Brands interacting with consumers on social media can increase sales, new report states

A new study from the IAB’s Social Media Council, conducted by Marketing Sciences, has found that social media interactions between brand and consumer can increase loyalty and engagement.

For the study, the ROI of three FMCG brands’ social media campaigns were measured across eight weeks. It found that nine out of ten consumers would refer the brand on to a friend if they had interacted with it on social media. Four fifths of those surveyed would purchase a brand regularly if they had been introduced to it on social media.

Brands are encouraged to post frequent updates as this has the capacity to change one-off buyers into loyal buyers. For every pound invested in social media, a potential value of £3.34 can be earned back through repeat sales.

Kristin Brewe, chair of the IAB’s Social Media Council, says: “When you think of the fact that FMCG is a category with low price points and tight margins, it’s kind of mind-blowing to speculate what the return on investment could be for social and luxury goods, as an example.”