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Value of a facbook fan (Syncapse))
 

Value of a facbook fan (Syncapse))

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A great study into the potential value of a Facebook fan from Syncapse.

A great study into the potential value of a Facebook fan from Syncapse.

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    Value of a facbook fan (Syncapse)) Value of a facbook fan (Syncapse)) Document Transcript

    • THE VALUE OF A FACEBOOK FAN: AN EMPIRICAL REVIEW JUNE 2010 Presented by Syncapse in association with hotspexSocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com
    • THE VALUE OF A FACEBOOK FAN:AN EMPIRICAL REVIEWExectutive SummaryAs Facebook matures as a viable marketing and customer service channel, manyorganizations are looking to quantify and understand the impact of their overall marketinginvestment on their business. Quantifying the Return on investment (ROI) of Facebookmarketing efforts includes multiple variables and companies often fail to understand andto properly value their efforts in terms of the potential long-term business benefits of theFacebook channel.Many brands overcomplicate their measurement requirements by tracking dozens ofindependent variables. Many oversimplify by trying to apply a single number concept ofvalue, and far too many fail to quantify ROI in such a way as to convince a CFO of the meritof increasing or shifting investment towards Facebook marketing.Syncapse has adopted a unique approach tounderstanding the financial returns that social members onFacebook provide to a business. Facebook fan ROI can Value is reflectedbe understood though a knowledge of key performanceindicators that have traditionally led to increased sales not simply by theand profit in business and the key differences betweenFacebook users who have opted to “fan” a brand andthose who have not. action of beingThis study will examine the five leading contributors to a “fan” but ratherFacebook fan value. (1) Product Spending (2) BrandLoyalty, (3) Propensity to Recommend, (4) Brand Affinity the value of theand (5) Earned Media Value. audience.Introduction: Understanding The Value Of A FanBrand marketers have been struggling to understand the impact of their Facebook marketing effortscontribution to their overall marketing success. Many are attempting to establish the return througha campaign-based analysis rather than by a consideration of long-term business value. Confusion inthe industry is widespread and clear principles for Facebook measurement have not been commonlyadopted. This has resulted in missed advantage across agencies, brand teams, and executives in fullyrealizing the potential benefits of Facebook marketing.Understanding long-term Facebook fan value is a complex undertaking with advanced calculationsrequired across multiple variables. This understanding is rooted in the measureable differencesbetween users who have “fanned” a brand and those who have not. The value is reflected not simplyby the action of being a “fan” but rather by the value of the audience and the benefits “fanning” offersthe brand. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 02
    • Deriving Fan ValueIdentifying differences in behavior and motivation between fans and non-fans is significant inunderstanding the true value offered to an organization. Syncapse has identified and isolatedthese factors and associated them with key factors recognized across the industry as driversof shareholder value. The factors studied are widely identified as fundamental to bothshort-term and long-term sales performance and have been tested across multipleorganizations to confirm their importance.The variables studied in this paper for the purpose of understandingFacebook fan value Include: 1. Product Spending: The ability to understand the methodology of increasing product spending. 2. Loyalty: The ability to understand the available means to influence and promote brand loyalty within a target audience. 3. Propensity to Recommend: Probability and propensity for word-of-mouth recommendations leading to sales. 4. Brand Affinity: The impact on brand perception and recall. 5. Media Value: Efficiencies of earned reach and frequency via the Facebook platform. 6. Acquisition Cost: Efficiency of Fans in enticing others to participate and drive organic membership. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 03
