So I’m back and boy has it been busy. I know that many of you enjoyed the 30 day project and thank you for all your support. I now am doing a 40 day project where I am attempting to write 5 pages a day for the next 40 days to finish my book, Get It Right Social. Wish me luck. This is happening with a group that I belong to called highachievers we are taking this journey and it is founded on the book The Ripple Effect by Doug Grady. I’ll let you know how it goes.
So ROI (Return on Investment) in Social Media.
There has been a lot of talk lately online and elsewhere about “Does social media work?”. What does it do for our bottom line? Seems like this conversation has been going on forever but businesses are now trying to fit Social Media into a business model that generates income. Because at the end of the day all businesses are in business to make money, right?
According to a recent article by Kim Garst on The Huffington Post “Facebook vs. Twitter: The Battle for Social Media Dominance” Kim states “…So many businesses are looking for an immediate ROI that they are not looking beyond this to the real value of building a connected community through the power of social media.”
When did businesses start forgetting about where the money comes from? We have a key learning concept in the Elite Consulting that we do for a Fortune 500 company and its stated like this:
Individuals make buying decisions. Companies and committees do not.
Social Media’s biggest ROI is in building trust and loyalty from the individuals that you interact with in Social Media. It is the companies obligation to determine what platform their audience is on and focus on those platforms in building trust and loyalty in order for them to buy their products or services.
So the ROI is the individual so here is a quick way to determine ROI. Determine the amount of money that each customer represents to your business. This can be an individual or a business (because remember individuals make buying decisions; companies and committees do not) so businesses are made up of individuals. Then determine how many customers you need to make your quarter or year. Then look at your active engagement of individuals on social media and then if you know your closing ratio you can determine if Social Media is giving you the ROI that you are looking for.
Social Media takes longer than your normal advertising campaign on traditional media to see the ROI because you have to build trust with the individual. Think of it like this. The first time you went on a date you didn’t ask the person to marry you, or sleep with you (ok you might have asked that) but chances are the answer to both questions on the first date would have been NO. So give it time. You have to build trust and you can do that by asking your audience to immediately buy your services. You have to give them information that adds value to their daily lives before you can ask them to buy something.
Audience is king. They are determining the next generation of technology, innovation and yes how you get to sell your services or products. So don’t ignore the INDIVIDUAL when it comes to determining your ROI!
Les Adkins is the CEO of Orange SMS Consulting and an International Social Business Strategist, speaker, consultant and author. Bringing strategy and whole brain thinking to creative campaigns and social media through his work. Also two-time Tough Mudder finisher. Please follow @mysylbert and connect on LinkedIn Join us on FB and Google+ as well.