Myth No. 1: Social Media Does Not Drive Sales
According to Hougland, a study two years ago correlated how well companies do in social media and their stock price and concluded that those in social media perform better. It isn’t the stock price, per se, but rather that social media serves as a platform to listen to customers, and companies that listen to their customers run better businesses. Furthermore, customers on social media are higher-value customers because they are more engaged. And, this phenomenon doesn’t apply just to B2C companies. B2B companies with highly engaged social media participants have engagement rates that are five times higher than B2C, said Hougland.