altimeter

Original post: New study: Deep brand engagement correlates with financial performance by Charlene Li, co-author of “Groundswell”

The goals of the study were to measure how deeply engaged the top 100 global brands — as identified by the 2008 BusinessWeek/Interbrand Best Global Brands ranking — are in a variety of social media channels (including blogs, Facebook, Twitter, wikis, and discussion forums) and, more importantly, understand if higher engagement is correlated with financial performance.

Activity in each channel was ranked for depth of interaction on measures that corresponded to that specific channel. Scores for overall brand engagement ranged from a high of 127 to a low of 1. The top 10 ENGAGEMENTdb brands with their scores are:

1. Starbucks (127)
2. Dell (123)
3. eBay (115)
4. Google (105)
5. Microsoft (103)
6. Thomson Reuters (101)
7. Nike (100)
8. Amazon (88)
9. SAP (86)
10. Tie – Yahoo!/Intel (85)

Engagement Correlates To Financial Performance

But even more interesting is that we also looked at the financial performance of the brands, grouping the companies with the greatest depth and breadth into a group called “Social Media Mavens”. These Mavens on average grew 18% in revenues over the last 12 months, compared to the least engaged companies who on average saw a decline of 6% in revenue during the same period. The same holds true for two other financial metrics, gross margin and net profit.

Tagged as: altimeter, Case Studies, social media, study, wetpaint

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