Socially-engaged customers contribute 5.6% more to a company’s bottom line
According to the University of Buffalo School of Management, customers who participate with a company’s Facebook, Twitter and YouTube channels will visit and spend with a business 5.6% more frequently than those who don’t.
The study had an admittedly-small sample size, drawing off just one Facebook page and purchases made from its corresponding store in the north-eastern United States, but the report’s co-author Ram Bezawada is confident that the results speak for the social landscape in general.
“Social media activities help strengthen the bond between the customer and the firm – and boost financial performance,” says Bezawada. “When building communities, businesses should craft personalized messages, encourage member contribution, integrate knowledge about customers from both online and offline interactions, and create specialized sub-communities for customers looking for premium and unique products.”