It’s a common refrain from businesses trying to navigate the social media waters: are we going to get any sales out of this? Does sending a tweet, or posting content to a Facebook wall earn me any more dollars?
Here’s an interesting study you small business owners might be interested in. LoyaltyOne conducted research based on a two-year analysis of brand-customer social media engagement and actual transaction data with Canada’s 10-million plus member AIR MILES Reward Program. The results show that the merchants who participated in the AIR MILES social media events and promotions had higher purchases from program participants by 15-30%.
For all the small businesses out there, this means there is good evidence that it’s worth your while to invest in social media efforts in order to gain increased transactions, profits, and ROI.
Here are some helpful takeaways from the study research:
• The mere act of writing a short public statement on a social media site spurs significant lifts in transaction activity;
• However, longer, more elaborate posts dealing with redemption experiences (travel, entertainment) created higher lift than shorter, product-based posts;
• The higher the level of participation in a social media event, the greater the impact on a consumer’s purchasing activity;
• Brands can use social media as a tool to raise the value of lower-volume, high-potential consumers who have more room to increase their spend; and
• Events that encourage participants to recreate the core benefits of a brand have higher lift effects than more generic posts – resembling a “co-creation effect.”
Another report from eVoc Insights published in the eMarketer Digital Intelligence Report, states that over 50% of Facebook users say they are more likely to purchase from a brand they have “liked” on Facebook.
The evidence is beginning to add up: It pays to be plugged in to social media.
If you need help setting up your business on Facebook contact us soon.
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