Membership engages customers, who spend more across the board.
Authors: Puneet Manchanda, Grant Packard, and Adithya Pattabhiramaiah (all University of Michigan)
Publisher: Ross School of Business Working Paper
Date Published: January 2012
Studies show that consumers are spending more of their leisure time online, and U.S. marketers are flocking to third-party social networks such as Facebook and Twitter to reach them. But companies as diverse as Amazon, Buy.com, Disney, IKEA, Kraft Foods, Lego, and Procter & Gamble are also making major investments to build their own consumer-centered online communities. According to a 2011 survey, nearly half of the top 100 global brands host some kind of network. Read the full report.