A new social social media study conducted by J.D. Power and Associates has revealed a powerful link between between social media engagements and business metrics. The study surveyed consumers to discover how they interact with their favorite brands on social media sites.
More than 87% of those surveyed indicated that social engagements with brands had a positive impact on their buying decisions. Not only did the survey show that social was an excellent customer service tool capable of building brand loyalty, the study also showed that companies with a strong social presence could increase conversion rates.
According to Jacqueline Anderson, director of social media and text analytics at J.D. Power and Associates, “Companies that are focused only on promoting their brand and deals, or only servicing existing customers, are excluding major groups of their online community, negatively impacting their satisfaction and influencing their future purchasing decision. A one-pronged approach to social is no longer an option.”
To that end, J.D. Power and Associates is advocating that social media should not only be used to create brand awareness and loyalty, but should also be used to help answer questions and troubleshoot problems. The study also showed that younger consumers are more likely to engage in servicing conversations with brands on social.