Determining a Social Media Fan’s True Value

August 5, 2010

Each company must use unique core customer data to determine the true lifetime value of its social media fans, according to [pdf] a new white paper from Fanscape.

Calculating Social Relationship Value
Fanscape has devised a metric it calls Social Relationship Value, or SRV, to accurately measure the lifetime value an individual social media fan will provide a particular company or brand. SRV pairs confidential core customer data with customer acquisition and retention methodology.

Rather than simply trying to grow their numbers of social media fans, Fanscape advises companies to increase their SRV scores, since even a small uptick in customer retention can result in substantial lifetime dividends from those customers.

Following the SRV ‘Storyline’
The SRV “storyline” follows the example of a social media promotion with a discount, which is redeemed by a certain number of people. After calculating profit from those people, a company then determines how many of those redeemers become return customers, incorporates core customer data, and determines the SRV of newly-acquired fans from the promotion.


More specifically, the SRV formula follows the steps outlined in the graphic below. The conversion rate of a promotion should be determined using the total number of registered fans on a particular social media platform. In order to ensure positive ROI, the cost to acquire and maintain a social media fan should not exceed their SRV.


Average Facebook Fan Worth $137
The average value a Facebook fan provides a brand is $136.38, but it can swing to $270.77 in the best case or go down to $0 in the worst, according to research from Syncapse. This value is based on Syncapse analysis of five factors per fan: product spending, brand loyalty, propensity to recommend, brand affinity and earned media value.

On average, a Facebook fan participates with a brand 10 times a year and will make one recommendation. Value can differ significantly by individual brand. For example, in the case of Coca- Cola, the best case for fan value reaches $316.78 but is $137.84 for an average fan. In the worst case scenario, a fan is worth $0.

About the Data: Fanscape has trademark pending for the term ‘SRV.’


Explore More Articles.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This