Newsletter signup:

The business of social media marketing, storytelling and gamification

Social Business

Integrating social business thinking and technologies throughout the enterprise.

Social Analytics

The business of social media listening, understanding and reputation


Social media meets social responsibility.

Social Commerce

Where social media relationships translate into transactions

Home » Engagement, industry research, News, Social Commerce, Social Media News

Engaging with customers can lead to 30% sales increase, study reveals

Submitted by on October 29, 2012 – 10:27 am3 Comments

If social media didn’t help to drive sales, brands wouldn’t bother with it, end of story. Yet despite this widely-held notion there still exist companies that need more encouragement within the social sphere.

Perhaps new research from LoyaltyOne and two leading business schools will give them the push they need, then. According to the 2012 LoyaltyOne Social Media Transaction Impact Study (in conjunction with Northwestern and Ivey Business School), engaging with customers via social media can increase purchase behaviour by up to 30%.

Based on a two-year analysis of brand-customer social media engagement and transaction data with Canada’s AIR MILES Reward Program, the study establishes the much sought-after link between campaign currency and ROI: AIR MILES collectors who took part in social media events and activities increased their purchases from AIR MILES program partners by 15-30% compared to non-participants.

Other key findings include:

  • A simple status update creates a lift in transaction activity, and a longer post detailing purchase options creates a higher lift still.
  • There is a direct correlation between the intensity of a customer’s participation and their purchasing activity.

LoyaltyOne Executive Vice President and CMO Neil Everett said: “This research delivers the evidence that investment in social media has the potential to return benefits in the form of transactions, profits and ROI, if done well.”


Leave a comment!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.