Posts Tagged ‘ROI of Social Media’
First and foremost Maintain What’s Working, But Carve Out Some Budget For Social Media.
Unless you’ve suddenly received additional budget for social media marketing (insert laugh here), you’re probably stuck diverting resources from other marketing tactics to make social marketing happen. Try not to touch the funds supporting your current effective tactics, instead drawing from the cost of under-performing tactics.
Since this is a test, you will to allocate enough budget to generate “statistically-significant” results that you can compare against your other marketing channels. This could require 10-20% of your total marketing resources, depending on the size of your budget.
Since you will be working with a smaller budget, it’s important to focus your efforts for maximum result. Instead of creating profiles and accounts on hundreds of social media platforms, start by identifying a couple of tactics to pursue, and metrics for determining success. For example:
- Tactic: Start a blog, and update it frequently with relevant topics for your audience. Goal: Increase website traffic by 20% and generate “X” number of subscribers.
- Tactic: Use tools like Google Alerts to Monitor the web for mentions of your brand (negative or positive), and join the conversations. Goal: Increase customer satisfaction and positive online brand references.
- Tactic: Build your network of customers and prospects,( LinkedIn) and start or participate in a group focused on a topic of interest to potential referral sources and customers. Goal: Identify and create relationships with 10 new prospects or referral sources each month, resulting $X of new revenue.
- Tactic: Start a Facebook Page, and build your audience by distributing exclusive offers to “Fans.” Goal: Increase foot traffic to a store or restaurant, online purchases for an e-commerce site, customers for a service, or members for an association.
Third, Analyze your Success or Failure.
Now it’s time to sit down and analyze your results to determine what tactics worked and what goals were reached, and which were not. In addition to looking at the hard numbers, use anecdotal information in your judgment. For example, if one of the tactics didn’t reach the revenue goals, did it generate conversations that could lead to substantial future revenue?
With your numbers and insights in hand, you’ll be able to identify which tactics you should continue to optimize and leverage for your business, and which tactics to drop.The exciting thing about social media marketing is the constant appearance of new channels, platforms and tactics that may be helpful for reaching your business goals. Following the process above will help you remove much of the fear and uncertainty of testing these new tactics, and improve your overall marketing revenue and ROI goals. Keep in mind that with social media it is all about the new ROI – Return on Influence!
If you have an online drop shipping business or other ecommerce endeavor, you are probably (hopefully) using social media marketing to build your brand and promote your internet business.
Although measuring the ROI, or Return on Investment, of social media marketing isn’t as cut and dried as other types of marketing strategies, it is still possible to get a pretty accurate idea of how your efforts in this direction are paying off for you.
Here are some tips to help you measure your success in social media marketing in 3 easy steps:
1) Identify your objectives. This simply means that you should have a clear idea of exactly what you hope to accomplish with social media marketing. Do you want to gain X amount of subscribers to your opt-in email newsletter list? Do you want to increase traffic to your drop ship website by a set number or percentage? Are you looking to boost sales year over year or month over month? Unless you know what you are trying to do, you won’t know whether you have done it or not.
2) Measure your results by your SERPs, or Search Engine Results Pages. If you are actively engaged in social media marketing on Facebook, for instance, and you jump to the front page in Google search results for your niche: Congratulations! It’s working! Now that Google is crawling the web for real time content, your social media content is more important than ever. If you supply a steady source of fresh, updated, relevant content to your Twitter, Facebook or other social media platform, you should see results in your search ranking.
3) Make sure that you have tied your results to your goals. In other words, if your goal was to boost traffic, then keep up with the stats on how much your traffic is increasing. If your goal was to improve brand recognition, this is much harder to measure. So, for the results that you want to track, it is best to have goals that are less ambiguous and easier to measure.
Measuring the ROI of social media marketing is a bit more challenging than many other metrics, You might want to consider “ROI” to be, Return On Influence…
“Many companies venture into social media yield nothing more than wasted time and effort. Before you establish a company Twitter account or start a Facebook fan page, step back and think about what messages will be relevant to your customers or potential customers. If your brand and your communications aren’t useful or interesting to them, you might as well be tweeting into a black hole. Start by understanding the conversations that are already happening around your brand. Then craft messages accordingly. Before sending anything out, ask yourself: What value does this message carry for our customers? What action are we hoping to inspire? If you don’t have a sharp answer to each of these questions, it’s time to return to the drawing board.”
- Today’s Management Tip was adapted from “Social Media’s Critical Path: Relevance to Resonance to Significance” by Brian Solis.