The Value of a Facebook Fan to Consumer Brands Increased 28% to $174 since 2010

  The Value of a Facebook Fan to Consumer Brands Increased 28% to $174 since
                                     2010

BMW's Facebook Fans Valued at $1613; Wal-Mart at $835, Starbucks at $177,
Coca-Cola at $70

PR Newswire

NEW YORK, April 18, 2013

NEW YORK, April 18, 2013 /PRNewswire/ --The value of a Facebook Fan to major
consumer brands has increased an average of 28% to $174 since 2010, according
to a new empirical study from Syncapse in partnership with Hotspex. The study,
which examined 20 top global consumer brands in terms of their Facebook Fan
performance, replicates and enhances the seminal research Syncapse conducted
in late 2010 that first measured Facebook Fans value as drivers of shareholder
value. Back then the average value of a Fan across all brands under the study
was $136.

(Photo: http://photos.prnewswire.com/prnh/20130418/PH96868-a)

(Photo: http://photos.prnewswire.com/prnh/20130418/PH96868-b)

In addition to a 28% increase in value, Fan counts have doubled or even
tripled since the first study so even a slight increase in the value of an
average Fan is magnified. In 2010, these brand pages typically had a few
million Fans each. Top brands in the 2013 study have well over 15 million
Fans, with some like McDonalds and Coca-Cola with 25 million and 60 million,
respectively.

"Recent years have been characterized by hype and a competitive race to
acquire the most Facebook Fan connections, but brand marketers are sobering up
and beginning to ask hard questions around the ROI of social marketing," said
Michael Scissons, founder and CEO, Syncapse. "Perhaps no question is asked
more than 'What is the value of a Facebook brand fan?' With this study, we
applied stringent research methods to benchmark and measure the differences
between users who have 'liked' or "Fanned" a brand on Facebook and those who
have not, to determine their business value."

The study compared Facebook Fans and non-Fans based on their product spending,
brand loyalty, propensity to recommend, media value, cost of acquisition and
brand affinity. For example, 20% of a brand's customers represent 80% of
revenues, and that 20% segment often indexes highly within a brand's Fan
membership. Data were collected from over 2,000 panelists residing in the U.S.
in late January and early February 2013. 

The Value of a Facebook Fan 2013 public report is available for free download
at [http://www.syncapse.com/value-of-a-facebook-fan-2013].

Facebook Brand Fans Are Super Consumers

It is important to understand fundamental behavioral differences between Fans
and non-Fans. For example, Fans are much more active in social media, with
two-thirds of brand Fans also being a Fan of more than 10 brand pages at any
given time. Conversely, almost two-thirds of brand users that are non-Fans
have Fanned 10 or less brand pages. On average, three quarters of Fans are
likely to share good brand experiences and share promotions and discounts with
their Facebook friends. On the other hand, almost two-thirds of Fans are
likely to share a bad brand experience.

Marketer Mandates

Finally, the study offers strategies to help brands cultivate new and existing
Fans who tend to be consumers of and evangelists for their products. Syncapse
suggests using existing customer touch points – i.e., microsites, product
packaging, time of purchase, and customer service interactions – to convert
brand users into Fans. Then brands should segment, communicate and engage Fans
based on their needs and wants. 

For many brands, 20% of customers represent 80% of revenues, and that 20%
segment often indexes highly within a brand's Fan membership. Therefore,
brands must identify who are their customers among Fans and score them. The
better the brand marketer can isolate key customer segments, the more relevant
his or her messaging can be to drive loyalty and introduce the best offers to
spend more.

Research Methodology

Syncapse has isolated factors that drive shareholder value and applied them to
determine the values of Fans versus non-Fans. These factors are widely
identified as fundamental to both short-term and long-term sales performance
and have been tested across multiple organizations to confirm their
importance. They include:

1.Product Spending: The difference in spending habits on each brand within
    the category. 
2.Loyalty: The consumer intention to keep purchasing the brand in the
    future.
3.Propensity to Recommend: Probability and propensity for word-of-mouth
    recommendations to lead to future sales.
4.Media Value: Efficiencies of earned reach and frequency via the Facebook
    platform. 
5.Acquisition Cost: Efficiency of Fans in enticing others to participate and
    drive organic membership.
6.Brand Affinity: The perceived personality or the emotional draw felt by
    Fans towards their brands.

Based on the valuation model developed by Syncapse, the survey research for
this study was conducted by Hotspex and consisted of a 25-minute survey using
its online panel. Data were collected from over 2,000 panelists residing in
the U.S. in late January and early February 2013. Respondents self-identified
as Fans by indicating which brands they have 'liked' on Facebook. Next,
information on past and projected future behavior was collected both at the
category level and at the individual brand level. Data for Brand Affinity
were collected using Hotspex's PersonaSphere™, a proprietary tool to measure
the emotional drivers of marketing stimuli.

In addition to the public study, Syncapse conducts a private, ongoing
syndicated study for brand marketers seeking to benchmark Fan value and track
ongoing performance of their social marketing and overall brand health.

About Syncapse

Founded in 2007, Syncapse is a technology-enabled services company that uses
social media data to achieve smarter marketing for the world's most valuable
brands. Anheuser-Busch InBev, Coca-Cola, Diageo, JP Morgan Chase, L'Oreal,
Reckitt Benckiser and others turn to Syncapse to understand their customer
needs and improve performance. Headquartered in New York City, the company has
offices in London, Toronto and Gurgaon. Visit http://www.syncapse.com

Media Inquiries: Peter Himler, Email, 516-308-1120

This press release was issued through eReleases® Press Release Distribution.
For more information, visit http://www.ereleases.com.

SOURCE Syncapse

Website: http://www.syncapse.com
 
Press spacebar to pause and continue. Press esc to stop.