A new study has looked in detail at how the 100 most valuable brands in the US work with 11 different social media channels and has discovered a correlation between social media use and financial performance.

When the researchers sorted the brands into groups with similar profiles, the ’social media mavens’ (those with the most social media breadth and depth) on average grew 18% in revenues over the last year. The least engaged companies saw an average decline in revenue of 6% over the same period.

The report’s author, Charlene Li, is quick to point out that “We are not claiming a causal relationship — but there is clearly a correlation and connection. For example”, she continues, “a company mindset that allows a company to be broadly engaged with customers on the whole probably performs better because the company is more focused on customers than the competition.”

The study found that companies that scored well generally have dedicated teams, however small, active in the social media channels they utilise, and that the most successful teams evangelise social media across the entire organization to pull in a broad range of stakeholders. These companies view social media as an indispensable tool to help them achieve results, and their approach is conversational. This differs from the approach of traditional communications and early corporate blog experimentation, says the report, which emphasises messaging and talking points.

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(Excerpt taken from Internet Retailing. To read more: follow this link for the entire article on the link between social media use and firms’ profits)