Facebook Fans Spend More at Your Business than Non Fans
A new study (“The Value of a Facebook Fan: An Empirical Review”) estimates that someone who has Liked a brand will spend an average of $71.84 more each year on that brand’s products or services than will someone who has not Liked it on Facebook, for a total average annualized value of $136.38.
There are several reasons why Facebook Fans spend more at your business than non-fans. For one they have taken action to be a part of your business. This is similar to opt-in marketing, like text marketing in which the consumer has opted-in to receive updates from you and be a part of your business.
Your brand is in front of them more often. People have the ability to read your updates and your brand recognition goes further when subliminally you are in front of your customers multiple times throughout the week. This leads to more impulse purchases when people are out around town, they notice your business and think back to that offer about a new item or promotion they saw on Facebook or your last mobile message.
People on Facebook feel like they have input into a business’s daily activity and have a voice. This communication leads people to believe your business cares about them while the competition does not.
Of course you have customers who spend money with you like there is no tomorrow who doesn’t even have a Facebook page, but the value of Facebook in increased customer interaction and sales can’t be taken for granted. For the average increase in sales per year of $64.54 for even a small business with 500 fans is an extra $32,270 a year in sales. Just spending two hours a week will give you an hourly return of over $300. Not bad at all!
About the author
Shane has been in the restaurant business his entire life. Working as a cook in fine dinning, owning multiple pizza parlors around Boston and as a one time owner of the oldest bar in Boston, The Red Hat. Now he uses his experience to write marketing guides and articles and act as customer support liason, all in the name of helping his fellow small business owners succeed.