Many of today's most widely used computing applications utilize social networking features and allow users to connect, follow each other, share content, and comment on others' posts. However, despite the widespread adoption of these features, there is little understanding of the consequences that social networking has on user retention, engagement, and online as well as offline behavior. Here, we study how social networks influence user behavior in a physical activity tracking application. We analyze 791 million online and offline actions of 6 million users over the course of 5 years, and show that social networking leads to a significant increase in users' online as well as offline activities. Specifically, we establish a causal effect of how social networks influence user behavior. We show that the creation of new social connections increases user online in-application activity by 30%, user retention by 17%, and user offline real-world physical activity by 7% (about 400 steps per day). By exploiting a natural experiment we distinguish the effect of social influence of new social connections from the simultaneous increase in user's motivation to use the app and take more steps. We show that social influence accounts for 55% of the observed changes in user behavior, while the remaining 45% can be explained by the user's increased motivation to use the app. Further, we show that subsequent, individual edge formations in the social network lead to significant increases in daily steps. These effects diminish with each additional edge and vary based on edge attributes and user demographics. Finally, we utilize these insights to develop a model that accurately predicts which users will be most influenced by the creation of new social network connections.