My very talented friend Minter Dial (The Myndset) have together with Yael Rozencwajg (Yopps) have spent a lot of time explaining how to look at the real value of a facebook fan and our social networks. Just to make it more sticky they’ve branded it as the value of a Facebook fan.
Actually the title should have been “6 steps to understanding the real value of a [insert and social media channel here] fan”, but that doesn’t quite have the same ranking potential in search engines.
So how do we go about to solve this multimillion dollar question?
Haven’t every digital marketing agency in the world (that sells Facebook ads) already answered this question? Reading the publications available on the topic the value of a Facebook fan is anything from a couple of $ cents to a few dollars.
The problem with all of these studies are that they don’t measure the value of a Facebook fan. They measure the Cost of Acquiring a fan, or in best case the Cost of Acquiring a customer (CPA). That’s a very bad metric for measuring the potential value (or non value) of a Facebook fan.
Instead you have to attribute the actions, activities and information taking place on your Facebook page and attribute this to your bottom line objectives. Easier said than done in today’s digital multichannel environment. Probably the best existing solution today to track and prove any economic value from Social channels is to use Google Analytics Multichannel Funnel and look at the Assisted Conversions (requires that you have properly setup your goal paths).
Minter and Yael have made a great 6 step guide on how you should think about the real value of a facebook fan.