Is There a Correlation Between Social Media and Financial Success?

A study published by enterprise wiki provider Wetpaint and the Altimeter Group indicates that the more a brand engages with its consumers via social media, the likelier that relationship is to pay off with higher financial success.  The study evaluated 100 companies from the  2008 BusinessWeek/Interbrand Best Global Brands survey and their social media activity on Facebook, Twitter, blogs, etc. The brands were then ranked on an “engagement scale” ranging from a high of 127 to a low of 1. Those brands scoring highest on engagement experienced 18% revenue growth in the past year, while the least engaged experienced revenue declines of -6%.

The study identified four engagement profiles relating to the number of social media channels a brand is involved with, and the depth of that involvement.  ”Mavens” like Starbucks and Dell engage in 7 or more channels.  ”Butterflies” are active on 7 or more channels, but aren’t as consistent in their engagement across channels.  As the title implies, “Selectives” focus on fewer channels but engage customers more deeply.  ”Wallflowers” like McDonald’s are on fewer channels and haven’t fully figured out how to consistently engage their customers via social media.

The top 10 social media “Mavens” identified by the study have experienced financial success, even in a down economy.   The full study also identifies best practices utilized by these brands to best engage with their customers.

1. Starbucks (127)
2. Dell (123)
3. eBay (115)
4. Google (105)
5. Microsoft (103)
6. Thomson Reuters (101)
7. Nike (100)
8. Amazon (88)
9. SAP (86)
10. Tie – Yahoo!/Intel (85)

[Via Read Write Web]