Businesses generate higher revenue with social media: Study

Washington, Mar 26 : Customers' use of social media helps a business firm generate higher revenue, a research has said.

Ashish Kumar, assistant professor of marketing at Aalto University, said that now there is proof that customers who engage with a business through social media contribute more to the bottom line than customers who do not

He said that study showed that social media activities help strengthen the bond between the customer and the firm.

Participating customers on a firm's social media site contribute 5.6 percent more revenue and visit the business about five percent more than non-participating customers, he explained.

This study proves that building online communities, personalizing messages and encouraging contributions from online members enhances the customer experience as well as increases the frequency of social media visits and promotes sales overall.

The research showed that the keys to success include maintaining a user-friendly site, sending regular updates about events, personalizing key messages to customers and encouraging interaction from them.

This study has been published in a special issue of the journal Information Systems Research on 'Social Media and Business Transformation'.

This study was conducted by Ashish Kumar from Aalto University in collaboration with Rishika Rishika and Ramkumar Janakiraman from Texas A and M University, and Ram Bezawada from the University at Buffalo, New York.

--ANI (Posted on 26-03-2013)

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