The evidence. And why this may not be the right question to ask in isolation Show me the sales!

How does social media drive the bottom line?

83% of consumers globally are likely to visit a website recommended by a friend on Facebook

More than half say comments posted on retailers Facebook and Twitter pages, whether positive or negative, also influence their opinions (Global Shopping habits survey)

1 - We pay attention to what our friends say online

62% 70%

61%
2 - Consumer opinions online are trusted more than information found on TV or in newspapers (Nielsen)

In Europe - over 50 percent of respondents aged 16 64 with access to the Internet use social networks to assist with shopping decisions (IBM)

3 - We use social media to research what we want to buy

"Customers who engage with companies over social media spend 20 percent to 40 percent more money with those companies than other customers. (Bain & Co)

4 - If socially active online, we spend more

A study in South Korea (a mature social media market) found that social impacts sales among moderate and heavy users. Recommendations shared among moderate social media users increased brand sales by 5% (Harvard Business School)

5 - There is a correlation between social media recommendations and a sales uplift

The top 20% of users spend $67 per quarter, compared to $27 for non Facebook users (Comscore)

6 - The biggest Facebook users spend the most money online

Twitter averages 19.04 clicks per link vs 2.87 for Facebook (SocialTwist)

According to a Kantar Media study in the US, 35% of social media users say Twitter has influenced their purchasing decisions

7 - Though smaller than Facebook, Twitter plays a big part in fostering brand recommendations

Radio Shack in the US found that customers checking into their stores on Foursquare spend 3.5x more than those that don't

8 - It is not just about Facebook and Twitter smaller networks can also bring commercial benefits

Super fans and advocates on your social channels are 50% more likely to create content that influences a purchase (ComBlu)

9 - Super-fans can become an auxiliary sales team

In the 'quick serve industry', consumers exposed to social media have a 7x greater likelihood of 'higher spend' (WPP / Ogilvy)

60% of consumers say they factor other travellers' online reviews into their plans when booking a vacation / holiday (eyefortravel/ Simpliflying)

10 - The picture is the same when looking at individual industry sectors

But - is asking show me the sales the right question to ask in isolation?

Social media is more powerful when seen as helping to protect your brand reputation, assist the overall cycle and (ultimately) change behaviour

Cyber-disinhibition means 20% of consumers now feel empowered to lash out at consumers online (Euro RSCG)

A single bad tweet or Facebook comment can cost you 30 customers (Convergys Group)

If you dont catch it, negative sentiment can harm your brand - consumers increasingly go online to complain

The importance of monitoring, capturing and responding to comments

(Source - Conversocial)

Social media doesnt impact sales in isolation It impacts the whole sales cycle

Social media is at its most powerful when changing consumer behaviour - one example, Movember

More info and resources

All the original links are on a blog post - liesdamnedliesstatistics.com/2012/01/ showmethesales.html Image credits via Creative Commons, thanks to the following:
Cabbits http://www.flickr.com/photos/cabbit/113614750/ The Ticket Collector - http://www.flickr.com/photos/conversely/464062416/sizes/z/in/photostream/ Denis Dervisevic - http://www.flickr.com/photos/denisdervisevic/4745520501/ 401k - http://www.flickr.com/photos/68751915@N05/6355351769/ Kurt Christenen - http://www.flickr.com/photos/subcow/280962961/sizes/z/in/photostream/ Whisky Gone Bad - http://www.flickr.com/photos/badwsky/2110524585/sizes/z/in/photostream/ CC Harmon - http://www.flickr.com/photos/9439733@N02/2556781651/sizes/z/in/photostream/ KC Toh http://www.flickr.com/photos/36000391@N07/4446929018/sizes/z/in/photostream/Acediscovery http://www.flickr.com/photos/ acediscovery/4695798828/sizes/z/in/photostream/ TPCom http://www.flickr.com/photos/tpcom/3246111473/sizes/z/in/photostream/ HubSpot http://www.flickr.com/photos/hubspot/3111238226/sizes/m/in/photostream/ Gerard Stolk http://www.flickr.com/photos/gerardstolk/5079217358/ British Midland International (disclosure - Rabbit client) http://webstagram.com/n/flybmi babyben - http://www.flickr.com/photos/babyben/4757347232/ Martin Deutsch - http://www.flickr.com/photos/teflon/5292940718/ Hans and Carolyn http://www.flickr.com/photos/hansandcarolyn/3060606530/ ehnmark - http://www.flickr.com/photos/ehnmark/463965443/ Eltman - http://www.flickr.com/photos/eltman/2155938264/sizes/z/in/photostream/ Zizzybaloobah http://www.flickr.com/photos/zizzy/51737298/ Inha Leex Hale http://www.flickr.com/photos/sixmilliondollardan/2493495506/ Thomas Quinones http://www.flickr.com/photos/tomascosauce/2478950420/sizes/z/in/photostream/