TechCrunch had an interesting story about the value of a Facebook fan from a deal of the day company called ChompOn earlier this week. Many of the deal sites (Groupon, LivingSocial, Gilt, etc.) significantly lower their cost of customer acquisition by leveraging the virtual loop on social networks. Users are incented (usually with a $10-20 spiff) to invite their friends, etc.
Based on ChompOn’s data, here’s the value of each kind of fan for this type of business:
- Facebook share – $14
- Facebook like – $8
- Twitter tweet – $5
- Twitter follow – $2
This is based on a ‘last action’ attribution type model so actually is probably low as it doesn’t count future events caused by the brand awareness generated from one of the activities, future purchases and the life time value of the customer.
Compared to ‘normal e-commerce’, these values are high as they are for a DoD site that typically is going to be offering 50% off and a very temporary deal.
Regardless of the value, I do think the relative values will apply 100% to social commerce where a FB Share is the most valuable and a ‘follow’ is the least. We’ll be on the hunt for more data on this, so stay tuned.
FBCS readers, what do you think the value of these social activities are?