SHOW ME THE MONEY!!! What’s the ROI in Social Media Marketing!

One Saturday night I was particularly exhausted! So instead of heading out for night on the town, I kicked back and put on one of my DVD’s. For some reason Jerry Maguire took my fancy. I haven’t seen it in years and though ‘sure why not, I fancy something a little funny’. With my brain switched off and as I settled into the movie.

Jerry Maguire is a film about a high flying Sports Agent who looks after some of Americas Sports Stars.

Not long into the start of the film the pressure of the dishonesty and lack of human empathy starts to weigh heavy on Jerry Maguire.
One night he writes a Mission Statement for the Sports Agency (not a memo). The Mission Statement is titled ‘The Things We Think and Do Not Say’.

It basic premise is a scathing attack on the materialistic nature of sports management and he advocates a more human relationship with clients. As a result he gets fired!

The films iconic scene where Tom Cruise shouts down the phone at this client who is taunting him ‘SHOW ME THE MONEY’! All of a sudden it dawned on me, that’s exactly what a lot of CEO’s, Managing Directors, and Senior Management etc. must shout loudly in their minds when it comes to Social Media Marketing!

Ok, it might not be as dramatic as Jerry Maguire but still the magic word RETURN ON INVESTMENT will be circling their brains as you mention ‘Let’s Build Your Brand on Social Media’. ROI in Social Media can be a grey area. Social Media for business is still relatively new and evolving. In addition Social Media is ‘Social’ therefore it lacks a direct marketing/promotional element.

When you embark on your Social Media Marketing Journey ask yourself the following questions – What am I going to get out of it? Is it about growing likes, followers etc.? Am I going to build a brand? Is it going to drive sales/leads? Can I use it a customer loyalty programme or as a CRM system? How much do I need to invest and what’s my return?

If you can answer these questions here are 2 steps to consider when setting up your Social Media Marketing Strategy and measuring ROI:

Goal Setting

When you are developing your Social Media Marketing strategy it’s critical to establish goals to focus your efforts. Goals are Key Performance Indicators and will measure the effectiveness of your campaigns. Be realistic about the goals you set on Social Media. Don’t aim to grow likes on Facebook to 100,000 in two months after setting-up your account or 4,000 followers on Twitter in two weeks.

Remember effective Social Media should grow organically initially and it’s about quality not quantity! An old analogy comes to mind when I think of effective Social Media Marketing ‘It’s a Marathon not a Sprint’. Here are some Goals to consider:

  1. Reach: The more your Social Media Content reaches people the more coverage your marketing message gets.
  2. Social Sharing: The number of Re-tweets, shares, re-pins etc. are known as Social Signals. Social Signals are important for building your Social Media reach and building your online community. Also Social Signals help to boast SEO rankings. Set a goal of how many shares on Facebook, Re-tweets on Twitter etc. that you want to achieve from your Social Media Content.
  3. Engagement: From a brand building perspective, Social Media engagement is critical. Set goals of how engaging you want your Content to be and measure the number of brand mentions aswell. On Facebook for example engagement can be simply measured by the number of people talking about vs your number of likes. Aim for 10% and above, this means your Facebook page is engaging with your fans.
  4. Website Traffic: Your website and blogs are central to converting people into buyers. Social Media should be a way of driving traffic to both channels. Set a goal of the number of click through’s from Social Media to website/blog.
  5. Leads/Conversions: Once you increase your website traffic it’s important to measure the leads and conversions. Measure what proportion of your Social Media traffic becomes leads and conversions. Ensure your Social Media Content is engaging and your website/blog message captures people’s attention.
  6. Relationships: Your Social Media Community wants to be loved! Creating one to one relationships will reward your Social Media efforts. The more you empower people the more the will talk about your brand to their friends. Set a goal of identify people who engage with your content and how many you want to help be influencers of your brand. Always remember on Social Media, Be Human!

Measuring Social Media Success – Analytic Tools

When you set your Social Media Marketing Goals, think about how you are going to measure them. Measuring Social Media success will indicate how your content is performing and are all goals being met. This will also give an indication on measuring your ROI. Consider the following tools to measure your Social Media Marketing Campaigns:

  1. Facebook Insights: Free in-built tool that measures content reach, engagement, demographics, growth etc.
  2. Tweetdeck: Enables you to track mentions, conversations, Re-tweets and people to follow.
  3. Klout: Is a great tool in identifying people who are influencers in your Social Media community. Once identified they can become a powerful way to spread your marketing message
  4. Hootsuite: Allows you to execute your content across most Social Media platforms. Hootsuite also creates reports and analysis into your Social Media communities.
  5. Google Analytics: Measures website traffic, leads etc. Also helps to measure traffic coming from Social Media sites.

Once your Social Media Goals are measured you will have a better picture of how effective your Social Media Marketing is and if there is a Return on Investment. Ensure that you constantly assess your results and re-set goals if necessary. Now I wonder what film will inspire my next blog post, hmmmm!