This is an interesting question, because there’s not an easy answer. Or at least, it’s not as simple as “Post on your Facebook Wall – Make $X amount of dollars.”
In fact, because there’s really not a direct relationship between Social Media and revenue, more than one business has questioned the validity of using social media at all. (So if that’s what’s going on with your company right now, rest assured, you’re not alone, and you’re not the first company exec to wonder if social media is worth the effort and right for your company!
Which is why I like to share some Social Media stories, before getting down to the more nitty-gritty of how to measure your own ROI of Social Media Marketing...
In a recent case study done by Marketing Sherpa, they spotlighted a case study of a Website that went from 0 to 630,000 visitors to their Facebook page and also almost 5000 tweeps following them on twitter in two years. I highly recommend that you check out this case study, because it’s interesting reading, especially in giving you some ideas for setting up your own social media marketing campaign and overall strategy.
Case Study: Background and Reason for Choosing Social Media
Here’s a little information about the beginning campaign and the reason Money Crashers decided to get into Social Media in the first place: “…The target demographic for Money Crashers is the 20- to 35-year-old looking for financial information. Because the audience is young, Schrage understood having an effective social channel strategy was important for the company.
He said, “From my own leadership, we underestimated the value of social media. I just didn’t feel it was a necessary ingredient in the successful website, and only after seeing everyone is getting on board have I come to realize that social media is a very important part of people’s lives.”
He added, “It’s one of their key channels to accessing content, and even a first step into making purchases. It’s an area I am very glad we ventured into.”
Your takeaway from this article can be summed up in these tips:
1. Know your market and understand what they’re looking for
2. Don’t try to automate everything. Remember tip #1.
3. Make sure that you’re using the right tactic for each social media platform you use. (One size definitely DOESN’T fit all.)
Then there was an interesting article in Smart Blog on Social Media. This article, written by Christine Saunders of VenPop.
She discusses how one of their clients – New York fashion designer, Amanda Pearl uses social media to get a full 20% of her direct Website traffic to her site. Not only that, she is getting raving fans that are regular paying clients – and brand advocate, because they happily share information with their friends.
Here’s a takeaway of how using social media could work for your business as well…
4. Figure out who your brand is on social media, and use social media to stay true to the image that you want to project.
5. Take the time to create a social media strategy and rules for everyone in your cmmpany who will be participating. Everyone neesds to be on the same page, and sending the same message, while using their own strengths and personality.
6. Talk about your products. Yes, you actually get to promote your products and services. 9Not all the time, of course, but people – your customers and potential customers – will get used to coming to your social media pages to find out the latest about what’s going on.
And finally, here are a few more of my tips for you so you can measure your own ROI of Social Media…
7. Decide what you’re going to measure, how you’re going to track it, and what a successful social media marketing campaign is going to look like.
8. Content – relevant, remarkable and educational content is still king. You need to think about your prospects, visitors and customers buying cycles, and also the ways they choose to access information – and make sure you’re giving it to them where they’re at along their buying cycles – and in the format they prefer to consume it. The more touchpoints you create along their path, the better and stronger a relationship you’re going to create – and the more likely they are to only want to do business with you, when they’re ready to buy…
9. once you’ve created your social media marketing strategy, stick with it. Post regularly and often. Be visible, be interesting and be proactive. Don’t become a wallflower and wait for people to like you or follow you. Get to know the movers and shakers in your industry. Make friends, influence people right from the beginning.
10. Make it easy for people to find you. Listen and participate in the conversations that are going on around you – especially when they pertain to your company, your products and services and your industry as a whole.
As you do this, you’ll soon be able to figure out exactly what the ROI of your social marketing efforts are worth.