AUDIENCE(34)
Taco Bell: No incentive (but email offers provided throughout year)
Wendy’s: No incentive (but email offers provided throughout year)
White Castle: $2.64 (4 Free Sliders to join “The Craver Nation”)
Using a CIV analysis, you add up the incentives offered and divide by the number of companies offering them. You then divide result ($2.83) in half and get a CIV of $1.42. If you’re in the fast food or quick-service restaurant (QSR) space, you can use that figure to convey to management both the initial value of email SUBSCRIBERS and the potential level of incentive that you may want to use to acquire new email SUBSCRIBERS.
It’s worth noting that even those fast food restaurants that did not promote email opt-in incentives do provide SUBSCRIBERS with discounts once they join. Thus, if you truly wanted to get a sense of the value that your competitors placed on SUBSCRIBERS, you should monitor and track the value of their offers over time—adjusting your CIV analysis accordingly. Such an ongoing CIV analysis is particularly important in social media channels like Facebook and Twitter where up-front incentives to like or follow have largely dried up.
Organizational Value
There is one other value to keep in mind as you seek to build your proprietary audiences: the value they command in the eyes of your company. To ensure that you continue to hold your audiences in high regard, you must regularly communicate their financial value to management—both in terms of real revenue and advertising cost savings. Only then will your C-suite and the people who manage your proprietary audiences fully appreciate their value as business assets.
a There is one notable exception. Social Login options from Facebook, Google, Twitter, and others will pass limited social media data with consumer permission; more on this in Chapter 23.
b Sponsored Stories are Facebook posts that a company pays to promote to broader audiences on Facebook.
c More recent analysis places the average reach of a brand Facebook post at 10 percent, but your company’s reach will vary greatly on the size of your FAN audience, industry, and degree of engagement.
d As my colleague Joel Book (@JoelBook) rightfully notes, don’t forget to also capture any amplification by FANS or FOLLOWERS in your NEV calculations. AMPLIFIERS can dramatically boost your reach.
1. Lieb and Owyang, The Converged Media Imperative: How Brands Must Combine Paid, Owned, and Earned Media,” Altimeter Group (July 19, 2012) (http://www.altimetergroup.com/2012/07/the-converged-media-imperative).
2. “What’s the Difference between Impressions and Reach?,” Facebook, accessed August 5, 2013, www.facebook.com/help/274400362581037/.
3. “Sponsor Your Page Posts,” Facebook, accessed August 5, 2013, https://www.facebook.com/notes/facebook-marketing/sponsor-your-page-posts/10150675727637217.
4. “Inbox Tabs and Category Labels,” Google Help, accessed August 24, 2013, https://support.google.com/mail/answer/3055016?hl=en.
5. “Priority Inbox Overview,” Google Help, accessed August 5, 2013, https://support.google.com/mail/answer/186531?hl=en.
6. Matt McGee, “Edgerank is Dead: Facebook’s News Feed Alorithm Now Has Close to 100K Weight Factors,” MarketingLand, August 16, 2013, http://marketingland.com/edgerank-is-dead-facebooks-news-feed-algorithm-now-has-close-to-100k-weight-factors-55908
7. “What Is EdgeRank?,” accessed August 5, 2013, www.whatisedgerank.com/.
8. Rebecca Corliss, “Photos on Facebook Generate 53% More Likes Than the Average Post,” Hubspot Blog, November 15, 2012, http://blog.hubspot.com/blog/tabid/6307/bid/33800/Photos-on-Facebook-Generate-53-More-Likes-Than-the-Average-Post-NEW-DATA.aspx.
9. ReturnPath, “Email Mostly Mobile,” December 11, 2012, www.returnpath.com/resource/email-mostly-mobile/.
10. Matt McGee, “Your Tax Dollars at Work: State Department Spends $630,000 Buying Facebook Fans,” MarketingLand, July 3, 2013, http://marketingland.com/your-tax-dollars-at-work-state-department-spends-630000-buying-facebook-fans-50575.
11. Kevin Kelleher, “Mobile Growth Is About to Be Staggering,” CNNMoney, February 20, 2013, http://tech.fortune.cnn.com/2013/02/20/mobile-will-growth-is-about-to-be-staggering/.
12. Benedict Evans, “Mobile Is Eating the World,” Slideshow presented at BEA, May 17, 2013, www.slideshare.net/bge20/2013-05-bea.
13. Leigh Shevchik, “Mobile APPeal: Exploring the Mobile Landscape,” New Relic (blog), March 13, 2013, http://blog.newrelic.com/2013/03/13/mobile-appeal-why-the-future-is-mobile/.
14. LCV is sometimes also abbreviated as LTV for simply “Lifetime Value,” or CLV for “Customer Lifetime Value.”
15. Cynthia Clark, “Keeping Tally: Understanding the Significance of Mapping Customers’ Lifetime Value,” 1to1media, May 27, 2013, www.1to1media.com/view.aspx?DocID=34294.