Social Media Really Pays Off

By: Ashley Alves

Social Media is a big part of our lives. Most of us wake up in the morning and check our social media feeds before we even brush our teeth. This is the norm. Thousands and thousands of images and posts are on our screens every day. It only makes sense to tap into these portals for marketing purposes. More and more businesses are using social media for marketing purposes because studies show that customers that are connected with businesses through social media come into those businesses more often and also contribute more to their bottom lines.

In From Social to Sale: The Effects of Firm-Generated Content in Social Media on Customer Behavior the authors looked at the effect of social media on three key customer metrics. Those three categories were: customer spending, cross-buying, and customer profitability. They also looked into seeing if there was any increase in the effect of social media content when it was paired with television advertisements and email communications. The study showed that social media content had a positive and significant effect when television advertisements and email communications were also taken into account. The effect is greater for the more tech-savvy demographic of customers. It makes sense that the effect of marketing through social media would be the most effective on the population who uses social media the most. If a business is on multiple social media platforms, chances are that consumer is connected with the business on all fronts, equaling more exposure not only for that particular consumer that is directly associated, but also with that consumer’s friends, and his/her friends’ friends, and the list goes on and on. That is why this study shows that combining social media with marketing through television advertisements and emails is what is effective. The more of a relationship you build with the consumer the more invested they will be with you as a company.

Worldwide, more companies are investing their time and money into social media. Total spending on social media advertising is increasing every year. However, the majority of marketers are concerned about the return on investment because they are not sure how to measure this effectively. I think that this is a risk that marketers need to take. Sure, it is somewhat difficult to track, but still very doable and worth the risk. Social media should be thought of much more than just a marketing platform where companies can promote products. It also is for engaging and nurturing profitable relationships with their customers. Relationships between businesses and consumers through social media interactions are mutually beneficial. The consumer gets the sense of a community out of being a part of the social media network and they feel well informed about this business that they follow. The company is able to communicate their current product offerings, prices, and promotions through social media so they are able to reach a large number of people in a short amount of time.

More companies need to embrace social media. Businesses need to embrace social media marketing in order to communicate and nurture relationships with their customers in order to create a more positive customer experience. People like to have their voices heard and feel like they are a part of something and social media allows for this. When companies use social media for marketing purposes they need to incorporate both promotional and non-promotional material. This makes the social media pages of the companies more intriguing. If businesses are constantly trying to sell things through social media, and never post anything else, the consumer is going to get bored and lose interest. Marketers must create an ideal balance between promotional and non-promotional material in order to properly engage the customer.

Investing in developing a social media community with a dedicated fan base can significantly strengthen relationships between businesses and their consumers and can lead to a positive impact on the business’s revenues and profits. This, of course, may take time. In order to influence customer purchase behavior, you must first build a relationship with the consumer. However, the larger the social media community is for a business, the larger the influence it has on the customer’s purchase behavior. Many businesses try to sell additional services and products to customers through social media. This is a very common cross-selling approach used by marketers. This is effective because customers who buy across several categories have greater switching costs, longer retention costs, and help increase revenues and profits. Marketers need to take the leap into social media if they do not want to be left in the past. Those who are still skeptical about using social media platforms for marketing should look into articles such as From Social to Sale: The Effects of Firm-Generated Content in Social Media on Customer Behavior. The results speak for themselves. Combining social media marketing with other more traditional marketing tactics such as email communications and television advertisements will give you positive results on sales, revenue, retention, customer satisfaction, and much, much more.



24 thoughts on “Social Media Really Pays Off

  1. latikakarnani January 28, 2016 / 6:47 pm

    Another example of combining social media marketing with traditional marketing tactics is product placement in you tube. Many youth are subscribed to youtubers like Miranda, Nigahiga , superwoman etc.They have millions of subscribers who follow them and their style blindly. So in such cases, when unintentionally or intentionally they place a product, people do tend to try them.
    Chipotle gives superwoman a yearlong celebrity pass, Nike gives her air Jordan and all she has to do is, show this for a second and the job is done. Millions of people who dont know about a product now do. Power of youtube is tremendous and this is an intelligent concept and it has humongous scope in the near future specially if done with a little thought and a little subtlety.


