Do you think your 200 Facebook friends are worth up to £100 each? You may be right. You may also be wrong. Being right or wrong depends on the worth of your profile/page or your product/service.
In the actual sense, there’s no proof that Facebook likes translate into sales for a business. There are companies with hundreds of thousands of likes on Facebook but are only getting by. Whereas, there are companies with only a few hundred to a thousand likes that are crushing it in sales.
A few marketing companies have tried to ascertain the value of a Facebook like or fan in dollars. Even though the numbers were random at first, they soon began to make sense.
For instance, a Facebook like for BMW was calculated to be worth $1600, while a like for Coca-Cola was calculated to be worth $70, according to Syncapse.
But why is there a large difference between the values of their likes when both of them are large and really popular brands?
I will answer that question in a bit. First, let us take a look at few reports and what they say about the worth of a Facebook like/fan:
- NTEN, Blackbaud, and Common Knowledge reported in 2012 that the value of a Facebook like for a non-profit organization is $214. In their report, the Non-Profits Social Networking Benchmark Report, they calculated this value based on total donations received from supporters over a 12-month period after they were acquired.
- According to a study by Syncapse, a Facebook fan is worth an average of $136.38. Syncapse deduced this figure using parameters like fans’ product spending, tendency to recommend the brand, loyalty to the brand, acquisition cost, brand affinity, and media value.
- In Syncapse’s research, they also found that a social media influencer can drum up an earned media value of $22.93 for a company.
- ChompOn evaluated its traffic and discovered that a like could be worth about $8.
- According to an Adweek report, a social media marketing management company called Virtue learned that a fan base of 1 million people is worth about $3.6 million.
- Eventbrite, an event ticketing online platform, discovered that a single like can drive an average of $1.34 in ticket sales.
- Diamond Candles – a company based in North Carolina – has over 143,000 Facebook fans. They found that each engagement they had online was worth only 1 cent. But each recommendation they got from previous customers was worth $1.07.
- Ecwid realized that its Facebook eCommerce storefronts generated 21 cents per like.
On the contrary…
Forrester – a research group – stated that each Facebook like is actually worth $0. They likened a Facebook like to a stationary object. Stationary objects have potential energy which is useless until a force acts on the object causing it to release that potential energy.
Earlier I asked a question why BMW’s Facebook like is more valuable than Coca Cola’s. The answer is pretty simple. It is because one unit of its product cost way more than one unit of Coca-Cola’s.
However, the selling price of a brand’s product is not enough to show how much its Facebook likes are worth.
So, how much is your Facebook like/fan really worth?
That value is calculated using the following factors:
- Product Spending: How much does your average customer spend on your products or services?
- Loyalty: How loyal are your customers to your brand? Are they really committed to your relationship?
- Propensity to Refer/Recommend: How likely are your customer to recommend your business to family, friends, or colleagues by word-of-mouth or online reviews? And how likely is that action going to lead to sale in the future?
- Media Value: How many fans do you have and how many of them can you reach through Facebook? Plus, how frequently can you reach them?
- Acquisition Cost: Are your existing fans helping your get new fans? How efficient are they at acquiring new fans?
- Brand Affinity: Do your fans have an emotional bond with your brand? How deep is that bond?
The question now is:
How Do You Increase The Value Of Your Facebook Likes/Fans?
There are two sure-fire ways to increase the value of your Facebook likes/fans.
The more people get close to you and trust you, the more likely they are to buy from you. And the best way to draw people close is by constant communication. Communication is the lifeblood of any solid relationship and your brand-customer relationship is no exception.
Nobody wants to rally for a dead Facebook page. So, you want to make sure that you communicate with your fans by posting relevant content.
Share your business journey with them. Make your customers feel like they are part of the family. Post photos or videos of staff, new products, new achievements, etc.
As a result, you will increase your brand acquisition, media value, and ultimately, overall like/fan value.
Customer reviews are social proof that your products or services are of high quality. 98% of consumers now consult reviews before making a purchase.
So, what’s to say you cannot increase the value of your Facebook like/fan by flaunting your positive reviews?
Positive customer reviews make potential customers want to do business with you. Therefore, you should always post your latest reviews on your Facebook page for everyone to see. Your existing fans are more likely to refer a new customer to your business when they see that other customers are satisfied.
Remember that upping the value of your likes takes a bit of time and patience. You may not get to a $100 per like in one week. But if you keep communicating and showcasing your customer reviews you will get there.
Did you know that Wi-Fi analytics and marketing platforms like SpotON Wi-Fi can help boost your Acquisition Cost and Media Value?
How, you ask?
You can do this by initiating a referral program exclusive to your loyal customers only. You will offer them an incentive like discounts or freebies for every new person they bring in (Acquisition Cost).
When the new customers come in, you can encourage them to like/follow you on Facebook through your Wi-Fi landing page. That way, you increase your media value.
Simple and easy, right? I thought so, too.
Finally, if you have more questions on how our product can help you achieve this, contact us now. We are waiting to help you grow your Facebook ‘likes’ value.POSTED ON November 20, 2019