We are excited to announce that Lithium customer communities drove nearly 12 times more same-session revenue than other social channels – including Facebook, Twitter, Pinterest, YouTube and Google+ combined for their brands! This is great news for our customers and confirmation that an owned customer community is the most powerful way to drive sales, loyalty, and satisfaction via social channels.
The results came from a study we commissioned by Millward Brown Digital that focused on a cross section of U.S. Lithium customers and about a third of the Lithium community users over a 13-month period. This means the actual sales impact of the Lithium user community is far greater than what is indicated in the report. Lithium’s analysis of the study shows that the communities impacted more than $500 million in sales in a single year for the brands studied.
We wanted to share a preview of the study’s highlights and we’d love to hear your feedback, so please be sure to comment below. The full study will be made available in the near future. As a snapshot, Lithium-powered social communities drove:
Sales conversion doubles
The study tracked the behavior of first-time visitors and returning visitors to a brand’s Lithium-based customer community. What it shows is that sales conversion approximately doubles after a customer’s first visit, and the community influences up to four times as many shoppers as other social channels to perform a “sales activity” (add to shopping cart) within 30 days of the first visit.
Engaged consumers purchase more frequently
Seventy-nine percent of visitors to a Lithium community said they intend to spend more with the company in the future. That’s a full seven percentage points higher than general purchasers (shoppers who didn’t engage at all with a company socially) and also more than all other social media channels combined.
Lithium Retail community users spend more money on next purchases
The study showed that Lithium Retail community users will spend eight percent more compared to social media alternatives and the general purchaser – with 23% showing an estimated next purchase price of $100 - $200, compared to 20% for all other social channels, and 18% for general purchasers. Fourteen percent of the Lithium community will spend more than $200, compared to 12% for other social channels, and 11% for general purchasers.
Customers perceive brands with Lithium communities as “trustworthy and honest”
Lithium communities strongly impact brand perception and customer loyalty. Repeatedly, 4,000 customers ranked “trustworthy and honest” as the number one attribute to describe the brand.
Lithium communities have higher Net Promoter Scores
A Net Promoter Score(NPS) is the process of taking Detractors and subtracting them from Promoters in order to determine the actual number of true brand promoters.
Lithium communities generate a 67% lift in a brand’s Net Promoter Score compared to those customers not engaged with a brand socially. Of the communities studied in the report, Lithium had a NPS of 35%, all other social had 26%, and the general purchaser had a NPS of 21%.
More “extremely satisfied” customers
Lithium community users are more likely to be “extremely satisfied” than all social media alternatives and the general purchaser. When rating the overall satisfaction of the brand, 39% of Lithium customers were extremely satisfied, compared to 34% of other social users and general purchasers.
Lithium community users are brand loyalists
The study showed that 66% of Lithium community users consider themselves loyal to the brand, compared to 62% for other social media and 56% for general purchasers. Additionally, 60% of Lithium users report they would likely or already have signed up for a rewards program, compared to 54% of other social media users and only 48% of general purchasers.
Overall, we’re super excited that these findings again indicate the power of a Lithium customer community and provide insightful metrics around the ROI our customers are experiencing –and can expect. Branded Lithium communities are valuable to purchasers and can lead to greater sales revenue than social media alternatives or general purchasers, creating a significantly more loyal and evangelical consumer base that fuels future revenue.
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