  2. Victoria Guskiewicz January 29, 2016 / 3:50 am

    First off, I really enjoyed reading your post as well as your article, I think that combining social media marketing with traditional marketing such as email is a smart business strategy. Since so many of us now a days are so intricately connected to technology and now social media and to our friends, followers etc. Combining these two strategies together allows to further strengthen the relationship between consumer and the business, and can ensure loyalty as well as inform consumers with quick and easily accessible information about promotions or new products. So I do agree that in the long run social media does pay off and is a smart direction for businesses to go into to share a wide variety of information with a large audience who are all connected to say Instagram for example which has over 200 million users. Or with Twitter, business can track trends for example, they can see who is discussing their products or learn more about their followers across multiple social channels.


  3. enosc January 29, 2016 / 9:57 pm

    Great blog post and awesome presentation in class on Monday. I think advertising in social media today gives the consumer quicker access to buying products/services especially since we have evolved into an instant gratification society. You see something and want it now. It also allows for companies to track more closely consumer patterns of looking at products/services and buying and as a result companies and align to consumer wants and needs. Social media plays a big role in the day to day life of most people it only seems fitting that companies take advantage of that market to advertise. Especially with the ability to DVR TV programs and stream moves, advertisers are loosing the avenue of that market population. I’ve noticed that web ads and Facebook ads have the ability to see what you may have Googled or sites you clicked on and can gear ads to those searches. For example when I was looking up resort in Florida for a vacation, I noticed that my yahoo page and Facebook page had more ad for Florida vacations. I clicked on a shoe store link in Facebook and now I see their Ads pop up if I’m reading a face book article. That ability to be in a consumers line of site constantly really can keep the consumer thinking about their product especially if they are on the fence about buy it.


  4. Abagail Stacey January 30, 2016 / 2:48 pm

    I think you did a great job on your blog post. It was well thought out and gave multiple examples as to why businesses should use both social media and traditional marketing as a way to target consumers. Going off of what you said and the other three comments, I totally agree that in today’s world people are glued to their phones and are constantly checking up on their social media. I ended up googling the difference between social media compared to traditional marketing and what came up that I thought was interesting was the percent increase/decrease in effectiveness. Social media has a 65% increase and an 11% decrease, but traditional had only an 11% increase and a 43% decrease. So like you had said in your blog post that companies are investing more time and money into social media and these percentages go to show that the risk they are taking is going to be worth it. I also noticed what CJ said about having ads on something you have looked at or bought on the side of my computer when I’m on social media. Another point to make is how you have to fill in your email (traditional marketing tactic) when buying a product online so once you have bought something from a company you will keep receiving emails from them letting you know about sales that are happening and other important information they want the consumer to know about. Consumers are checking their emails daily, but the issue is, are they actually reading the emails that are sent or are they just deleting them because it’s easy to do. People can also consider these types of emails as ‘junk mail.’ There are so many ways for marketers to get in contact with consumers, it’s just finding the best way in order to keep them interested and as of right now that would be through social media.


  5. Maria R. January 31, 2016 / 3:22 am

    Your post was thorough and well thought out. Social media has become a needed staple in our lives; it’s a way to make the world a smaller place as we connect with people from around the globe, it’s a way to share moments with families when we or they are far away, and it’s a way to share our thoughts and opinions with others. Even though those were only a few ways to use social media, there are plenty of creative ways to use it as well as different social media to choose from.

    So, with a variety of ways to use social media, it’s no surprise that business owners go towards it. Social media is a way to advertise businesses as well as to feel more connected with the customers. It’s an advantage to use it; personally, when it comes to a business, the first thing I do is search for them online before going to the store, and it is disappointing when I can’t find their official website.


  6. Nichole Urbanski February 1, 2016 / 4:49 pm

    I enjoyed reading this blog post! I totally agree with the effect and impact that social media has made. More companies do need to come to the realization that social media is taking over and will only continue to grow over time. I also agree with the fact that marketing should be promotional and non-promotional. Customers would get bored if they were constantly seeing the same thing over and over again. When companies take a social media approach, they may be reaching out to customers that they never thought they could gain. Social media is a quick approach in the marketing world. Social media makes it extremely easy an convenient for customers to approach products. I also agree with ads on the side of the computer screen. I think that these ads have a big impact as most of the ads are popular. Also, I will admit that I am someone who will delete emails as I go but for the most part, if they are from a company I don’t even both to look at them, they just sit in my inbox. Overall, I think that social media will continue to grow and create a much larger impact on the marketing world than any other type of approach.


