What’s a Facebook Super Opt-In Worth?

Brian DeaganA friend at work told me about yogaglo.com. For $18/month visitors can get unlimited access to instructional yoga videos. I went to their site and decided to register with my Facebook account. This is what they asked for:

If providing an email address is a traditional opt-in, this is the equivalent of a super opt-in. You can’t blame yogaglo for asking, but give me a break. They want to turn me and my Facebook account into their little marketing machine, but what do I get in return? Absolutely nothing.

The ability for marketers to be granted this level of permission and access to consumer information truly provides the ingredients to revolutionize (I don’t use that word loosely) how brand relationships work and gain valuable insights into which customers are influencing other customers (at scale). However, the possibilities will be severely hamstrung if marketers don’t start thinking about what they need to give, to get this level of access. What is the value exchange?

Think about an old-fashioned email opt-in. When you request an email address as a brand, it’s important to convey the value the customer will get by providing it (e.g.: special offers, useful tips, etc.).

Not only did yogaglo ask for my email address, but they want my cell phone number, access to posts on my news feed, the ability to post to Facebook as me, and access to my master friends list and my custom friend lists (family, coworkers, etc). What’s the appropriate value exchange that yogaglow should provide?

The simplest way to answer this is in clicks and the value associated to those clicks. Granting the requested access will result in clicks by my friends as I interact with yogaglo (e.g.: access the site, watch videos, rate videos, etc). Those actions will create posts that will show up on my friends’ feeds. Some friends will click, some will click and sign up with yogaglo themselves.

If we were talking paid search, yogaglo would pay approximately $1.00 per click for the keyword “yoga videos.” With the average Facebook user having 130 friends, it’s not unrealistic that over the course of a month, a single yogaglo customer could generate 5 clicks. Here’s how I arrived at that number:

130 Friends
x 15 yogaglow Posts Per Month
= 1950 Monthly Impressions
x .25% Click Through Rate (quarter of 1%)
= 5 Clicks (4.875 to be exact)

If someone has 500 friends, this translates into 18 clicks. Some could argue that the .25% CTR is too low. Others could argue that it’s too high. I argue that it’s reasonable, but definitely should be tested.

At 5 clicks per month and a value of $1 per click (which again, it’s easy to argue it should be higher considering the friend endorsement), that translates into $60 in value over the course of a year from the average Facebook user. Once it’s adjusted to reflect the average lifetime of a yogaglo customer (e.g., 8 months versus 14 months), yogaglo has a pretty good estimate on the base value of someone clicking the “Allow” button.

I say “base value” because our math doesn’t accommodate for two important things. First, even if other Facebook users aren’t clicking, there is still the benefit of awareness advertising. And second, yogaglo now has access to a treasure-trove of information they can use to strengthen their relationship with customers.

So the way I see it, if I use my Facebook account to sign up with yogaglo and grant the requested access, I should get three months free. As we’ve demonstrated, it’s pretty easy to rationalize this value exchange. Equally important, it proactively demonstrates the reciprocal nature of the Facebook-enhanced relationship and the potential good things to come, versus requesting a level of access that simply could be off-putting and not the best way to kick off a new customer relationship.

If anyone has seen great examples of a strong value-exchange for a “Facebook super opt-in,” please share. I’d love to see them.

3 Comments

  1. Posted December 22, 2011 at 7:49 pm | Permalink

    Wow, (regarding) YogaGlo. I’m the CEO of their competitor, MyYogaOnline.com, and all we ask for is basic info and email address when you use Facebook Connect. As the #1 trafficked membership yoga videos website in the world, all we want to do is provide access to yoga to as many people as possible. We aren’t looking for people’s marketing info. Even though we aren’t collecting near the amount of info they are, I still feel it’s only fair to offer you and all your viewers and friends a free month to My Yoga. No credit card. No obligation. Just free yoga. Here’s the link you can use and share… (expires March 1, 2012). https://www.myyogaonline.com/join/lunchpailmonth

    Namaste,

    Jason
    CEO
    My Yoga Online

  2. Posted December 27, 2011 at 9:36 am | Permalink

    Jason…

    Wow. That’s sweet. Thanks for making that available. I have to say, I am extremely happy with the yogaglo product, just wish there was a stronger value exchange for the Facebook opt-in. Thanks for reading,commenting, and the free month! Look forward to checking it out.

    Regards,

    Brian

  3. Posted January 24, 2012 at 1:32 am | Permalink

    Brian, nice analysis!


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