How do you value Facebook?
Today, in Fast Company, Andrew Robertson wrote about the value of Facebook to brands, in terms of real financial benefit. As he researched it, companies are valuing Facebook friends at anywhere from $3 per friend to more than $130. Clearly there is a wide difference in the approach that these firms are using.
If you are not trying to measure the value of your Facebook audience, however, you had better be doing so. The pile of money invested in social media over the last couple years will inevitably dry up for those who try to bucket their budgets as “advocacy.” Advocacy is important, no doubt, but if you cannot drive to the bottom line, it will inevitably become more of a hobby and less of a mandate for your company.
Net, net, Andrew found that real engagement, conversations with customers on Facebook, correlated with sales, while simply “Liking” a brand site had much less impact.
You have to use Facebook, not just drive membership, to see the result. And the results will drive sales, if you spend the time and effort.
For Brands On Facebook, Fan Quality Trumps Quantity
Engagement wins every time. By a lot. Twice as much, in fact.
Our data shows correlations to sales of engagement of 90% versus correlations of sales to friend count of anywhere from -5.3% to 40% at most.
When a brand gains a “like” on Facebook and begins to count that consumer as a friend, it’s really only the first step. Each new friend is an opportunity to enter into a meaningful dialogue with consumers that will bring about deep positive engagement with the brand, transforming first-time community members into converted and repeat consumers, preexisting patrons into loyalists and loyalists into trusted advocates.
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