Social Media: Customer Engagement Pays Off

When potential clients ask about using social media as a marketing tool, one of their major concerns is if their efforts will help the phone ring or boost their bottom line. Many companies have jumped in and done so effectively, while others are waiting on the sidelines. The latter may be hindering customer relationships, according to a recent study titled ENGAGEMENTdb.

Online community company Wetpaint and digital strategy consulting firm The Altimeter Group released findings showing companies that engage customers through social media have stronger revenues than those that are still skeptical about the medium. In all fairness, the companies that performed best are well-built brands such as Starbucks, eBay and Nike. But the connection to online community management and profits is growing stronger.

It should be mentioned that some of the companies who didn’t perform well in the survey, such as AIG and Goldman Sachs, had well-known corporate problems outside of their social media marketing activities.

The study also defined companies like Starbucks and Nike as “Social Media Mavens,” since they are active in many channels such as blogs, social networks, Twitter and discussion forums. Those that are still wary about social media have been labeled as “wallflowers.”

Marketing professionals should continue to review the social media landscape and serve as resources to executives evaluating whether to begin investing time into it. The ENGANGEMENTdb results can be another tool or guide to help show the positive impact of the companies that already made it part of their core strategies.

(Thanks to artcphoto for the picture!)