Further to my recent post on Selling Social Media to Company Executives, for big businessmen, it’s all about the cash.
Show Me The Money!!! as Jerry MacGuire would have said.
However, having said that, how many companies actually have systems in place to measure their ROI (return on investment) on print ads or brochures? Personally, I put a lot of that type of material into my pink recycling sack and I very rarely open my Yellow Pages or telephone directory when I can just type in the search term online.
Being ranked on Google these days as a leading exponent of your product/services means that you have to prove that you are – through good quality, information-filled content – and the delivery system and appreciation mechanism of that content is Social Media. It’s an investment in your business that boosts your profile in a whole variety of platforms, not an expense that you have to keep on repeating just to maintain your position.
If Google can’t find you, then neither can your customers so it’s about building your presence online and statistics show that businesses who blog get 55% more traffic than those that don’t. More blog posts mean more pages for Google to index and, therefore, more opportunities for potential customers to find you.
But what about Google Adwords? Isn’t that the standard way to build traffic? Well, it always used to be but scientists have produced heat maps which show that less than 5% of the traffic from any search results page comes from the paid listings whereas 40% will click on the item at the top of the free organic listings. As consumers, we know that the entries at the top and the side are paid and we automatically shy away from being forced to choose. This is just another exponent of intrusive outbound marketing trying to influence us and our natural instincts persuade us to find a way to avoid such obvious triggers.
However, a well optimised, interesting and informative article or blog post will stay at the top of the organic listings until someone writes something better. Such a document satisfies the needs of both the reader and the Google spiders.
But, having said that, both still rely on the quality of the landing page the reader then clicks through to if it is to convert a potential customer into an active client.
Consumers spend 23% of their online time on social media and blogs.
Youtube has 2 billion views per day and is the second largest search engine after Google. Flickr has 50 million users and over 5 billion photographs are uploaded daily.
86% of consumers use the internet to find local businesses and more than 20% of daily Google searches involve local intent.
1 in 3 mobile searches is local and, after looking them up on their smartphone, 61% called and 59% visited that business.
Over 50% of online consumers are more likely to buy from businesses with a blog.
A report by Morgan Stanley in June 2010 showed that online advertising is highly cost effective with the average Cost Per Thousand Impressions as follows:
Broadcast TV $26
Cable TV $14
Stats courtesy of ReachLocal
However , it doesn’t matter how much money you spend on them, social media campaigns cannot increase anyone’s business overnight – it is a process that requires time and effort. Once you have built a professional presence on these networks and converted your existing customers into fans or followers, you need to keep them interested in your business by updating them on the company news, deals and initiatives because returning customers spend 65% more than new customers do. Then you can monitor the web to find other people talking about your product or industry both globally and locally and use your platforms to encourage them to join your group of followers so you can market to them too.
Listening to the chatter about your product/industry/company enables you to provide much better customer service by dealing with comments both positive and negative in the full light of a public arena. People don’t want to go through a series of menus and spend 20 minutes holding onto the telephone to get a problem solved. They want instant interaction and watching the professional buzz on social media helps companies to do this easily – as well as allowing them to deliver important product updates in one fell swoop.
It also allows a business to keep an eye on the activities and publicity of the competition, as well as measuring the reach of its own message and the number of people who are seeing the brand. The measurement of return on investment (ROI) is heavily relied upon by executives to determine success. In order to assess revenue and profitability from any of the platforms, you have to set a specified series of goals up front and then use the individual platform metrics or centralised Social Customer Relationship Management (CRM) tools that have built in analytics.
Whilst the ability to achieve improved customer relationship management is not something you can measure in monetary terms, it is important that the message you are sending out encourages people to buy your product or service. As Pepsi found out to their cost recently, investing in social media is great for clicks and likes for social standing but, if you get the message wrong, you can lose your ranking for market share.
This entry was posted
on Sunday, December 25th, 2011 at 12:48 pm
and is filed under Social Media For Business.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.