Posted March 17, 2010 3:42 pm by with 4 comments

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A new study from market research firm Chadwick Martin Bailey and iModerate Research Technologies shows that social media might actually pay off—in real dollars in addition to the traditional branding and influence lift. The survey of over 1500 consumers showed that they were more likely to buy from and recommend brands they follow on Twitter and Facebook.

51% of those surveyed said they were more likely to buy from a brand after following them on Facebook; 67% said they were more likely to buy after following on Twitter. Brands also got a boost in recommendations: 60% of Facebook fans and 79% of Twitter followers were more likely to recommend a brand to their friends.

This is only natural, says eConsultancy:

The most popular reason people follow brands in social media is to receive discounts. But there were also many people who responded that they follow as a customer of the brand and to show their support of it. On Twitter, that reason was less popular. Only 2% of respondents followed a brand to show their support. More often, they are looking for discounts, new information and exclusive content.

That makes a lot of sense, as Facebook’s fan ability is more geared toward letting users express their appreciation for something.

And here’s our grain of salt: this is a survey. This only shows what people think they’re doing. It may be that people don’t want to admit they’re only following Nike to look cool. However, with questions like these, I’d assume there’s at least a little boost for the brands in terms of dollars and recommendations.

What do you think? Are these people accurately reporting their spending and recommendations?

  • I do think that people may follow social media to get better deals but also because they want to get updates on brands that they like a lot.

    If I love a brand, I’ll follow it even though there’s no discounts. For example if I like Adidas, I will follow them in Twitter and Facebook. It will be a great bonus when there’s a discount and I think the fans will all rush for it.

    • While this survey shows interest on the direct-consumer level, as a business owner I am interested in future surveys that evaluate how facebook/twitter use might influence commercial business-to-business sales results…

  • The survey seems to indicate that people are following brands they are most likely to buy from, not that they are most likely to buy from brands they follow.

    There is insufficient information to determine cause and effect, but the people SEEM to believe that the cause is their intention to buy from the brand, rather than the fact that they are following the brand on social media.
    .-= Michael Martinez´s last blog ..Whom do you trust? =-.

  • Great thoughts on social media specifically with bran d recognition. It’s so true that social media gives a big impact with all the business minded people to show their business up in the world wide web, not just for social purpose but also for improving the revenue of the business and getting the targets for their ROI. Social media will aide the customer and prospect customers in believing a business’s products/services that is being offered. Hence, this will really take effect after wards. Indeed this is such a helpful article. Thanks for spurring this out.
    .-= Claudia Guzman´s last blog ..Social Media Monitoring Tools =-.