When you try to tell your boss/CEO that social media needs to be a part of your company’s marketing mix, or you are trying to pitch the head of a prospective or current client, the term ROI (Return on Investment) inevitably comes up. In the past, what was your answer when someone wanted to know the ROI of social media?
To paraphrase a line from Gary Vaynerchuk from this video found on the Social Media Club of Fort Worth’s YouTube page, he relates the ROI of social media to him owning a piano. What’s the ROI of a piano to Gary? Not a lot because he can’t play. But, what’s the ROI of that same piano to Elton John? Yeah, a lot.
Grabbing a drink before the event kicks off.
That’s a great comparison because, if used correctly, social media can be defined by so much more than ROI. That’s why I was psyched to hear Eve Mayer Orsburn’s “Social Media for the CEO: The Why and ROI of Social Media for the CEO of Today and Tomorrow” presentation last night and the T&P Tavern. The Social Media Club of Fort Worth hosted this speaking engagement and there was a really good turnout (plus, the first 50 people who signed up got a free copy of Eve’s book!).
With most of the speaking events that I go to, I like to post some of my key takeaway points for people who couldn’t attend, or people who did attend and are looking for a little refresher. Here’s what I walked away with from the LinkedIn Queen’s presentation:
- Social media is an online community with people who have similar interests who want to give/get info about things that interest them. In addition, it’s a place to have conversations with colleagues, friends, and consumers
- Social media matters because 90% of consumers trust online recommendations from people they know. 70% of people trust consumer opinions posted online from people they don’t know. Basically, when shopping online, consumers are more and more likely to rely on feedback from shoppers like themselves
- Before jumping into social media, determine what your goal is. Understand that once you have your goal, it takes about 30 hours per month — per social media tool (Facebook for instance) — to do your job well
- Once your goal is realized, the next part is easy! Shush and listen. Listen to what people are saying online about your company, industry, and product and/or service
Eve starting the presentation.
- Defining the ROI of social media can be difficult because social is a mix of marketing, customer service, and PR all rolled into one. But, goals will be easier to measure if they are specific and you determine simple, safe, and effective ways to measure them. “Increasing sales” might be too broad for you to measure, but tracking a Facebook promotion or Foursquare check-in special should be easier to follow
- When trying to determine how you should communicate on your social channels, use this simple strategy:
- What does the future hold? As social media grows, it will cause internal communication in companies to improve. Let’s say you are in the department handling promotions and you launch a new Groupon campaign…but you forget to tell the billing department. Internal communication should improve from there in the future to avoid similar situations!
A big “thank you” to Eve for giving us so much great, useful information, the T&P Tavern for having us, and to the SMCFW for putting on another awesome event! If you came out last night, what was your favorite point that Eve made? Comment below to let me know.