    • MethodologyThe quantitative research for this Syncapse undertaking was conducted in conjunction withHotspex Market Research and consisted of a 25-minute survey using their online panel. Datawas collected from over 4,000 panelists across North America in June 2010.The questionnaire required panelists to self-identify those consumer companies with whom theycould be identified as a fan. Then, information on past or projected future consumer behaviorsof respondents was collected, together with the feelings of respondents towards the past orprojected actions or feelings of others (family, friends, etc.) with respect to their consumerbehaviors. Standard Lichert Scale methods were used to profile questionnaire responses.Brands used in this study were twenty of the top brands on Facebook at the time of conductingthis research. In order to ensure that the survey questions were applicable to each producttype, research was focused only on consumer brands. Celebrity and un-official pages wherenot analyzed.Syncapse analyzed the data utilizing SocialTRAC™, a propriety global platform forunderstanding social media value and business drivers. Assumptions are supported throughin-depth proprietary research and data analyses of two-years available data across millions ofinteractions.Findings were then analyzed contrasting fans and non-fans for these top brands: Nokia,BlackBerry, Motorola, Secret, Gillette, Axe, Dove, Victoria’s Secret, Adidas, Nike, Coca-Cola,Oreo, Skittles, Nutella, Red Bull, Pringles, Playstation, Xbox, Starbucks, and McDonald’s.A fan base is a self-segmented groupof highly valuable customers.Summary Of Key FindingsConsumers who are fans are more valuable to organizations across all variables studied thanare consumers who are not fans. Key value points include: • On average, fans spend an additional $71.84 on products for which they are fans compared to those who are not fans. • Fans are 28% more likely than non-fans to continue using the brand. • Fans are 41% more likely than non-fans to recommend a fanned product to their friends. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 04
    • No Two Brand’s Fan Values Are The SameWith all variables analyzed across all 20 studied brands, Syncapse’s research indicates theaverage annualized value of an individual fan is $136.38. Fan value can vary widely bycompany and product. Factors influencing this variability include product purchase price,purchase frequency, product purchase cycle, product category and brand equity. It should benoted that underlying brand strength is the cause for some of these differences.For example, the baseline brand equity has a very strong influence on the relative valueof a fan. A case in point is the fan value of BlackBerry ($83.98) versus Nokia ($180.87).BlackBerry manifests a lower loyalty premium for Facebook fans because the strength of theirproduct among non-fans is much higher compared to Nokia. For Nokia, fans are intensestalwarts but less enthusiasm is evident with non-fans. In that light, fan value is not simply aquestion of ‘good’ or ‘bad’, but rather must be understood in terms of the overall profile of abrand’s loyalty inside and outside of the social channel.Equally important is the impact of external forces upon value. In the above case the pricingimpact of channel partners may artificially distort the overall fan value of premium brandssuch as BlackBerry or other Smartphone providers due to their inherent need to price discountin order to gain market penetration.No Two Fans Are Created EqualThe fan base of a brand is unique and comprised of different levels of influencers andcustomers. The average fan value is $136.38, but it can swing to $270.77 in the best caseor go down to $0 in the worst. This is due to the fact that no two fans are alike.Syncapse has observed that an average fan may participate with a brand ten times a yearand will make one recommendation. But, an active fan may participate thirty times and maketen recommendations. The impact this has on fan value is quite dramatic. In the case of Coca-Cola, the best case for fan value reaches $316.78 but is $137.84 for an average fan. In theworse case scenario, a fan is worth $0. This degree of variability in the value of a fan mustbe a major consideration in determining how brands address different types of fans in effortsto move them up the value ladder. In short, the goal must be to reduce fan variability whilemoving the average fan value to the active end of the range. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 05
