According to the study “Why consumers become Brand Fans” developed by Syncapse, the average value of a Facebook Fan is $174 across key consumer categories. This is an increase of 28% since 2010.
Syncapse’s Fan valuation methodology includes the following key drivers: spending, loyalty, propensity to recommend, earned media value, acquisition cost and brand affinity. “The effect is amplified given the exploding number of Fan memberships among the twenty major consumer brands under study; they have doubled, tripled or more”, according to the study.
The 20 major brands included in the study were Mc Donalds, Zara, Disney, XBOX, Skittles, Nike, Adidas, Victorias Secret, Coca Cola, BMW, Walmart, Subway, Dr Pepper, Levis, Oreo, Target, H&M, Blackberry and Monster.
One of the most significant attributes of brand Fans is that they typically do not fan a brand without trying it first. 78% of Fans were users of respective brands
Exceptions to this rule can occur with passion and aspirational brands that are price prohibitive. For example, the one brand in this study that demonstrated this phenomenon was BMW, where the usage rate for Fans was 36%.
Since being a brand user is usually a prerequisite to becoming a Fan in consumer goods categories, according to the study marketers should prioritize their Fan acquisition investments on converting existing customers. 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.
Other conclusion from the study is that higher quality Fans tend to attract greater numbers of other high quality Fans, and they also tend to advocate more. Establishing a direct channel with Fans (who are customers) also empowers marketers to communicate more effectively and upsell to their most valuable audience segment.
Why consumers become Brand Fans?
49% of brand Fans cited a desire “to support the brand I like” as a reason for becoming a Fan — making it the most popular reason across all brands. 42% of the fans said they have become fans to get a coupon or discount and 41% said they want to receive updates from the brand they like.
While transactional offers and incentives are prevalent reasons, emotional and relationship motivators were more universal.