The group buying startup ChompOn has calculated the value of a Facebook posting in driving social shopping — at $14, it’s nearly three times what a Tweet is worth. And likes are worth $8.
ChompOn qualifies that its figures underestimate the values and have relevancy only for the company’s next sale of a group buying opportunity — the startup’s deals let clients completely brand the offerings as their own, in contrast to the co-branding strategy of Groupon and others in the space., and features deals on social media.
Since ChompOn makes money by featuring deals on different types of social media, it’s in the company’s best interest to release statistics on the value of these different types of promotions. Here’s how the startup explains the methodology behind the calculation that sharing something on Facebook is worth $14 and liking is worth $8:
ChompOn qualifies that its figures underestimate the values and have relevancy only for the company’s next sale of a group buying opportunity — the startup’s deals let clients completely brand the offerings as their own, in contrast to the co-branding strategy of Groupon and others in the space., and features deals on social media.
For shares and Tweets, we were able to directly attribute sales to the original action, so we simply took the total revenue attributed to each action and divided it by the total number of shares/tweets. For likes and follows, we had to estimate attribution by looking at our traffic references and subtracting out purchases made through shares/tweets as well as purchases made through direct traffic. None of our analysis captures long-term value of customers acquired through these social channels – which means the true value per action should be even greater. Gross revenue depends on the products/services being sold, but due to the diverse set of ChompOn publishers, we still feel the comparison between actions is reasonable.
It looks like the company plans to do future analyses we look forward to reading about, including conversion rates and return on investment in Facebook credits, how commenting on the social network might influence sales, and how showing friends’ purchases might inspire additional buying behavior.
What’s your opinion of ChompOn’s values of Facebook postings and likes — as compared to Tweets and Twitter followings — as spending influences?
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