Study Shows Social Media Correlates to Financial Performance

Yesterday, Charlene Li and Wetpaintreleased a study that ranks the top 100 global brands according to their engagement in social media. The study demonstrates a correlation between social media engagement and financial performance, suggesting that those who are "widely engaged in social media surpass their peers in terms on both revenue and performance."

The report features case studies and tips from four of the best-performing companies: Starbucks, Toyota, SAP and Dell.

Below are five actionable take-aways from the report, helpful for big business and small business alike. The full report is embedded below.

1. Companies that engage in many social media channels tend to experience an exponential increases in engagement. Companies that get involved in many channels quickly learn the cultures of each social media site. This practice helps the company feel more comfortable engaging in less intuitive channels (like Twitter).

2. Social media increases touch points with consumers, creating a ripple effect that boosts brand recognition. For example, a company Facebook page can be shared among thousands of friends. Those friends can share with their friends, increasing brand awareness for the company.

3. Interacting and listening in social media with a customer-oriented mindset can help an organization identify and meet customer needs. Social media is an immediate feedback loop. Give your marketplace a platform to provide feedback so you can improve your products and services to better your business.

4. By developing a process for consistent monitoring of social media, you can provide immediate customer support. Your best business often comes from your current customers. Watch for requests for help -- or even complaints. By providing immediate assistance, you can turn critics into raving fans. 

5. Engaging in social media positively brands your company. Aside from appearing cool and innovative, engaging in social media builds trust with consumers. If they know you listen to feedback and implement consumers' opinions, they will trust you and be more likely to buy your product or services.

The below report can also be found on ENGAGEMENTdb. What other take-aways did you learn?

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