THE ROI OF SOCIAL MEDIA
It’s almost 2018, and I still meet business owners that tell me they don’t understand social media marketing. Or they hired an intern for 3 months and never saw one new customer from it. Or they ask how they can go about increasing the number of Facebook fans.
Social media is a numbers game, but not how you think.
Take this for example… What would you rather have: 1,000 followers/fans that are your best, loyal customers? Or 10k that don’t care what you have to offer?
Fan and follower count don’t matter. Exposure to as many of your ideal customers matters. And of course, how you get that ideal customer to want to do business with you (your message) matters most of all.
When you’re a savvy business owner looking for ROI from your online marketing efforts, you have to dig deeper.
Think back to when you first opened your business. It took a few days/weeks/months to get new people (besides your closest friends and family) in the door, right? Slowly but surely word of mouth picked up because one person told another told another. And if you were really good about it, you probably sent out a press release to your local newspapers and got a few good months off of that buzz.
But what happens when business plateaus, or you can’t survive off of your current circle of influence?
Throughout the last century, business owners relied on expensive radio, print, billboard, mailers and TV ads to the masses. But let’s be real: this is the 21st century! Digital media has replaced all of that. And lucky for you, it’s highly targeted, and costs a fraction of what the traditional advertising and marketing campaigns run you. Content marketing alone costs 62% less than traditional marketing and generates about 3 times as many leads.
Okay, enough preaching. Let’s get to the good stuff. What specifically about social media makes it so valuable for your business? Let’s put the question of social media’s ROI to bed once and for all.
Feature: Search/Place Listings
How Does This Affect Your Bottom Line? One of the fastest ways to get new customers is to draw in the people actively searching for your solution. 50% of consumers who do a local search on their smartphone visit a business within a day! This means your Google Place listing must entice searchers. And not just your Google Place listing, but your social media as well, because of those who went to search engines first, 40% of consumers then turn to social media to help make a decision. Search is also becoming a more prevalent feature within each social network, with emphasis on the local business particularly with Facebook and Instagram. And Pinterest is basically the visual version of Google.
How Does This Affect Your Bottom Line? Facebook was never built for business; it was built for people to connect with one another. Instagram was designed for people to share photos of the things they love. These social networks were never intended for business use. This is actually a good thing. It allows us to come in and interact with our customers & potential customers… as a friend, not just a business trying to sell.
- Where else can you interact one-on-one with someone who is your ideal customer, yet isn’t doing business with you yet?
- Where else are people constantly asking for recommendations from their friends and family?
- Where else do people publicize where they are checking into, patroning and supporting?
- Where else can you connect with influencers, writers and people who can rocket your business to higher levels of success?
If you stop looking at social media as a tool to blast out your sales messages, you’ll see that it’s really a place to build up a community around your product/service, tell them your story, develop that Know, Like & Trust factor, and build real rewarding relationships that result in customers that want to spend more money with you.
How Does This Affect Your Bottom Line? People share 1.3 million pieces of content on Facebook every minute of every day. They’re tagging friends in content that they believe is relevant to them. I really hate this phrase, but, social media is Word Of Mouth on STEROIDS. Sorry, there’s no better way to put it. And so if your business has ever benefited from W.O.M in the past, then you know how much potential this has for you. Not to mention the potential to go viral with REALLY great content. Yep, the whole world could know about you by tomorrow.
How Does This Affect Your Bottom Line? For free, you can put your message out to your current and potential customers every day. Sure, organic reach has decreased over the years, but my clients’ posts reach over 50% of their fans organically on Facebook and Instagram. And over the span of a week of posting, it’s likely that almost all of their fans have seen at least one of their posts. With these posts, you can drive people from unaware to loyal customer with killer content and tailor your message to people at every stage in the customer journey. But most importantly: People want to be a part of something cool and unique. It’s a basic human need. And if you can use your posts to draw people in and fulfill that basic human need for belonging and self-actualization, you will completely edge out you’re your competition and win over all the customers.
And if we drill down deeper into posting and content creation…
Feature: It’s Instantaneous
How Does This Affect Your Bottom Line? You can get any message you’d like out to the masses with just the click of a button. No more writing up a radio script and hearing it 10 days later. You have the ability to put your message out to billions of people (and if you’ve done it right, a loyal, captive audience) to push real-time communication out to whenever you want. Businesses can use this to create a sense of urgency and move inventory faster. It also means you can answer customer questions faster, and drive them down the sales funnel – faster.
Feature: It’s Targeted
How Does This Affect Your Bottom Line? There are a lot of people out there who don’t know about your business. But smart advertisers benefit from highly targeted amplification of their message to hundreds of thousands of their ideal customers. Before digital advertising, there was no way to only reach moms, ages 30-35, living in NYC, that like to cook and rock climb. With traditional advertising, you waste a lot of money reaching the wrong people, and your cost per customer acquisition will likely go up because of it. But does it really work? According to a recent study, 25% of people who see a social ad, will then respond by visiting the store or website.
Feature: There Are No Limits
How Does This Affect Your Bottom Line? We all know that customers aren’t made overnight. Repetition and consistency are so important in messaging. There are so many stats out there (someone needs to see your message 7x before they will consider doing business with you, the average cost per lead drops 80% after 5 months of consistent Inbound Marketing, etc.) that prove this to us. The fact that you can put out as MANY messages as possible, and the only thing that it’s going to cost you is your time, is amazing. Want to reach a newspaper’s audience constantly? You’ll have to put an ad out every week. And it’s going to cost you. This ability to constantly be “on” allows you to maximize your customer acquisition, and most importantly: extends the lifetime value of a customer by consistently showing up and engaging.
I could talk about social media and ROI all day long. I hope after reading this, your mindset shifts from “I can’t afford social media marketing” to “I can’t afford NOT to do social media marketing.” After all, marketing is one of the top contributors to success out of all business investments. Want to have a convo about it? Get on my calendar!