Retailers, Here’s Proof Social Engagement Drives Q4 Sales
When Media Logic’s Retail Social Juice Index was still in its infancy, we used it to predict big 2011 holiday sales for 10 brands. The question retailers always ask of marketers is, Can social media engagement track to sales? We’re happy to answer, Yes. High social engagement, as we measure it with the RSJI, does seem to correlate with increased sales. And here’s more good news: There’s still time to plan your Q4 social content. The brands we identified back in December 2011 – Yankee Candle, American Girl, Ann Taylor, LUSH Cosmetics, Lakeside Collection, Pandora, ShutterFly, ThinkGeek, LeapFrog and Bath & Body Works – remained at or near the top of the RSJI leading up to and through the 2011 holiday season. Each, in fact, averaged an engagement score of 150 or more (a rare honor) in the three weeks leading up to our prediction. This remarkably high – and consistent – engagement represents the kind of sustained customer enthusiasm we believed would result in revenue. Public financial data is available for eight out of the 10 brands (LUSH Cosmetics and Lakeside Collection are private companies and do not publish financials). Of these eight, all but two – Pandora and Ann Taylor -- showed an increase in comparable store sales (or in total sales, when comp numbers are not applicable) for the final quarter of 2011, which, of course, includes the holiday selling period. And despite a decrease in comparable store sales, Pandora still reported a 12.4% increase in North American revenue for 2011. In addition to the brands on our list performing well in their year-over-year figures, we also saw this group realize growth in company stock prices ...
In the 10 days leading up to Black Friday, the biggest retailers on Facebook - those with the most Likers - grew their fan bases by an average of 10%. Respectable.
But more aggressive retailers on Facebook grew their fan bases at twice that rate!
Through a combination of Black Friday and other seasonal offers, discounts, contests, games and simple “Like us” pleas, the top 10 fastest growing retailers on Media Logic's survey list saw their Liker bases soar by an average of 20% between 11/16 and 11/26/2010.