    • Product Spending (Annual)Driving new and increased spending per customer is a key focus for most marketers.Understanding the difference in consumer spending patterns between users who have fanneda brand and those who have not provides insight into the importance of the audience to thefinancial success of an organization.Syncapse’s research indicates strong findings that Facebook fans are more valuablecustomers and spend more on average than do non-fans. Across the twenty brandsexamined, fans reported spending, on average, $71.84 per year more than respondentswho were not fans. Facebook fans reported spending $71.84 more per year than non fans.McDonald’s saw the largest variability, with Fans reporting spending $159.79 moreper year than non-fans. Oreo saw the lowest value with a difference of $28.52. Factorsinfluencing these differences may include both product price and purchase lifecycle. Thus,these differences are less an indicator of marketing performance, and more a confirmationthat Facebook fans are more valuable customers than those who are not. It is probable thatthese numbers can be influenced by a number of factors, including sales penetration, brandhealth, product health, as well as Facebook marketing success. This study did not investigatethese mitigating factors as they could vary greatly depending on region, brand, and productcategory.The chart on the next page outlines the total annualized spending and contrasting resultsbetween fans and non-fans. Differences are not proposed to be representative of overallmarketing effort success, but rather represent a snapshot of reported spending differencesbetween the two audiences. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 06
    • Product Spending: Facebook Fans vs. Non Fans Fans Non-Fans Difference Average $157.18 Average $85.34 Average $71.84 $171.22 Nokia $107.37 $63.86 $132.31 BlackBerry $34.62 $97.68 $160.01 Motorola $90.92 $69.09 $89.11 Secret $34.91 $54.20 $128.60 Gillette $52.07 $76.53 $101.48 Axe $39.61 $61.87 $141.76 Dove $84.74 $57.02 $229.04 Victoria’s Secret $76.08 $152.97 $125.59 Adidas $51.75 $73.83 $205.02 Nike $121.32 $83.69 $190.48 Coca-Cola $69.50 $120.98 $84.27 Oreo $28.52 $55.75 $128.62 Skittles $75.81 52.82 $101.93 Nutella $48.84 $53.10 $113.95 Red bull $63.81 $50.14 $133.38 Pringles $72.55 $60.83 $188.02 Playstation $66.42 $121.61 $173.34 Xbox $33.88 $139.46 $235.22 Starbucks $124.27 $110.95 $310.18 McDonald’s $159.79 $150.39 Source: Syncapse Corp SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 07
    • Brand LoyaltyAs more organizations look to platforms like Facebook to foster and grow relationships withtheir customers, loyalty values become key indicators of marketing and product performance.Research across all 20-brands studied indicated that Facebook fans were more loyal to the fannedbrand than consumers who were not fans. On average, Facebook fans are 28% more likely tocontinue using a brand than are non-fan consumers. This data illustrates the importance of theaudience on short-term and long-term marketing efforts of an organization.Adidas had the highest variance of loyalty between fans and non-fans with 42.5% of fansindicating a heightened likelihood of continued product usage. Secret saw the lowest difference inloyalty, only 15.83% between the two groups. Loyalty is often viewed as a key indicator of brandand product health. The data further suggests the heightened value of the Facebook fan Page audi-ence and the difference between the potential of the general mass market versus that of fans.Facebook fans are more loyal tothe fanned brand than non-fans.The chart on the next page outlines the percentage of fans compared to non-fans who haveindicated they are “very likely” to continue using each brand. Again in this case, the data is notsuggesting success of specific Facebook marketing efforts, but rather profiles the overall value ofthe audience to the organization. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 08
    • Brand Loyalty: Continued Product Usage Fans Non-Fans Difference Average 75.3% Average 47.5% Average 27.7% 60.0% Nokia 31.78% 28.2% 65.9% BlackBerry 23.97% 41.9% 65.0% Motorola 33.63% 31.4% 67.6% Secret 15.83% 51.8% 83.3% Gillette 24.57% 58.8% 71.4% Axe 22.58% 48.9% 80.0% Dove 24.23% 55.8% 79.2% Victoria’s Secret 23.90% 55.3% 80.0% Adidas 42.55% 37.5% 76.6% Nike 30.90% 45.7% 85.0% Coca-Cola 22.35% 62.7% 77.1% Oreo 20.39% 56.8% 75.0% Skittles 25.87% 49.1% 83.9% Nutella 39.82% 44.1% 62.1% Red bull 29.42% 32.7% 69.2% Pringles 20.25% 49.0% 87.5% Playstation 40.02% 47.5% 79.1% Xbox 32.66% 46.4% 76.0% Starbucks 28.62% 47.4% 81.3% McDonald’s 21.45% 59.8% Source: Syncapse Corp SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 09
