Question

Topic: Research/Metrics

% Of Sales Derived From Loyalty/community Program?

Posted by Anonymous on 9/2/2008 at 3:16 PM ET 125 Points
I am in the K-12 education space and trying to locate a metric used to support a business case for a loyalty program that incorporates social media strategies. Does anyone have any metrics around these kinds of programs in terms of sales?

An average % of total top line sales that is commonly attributed to having a loyalty program?

Or % of total top line sales commonly attributed to applying social networking strategies into marketing?

Benefits to bottom line?

In other words, what can these programs yield?
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  • Posted by koen.h.pauwels on 9/2/2008 at 4:51 PM Accepted
    Social networking strategies can yield a large % of total sales - or, as I would recommend measuring - a large % of total sales growth. They are often the most efficient way for start-up companies to spread the word (in the absence of funding for expensive marketing campaigns), but even very large companies find that they perform well as compared to e.g. marketing events and PR/media appearances. Recent research calculates it is 20 times more effective than events and 30 times more than media appearances: see : https://mba.tuck.dartmouth.edu/pages/faculty/koen.pauwels/working_papers.ht...

    Of course every industry, even company, may have different numbers, so key is to try it out and calculate for your own situation....
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