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Researchers Determine Connection Between Social Media Use, Revenue

An international team of researchers from Aalto University, the University at Buffalo, and Texas A&M University say they have proven there is a definitive relationship between customers’ use of social media and higher sales revenue. The researchers showed those customers “engaging” with a firm using social media contribute roughly 5.6 percent more revenue and visit the business about 5 percent more than non-participating customers. They say the work will provide business managers with “a better understanding of the return on their investment in social media.” It also demonstrates the relationship between customer social media use and their purchases. This should enable companies’ social media-based marketing initiatives to be more effective and profitable. Because not all customers use social media, the researchers said segmentation of marketing efforts is important. The work was published in Information Systems Research. (EurekAlert)(Aalto University)(Information Systems Research)

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