Business

Social media skills can boost your company’s share price

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Social media skills aren’t just nice to have — they correlate strongly with your company’s performance in the stock market.

According to a study of the FTSE 100 by social media consultancy Sociagility, companies’ social media savvy is correlated with market capitalization. No surprise there: The bigger a company is, the more resources it has to engage with the public via Twitter, Facebook, and the like.

But the company also found that doing social media well correlated to rises in the companies’ share prices, at least for the three weeks in November addressed by the study.

“Higher social media performance scores were associated with positive changes in share price,” Sociagility said in a statement.

“Of course, many more data points would be required to determine whether or not this represents a real or consistent lead indicator,” the report cautions. “However, the presence of any such statistically significant correlations between social media performance and share price movements should certainly embolden corporate communications directors to go to their CEOs and CFOs and say: ‘Look, this matters, and I need more resources to do it properly.’”

Interestingly, pharmaceutical and biotech companies seem to lead other industries in engagement and awareness through social media, followed closely by oil and gas companies, general retailers, and food and drug retailers.

The top-scoring company was Royal Dutch Shell, with a social performance index of 996 — far above the average score across all sectors, which was 100.

See below for the top 20 companies and industry sectors as measured by Sociagility’s study.

The FTSE 100 Social Performance Index – Top 20

The FTSE 100 Social Performance Index – Sectors


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