Social ROI: Can Increasing Social Engagement Double Revenue Growth?

  • Increasing social customer engagement could mean doubling a company’s revenue growth, according to The Echo System, a company that measures the impact of brands’ social networking.
  • “Echo Rank tracks 500 e-commerce companies across various social indicators such as user engagement, social integration, and site performance,” VentureBeat explains. “Those include factors as diverse as follower/fan count, likes and retweeets, integration of social into a company’s site and services, and how effective a website is at converting shoppers into buyers.”
  • The average revenue growth since 2010 was 20.4 percent for the 500 companies in the Echo System index. However, the top five companies on the Echo Rank were able to turn social efforts into 45 percent revenue growth.
  • The top five companies successfully turning social into sales: FansEdge, Barney’s New York, Turn5, GameStop and Fossil.
  • “Our rankings show that the companies investing in social and particularly social commerce are seeing the largest gains in revenues,” says Lance Neuhauser, Echo System chief executive.
  • “Companies that increased their Echo Rank most over just the past two months saw year-over-year revenue growth of almost 30 percent,” adds VentureBeat.

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