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Social media increases sales for businesses

Posted on March 31, 2013

According to a study carried out by researchers at Buffalo University, Aalto University and Texas A&M University, businesses that engage with customers using social media sites are more likely to benefit from increased sales.

Aalto University’s assistant marketing professor, Ashish Kumar, states that the study is proof that people who use social media sites to engage with a company are more likely to spend than those who don’t interact with a company using social media.

The study revealed that people who spend time on a company’s social media website spend 5.6 per cent more and are 5 per cent more likely to visit the company than those who don’t participate. Previously, companies have questioned whether investing in social media would increase revenues but this research is proof that communicating with customers, inviting their participation online and personalising messages does increase return on investment. According to the study, encouraging customers to interact with the company, sending regular communication about upcoming events and creating a site which is user friendly is crucial for success. Social media is used in search engine optimisation, targeting customers depending on a number of factors, like age or purchase history. However, not all customers will respond to the same social media activity.

The study has proved that there is a direct link between a company’s SEO campaign and the number of sales from a customer who spends time on the company’s social media site. The use of social media can also help to segregate customers to improve targeted marketing.

Carl Hopkinson

Posted by Carl Hopkinson

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