Measuring Social Media ROI; 12 New Factors to include in the Equation
At this point for most businesses it’s not a question of if they are going to do Social media but the “How” questions need to be answered. There are just two “How” questions yet unanswered for most decision makers. Measuring Social Media ROI properly helps answer many of those questions.
Business leaders would like to better know how Social media works so they can then decide how much resources they need to dedicate to making their social media successful. Savvy Business leaders know there is got to be much more to it than making posts in the different social media networks.
Business leaders love the idea of cutting out the middleman (Ad Agencies) but they are unprepared to deal with the art of selling via the written word. I dealt with such things in my last PowerPoint presentation see The Art of Successful Social Media Posting.
It has been said the “without measurement investment is a bluff”, so the most discussed topic in social media among business leaders is how can I measure it. ROI or return on investment is a pretty simple equation, what do I get for what I put in? The only problem with that is that we are now living in such a complex fast changing world that the answer to that question today may not be the answer tomorrow.
Below is a list of twelve positive factors for Measuring Social Media ROI which should be considered. They will provide any business with online success.
Visibility – When it comes to brand awareness Social Media always plays hardball, it’s always in offense and it never takes a passive stance. Young people say “Bring it” and social media does just that by taking your message to the potential client. It doesn’t sit and wait for customers to pass by but it takes the message to where they are right now.
Mobility- fastest media to act and to re-act to market fluctuations. Now your posts can take advantage of the latest trends, special days, inventory and much more to attract and engage potential customers. Ride the waves of latest trends to success.
Connectivity- the ability to engage from anywhere, anytime. As fast as you can type you can engage your audience in real time. The wait from decision to implementation is gone.
Flexibility- I call it the “Fresh factor.” It is the ability to change daily. Our society gets bored easily, even on good things. Groupon’s success has been based on their ability to change their menu every day.
Service- This is the ability to relate quickly to monitor comments & complaints from current customers. This is much faster that emailing surveys to measure customer satisfaction. What if you could overhear people discussing your product? What is the value of being able to respond instantly to a bad review?
Viral- I call this the multiplication factor but the new term is viral because it spreads exponentially. There is always the potential that your message can get free advertising as the message is multiplied, forwarded & shared with others.
Ownership- the MY factor – Both Facebook and Twitter have made it easy for friends to recommend to friends their personal business favorites. Many businesses have taken advantage of this new source for “Word of mouth” now turned “Word through Media” recommendations. Customer loyalty has spiked as the ability to make recommendations has been made easier via Social Media.
The next two factors deal with giving back to your community and clients. It has been said the givers gain in Social Media. Every savvy businessman knows that to truly reap you must sow first. What is the value of social good to your business? Only you can answer that question, but today’s consumer wants to know that the businesses they patronize give back to society. If you don’t know what I mean ask Starbucks why they always advertize their recyclable cups and their “fair trade” coffee.
Expert- This one goes both ways by making instant experts in the field and providing a platform to give back to the community. Businesses who give free advice to consumers often find themselves being chosen for the “job” when the job requires a greater level of expertise.
Appreciation- Social Media has become the new tool to give clients and employees a public pat on the back. The two greatest words you can use in Social Media is Thank YOU! What is the value of thanking your customers instantly? What is the value of been perceived as a great company to work for? It like having your potential client attend your Awards program at the end of the year every day.
The final three are to me what social media has brought to the game that other media has not been able to duplicate. The last three factors are set to make instant millionaires in the coming years. 8.5 Billion dollars for a seven year investment is not bad deal ask just ask Skype. When things go good they have the potential to go great fast thanks to Social media.
Direct Cast- Social media folks call it inbound marketing. I compare it to the kids who run up to your window to show you their products at red lights in third world countries. They are told to go to them and put it right in their face. For some of us Americans it appears offensive but in a very competitive market it your ability to stand out from the rest that gives you your edge. Social media takes your product to the stream (news feed) is much like being in the Mall during Christmas except it’s always Christmas (the stream is always full) in the Social media world.
Expansion – With the internet the idea of your market or sphere of influence has changed greatly. Going beyond local now is easy with the net and you can compete nationally and internationally right from your home office. Not only that but you don’t have to deal with customs, language, safety and so many other factors that made foreign trade difficult.
Cost –Finally the undeniable factor, with the middleman cut out – there nothing as inexpensive. “Bang for your buck” has a new meaning with Social media. Just ask Pepsi why they stopped sponsoring the Super Bowl after so many years and transferred their investment into Social Media. Things like that demand we wake up and take notice.
The above factors are already in most decision maker’s sights, as the number one job posting coming out of Los Angeles and New York is positions for Social Media managers. Whether you hire your own media person, have someone do it for you or decide to do it yourself there is simply too much value in the above factors to overlook the power of Social Media. Success in the 21st century has a name on it and the name is Social Media.
See PowerPoint Presentation Here:
Jose Bosque CEO
Jacksonville, Florida USA