First of all, the measurement “$$/fan” is misleading. The measurement should state “$$/fan/year” or month or some time period. Otherwise, it simply doesn’t make sense.
Now, how do we determine the value of a fan? The following is a short list of fan-added values. For a longer description, see Social Media ROI – Part 3:
- Brand Awareness – a fan reads your messages. That is value.
- Click-throughs – a fan clicks on a link. That is value.
- Fans create buzz such that trade media writes about it. That is value.
- Fans generate consumer insight. That is value.
- Fans help each other thus preventing support call costs. That is value.
- Fans without actions. A fan that doesn’t do anything is a dud. Having 10,000 fans that don’t contribute give you bragging rights but no value.
By adding these and other value (return) channels together, we get the total value per fan per year. But, again, that is only part of the story. Look at our post from yesterday, Social Media ROI – three types of Social Media Return, and suddenly “fan value” got more complex. Nevertheless, simple is good so lets stay with that.
Also, take a peek at our Social Media ROI video for more info how to calculate fan value.
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