Commercial Value of Social Media: credible attempt to answer

Commercial Value of Social Media: credible attempt to answer

Article

Transformation

Social Media Listening was faced with sceptism since it saw the light, the actual value and validity of the new insights openly questioned. Social web wouldn’t mirror actual buying behaviors, thus preventing a sound evaluation of potential sales impact. Convidera collaboration with Hachmeister & Partner on the topic yielded some more promising results.

Does Social Media drive revenues? A very simple question that kept numerous Marketeers clueless for years. That very same question gave us the impulse to analyse Business Data and Insights resulting from web listening activities in the Fashion arena to assess a potential social media-sales correlation.

Over a period of 4 months, Convidera surfaced out no less than 160 000 mentions pertaining to fashion brands. The data was extracted from an established digital listening tool covering 400 million relevant online sources. Using a 550 POS panel, Hachmeister+Partner’s consolidated and released 4,6 billion sales data across 2000 fashion brands. We monitored the buzz and revenues development within the same period to identify potential correlation. Data development prior and post this research was analyzed and built into the final assessment.

»80% of the monitored brands show a buzz-revenue correlation«

The outcome: „ The higher the buzz around a fashion brand, the higher the sales within that same week in most cases” points out Convidera Consulting, co-responsible for the publication of the study. Evidence of correlation between social media buzz and sales revenues within a given period was established for 80% of the brands under watch.

The above graph captures the buzz and revenues development of a premium fashion brand. The correlation is clearly to be established within a given week and beyond. A clear outcome: development in sales often show not only in the short-term but is sustained over the following weeks.

The greater the buzz, the higher the sales.

A call to action stems from these insights: ‘Still too few fashion companies truly understand the importance of “Social Facts and Social Acts”. Many of them continue to confine their efforts to product manufacturing, overlooking the supporting sales mechanisms”, points out Frank Ganzasch, Partner at h+p hachmeister + partner GmbH & Co. KG.

The outcome of the study suggest a connection between web conversations and buying behavior that is worth exploring further.

The Research unveiled additional insightful details on fashion community and the magnitude of various themes impacting this industry.