Social Media ROI (Return on Investment) is the elusive 3rd-rail of social networking. It’s elusive in the sense that there is no absolutely agreed-upon industry-wide calculation to use. It’s the 3rd rail because that’s where all the power is. Social media managers don’t want to be judged by a set of metrics that might not reflect the true “value” of the social media channel(s). Social media brand managers are focused on building communities and building attention rather than focused on delivering to the bottom line.
Unfortunately, this leaves many executives with an uneasy feeling that all this tweeting, “liking”, and pinning is just an act of futility without anchoring anything to a real bottom line.
It’s clear that there is and ROI in there somewhere – but how can it be measured?
Building a Set of Success Metrics
I’ve chatted with many customers & friends (often from the SMMOC crowd) about the SMROI issue, and the first thing that becomes obvious is that for some reason basic marketing practices get tossed out the window. I don’t know why it is – but SM is merely an extension of the existing branding / PR / Sales / Advertising / Promotion channels that have existed in all businesses.
Advertising using Google Adwords is perhaps the antithesis of Social. Social is about building relationships, attending to customers on a one-on-one level, and fostering a sense of community within the social-sphere. Adwords is the opposite. It’s about reaching a customer at the crux of their decision-making process: At the point they’re searching. The website is responsible for the rest.
So, the challenge becomes building a set of metrics (quantifiable) that operate within a personalized space (qualifiable responses). Continue reading Social Media ROI with Custom Campaigns and Google Analytics
I want to share a quick bit about a sales process / methodology that I’ve found to be invaluable – and I’ve had to train people dozens of times. It is a helpful framework for both sales and marketing professionals because it covers the life-cycle of customer on-boarding. In simplest terms, the process is this: ALPAC. Audience, Lead, Prospect, Account, Customer.
Here are the sales & marketing stages, broken down with greater detail.
This is fundamentally a Marketing stage. Audience comprises everyone who isn’t yet in your sales funnel. The Audience can really be broken up in to 2 groups: Audience we want to reach, and Audience we don’t care about reaching. Audience converts to the next stage by progressing those people through the AIDA marketing process: Attention, Interest, Desire, Action. I’m going to write more in the near future about the importance (and measurability!) of AIDA in social media campaigns, but for now just suffice to say that the general population needs to become aware of your product / service / business, become interested, gain desire, and finally, take action. Depending on the nature of your product, that action is typically self-designation as a person who wants more information – and turns themselves in to a lead. Continue reading The ALPAC Sales Methodology
As a general rule of thumb, you should be building your brand around a single word or extremely short phrase to create mindshare in your audience. This isn’t a slogan. Slogans might be part of it. But the simple fact of the matter is that your audience is being bombarded on a daily basis by hundreds – if not thousands – of brand and marketing messages. Capturing and solidifying a single word or phrase is crucial. Nike has spent decades building itself in to synonymous with “sports.” Alternatively (and perhaps this is just my own personal connection – and that’s part of the beauty of it), when I think of Adidas – the first thing that comes to mind is “Soccer”. In another direction, the Underarmor brand to me represents “Football clothes”. All of these companies are direct competitors in many fronts – but within my mind – this is the mindshare that they’ve eached achieved.
The same thing is true amongst car brands. I’m an Audi driver, so in my mind they captured “Sport Luxury” in my mind. BMW I’m sure would be ticked off because that’s a mindshare that they’ve gone after. But the beauty of branding and mindshare is that it happens in the mind of the recipient, not the sender.
What do you think of when I describe the comparison between iPhone, Android, Nokia, and RIM? iPhone might spark “Innovator and Easy”, Android might spark “Open Cool”, Nokia might spark “Cheap phones” and RIM might spark “Relic” (sorry RIM). Those are my perceptions. That’s the mindshare that those brands occupy in my mind today. It can change; but often not by anything the company itself does. It has a great deal more to do with the reputation, conversation, media & interpersonal connections, etc. For instance, I know far more people with iPhones – so my conversations with other people tend to focus on topics like “Check out these cool apps I have” or “I love it how easy it is to…” Whereas my friends with Blackberries languish with phones that appear to be unable to do much of anything contemporary and they complain that they wish they could change their phones (but their company is stuck on the platform). Continue reading Social Mindshare