    • Propensity To RecommendWord-of-mouth is extremely credible as a sales driver and plays a direct role in driving anorganization’s revenue. Word-of-mouth is often hard to measure as it takes place in both the digitaland physical worlds. This makes dashboards or other trending indicators nearly impossible toconstruct. Business ranging from SMB’s through the world’s largest companies all experience saleslift or decline as a result of positive or negative word-of-mouth. 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 of social media marketing.Overall, 68% (on average) of Facebook fans indicated that they are very likely to recommend aproduct across the 20-top leading brands. This is contrasted by 28% for non-fans. Gaming brandPlaystation led overall Likelihood To Recommend with 81.4% followed by Victoria’s Secret with79.4%. Notably, the lowest Likelihood To Recommend by fans was still quite favorable at 59.5%for Secret. On average, Facebook fans were 41% more likely to recommend a product then theirnon-fan counterparts.This research suggests that a large of base of fans wouldresult in an increase in consumers willing to participatein brand-based recommendations and discussions.These findings, at a brand level, become a key driver 68% of Facebookin reporting fan value throughout the marketing andexecutive portions of the organization. This data, Fans indicate they are very likelysupported by averaged conversation rates and margins,demonstrates long-term financial advantage to theorganization that far surpasses simplistic campaign-based calculations. to recommend aThe chart on the next page outlines the percentageof fans who responded that they are “very likely” to product.recommend a product or brand as compared to non-fans. The data is designed to highlight the importanceof Facebook fans and their propensity to recommend abrand in comparison to the population as a whole.Impact Of RecommendationsAs noted previously, recommendations are important as they help drive product sales.Understanding if there is a difference between recommendations coming from a best friend or acasual acquaintance is important as it illustrates the impact of word-of-mouth based on its source.Fanning has a demonstrable impact on others. Thirty-eight percent of respondents reported thatthey would likely become a fan of a brand if they saw a family member or close friend do so. Thisinfluence surprisingly is only reduced to 34% if it is a person known through Facebook rather thana family member. Likelihood to try a product if somebody else became a fan is 44% if it was aclose family member or friend, moderating to 36% for a Facebook friend. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 10
    • Propensity to Recommend Fans Non-Fans Difference Average 68.38% Average 27.61% Average 40.77% 55.3% Nokia 42.70% 12.6% 62.7% BlackBerry 47.54% 15.2% 63.0% Motorola 44.67% 18.4% 59.5% Secret 33.72% 25.7% 68.5% Gillette 32.31% 36.2% 64.7% Axe 45.68% 19.0% 76.0% Dove 32.46% 43.6% 79.4% Victoria’s Secret 49.03% 30.3% 73.2% Adidas 50.49% 22.7% 68.7% Nike 40.69% 28.0% 77.8% Coca-Cola 28.82% 49.0% 72.6% Oreo 27.42% 45.1% 66.0% Skittles 35.88% 30.1% 72.7% Nutella 51.66% 21.1% 57.6% Red bull 46.92% 10.7% 60.7% Pringles 22.92% 37.8% 81.4% Playstation 55.22% 26.1% 71.7% Xbox 52.19% 19.5% 68.6% Starbucks 43.44% 25.2% 67.6% McDonald’s 31.68% 36.0% Source: Syncapse Corp SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 11
    • Affinity with the BrandBrand affinity is important to understand as it demonstrates the ability of a brand to drive repeatpurchases and long-term success.Research indicates that 81% of fans said they feel connection/empathy with the brand, comparedto 39% of non-fans. 87% said they felt warmth, gratitude, happy or satisfied, compared to 49%of non-fans. Most brands show a significant gap in results between those who are fans and thosewho are non-fans. This provides further evidence of the value of an audience to an organizationand the necessity of factoring in fans as a key aspect of long-term marketing value. Brand Affinity: Connection / empathy toward brand Fans Non-Fans Average 38.6% Average 81.3% 73.7% Nokia 22.7% 86.3% BlackBerry 30.8% 76.1% Motorola 31.4% 70.3% Secret 37.7% 74.0% Gillette 43.6% 79.4% Axe 27.4% 85.4% Dove 57.0% 79.4% Victoria’s Secret 40.6% 87.8% Adidas 35.4% 89.6% Nike 43.7% 82.4% Coca-Cola 55.4% 79.6% Oreo 57.6% 85.1% Skittles 42.1% 75.8% Nutella 30.4% 69.7% Red bull 19.5% 83.9% Pringles 47.0% 89.8% Playstation 34.2% 87.0% Xbox 35.3% 84.3% Starbucks 34.0% 86.8% McDonald’s 46.8% Source: Syncapse Corp SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 12
