Three Wise Dames

Marketing in the Life Science Industry

Guest Post Part II: Social Media’s Impact on Purchases February 14, 2013

Filed under: Debbie,Guest Posts,Social media — Debbie Donovan @ 12:00 pm
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elephantWgirlWstickGuest Wise Dame Susan L. Brown for Brown & Associates

ROI for social media and communities is the “elephant in the room.” Everyone wants a definitive answer to how to evaluate return on investment. Also how much investment is enough? What are the resources needed? What kind of social media is effective and why?

How Does Social Impact Brands and Purchase?  Some Use Statistics

Performics is a Publicis-owned company that focuses on digital marketing optimization including assessments of how consumers talk about brands on the social web. It conducted an online survey of U.S. consumers who access at least one social network regularly and determined what kind of impact social networking has on the purchase process. 34% of social networkers had taken action on an ad they had seen on a social networking site by doing a further search on the product, while 30% had learned about a new product while on a social networking site. One quarter of respondents were making product recommendations while social networking.

Use of Social Networking in the Purchase Process:

I have discussed products/services/brands on social networking sites after seeing an ad elsewhere: 20%

I have recommended a product/service/brand to my friends via a social networking site: 25%

I have gone directly to an online retailer or ecommerce site after learning about a product/ service/brand via a social networking site: 25%

I am receptive to invitations to events, special offers or promotions from advertisers communicated to me through social networking sites 27%

I have learned about a new product, service and/ or brand from a social networking site: 30%

I have used a search engine to find information on a product/service/brand after seeing an advertisement on a social networking site: 34%

Source: Performics, 2009; The Impact of Social Media Methodology: Online survey of 3,011 who access at least one social network regularly

Another landmark study conducted by the Altimeter Group and Wet Paint has found that the most valuable brands in the world are experiencing a direct correlation between top financial performance and deep social engagement. The relationship is apparent and significant: socially engaged companies are in fact more financially successful.

Key Findings of the Study:

1) Depth of engagement can be measured.
As the number of channels increase, overall engagement increases at a faster rate. Engagement differs by industry.

2) Brands participating in the social space fall into one of four engagement profiles.

SelMavWallButterMAVENS – These brands are engaged in seven or more channels and have an above-average engagement score. Mavens not only have a robust strategy and dedicated teams focused on social media, but also make it a core part of their go-to-market strategy.

BUTTERFLIES – These brands are engaged in seven or more channels but have lower than average engagement scores. Butterflies have initiatives in many different channels, but tend to spread themselves too thin, investing in a few channels while letting others languish.

SELECTIVES – These brands are engaged in six or fewer channels and have higher than average engagement scores. Selectives have a very strong presence in just a few channels where they focus on engaging customers deeply when and where it matters most.

WALLFLOWERS – These brands are engaged in six or fewer channels and have below-average engagement scores. They are still trying to figure out social media by testing just a few channels. They are also cautious about the risks, uncertain about the benefits, and therefore engage only lightly in the channels where they are present.

3) Financial performance correlates with engagement

  • The findings revealed that there is a financial correlation showing companies that are both deeply and widely engaged in social media, or MAVENS, surpass their peers in terms of both revenue and profit performance by a significant difference.

Next–Part III: Judging Social Media Success

Don’t miss–Part I: 6 Key Steps to Determine Social Media ROI

(C) 03/2011, updated, 1/2013; all rights reserved. This article may be shared in part or whole with credit given to author and link to Brown & Associates

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