This presentation provides ten proof points to try and definitively answer the question of how social media marketing impacts sales. It also questions whether sales are useful to look at in isolation, showing a number of other metrics. Links and sources for the presentation can be found at http:// liesdamnedliesstatistics.com/showmethesales.html

1. The evidence. And why
this may not be the right
question to ask in
isolation
Show me the sales! How does social media drive
the bottom line?

2. 83% of consumers globally
are likely to visit a website
recommended by a friend
on Facebook
More than half say comments posted on
retailers’ Facebook and Twitter pages,
whether positive or negative, also
influence their opinions
(Global Shopping habits survey)
1 - We pay attention to what our friends say online

3. 62%
70%
61%
2 - Consumer opinions online are trusted more than information found on TV
or in newspapers (Nielsen)

4. In Europe - over 50 percent of respondents aged
16 – 64 with access to the Internet use social
networks to assist with shopping decisions (IBM)
3 - We use social media to research what we want to
buy

5. "Customers who engage with companies over
social media spend 20 percent to 40 percent
more money with those companies than other
customers.” (Bain & Co)
4 - If socially active online, we spend more

6. A study in South Korea (a mature social media market) found
that social impacts sales among moderate and heavy users.
Recommendations shared among moderate social media users
increased brand sales by 5%
(Harvard Business School)
5 - There is a correlation between social media
recommendations and a sales uplift

7. The top 20% of users spend $67 per quarter, compared to $27
for non Facebook users (Comscore)
6 - The biggest Facebook users spend the most money online

8. Twitter
averages
19.04 clicks
per link vs
2.87 for
Facebook
According to a
(SocialTwist)
Kantar Media study
in the US, 35% of
social media users
say Twitter has
influenced their
purchasing decisions
7 - Though smaller than Facebook, Twitter plays a big
part in fostering brand recommendations

9. Radio Shack in the US found that customers
checking into their stores on Foursquare spend
3.5x more than those that don't
8 - It is not just about Facebook and Twitter -
smaller networks can also bring commercial
benefits

10. Super fans and advocates
on your social channels are
50% more likely to create
content that influences a
purchase (ComBlu)
9 - Super-fans can become an auxiliary sales team

11. In the 'quick serve industry',
consumers exposed to social
media have a 7x greater
likelihood of 'higher
spend' (WPP / Ogilvy)
60% of consumers say they factor
other travellers' online reviews
into their plans when booking a
vacation / holiday (eyefortravel/
Simpliflying)
10 - The picture is the same when looking at individual
industry sectors

12. But - is asking ‘show me the sales’ the right question to ask in
isolation?

13. Social media is more powerful when seen as
helping to protect your brand reputation, assist the
overall cycle and (ultimately) change behaviour

14. ‘Cyber-disinhibition’ means
20% of consumers now feel
empowered to lash out at
consumers online (Euro RSCG)
A single bad tweet or
Facebook comment can cost
you 30 customers (Convergys
Group)
If you don’t catch it, negative sentiment can harm
your brand - consumers increasingly go online to
complain

15. The importance of monitoring, capturing and
responding to comments
(Source - Conversocial)

16. Social media doesn’t
impact sales in isolation
It impacts the whole
sales cycle

17. Social media is at its most powerful when changing
consumer behaviour - one example, Movember

18. More info and resources
All the original links are on a blog post - liesdamnedliesstatistics.com/2012/01/
showmethesales.html
Image credits via Creative Commons, thanks to the following:
Cabbits http://www.flickr.com/photos/cabbit/113614750/
The Ticket Collector - http://www.flickr.com/photos/conversely/464062416/sizes/z/in/photostream/
Denis Dervisevic - http://www.flickr.com/photos/denisdervisevic/4745520501/
401k - http://www.flickr.com/photos/68751915@N05/6355351769/
Kurt Christenen - http://www.flickr.com/photos/subcow/280962961/sizes/z/in/photostream/
Whisky Gone Bad - http://www.flickr.com/photos/badwsky/2110524585/sizes/z/in/photostream/
CC Harmon - http://www.flickr.com/photos/9439733@N02/2556781651/sizes/z/in/photostream/
KC Toh http://www.flickr.com/photos/36000391@N07/4446929018/sizes/z/in/photostream/Acediscovery http://www.flickr.com/photos/
acediscovery/4695798828/sizes/z/in/photostream/
TPCom http://www.flickr.com/photos/tpcom/3246111473/sizes/z/in/photostream/
HubSpot http://www.flickr.com/photos/hubspot/3111238226/sizes/m/in/photostream/
Gerard Stolk http://www.flickr.com/photos/gerardstolk/5079217358/
British Midland International (disclosure - Rabbit client) http://webstagram.com/n/flybmi
babyben - http://www.flickr.com/photos/babyben/4757347232/
Martin Deutsch - http://www.flickr.com/photos/teflon/5292940718/
Hans and Carolyn http://www.flickr.com/photos/hansandcarolyn/3060606530/
ehnmark - http://www.flickr.com/photos/ehnmark/463965443/
Eltman - http://www.flickr.com/photos/eltman/2155938264/sizes/z/in/photostream/
Zizzybaloobah http://www.flickr.com/photos/zizzy/51737298/
Inha Leex Hale http://www.flickr.com/photos/sixmilliondollardan/2493495506/
Thomas Quinones http://www.flickr.com/photos/tomascosauce/2478950420/sizes/z/in/photostream/