    • Brand Affinity: Feel warmth, gratitude, happy or satisfied Fans Non-Fans Average 49.0% Average 87.0% 71.1% Nokia 27.4% 88.2% BlackBerry 35.2% 71.7% Motorola 34.8% 78.4% Secret 46.9% 84.9% Gillette 54.9% 82.4% Axe 36.1% 85.4% Dove 70.2% 90.5% Victoria’s Secret 55.4% 87.8% Adidas 46.8% 92.5% Nike 52.7% 87.0% Coca-Cola 68.6% 92.0% Oreo 77.1% 91.5% Skittles 57.2% 84.8% Nutella 42.5% 78.8% Red bull 22.0% 92.9% Pringles 61.1% 96.6% Playstation 43.3% 95.7% Xbox 40.6% 93.1% Starbucks 46.0% 94.1% McDonald’s 61.3% Source: Syncapse Corp SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 13
    • Understanding “Value of a Fan” CalculationsAcross the twenty brands that were evaluated in this study, the average value of a Facebookfan was $136.38 factoring in all areas measured within the Syncapse model. In calculatingthe average, there were many factors beyond the simple media value that they hold. Inunderstanding the value of a fan, what we are really seeking to understand is the monetaryvalue provided by the audience to the organization. For the purpose of this study we areproposing the value offered to the organization by Facebook fans in comparison to theInternet audience as a whole. In other words, what additional dollars can be expected to beattributed to a Facebook fan in comparison to a Facebook user who is not a fan.The Syncapse model utilizes key research findings Average Value of a Fanacross all five measured variables, specifically(1) Product Spending, (2) Brand Loyalty, Spend $ 71.84(3) Propensity to Recommend, (4) Brand Affinity and Loyalty $ 43.71(5) Earned Media Value. Averages and participation Recommendations $ 13.57rates across multiple Facebook programs were Earned Media Value $ 6.79then assigned based on Syncapse SocialTRAC™ Cost Offset for Fan Acquisition $ 0.47databases. It is important to note these values are not Sum $ 136.38a simple reflection of Facebook marketing efforts andengagements. They are complex calculations thatlook to understand differences in audience valuesand declared spend levels.Additional internal client data, including specificengagement levels within Facebook, product marginsand product lifecycle, along with other factors, would Source: Syncapse Corpbe required for a specific non-average based model.This data was not available for all brands at thetime of this study. This study was based on customer reported data versus internally provideddata which is consistent in terms of consumer perception, but which can differ on client valuebased on the product category.The Average Valueof a Fan is $136.38.For example, in the case of mobile handsets, consumers reported spending $155 per year.However, without the subsidies provided by carriers, the actual amount would be higher.When this model is applied in a client funded versus a generic model real data along withbalances and controls are utilized to minimize the risks of uncontrolled variables. Thus, in thecase of smartphone providers, the value of their fan can be understated due in part to thelarger subsidy applied by the carrier to actively promote increased smartphone penetration,which drives higher carrier fan value through increased mobile data usage. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 14
    • Value Per FanNot all fans are created equal. Some are extremely active with a brand while others sign upand never participate again. This results in the monetary value of fans varying dramatically.Best case scenarios take into account intensely socially active fans while the worst-casepresumes totally inactive users. The most valuable fan in the survey was that of McDonald’swho presented an annual value to the organization of $508.16. This would be a frequentvisitor to their establishments, highly loyal, frequently referring, and participating actively intheir Facebook community. An average McDonald’s fan netted the organization a value of$259.82.The lowest Best Case Fan was reported by Oreo. This would be a highly loyal, frequentlyreferring, and participating customer. However, the product price is lower and the frequencyof purchase is much lower thus impacting the total value to the organization.If one were to multiply the average value of the audience across the entire fan base, amarketer can begin to understand the value an audience offers the organization. In the caseof McDonald’s, that value would equate to $580,003,461 worth of annualized value basedon a fan base of 2,232,328 at the time of study. It is important to note that this audiencewould still have value without Facebook, although arguably much less discernable value.Monetary value of fans varydramatically. Some are intenselyactive while others are totally inactive.The chart on the next page outlines the high, average and low values that EACH Facebookfan offers the organization as an influencer. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 15
