If you are a small company, chances are you have taken advantage of every free opportunity you can to market your product or service – including Facebook. Creating a Facebook page for your company is a great idea not only because it is free, but because it offers yet another medium for which customers can find your product or service.
Today there are approximately 750 million active Facebook users, so you likely have a large audience who feels comfortable using this platform to learn about different companies that peak their interest. Furthermore, Facebook is about the easiest way to reach out to family and friends. Once your friends and family are “fans” of your company, your name will appear on their Facebook page for all of their Facebook friends to see.
As exciting as it may be to watch your Facebook fans grow, every company wants to know – What is the real value of a Facebook fan? It makes sense to create a Facebook page for promotions and deals for those who do become fans, but whether or not to get excited about new followers is a different story.
In Depth Look: Facebook Fans and Company Revenue
While there are many different ways to measure the actual dollar amount a Facebook fan can give a company, one of the most notable studies was completed by the social media measurement firm Syncapse. What Syncapse did was speak with 4,000 fans of top brands on Facebook, such as Starbucks and McDonald’s, and ask why they were fans and how often they purchased from the company. According to their results:
– Fans spend an extra $71.84 on products that they would not spend on products that they are not fans of on Facebook
– Fans are 28% more likely to use the product as opposed to someone who is not a fan
– Fans are 41% more likely to recommend a product they are a fan of to a friend
– In total, one Facebook fan generates about $136 revenue for the company.
Although these results will vary from researcher to researcher and company to company, it makes sense that a Facebook fan would only help a company. In other words, when you see those articles about how to make your Facebook page appealing, don’t look the other way.
About The Guest Author: Amanda DiSilvestro is a writer on topics ranging from social media to postage meters. She writes for an online resource that gives advice on topics including postage scales to small businesses and entrepreneurs at Resource Nation.
Even though that doesn’t sound like a lot of revenue generated, with enough fans it definitely could add up! Thanks for these tips, my sister has been thinking about creating a Facebook page for her business and I am going to pass this article along. 🙂
Laurie
We have a Facebook Fan page for our business and it works out well for us. Thanks for this informative post so that we can try out some of the revenue tips here.
They definitely add up! I was speaking from experience when I wrote this article. My company, Business.com, puts a lot of effort into social media and tracking our social media efforts, so I get to see first hand just how important a Facebook fan really is. Definitely try some of the revenue tips I suggested, and let me know how it works!
Thanks for the article. I am one of those whose trust in Facebook has begun to wane over the years, although I remain optimistic and try to think it is perhaps something I am doing not quite the right way. Will definitely try your tips.