| Summary: | Nearly half of the world’s population, roughly 3.8 billion people, use some form of social media, so the importance of customer engagement through social media has skyrocketed in recent years. Medium and large businesses spend roughly 11% of their marketing budgets, nearly $84 billion, specifically targeting social media platforms such as Twitter, Instagram, Facebook, Pinterest, and LinkedIn. Such investments are not solely made for the purpose of increasing immediate purchases but also for creating trust and commitment to build positive long-term customer relationships. Even so, firms have an increasingly difficult time measuring the financial return on such social media marketing aimed toward creating meaningful customer engagement. Studies up to this point have found inconclusive evidence to suggest that customer engagement equates to a positive increase in firm performance.
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