  7. Julie Wusenich February 5, 2016 / 2:40 am

    This was a great article and blog! Social media is a vital part of marketing and how a company presents itself to the consumer. Companies need to incorporate social media into their marketing plans and think of it as long-term investment by including money in the budget for social media and additional staff member(s) to the team. Compared to traditional advertising (tv, billboards, etc.) one post can reach consumers across the globe and this can then be shared with friends – thus reaching even a more potential customers.


  8. Kathy Makiver February 11, 2016 / 9:05 pm

    Ashley, you did a great presentation in class and a great blog post! I am one of those people who checks the phone as soon as I wake up…God forbid, we miss anything new that is happening. There are so many benefits for companies to market through social media. I read an article in Forbes that listed the 10 Benefits of Social Media Marketing and many of those were mentioned in your blog. Increased visibility will lead to increased brand recognition. Every time something is posted could lead to a site visit for the company. I must say though that I do find it very annoying that something I may have checked out once keeps popping up for another chance for me to see it again. This is the way of the future though so we might as well get on board!


  9. Matthew Kent February 12, 2016 / 12:01 am

    I would say the combination of social media marketing and traditional marketing is a great way for businesses to gain product recognition. If a company has a new product that they are trying to advertise and they utilize this dual marketing strategy, the product could become known a lot quicker. As a consumer, if I happen to see a product on social media and then see it later that week in a television advertisement, I’m probably going to remember that product weather I want to or not. Using tradition and social media marketing channels is only beneficial for company’s especially now a days where almost everyone is on some form of social media.


  10. ssceery February 15, 2016 / 5:42 pm

    I agree with Julie that the increased presence of social media is essential, even if that means it requires additional staff. With the trends and movement in social media today, this is a huge opportunity for marketers on both the promotional and non-promotional pieces as the article points out…yet it takes time, energy and resource efforts to get it right!


  11. Molly February 23, 2016 / 7:21 pm

    I definitely agree by using both social media marketing and the traditional sense of marketing will help any business. They are getting their name out there while also making sure their customer is happy and getting what they want. While using social media marketing may have its risks and downfalls, I feel as though with how technology is growing and networks are expanding, social media is the best way you can catch the eye of the consumer. Especially with the age of DVR. You are now able to record something on tv and fast forward right through the commercials that are playing your marketing advertisement. Although I do think both ways are effective because it shows how much you really care about your customer and how great your product does well if you have multiple forms of marketing.


  12. Olivia Sullivan February 23, 2016 / 7:22 pm

    I agree with what you wrote Ashley. Businesses should all be using social media when trying to sell their products and getting them out into the world. They should also constantly post information or pictures because customers will get bored or stop following them. But not only should they be posting their products they should also be searching their products to see what other people have said about it. They should also be searching a hashtag they use to comment on peoples posts that are talking about their company. By doing this they can connect with that person and that person may feel better or more comfortable about this company and want to purchase more of their products.


  13. Marisa February 23, 2016 / 7:25 pm

    I really enjoyed this article. Social media is actually taking over our lives; I check mine as soon as I wake up. This article was relative to me because at work, one of my jobs is helping to promote our website, and Facebook page.The gym that I work at is actually working with a consultant, and spending a lot of money, in order to strengthen our social media presence. We have been promoting our website by waiving the startup fees if you sign up online, and posting pictures of all the girls who work at the front desk (non-promotional). It really helps to nurture the relationships we have/ want to have with our customers. It really puts the idea of social media marketing into perspective of how important it is to many companies worldwide.


  14. Kayla Regan February 25, 2016 / 6:38 pm

    I strongly agree with this article. The statement that many people check social media before they even brush their teeth holds true to myself and a lot of people that I know. Because of this, it only makes sense that businesses take advantage of this platform to promote their products and services. Although it is difficult for companies to see the exact return-on-investment through social media, this is still an additional platform that is relatively cheap and that companies can expose themselves through.


  15. Courtney Bernard March 2, 2016 / 9:37 pm

    I could not agree more with the idea of connecting with a consumer on multiple platforms helps create brand loyalty. Companies that allow an interactive relationship with the consumer, to me, show they are more invested in the brand reputation and overall customer satisfaction. It is not enough to advertise just with television and radio ads. If I see a billboard for a company, and then receive an email or a sponsored post on Instagram, I am more likely to become interested and research the brand or ongoing deal. Our society today has made social media a norm in our daily lives, also holding true to the statement of “checking social media before even brushing your teeth.” Companies who take advantage of connecting with consumers across social media platforms have an automatic advantage in the race for brand loyalty and brand recognition, as well as customer satisfaction.


