For many of us who have built a fan/follower community on Facebook, Brandbuilder,
whom I highly respect, brings us information in this article on the 5 rules of calculating this diverse community.
This is a good start to give you a better perspective, being able to tell the difference between fan/follower and what their actual value is to your brand is important for your business to alleviate some of your frustration. If you’re looking at this in terms of making a purchase and seeing an immediate ROI, you will get ROI but not in the ways you think..
The information in this article will help you to have a clearer picture of your business, make better decisions on how you invest your time, engage and what you might expect in the future.
Here’s what caught my attention:
Assigning an arbitrary (one might say “cookie-cutter”) value to Facebook fans in general, averaged out over the ENTIRE breadth of the business spectrum, is complete and utter nonsensse..
To illustrate why that is, here are a few of the 5 rules of calculating the value of a Facebook fan:
A Facebook fan’s value is not the same as the cost of that fan acquisition.
**Here’s why cost and value cannot be substituted for one another when applied to fans, followers and customers:
Cost may be intimately connected to value when you are buying the family car but the same logic does not apply to customers:
** you don’t really buy them outright
** they don’t depreciate the way a car does
** they tend to generate revenue over time, far in excess of what it cost to earn their business
Each Facebook fan’s value is unique
**Every fan has their unique individual value
1. The lifestyles, needs, tastes, budgets, purchasing habits, cultural differences, online engagement patterns and degree of emotional investment in our brand of each ‘fan’ may be completely different.
2. Many of your fans may only do business with you on occasion. Because of this, you have to factor in the possibility that a significant percentage of your fans’ value may fluctuate in terms of activity rather than spend.
3. Lastly, we come to the final type of Facebook fan: The one that doesn’t fall into the transacting customer category. Do you know what percentage of your fans right now falls into this non-transacting category?
A Facebook fan’s value varies from brand to brand and from product to product
**If a fan/customer’s value can fluctuate from month to month and that value can vary wildly from individual to individual within the same brand or product umbrella, imagine how much it can vary from brand to brand and from product to product
**A single strong recommendation from a fan can yield an enormous return for BMW, while a single recommendation from a fan will yield a comparatively smaller return for Coca Cola.
**You can see how the notion that the “value” of a Facebook fan can be calculated absent the context of purchasing habits, brand affiliations, fluctuations in buying power, market forces and shifts in interests and even value perceptions is bunk.
Jan Gordon: My commentary – You might not be selling tangilbe products, you may be selling a service. Even if a pecentage of your fans never buy this service, they can be instrumental in helping build your brand by online mentions on Twitter,, retweeting, sharing with friends, spreading word of mouth, become brand advocates, to me this is very valuable.
**If you find yourself being asked to transform cost into value, that’s a different conversation, but it would seem, this is the conversation you might want to have.
Selected by Jan Gordon covering “Curation, Social Business and Beyond”
Read article here: [http://bit.ly/Q6AbHx]