If you’re an entrepreneur who’s on the fence about whether or not Facebook is necessary for your business, you may want to take this matter into consideration: According to research, when customers engage with a business through social media they contribute about 5.6 percent more to the firm’s bottom line than customers who do not.
Ram Bezawada, assistant professor of marketing in the School of Management at the University of Buffalo, further explained the results of his research. “There have been doubts about the effectiveness of social media for business because the link between a firm’s efforts and the return on investment hasn’t been established. Our results show that when customers engage with a business through social media they contribute about 5.6 percent more to the firm’s bottom line than customers who do not.”
Bezawada says there are a plethora of ways businesses can engage customers to achieve the best results. “Social media activities help strengthen the bond between the customer and the firm—and boost financial performance,” says Bezawada. “When building communities, businesses should craft personalized messages, encourage member contribution, integrate knowledge about customers from both online and offline interactions, and create specialized sub-communities for customers looking for premium and unique products.”