More proof that socially engaged consumers spend more

Oct 10, 2011 by

One of my favourite stats is the one from Radio Shack in the US about customers checking in via Foursquare spending significantly more money than those that don’t.

It’s a proof point that illustrates the need for marketers to look beyond the big number:  Never mind how many people are on network X, who are they and what are they doing?   And it shows, someone who interacts with you on social channels is more likely to – to put it crudely – buy your stuff.

The fact that engaging with potential customers online leads to greater sales is now reinforced by a Bain report (via the excellent Brafton blog).

Essentially Bain found that  “customers who engage with companies over social media spend 20 percent to 40 percent more money with those companies than other customers.”   Why invest in social media?  There’s the answer, especially in these tough economic times, engaged consumers are more likely to get out the credit card / cheque book.

Possibly the most interesting chart though from the Bain report is this one.   It shows how social media has ticked a number of boxes from awareness to purchase to retention for major brands.

Cut out and keep and send to your boss / client!

Enhanced by Zemanta

2 Comments

  1. Very Interesting Post from Picture and very informative as well I am looking forward to it…..!!!

  2. reading this reminded me of a HitWise post from last month in which they unpicked the value of Facebook fans to John Lewis by overlaying Mosaic data with site traffic data. Came to the same conclusion – that not all fans are equal. Would love John Lewis to chip in with a comparison of the av. order value per fan vs. non-fan.

    Well worth a read anyway:
    http://weblogs.hitwise.com/robin-goad/2011/09/are_you_attracting_the_right_type_of_facebook_fans.html