Definitely engagement helps generate more sales
Engagement, that special bond between the brand and its followers, also has its translation in economic terms. The study published by LoyaltyOne together with the American university of Medill and the Ivey Business School confirms that this commitment contributes satisfactorily to the increase of sales. At last it seems that it is possible to measure the return on investment in Social Media.
The research has been based on a two-year analysis of the relationship established through social networks in the community of Air Miles, the loyalty program, made up of more than ten million members. Air Miles members were encouraged to engage with the brand, interacted in their social profiles, sharing their views on the brand and participating in their promotions. In return, they obtained small shares for a draw, with which they could win big prizes. Thanks to the analysis of these data, the research showed that those who took an active part and encouraged the engagement with the brand, also increased their consumption, between 15% and 30%, against those who did not participate.
This study shows that a well-designed and executed Social Media Marketing campaign can attract sales, as well as foster engagement, an enduring commitment over time (for an average of two months). In this way it is confirmed that the effect of social networks is measurable, it can finally be said that there is ROI in Social Media. According to Neil Everett, Executive Vice President and CMO of LoyaltyOne to the Financial Post, the study has shown that loyalty programs are an effective means to quantify.
Other interesting data that emerge from this study are
The simple fact of publishing an update, even if it is brief, already generates a greater activity in the social profile, which favors the interactions on the part of the users.
As a result, more elaborate, strategy-driven publications, based on quality content for users, promising them a positive experience, related to leisure and entertainment, get more participation than messages based on business information of the company.
The greater the degree of participation by the action proposed by the brand, the greater the volume of purchases made by consumers. Customers who are more committed to the brand, demonstrate their commitment through their buying actions.
Actions that encourage users to make their contributions about the brand get a greater impact than generic posts. On the one hand, they bring more credibility to the message and on the other hand the participants feel more involved with the brand.
This study is very good news for Social Media, demonstrating that the commitment between the brand and the customer favors the increase of sales. An active social community is the best engine for engagement. The company must keep alive the interest of its users, betting on actions that capture the attention of its audience, encouraging their participation and even inciting them directly to action.