Mingo

everyday can be a domingo

Fan Value

I just read a very interesting article which tries to determine the value of a fan.

Of course, every brand is different, and a mac fan won’t be the same as an investment banking fan or maybe yes.🙂

The curious thing about the article is the methodology followed, so you can apply these research methods to determine investment.

The main conclusion is that fans are certainly better, makes your life much easier, and generally boost the engagement level, but generally they are far fewer and less effective than all the strangers simply visiting the site.

Hence not only active fans should recommend your brand, but also new users, and that they should both be targeted in a way that everyone could become fans.

Necessary data:

  • Absolute Unique Visitors
  • New fans
  • New fans on social channels (Twitter, Facebook etc.):
  • New RSS subscribers
  • More repeated visitors (who visited the site more then 4 times per month)
  • New fans via other channels
  • People sharing content (mentions)
  • Total fans across all channels (including the website, social and RSS)
  • Active fans per month (fans who retweets or shares content)
  • Second layer followers/fans (how many followers my fans have in average)

Formula:

  • 1 fan = X visitors; X visitors = total visitors/total fans
  • average click-through rate on banner ads (in general) is 0.2%; Total ad impressions for 1 fan= X visitors / 0,2% = 1 fan
  • %rate of active fans = active fans / total fans
  • Total ad impressions for 1 active fan= (X visitors / 0,2%) / %rate of active fans = Y visitors = Z fans = 1 active fan

Here is the main data extracted applying their methodology to their own website (www.baekdal.com):

The bottom line:

  • An active fan is worth 445 people
  • One active fan will generate 4 new fans every month
  • For every active fan, you probably have 133 passive fans (fans that follows everything you do, but do not act on it)
  • It takes 14,000+ visitors to generate a single active fan, but it only takes 106 visitors to create a passive fan.
  • Your general visitors are much more important than what you might think, because they are often the dominant source of social interactions.
  • One out of every 316 visitors will share your content, and that person is just as valuable as your active fans.
  • 30 active fans is just as valuable as 70 visitors, but very few sites will have that high a fans vs. visitor rate.
  • Your active fan level is critical. Having 3 million fans, matters little if only 0.002% are active. It is much better to have 10,000 fans of which 1% are active.”

Fan advocates video:

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