Social Media Boosts Revenue Growth for 500 Online Retailers
While this should come as no surprise, a new report shows that online retailers with strong social customer engagement strategies significantly outperform those that don’t.
Today the Echo System, which helps brands measure the impact of their social media efforts, released its Echo Rank results for June. The company tracked 500 e-commerce companies across various social indicators, such as user engagement, social integration, and site performance.
For the 500 companies in the index, the average revenue growth has been 20.4 percent since 2010. This year, the top five companies — FansEdge, Barney’s New York, Turn5, GameStop, and Fossil — shattered that figure, now averaging 45 percent revenue growth.
Echo System also noted that the companies that have increased their Echo Rank the most over the past two months saw year-over-year revenue growth of almost 30 percent.
Social integration appears to have beat out site conversion performance. Although Turn5 is sitting comfortably at number three, its site performance score is only seven. However, its social score is 100, which suggests regular, if not exceptional, engagement with fans online.
Although you should have already integrated, or be in the process of integrating social elements into your marketing strategies, this report serves as a good reminder. Putting in the extra effort to send out a few tweets or respond to a couple of comments on Facebook pays off.