78% of a Brand's Facebook Fans Are Already Customers [Study]

Why do people become fans of a brand on Facebook? A new study reveals that a majority are customers of a brand. Other motivators include discounts and contests, but the data suggests these fans are not worth as much to a brand in the long run.

Social intelligence company Syncapse set out to answer why people become Facebook fans in its latest study and what the value of a fan is to a brand. The research found 78 percent of a brand’s Facebook fans have already engaged with the brand’s product or services.

“Since being a brand user is usually a prerequisite to becoming a Fan in consumer goods categories, marketers should prioritize their Fan acquisition investments on converting existing customers,” Syncapse said in its report. “Not only is acquisition cost and conversion friction lower, but the investment in a higher quality Fan base will reap rewards down the line, and this is true for both lower-cost and higher-cost consumer brands.”

But there are other motivators for people becoming fans of a brand on Facebook, including wanting coupons or discounts or sharing personal experiences and interests with others.

syncapse-fan-reasons

But Syncapse warns that acquiring fans through discount offers often lead to a lower value overall for the brand.

“Many brands, particularly retailers and lower-cost brands with high purchase frequencies, often resort to rewards and direct-response incentives for driving Fan membership. However, these tactics are often blindly targeted to brand-promiscuous deal hunters, resulting in a lower-quality, fickle Fan membership (and waste of scarce marketing dollars).”

So just how much is the value of a Facebook fan?

Syncapse took into account several factors in its study including spending, loyalty, propensity to recommend, earned media value, acquisition cost and brand affinity when answering this question. The total value of a fan based on these factors is estimated to be $174 – a 28 percent increase since 2010.

But the true value in a fan, Syncapse argued, is measured by the motivation behind becoming a fan in the first place. While discounts and contests may drive a brand’s fan base up quickly, many of those Fans aren’t likely to have staying power.

“After understanding the composition of social membership, it becomes critical for marketers to understand the reasons consumers become Fans of brands in the first place,” Syncapse said. “Marketers must compare actual reasons for becoming a Fan, and the hard tactics (and often expensive investments) they often deploy to acquire Fans – sometimes they match up, sometimes they don’t. There may be more effective and efficient strategies to acquire more of the right types of Fans.”

You can access the full Syncapse study here.

This article was originally published on http://searchenginewatch.com/sew/study/2278045/78-of-a-brand-s-facebook-fans-are-already-customers-study.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior

Whitepaper | Mobile US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups

Whitepaper | Analyzing Customer Data Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people

Whitepaper | Digital Marketing Learning to win the talent war: how digital marketing can develop its people

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy

Report | Digital Transformation Engagement To Empowerment - Winning in Today's Experience Economy

4w

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource