of Facebook fans of BlackBerry, Dove, Adidas, Nike, Skittles, Playstation, Xbox and McDonald¹s felt a connection with the brand.

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