Increase in social media use has had a remarkable impact on businesses. In reality, some businesses have grown by tapping its power potential, while others have crumbled in the face of its snares.
So, is there any direct correlation between social media and revenue?
Social media has allowed publishers and brands to comprehend and influence their audiences, but it also leaves them exposed to digital threats that have detrimental effects on their bottom line.
Where is the value in social media?
From various studies we have come to realize that social media activities help strengthen the bond between the customers and the business.
According to research conducted by Alato University, it was found that customers participating on firm’s social media contribute to about 5.6% more revenue and visit the business about 5% more than non-participating customers.
In the past, there was no way of measuring individual data that connected customers participation in a firm’s social media site and the actual purchases behaviors. For this reason, companies questioned whether there were actually any returns on their investment on resources to their social media sites.
By personalizing messages, building online communities and encouraging contributions from online members, the customer experience is enhanced, the frequency of social media visits increases and overall sales are increased. This data confirms the necessity for social media.
How social media is utilized by different entities
Business brands can harness the power of conversations and content in social media to make informed decisions that protect their reputation. For marketers, it is a means of producing creative content campaigns that are built upon comprehension of how people are thinking, feeling and behaving.
Brands are finding social media more important than ever as it’s an organic, affordable communication strategy which allows them to both educate their customer base and learn from their actions.
What are the benefits to businesses?
Analysis of information from social media is essential in understanding how attitudes and perceptions are influenced, shaped and distributed. Organizations and brand marketers can utilize this data to make more informed decisions, that have a direct influence on their revenues.
Through social media, brands can create engaging and creative campaigns that target and inspire the audiences to consume and advocate their products. In doing this, brands can utilize social media to advance and achieve their business objectives.
Before the rise and democratization of social media platforms and online forums, brand information used to flow in a linear fashion: business to media to the public. But in today’s disruptive social, communications and political environment, staying out of the limelight has proven nearly impossible.
To embrace and utilize social media potential fully. You must first understand that a business’s social media presence is a direct representation of the company itself.
Businesses need to dig deeper into the distinct characteristic of social media to completely realize its potential. For brands to remain competitive, they should keep a pulse on their customer’s online discussions.
Additionally, they should be aware of the life events their primary audiences are experiencing, the pain points their customers are ranting about, and the misconceptions that are preventing their prospective customers from purchasing their products.
Data does not provide a clear picture of why people shop or don’t shop at your stores. It is only through emotions, attitudes and cultural behaviors portrayed in social media conversations that enable businesses brands to adjust and improve their marketing strategies.
By fostering a good online relationship, potential customers can be segmented depending upon their purchase history and previous interactions to decide which customer would be best to target with this marketing strategy.
By utilizing this knowledge you can focus your marketing strategy on crafting and cultivating a social media presence that generates the most revenue.