Question

If a company's social media followers exhibit greater purchase frequency than non-followers, this could be a sign that the company's social media efforts are producing good results. Alternately, it may only reflect the fact that_______.

A. the indirect effect of social media is more dramatic than the direct effect
B. more loyal customers are more likely to follow the company on social media
C. the social media platform is exaggerating its own performance
D. the company's analytics are not properly installed

Answer 1

The correct answer is B. more loyal customers are more likely to follow the company on social media.

Step-by-step explanation:

Customer loyalty has a direct impact on financial results, as well as prestige and brand image. The influence of a satisfied customer can be more decisive than any marketing strategy, since:

• A loyal customer consumes more. A study on American companies found that 40% of online shopping revenue comes from regular customers, who represent only 8% of ecommerce visitors (Adobe).
• The satisfied customer shares their positive experience in networks and through word of mouth. It is one of the most effective forms of marketing that exists.
• All your clients can become great clients. After purchasing the first product, a customer has a 27% chance of buying back at the same place. If you get that customer back and make a second purchase, the chances of returning increase up to 45% and, in the case of a third purchase, that percentage rises to 54% chance of making another purchase.