How much do you value a <strong>Facebook fan?</strong> If I had a pound for every time I heard that question I would currently be drinking champagne with Paris Hilton on some tacky island.
The question always perplexed me a bit, and instead of giving an estimation I didn’t believe in, I’d tell the whole story- an answer that would never satisfy the person in front of me.
I completely understand why marketing and communications professionals are asking this question: they need to get a clear understanding of the ROI for their social media campaigns.
But exactly like you wouldn’t value somebody reading your press ads, valuing a Facebook fan without caveats doesn’t make sense, even for marketers.
If you browse on Google, you will find different values (for example a recent study made in April 2013 by a company called <a href=”http://www.syncapse.com/rising-value-of-facebook-brand-fans-validates-social-marketing-investment/#.UX5CtBnQlfP”>Syncapse</a>, says the average value of a Facebook fan is £ 113, using a complex survey process) but using this wouldn’t be accurate as it’s just an average and you would need to create a proper cost per fan taking in consideration many factors.
For example, engaging with a community can take months before the actual fans buy your product or services, which mean the fan value, vary with time. Also the value will change depending on your product cost (one fan can buy one Louis Vuitton bag or one box of beers), but also on recommendations (amplification), or buying frequency.
Facebook fans have a high value, no doubt about that. They can be your best brand ambassadors and will allow you to engage with consumers in a unique way. However putting a price on them is the wrong answer to the right question: how do I calculate the ROI for my social media campaigns?
Here are some of the few tools we use at <a href=”http://ec2-54-216-19-57.eu-west-1.compute.amazonaws.com/”>Kazoo</a> to calculate a return:
Facebook installed this great tool last January (finally!) that allow you to track people’s behaviors after clicking through a Facebook ad. It’s a great way to check if the person subscribes to your site or bought your product.
If you combine conversion measurement with another tool called optimized CPM (OCPM), you can get even more targeted with your advertising, ideally realizing some significant monetary savings.
Google Analytics can help you understand the users’ social networks and their physical location, but also if the traffic comes from mobiles or what social media network sent you the best traffic
<strong>Coupons and Offers</strong>
One of the most accurate ways to get your ROI is to propose specific coupons and offers in your different social networks. You are then able to track where your customers come from.
<strong>Purchase intention monitoring</strong>
Monitoring purchase key phrases on the different social networks will help you get an idea of your campaigns effectiveness.
Not all the rewards of social media can be measured quantitatively (it’s all about relationships!). Monitoring tools (with a human analysis) for example will help you measure what sentiment your different ambassadors have generated online or their influence.
But using these different tools will allow you to get a clearer idea on your ROI based on quantitative and qualitative measures.
If you have any other tools you like, let us know in the comments!