November 5th, 2011
Anyone with a brand would be asking this question – what is the ROI on a Facebook fan? Jon Bird from Inside Retail has managed to hunt down an article that gives some insight into this question – .
Anyone in business knows that it’s often easier to retain the customers you have rather than ‘recruit’ new customers to your brand. Tough economic times such as those we are experiencing now, and the level of competition that can be seen to get the almighty consumer dollar, makes this scenario especially true.
With many brands now having Facebook pages for their fans, it is worth asking the question – What is the value of a Facebook fan?
Some interesting revelations emerged via the study Jon Bird came across – ‘The Value of a Facebook Fan: An Empirical Review’, by an organisation in the US called Syncapse
The study (undertaken about a year ago) looked at 20 of the top brands on Facebook in the US. Fans and non-fans were compared on six variables: product spending; loyalty; propensity to recommend; brand affinity; media value; and acquisition cost. The brands studied were skewed towards manufacturers, but did include Victoria’s Secret, Starbucks and McDonald’s. What became apparent was that fans are quantifiably more valuable to businesses across all variables:
• On average, fans spend an additional US$71.84 per year on products compared to those who are not fans (In the case of McDonald’s, fans reported spending US$159.79 more per year).
• Fans are 28 per cent more likely than non-fans to continue using the brand.
• Fans are 41 per cent more likely than non-fans to recommend a ‘liked’ brand to their friends.
So here’s the question for you, have you got your Facebook page set up?
May 12th, 2011
When it comes to social networking, Google hasn’t had a very good run. Google Wave no longer exists, while Google Buzz got off on the wrong foot (with privacy invasion) when it first rolled out. In the next few weeks Google will launch its +1 button – which functions the same as Facebook’s ‘Like’ button. Given its track record, will Google ever be able to go social? If a company such as Google can’t build a successful online community, what hope is there for us market researchers?
Google obviously has the technological savvy to create these types of social networking platforms, but its core offer isn’t about being social, it’s about being useful. Google Search, Maps, News, Scholar. It’s about getting the user on and off a page as quickly as possible, with the information needed. Social media offers fun, entertainment and interaction – keeping the user on the platform for as long as possible.
Building an online community takes more than just providing a platform. Ignoring ‘the social’ impacts considerably on how your community grows – if it does at all. When establishing an insights community, keep in mind the lessons of Google. It’s just as much about interaction as it is information.
July 22nd, 2010
It’s official, today Facebook reached its 500 million friend mark, and to celebrate the site has launched a page for users to share their Facebook Stories.
These stories are a testament to the influence of social media in the lives of everyday people. Themes range from love, friendship, and family to politics, sports and small business.
The language employed by these users depicts just how influential Facebook is. Littered throughout these stories are words such as connect, helped me, together, reach, closer – and, what I think is the most significant word Everyday.
It is the everyday-ness of Facebook that makes it extraordinary.
Social media has come a long way since the birth of Facebook in 2004. It is no longer the exclusive territory of tech-savvy kids, but a legitimate form of communication… and it has just become the daily habit of 500 million people.