Social Engagement & Transaction Volume, October 2012 [CHART]
New research finds that customers who participate in a brand’s social community are likely to show higher transaction volume in the weeks following the event that spurred their engagement. Using Canada’s AIR MILES rewards program as a case study, LoyaltyOne, which operates the program, combined 2-and-a-half years of social media interactions with actual transaction data for members identified by a disguised unique member ID, finding a “direct, positive, and tangible” link between social media activity and transaction volume.
To establish that link, LoyaltyOne looked at the AIR MILES social community website, where members discuss and share tips about reward miles. The researchers then examined website activity surrounding 3 AIR MILES events that invited social media participation from site members, using incentives such as bonus miles and lotteries. Read the rest at MarketingCharts.