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Posts tagged ‘Social Media’

Return on Social Media Investment

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Traditionally, marketing ROI (Return on Investment) has been measured through this calculation:

 

ROI (%) =  (Net Profit/Marketing Costs) x 100

 

However, this measurement tool cannot effectively measure social media activities. By 2013 only 9% of marketers use it. It is known that social media marketing is measured best through audience reach, engagement and sentiment (Price, 2013).

 

According to Natalie Burg, using metric tools, interactions and analyzing traffic help gauge what your small business is getting out of its social media commitment. A metric tool such as “conversion measurement” allows anyone who advertises on the Facebook platform to record behavior of those who click on ads.

There are three ways Facebook conversion measurement can improve your company’s ad strategy. First, track by mobile-to-desktop and desktop-to-mobile is the only way to track cross-platform conversion on Facebook. It is an asset to your mobile marketing efforts because users can access Facebook on their mobile devices. Therefore, you can see if anyone views your mobile-only ads when they sign-up or register.

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Second, reduce your cost per conversion and create more targeted ad campaigns by using the conversion measurement and OCPM (Optimized Cost per Mille). If you set up an advertisement, Facebook will automatically optimize it to reach people who have responded positively to that type of ad before. This allows you to track which ads helped convert users into which kinds of customers, new leads or new buyers. This reduces your cost per customers or new lead dramatically. For instance, “Facebook cites the Democratic Governors Association, which used the tool OCPM to track mailing list signups and gathered signups at a more affordable rate than with previous campaigns. Specifically, it paid 85 percent less per each signup they collected” (Porterfield, 2013).

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Third, cut ad spending that doesn’t drive high-value user action by applying the conversion measurement to a split-test approach, which is running multiple ads at the same time to measure the results to see which ones convert better. It allows you to see which ads are driving the actions you most want your potential customers to take. Therefore, when the data shows a particular ad is collecting leads at a rate and price per lead you are satisfied with, you can more confidently continue to direct ad dollars to that specific ad campaign.

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The return is not on the investment in online social networking it’s the return on interactions because you put in interactions to get more interactions, you don’t put in money to get more money. Therefore the returns come from the development of relationships, trust and loyalty of people; they then become potential customers and advocates for your business. “The investment in interactions results in an increased number of email newsletter subscriptions, Twitter followers, Facebook fans or blog comments. From there you can typically track an increase in the number of product orders, new clients, or referrals” (Clark).

Online Review Concept

Analyzing traffic can be done with a website analytic such as Facebook, Google or Twitter. It tells you how often people find your page. For instance, Twitter has its own analytic dashboard that allows you to keep track of your timeline activity such as tweets that were re-tweeted, someone’s favorite or replied to. It also tracks the number of mentions, new followers and newly followed. Therefore, when you look at the average cost of those campaigns per person then analyze that cost against how many visitors you get from free social media placements. You can then put a dollar sign on the traffic derived from twitter links (Burg, 2013).

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Talking with the groundswell

The way I understand talking with the groundswell is by going through the four techniques for talking with the groundswell and giving examples;
1. Viral videos- post a video online and let people share it. For example, George Wright the marketing director for Blendtec has cracked the code in his own unique way for talking to the groundswell. He created a customer brand through a video camera and a few dollars for materials. The video starred the CEO, Tom Dickson placing an iPhone into the blender and in less than a minute it turned to dust, he called it “iSmoke”. This video went viral on YouTube scoring 6 million views in the first week because Blendtec’s web expert posted the link on Diggs.com after setting up the video on Blendtec’s site (Li & Bernoff, 2011). These lead consumers to their website http://www.willitblend.com to form further relationships with customers.

“iSmoke”

2. Social networks-engage in social networks and user-generated content sites. Creating a personality within the social networking site is the simplest way to brand your product but it’s harder to get into a conversation. The key to succeeding in social networking is to help people spread your message and to measure the result. For example, Adidas and its agencies Isobar and Carat invited consumers to choose between two philosophies of soccer and two types of shoes when visitors went to their web page http://www.myspace.com/adidassoccer.com. The site is filled with opportunities to engage with visitors. Engaging paid off because the campaign for MySpace and Carat in a 2007 report called the “Never Ending Friending”-every $100,000 spent in advertising drove 26,000 people to become more likely to buy, based on their exposure to Adidas’s MySpace page. The consumer to consumer marketing is the effect that makes talking through social networks so powerful (Li & Bernoff, 2011).

