Customers who engage with a company’s social media efforts spend more on its products, according to this paper, which confirms that online platforms not only strengthen the bond between consumers and firms, but can also help boost the bottom line. And the payoff is significant: In this study, customers who interacted with a wine retailer’s social media network visited stores 5.2 percent more often and contributed 5.6 percent more revenue than customers who had a similar shopping history at that retailer but no online involvement.
Recent studies suggest that 75 percent of Internet users engage with social media, and companies are increasingly developing a presence on Facebook, Twitter, and similar platforms in an effort to broaden and improve their interactions with customers. Indeed, studies have shown that social technology allows firms to have dialogues with customers that go far beyond traditional types of promotion or advertising.
Via The Learning Factor