    • Fan Value: By Brand Best Average Worst Average $0 Average $136.38 Average $270.77 $299.60 Nokia $180.87 $0 $189.65 BlackBerry $83.98 $0 $290.37 Motorola $164.60 $0 $134.78 Secret $62.90 $0 $213.29 Gillette $101.92 $0 $164.14 Axe $77.98 $0 $237.36 Dove $139.81 $0 $377.57 Victoria’s Secret $160.79 $0 $239.59 Adidas $123.93 $0 $380.16 Nike $209.53 $0 $316.78 Coca-Cola $137.84 $0 $141.68 Oreo $60.60 $0 $234.94 Skittles $126.94 $0 $201.63 Nutella $105.95 $0 $198.87 Red bull $112.78 $0 $220.31 Pringles $116.93 $0 $352.41 Playstation $168.04 $0 $265.46 Xbox $113.29 $0 $412.91 Starbucks $219.03 $0 $508.16 McDonald’s $259.82 $0 Source: Syncapse Corp SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 16
    • IMPLICATIONS FORTHE ORGANIZATIONScore The Fan BaseUnderstanding current value and the factors that influence the value of a Facebook membershipbase is important. Multiple factors that happen both on and off Facebook influence the value ofthe audience. A clear understanding of these variables is key to aligning stakeholders and drivingmarketing performance. Defining the variables that matter to an organization’s bottom line,deployment of a measurement platform that allows stakeholders to track their performance overtime and adherence to a protocol that supports executives in discerning value within the businessare vital.Understand Performance Of Social ChannelsBrands need to understand the causal relationship between their social programs and its effecton key performance indicators. Understanding Earned Media Value generated by a social baseis a direct indicator of the amount of word-of-mouth conversation about a brand. UnderstandingCommunity Health is a leading indicator of the future sustainability of a community and the abilityto nurture high value customers. Mining the conversation and understanding the tone and focusprovide insights into the association fans have with a brand and how marketers can use suchallegiance to their advantage.Execute Strategies Against Key FactorsLoyalty, Spend, Recommendation, Fan Acquisition Cost, Affinity, and Media Value are the keyfactors that impact fan value. Brands need to develop strategies that address these areas. InSyncapse’s experience, we have observed that focused strategies will yield more positive fanengagement and overall community health than will an ad hoc approach. Focusing efforts on thesefactors will help increase fan value over the long term. Campaign-based practices typically do notproduce sustained positive results.Manage And Build Off The TrendsFan value is cyclical and ever changing based on the ongoing marketing performance of theactivities described within this paper. It becomes incumbent upon Brands to institute a long termview if they are to successfully learn and evolve from independent campaign orientations to anapproach of defining, measuring and increasing the value of their fans over a extended period oftime. The key performance indicators identify the levers marketers must pull to improve their ROIperformance and fan value.ConclusionAs growing audiences migrate to social networks like Facebook, a brand’s ability to connect andinfluence these customers must shift from traditional marketing strategies. Facebook fans representa significant opportunity to drive revenue enhancement, brand, and loyalty without incurringthe considerable cost-per-person of conventional marketing. More importantly, such Facebookstrategies allow for a discernable ROI that is not allowed by most other approaches.Fans are an extremely valuable segment of the Internet audience and should be addressed withspecific strategies to nurture their ongoing participation and influence. Unlike traditional campaign-based marketing, Facebook-based marketing through well crafted fan utilization has no definedshelf life and can be more readily integrated into the day-to-day operation of the enterprise. SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 17
    • ABOUTSYNCAPSESyncapse Corp. is a global leader in the areas of community building, technologysolutions, and digital measurement. Founded in 2007, Syncapse Corp. has offices in Toronto,New York, London and Portland. Syncapse works with Fortune 500 companies and globalmedia agencies to reinvent how organizations use social media to their competitive advantage.To learn more visit http://www.syncapse.comContact Usfacebook.com/Syncapse@syncapse416.593.3773info@syncapse.comsyncapse.com SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. All rights reserved. www.syncapse.com 18