Social media encourages customer loyalty, spending

Posted on: Thursday, October 27, 2011

As many past polls have confirmed, businesses are putting a greater focus on utilizing social media to improve their bottom line. And as a new study confirms, social media helps increase brand loyalty, further solidifying why it's an ideal avenue for agents to target insurance leads.

Business consulting firm Bain and Company recently surveyed 3,000 consumers to get an idea of what made social media effective for businesses that used Facebook, Twitter and LinkedIn. After compiling the responses, the researchers found that customers who interacted with companies via social media spent between 20 percent and 40 percent more on a company's product or services compared to customers who didn't use social media.

Not only did they tend to spend more, but they also had a deeper emotional commitment to those companies, the report found.

"As part of a broader customer engagement strategy, social media can be an effective and cost-efficient marketing, sales, service, insight and retention tool," the researchers concluded.

This serves as another confirmation of the utility and effectiveness of social media and how it can help increase agents' sales volume.

Posted In: Insurance News, Utilizing Social Media

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