We Proudly Present “The Facebook Factor”: Forrester’s Facebook Impact Model Quantifies The Impact Of A Facebook Fan

We listened to marketers of the world’s biggest brands when they asked, “What’s the impact of Facebook on my brand?” and we decided to take a look for ourselves. We proudly present our latest research, “The Facebook Factor.” In the report, we answer the pressing question, “How much more likely are Facebook fans to purchase, consider, and recommend brands, compared with non-fans?” We used logistic regression modeling to find out. The impact? We call it the “Facebook factor,” and I urge you to read the report to find out how you can leverage our methodology to assess the Facebook factor for your brand.

In the report, we use four major brands as case studies to assess the Facebook factor for Coca-Cola, Walmart, Best Buy, and BlackBerry(Research In Motion [RIM]). Guess what? Facebook fans are much more likely to purchase, consider, and recommend the brands that they engage with on Facebook than non-fans. As the graphic below shows, Facebook fans of Best Buy are about twice as likely to purchase from and recommend Best Buy as non-fans.

And we didn’t just examine the impact of Facebook fans in a silo. We compared the impact of engaging with these brands on Facebook with the impact of other driving factors of brand engagement on these metrics. For example, being a Facebook fan has almost double the impact on purchasing from Walmart as having a Walmart near a consumer’s home.

So what does this mean for companies? The fact that Facebook fans are more likely to buy (and spend more on), consider, and recommend the brands they engage with on Facebook shows that the purchase process is not a dead-end road. Brand engagement is a driver of loyalty and purchase for companies, and Facebook is a great channel for advocates to share brand experiences with others. Read the full report to find out more about what this means for your organization.

Interested in finding out more or having Forrester assess the Facebook factor for your brand? Please contact me for more information.

Comments

This research is interesting,

This research is interesting, but has there been any thought into "which came first?" Is a Facebook fan more likely to purchase from a retailer because of Facebook interactions, or is someone who is already a raving fan more likely to become a fan and interact with that brand on Facebook?

Chicken and egg

You make a sharp comment in the end. "which came first?" But in the end, do we need to spend to much time thinking about that?

At Antics - Digital Creative Agency we often say it's not about the likes of the followers, it's about the engagement with your crowd and what your fans do after that like or follow. We frown at brands that are just looking to pump up their likes and followers.

But in the end, even if there is no clear goal or strategy yet. Who are we to judge. It's ok to listen. It's ok to start getting more social media fans. It's ok to just start getting involved.

That's the beauty with digital and social media, it's not meant as a one off hit. It's a marathon of activities and communication. So go ahead and start, at whatever pace you would like.

Nice one Forrester.

Which came first?

I agree with the above post. In my report, I've quantified that Facebook engagers ARE worth the investment: they are much more likely to purchase, consider, and most improtantly recommend your brand. Marketers should leverage that information and help facilitate the word of mouth buzz and recommendation through social channels. And as always, engaging your most supportive brand advocates creates brand loyalty.

Causality

Gina,

Compliments on finishing the report! One question that arises: What is the causality between being a Facebook fan and purchasing/promoting behavior? In other words, does becoming a Facebook fan MAKE me buy more? Or, doe I become a Facebook fan BECAUSE I'm already more prone to purchasing/promoting the brand?

Applied to online marketing: Is Facebook just a channel to reach those who were already more prone to purchasing/promoting but were difficult to reach? Or, does converting those NOT prone to purchasing/promoting 'do the trick' and makes them more willing? Subtle difference between correlation and causality...