Pulse September 2017 | Page 18

PulsE PoiNts High Social Media Engagement Directly Translates to Customer Spending—Even if it’s Negative he old saying, “There’s no such thing as bad publicity,” reigns true in the age of social media. According to a new study published in the Journal of Marketing, the popularity—or high engagement—of social media posts has the greatest effect on consumer spending. The study compared the popularity of posts to sentiment (whether the post was positive, negative or neutral) and found that popularity won out. “A neutral or even negative social media post with high engagement will impact sales more than a positive post that draws no likes, comments or shares,” says study co-author Ram Bezawada, PhD, associate professor of marketing in the University at Buffalo School of Management. “This is true even among customers who say their purchase decisions are not swayed by what they read on social media.” The researchers studied data from a large specialty retailer T 16 PULSE ■ September 2017 with multiple locations in the northeast United States. They combined data about customer participation on the company’s social media page with in-store purchases before and after the retailer’s social media engagement efforts. They also conducted a survey to determine customers’ attitudes toward technology and social media. “The clear message here is that social media marketing matters, and managers should embrace it to build relation- ships with customers,” says Bezawada. “Developing a community with a dedicated fan base can lead to a definitive impact on revenues and profits.” Instead of just posting on social channels, create a strategy to engage your customers: ask questions, post thought-provoking articles, and don’t be afraid to rock the boat because even a post that ruffles a few feathers can result in a sale.