Social media increases sales

Companies’ participation on social media networks is absolutely valuable. That is the conclusion of a study by market research firm Chad Martin Baily and iModerate Research Technologies.

1500 consumers were asked about their shopping habits, related to the brands they are following on Twitter and Facebook. It turned out that 60% of Facebook fans and 79% of Twitter followers are more likely to recommend those brands since the became a fan or follower. 51% of Facebook fans and 67% of Twitter followers are more likely to buy the brands they follow.

Participants were also asked about their motivations to follow brands on Twitter or Facebook. They mostly like discounts and new information about products.

Some very interesting facts about Social Media:


It is clear that social media offers a great opportunity for marketers. The costs are relatively low and the profits can be high. Not only in terms of sales but also in terms of customer relations. Consumers are evaluating, criticizing or recommending al kinds of products on social networks. It would be very mindless not doing anything with that information.

A good example is the Dutch bank and insurance group Aegon, which offers its financial knowledge for free during so called Tweetbankets on Twitter. They have two employees with a full time job participating on social networks, just to increase and improve their customer relations. It is very likely that they attract new customers (and sales!) with this policy.

Do you think participating on ‘social media’ is necessary for companies?