Question

Topic: Research/Metrics

Estimating Value Of A Database Name/facebook User

Posted by BizConsult on 12/14/2009 at 12:41 PM ET 500 Points
Hi: Looking to quantify the value of getting a consumer name in a database (via a sign-up for a promotion) and into a Facebook community to create short-term, and ongoing, engagement around. Please site sources for any benchmarks or stats provided.

Assume we run a promotion that generates, say, a million consumer responses/entries and similar number of Facebook friends. Want benchmarks for how many opt in for further marketing communications / engagement (I realize this is wide open, but details are not finalized) so looking for options that might best fit where it ends up.

Would like sources for the lifetime value generated from creating an ongoing community (like Corvette Owners, Harley Owners -- but ideally want similar examples / benchmarks for other ‘social’, product-oriented groups from less-expensive consumer products).

Any examples of how these groups are further leveraged and marketed to would also be appreciated.

Looking for ideas, sources of info and numerical benchmarks for the following related areas as well:
- Value of media/PR generated
- Value of social / viral influence created
- Database value modeling
- Future value of sales to the database / community
- Value of new product ideas generated from leveraging the database
- Other?

Thanks!
-Steve
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by koen.h.pauwels on 12/14/2009 at 1:08 PM Accepted
    Hi Steve,

    I performed this analysis for a similar social media site in a September JM article, available for free at:

    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1129351&rec=1&srcabs=45...

    In this analysis, an average user was worth $ 1.5 to the social media site. Moreover, half of the friend invitations each user sends, generates an additional user of the site.
  • Posted by BizConsult on 12/14/2009 at 3:26 PM Author
    Thanks Koen - but looking for the value to a manufacturing company sponsoring a promotion, in part via a social site, not the social media site's derived value.
  • Posted by Peter (henna gaijin) on 12/15/2009 at 12:58 AM Member
    I assume the promotion's goal is to get the names, not that the names used are to promote the promotion?

    Just getting a name in a database or a fan on Facebook has no value unless the company plans to make use of that to sell their products. The value would vary greatly base don how/what the company does with the information.

    Value should also be over time. Hopefully it is not a 1 time sale, but repeat sales. Having names in database/on Facebook would be of higher value if you are using it to keep in touch with them so they do repeat sales more so than if it was just a 1 time sale.
  • Posted by koen.h.pauwels on 12/15/2009 at 10:18 AM Member
    Thanks for the clarification, Steve. I agree with Peter on this one: the value of such name in a database depends on several factors, including:
    a) how interested the person is in your products
    b) what you plan to do to keep in touch and engage that person, ultimately moving him through the 'readiness' stages to do something you want (eg buy a product, talk positively about it, ....)

    As a result, any benchmark from another company may be highly misleading. What I would to is benchmark against your own acquisition efforts via other channels: follow a cohort of 1000 Facebook-acquired names versus names acquired through referrals and names acquired through offline marketing efforts, and then track and compare their value to your company for eg a year (often enough to extrapolate to life-time value). Companies I work with gained a lot of insights from this exercise. For example, it could be only half as expensive to get a Facebook name in your database, but these propospective customers may only buy a quarter of the amount bought by offline-acquired customers.
  • Posted by BizConsult on 12/15/2009 at 10:19 AM Author
    Peter:
    Yes, the promotion will generate the names, but the people are also being encouraged to share and spread the message socially/virally.

    We're very aware that there's no value without use and value builds over time and are looking for benchmarks of what other companies have done and quantification of the results achieved.
  • Posted by BizConsult on 12/15/2009 at 10:28 AM Author
    Hello again Koen. The fundamental principles and criteria are well understood. Also value will vary with an individual's size of network/followers/community and influence.

    Unfortunately we are trying to forecast impact to put a program in place so have to rely on benchmarks from others.

    Does anyone have examples and results?
  • Posted by BizConsult on 12/22/2009 at 10:53 AM Author
    Thanks for trying everyone - I really didn't get the questions answered but am still awarding poitns for your efforts!
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Research/Metrics)