While social media is not the silver bullet that some pundits claim it to be, it is an extremely important and relatively low cost touch point that has a direct impact on sales and positive word of mouth
Boston, MA (Vocus) March 10, 2010
In a recent study of social media usage it is clear that consumers who are Facebook fans and Twitter followers of a brand are more likely to not only recommend, but they are also more likely to buy from those brands than they were before becoming fans/followers. The study of over 1500 consumers by market research firm Chadwick Martin Bailey and iModerate Research Technologies found that 60% of Facebook fans and 79% of Twitter followers are more likely to recommend those brands since becoming a fan or follower. And an impressive 51% of Facebook fans and 67% of Twitter followers are more likely to buy the brands they follow or are a fan of.
“While social media is not the silver bullet that some pundits claim it to be, it is an extremely important and relatively low cost touch point that has a direct impact on sales and positive word of mouth,” comments Josh Mendelsohn a vice president at Chadwick Martin Bailey. “Companies not actively engaging are missing a huge opportunity and are saying something to consumers - intentionally or unintentionally- about how willing they are to engage on consumers’ terms.”
The study also uncovered perceptions among consumers that those brands not engaging in social media are out of touch. When asked the question 'What does it say about a brand if they are not involved with sites like Facebook or Twitter?' they said the following:
'It's expected that a company have some digital face - whether it's on FB or Twitter I don't know - but they need a strong electronic presence or you doubt their relevance in today's marketplace.' Female 50-54
'Either they are not interested in the demographic that frequents Facebook and Twitter or they are unaware of the opportunity to get more exposure in a more interactive method.'Male 35-39
'It shows they are not really with it or in tune with the new ways to communicate with customers.' Female 18-24
'If they're not on Facebook or Twitter, then they aren't in touch with the "electronic" people.' Female 55-59
Recent statistics from Facebook show they have 400 million active users and more than 20 million people become fans each day. Twitter users post over 50 million tweets per day—that's an average of 600 tweets per second.
About the Study
Data was collected from 1,504 adults (aged 18 and over) via a nationally representative online survey questionnaire within the United States by Chadwick Martin Bailey between February 8, 2010 and February 9, 2010. In addition iModerate Research Technologies conducted one-on-one discussions to more fully contextualize their social media behaviors.
About Chadwick Martin Bailey
Chadwick Martin Bailey is a Honomichl Top 50 ranked custom market research and consulting firm working with many of the most successful companies and best known brands in the world to help them acquire, maintain, and grow their customer base. Founded in 1984 by John Martin and Anne Bailey Berman, the company has corporate headquarters in Boston, Massachusetts, serving clients in more than 30 countries around the globe. Chadwick Martin Bailey focuses on using leading-edge research techniques to collect and translate the data into simple, business decision-focused deliverables. http://www.cmbinfo.com
About iModerate Research Technologies
iModerate Research Technologies listens, connects and digs deeper with consumers online to provide the research story organizations need to win in the marketplace. Years of research and development by veteran field experts, as well as analytical specialists, produced the concept, methodology and software that have allowed iModerate to help Fortune 500 companies, large and boutique research firms and prominent organizations strengthen their research results. Focused on providing customized qualitative solutions, iModerate is broadening online research capabilities by delivering essential qualitative insight. iModerate is based in Denver, Colorado. For more information please visit http://www.imoderate.com