Facebook provides measurement tracking in the “Insights” section of your Business Page and every week Facebook emails the Daily Tracking for the week. These statistics are helpful, but unless you continually track the data and not just the snapshot of the data the day you look at the statistics it really does not mean much.
There will be days when no one visits your Page, days when no one comments.
Compare it to a Yellow Pages ad in the printed book, your ad is printed and located in the section for your industry, however consumers are not looking at the Yellow Pages every day. If there was a way to track Yellow Pages views the arrows would most likely point down for the majority of the weeks. Consumers crack open a Yellow Pages when they need a service. Facebook has your Business Page and all information up 24/7, post to that page weekly and your business is being seen on a weekly basis not just when someone needs what you do. Whether or not people are clicking on your Page or Commenting on your posts, they see you and know you are there.
But how does this information translate into a dollar return?
Overall with a Business Page on Facebook your business is getting more exposure than most other marketing tools, but most owners are focused on the ROI, what is the return on the Facebook Investment?
There have been a few companies who have measured the statistics, tracked Facebook Friends and have narrowed it down to a dollar figure per Friend, attempting to quantify how much a Facebook Friend is worth to a business.
Syncapse, a social media management company, conducted a study designed to place a value on Facebook Friends. The study pulled together many different factors and the entire publication can be found at “The Value of a Facebook Fan: An Empirical Review”.
This study found that most consumers who are Friends of a Business Page are actually more valuable to an organization across all the variables they studied than consumers who are not Facebook Friends. The study also found that 41% of Friends versus non-Friends are more likely to recommend a product to another friend and 28% of Page Friends are more likely to continue using the product/brand/service.
On average the study found that Friends of a Facebook Business Page would spend an additional $71.84 on the product versus non-Friends. Utilizing all variables and annualizing value, the study found that a Facebook Friend is worth $136.38.
So, according to the study a Facebook Friend is basically worth an average of $136.38 a year to your business with the potential to spend an additional $71.84 on what they already spend. This study was conducted in early 2010, factoring in the growth of Facebook and the exposure it now has this number is probably worth more at this time, but either way that is a pretty decent looking number for a site that allows you free marketing.
As the weekly updates come and you see the Facebook Page numbers go down for the week and you open up your Insights on your Facebook Page and the lines go up and down and up and down – the bottom-line is you are utilizing a powerful marketing tool and one that works. This is where your business needs to be for maximum exposure.
Keep your Friends engaged and informed and your business becomes their “source” of all things related to what you do and your Friends will begin to trust you. They need not go to your Business Page every day, they need not comment or post to the Page, just by having your information pop up on their News Feed frequently they know you and the more information you share with them the more trust they will have in you and your business.
The power of a referral still rules, Facebook Friends are worth more to your business. Take into consideration that Facebook Users have an average of 130 Friends of their own and each of their Friends has an average of 130 Friends – the potential to add more Friends and more annual worth to your business is exponential.
Marketing on Facebook makes sense and is a required piece of your marketing strategy.