  16. Meg March 16, 2016 / 4:01 am

    The difficulty of measuring social media causes many managers to doubt the importance of financing and investing in social media advertising. Some people believe that scattered and poorly done posts are sufficient to gain followers, but social media is crucial to the branding of a firm. Customer loyalty is important for a company to gain money, and social media is critical to gaining followers and connecting to consumers.


  17. Chansamone Voralath March 27, 2016 / 8:27 pm

    Great article presentation! I enjoyed reading and watching your presentation in class. I totally agree with this article. I can really relate to the fact that social media does somehow take over our lives and I’m sure a lot of people can relate to. First thing I do when I wake up is to check status on facebook before I even start brushing my teeth or doing anything that is more important and productive. With this reason, it only makes sense for businesses to use social media and incorporate social media platform to promote and sell their products to potential customers.


  18. Justin Flory March 30, 2016 / 2:37 am

    I agree with the idea that building relationships with customers is very important for a company to establish itself. If companies don’t have a strong following, they really aren’t going to get anywhere. They are really only going to be successful with the help of loyal customers who keep coming back over and over again. If relationships aren’t formed, customers don’t really feel like they are using the best product or service and might switch to another brand or company. This could go for all products. Social media is great for building relationships, as people are always communicating with each other throughout the day.


  19. Meghan Gulbrandsen April 4, 2016 / 11:22 pm

    Social media really is a huge opportunity for marketers to take over. People are always on their devices constantly. The fact that scrolling through our news feeds is the very last thing most of us do before we go to sleep and then the first thing we do when we wake up in eye opening, not to mention the countless number of times we go back on these sites throughout the day. Today people are all about doing things the fastest and easiest way possible, and social media really connects with this concept. Marketing on these sites is brilliant for companies and should definitely be used.


  20. Hechuan Lou April 9, 2016 / 7:16 pm

    I never doubt Social Media is so important to marketing and business. This article revealed the function and impact of Social Media, and this blog organized those points together. I also agree with the idea that combine the social media together with the traditional marketing tactics. From my working experience in Marketing area, I used Social Media a lot to promote the products. It worked very well and could lead to a very good result, but there is a problem. If your products have any negative information, it will also be spread very fast. That’s a point should pay attention.


  21. alexzahlaway April 14, 2016 / 10:45 pm

    Great blog post and on a very significant topic because almost everyone is connected through social media now a days which has basically made it a requirement for businesses to be on there as well. There are a lot of benefits for a company to be on socially media including the low cost, quick responses to your customers, etc. I also personally notice that social media has the added benefit of exposure because just having one person following you can be seen by their friends who may like your page which then continues this process. I especially agree with you when you brought up the obstacle marketers face when trying to justify the use of this because it is hard to see results in terms of sales numbers. I remember we talked earlier in the semester about management maybe not being too open minded when it comes to budgeting for this but I agree that it’s something you have to accept because it crucial to interact with your customers.


  22. Aidan Kelly April 14, 2016 / 11:16 pm

    It is crucial for companies to have a strong social media presence in their marketing plan. Some people think that social media cost little to no money to maintain, but that is not the case. This type of marketing costs hundreds of thousands of dollars a month. It is also difficult for companies to track their direct impact on their viewers and followers of their social media presence. It would be interesting to see the ratio of how many followers a company has in relation to its revenue.


  23. Ronald Zampanti April 21, 2016 / 8:16 pm

    It is very important for businesses to use social media in this day and age. Building relationships with customers is a necessity for any business that wants to succeed and social media is a great platform to do this on. I agree that positive customer experiences can occur through interacting with businesses on social medias.


  24. Tyler Finigan May 5, 2016 / 10:23 pm

    Social media is definitely an effective marketing tool and is adequately utilized by many companies. I don’t use social media that often, but I’m guessing I’m in the minority for that. When I am on social media, I usually never look at or read any of the advertisements unless they seem interesting to me. I feel that companies’ money would be better spent paying for ads during major television and sporting events. Yes people can just change the channel, but TV commercials are probably the best bet to reach the non-social media population.


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