Social media falls short on customer loyalty

November 23, 2011 | Hotel Marketing

A new study questions the effectiveness of social media marketing to consumers at a time when hotels continue to ramp up their efforts. In fact, the new study found social media to be one of the least effective engagement techniques for encouraging customer loyalty for larger and small businesses alike.

While much of the marketing community is focused on sealing better relationships between brands and consumers via social media, a new study from Pitney Bowes suggests that their efforts would be better spent in other areas.

In fact, the new study -- based on a survey of 5,000 consumers in the U.S., U.K., France and Germany -- found social media to be one of the least effective engagement techniques for encouraging customer loyalty for larger and small businesses alike.

The survey found that just 18% of the respondents believed that interaction with a larger company or its brands on social media would encourage them to buy from that business again.

The social media approach was deemed even less effective for smaller businesses, where just 15% of those responding said it would encourage their loyalty to a company.

Get the full story at MediaPost

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