Brand Advocates are Worth at Least 5X More than Average Customers, Zuberance Analysis Shows
San Carlos, CA (August 4, 2010) - Brand Advocates are worth at least five times more than average customers because they are big spenders and because their recommendations drive billions of dollars in purchase decisions for everything from cars to computers, hotel rooms, movies, and more, according to a new study released today by Zuberance.
A Brand Advocate for a hotel is worth $3,000 (five times more than an average customer), while a Brand Advocate for a restaurant is worth $700 (seven times more than an average customer) and a Brand Advocate for an enterprise software company is worth $1.8 million (six times more), the Zuberance study shows.
Beyond Facebook Fans: Brand Advocates
Brand Advocates are highly-satisfied customers and others who go beyond clicking on a "Like" badge. These enthusiasts pro-actively recommend brands and products online and offline without being paid to do so. Brand Advocates are highly trusted, influential, and thanks to social media, have massive reach, numerous studies have shown.
Brand Advocates are 5X More Valuable than Average Customers
Zuberance's analysis shows that Brand Advocates are worth at least 5X more than average customers because Advocates:
- Spend 2X more than average customers on their favorite brands and products
- Pro-actively recommend their favorite brands and products, serving as a "Virtual Salesforce" for the company and brands. Zuberance estimates that this recommendation behavior, which they call "Advocacy Value," is worth an additional 3X value over average customers.
"Our analysis confirms that Brand Advocates are a company's most valuable customers, even more so than loyal customers, and engaged customers like Facebook fans, and Twitter followers," said Rob Fuggetta, Founder & CEO of Zuberance. "Given that Brand Advocates are highly valuable, marketers should launch programs to identify and energize these enthusiastic customers," Fuggetta added.
Zuberance Brand Advocate Calculator
Companies can calculate the value of their Brand Advocates by using the Zuberance Brand Advocate Calculator included in the white paper. The tool makes it easy to estimate the value of Brand Advocates, based on the total amount that Brand Advocates spend on the company’s products and services, and the value of advocacy.
To download the white paper, visit http://www.zuberance.com/value.
About Zuberance
Zuberance is the leading social marketing platform company delivering sales now. The award-winning Zuberance Advocate Platform enables companies to systematically identify and energize Brand Advocates across social, web, and mobile platforms, driving sales and positive Word of Mouth. Zuberance's powerful analytics enable companies to track results of Advocate marketing campaigns and get unique Advocate insights. Forrester named Zuberance the winner of the prestigious 2009 Forrester Groundswell Award in the Energizing B2C category. Zuberance customers include leading B2C and B2B companies across multiple verticals. Zuberance is backed by Emergence Capital Partners, the leading venture capital firm focused on early and growth-stage Technology-Enabled Services companies. Zuberance is a member of the Word of Mouth Marketing Association. For more information, visit www.zuberance.com or call 866.967.9746.