Branding on social networks is not for everyone; this is only one way to reach customers. Here is some advice when considering; use the social technographics profile to see if potential customers are in social networks. Age matters because some will already be involved in networks; move forward if people love your brand. For example, Victoria Secret etc. have loyal followers who will friend them; see what’s out there already. Some people might have a fan page (not by the company) or networks setup before the company gets involved. For example, Mountain Dew addicts group on MySpace had almost 5,000 members; or create a presence that encourages interaction. Your fans want to engage with you on your Facebook page, what will you put on your page? How will this help spread the message of you brand? Having staff to responsible for programming will help because they can build the webpage up and get potential customers involved.

3. Blogs-join the blogosphere. Blogging is another way to talk to groundswell if you’re ready to make a longer term commitment to you customers. Encourage your executives and staff to write blogs because they are perfect candidates to talk about it, they are knowledgeable. For example, Vince Ferraro, an HP vice president who heads worldwide marketing for HP’s LaserJet printers started a blog on how to solve a problem customers were having with their product Vista LaserJet. This opened up communication because customers were able to comment and ask questions about the product. Ferraro responded to the customers with more details on his blog and by starting other blogs. HP now has over 80 executive blogs, on topics from storage and mobility to small businesses (Li & Bernoff, 2011).

4. Communities-create a community. This is a way to engage and deliver value to your customers. For example, Procter & Gamble found a unique way to use communities to talk to a very challenging collection of customers. Bob Arnold is part of the feminine care products to young girls at P&G and he and the team needed to find a way to speak to their customers because traditional advertising was not working. They came up with a website called beinggirl.com to solve girls’ problems instead of marketing to them. This is a community about everything that young girls deal with (Li & Bernoff, 2011).

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Reference

Li, C., & Bernoff, J. (2011). groundswell. Boston, Massachusetts: Forrester Research Inc.

How Connecting with the Groundswell Transforms your Company

There are three steps that I find important for transforming your company by using online media marketing rather than the traditional media marketing, such as emails, commercials, etc.

  1. Take small steps that have big impacts.
  2. Have a vision and a plan
  3. Build leaders into the plan.

The best way to describe a transformation is to use the example of the skin care products for the brand Unilever (Dove). Rob Master, the marketing director helped Unilever accept the internet as a marketing tool, give up some control of the brand, embrace the power of the groundswell, and energize the customers to make their own contribution.

Unilever went in slow by creating campaigns for the innovation for Dove’s Real Beauty. Rob and Babs  Rangaiah, Vice President of Global Media for innovation and Ventures at Unilever let go of message control with the show “The Apprentice” with Donald Trump and rethinking distribution with the evolution video. As of today Feb 28, 2014 the female dove evolution video has 17, 122, 924 views and male dove evolution has 294, 429 views. The company now has a different perspective on how to market their brand. The turning point for Unilever’s recognition of the power of online marketing was when they started a website called dovenight.com it brought 3 million visits to the site and the company was able to show it could put digital media at the center of the ad campaign. After the culture change they then wanted to know what the customer wanted rather than just capturing their attention.

My social media marketing instructor showed us a video in class that was inspiring and educational. It gave me more of an understanding of social media marketing and its importance. The video was of Gary Vaynerchuk, who is a co-founder and CEO of a social media brand consulting agency, video blogger, co-owner and director of operations of a wine retail store, and an author and public speaker on the subjects of social media, brand building and e-commerce.

I find Gary Vaynerchuk very interesting and knowledgeable on his experience in social (online) marketing. Here is a video of Gary when he was a keynote speaker at the Elevate NYC conference in 2013. He explains how companies/people need to know where to story tell on the platforms that matter to bring value to the customer. There is a lot of truth in what he says because I know a lot of people stuck in the past of how to market, including myself. I learned how valuable social media marketing is for a company.