Companies on Facebook are cashing in every time loyal customers click “Like” on their page, according to a new study conducted by social intelligence research company Syncapse.
How much is each “Like” worth? Syncapse says a grand total of $174.17, which is a 28 percent increase from 2010.
Syncapse conducted the in-depth study with 2,000 Facebook users who had liked a brand. They measured variables such as product spending, loyalty, tendency to recommend products or services, media value acquisition cost, and how much a Facebook fan actually likes the brand.
The study concluded that not only do Facebook fans bring in $174 per “Like,” but they also are among the more loyal brand consumers, spending $116 more per year on the brand than consumers who did not like the brand on Facebook.
Fans are also 18 percent more satisfied with the brand and 11 percent more likely to continue to purchase within the brand.
As the Pareto Principle suggests, 80 percent of revenue often comes from 20 percent of the consumer base. This study suggests this principle holds true, only now that 20 percent make themselves targetable via Facebook.
Syncapse suggests for companies to utilize their customer bases on Facebook — called the brand’s “evangelists” — and interact with them in order to best understand and solicit their input. Facebook users are also much more likely to be vocal about their likes and dislikes and share brand experiences.
"The increase in average fan value is driven by fans' tendencies to be superconsumers," the report said. "Not only do they tend to be brand users first, they spend more, engage more, advocate more and are more loyal. The significant and increasing value of a Facebook brand fan affirms past social marketing investment and mandates deeper commitment and accountability in the future."