Posts Tagged ‘key influencers’
Four Ways to Measure Social Media Marketing Results
Monday, August 9th, 2010While there are unquestionably many ways that social media marketing results can be measured, the debate rages on as to whether it’s truly possible to quantify the ROI from these activities. Some experts contend that because social media activity is rich in metrics, you can and should be measuring ROI constantly. Others argue that social media is a tool, not an event, so applying an ROI to social media is akin to calculating the ROI of your phone, or that at this point the business risks of ignoring social media are so great that ROI is immaterial.
Measuring the ROI of social media is challenging for several reasons, the most significant of which is the problem of “last click attribution;” just because a sale or lead “came from” Twitter or Facebook as the last click doesn’t necessarily mean that site deserves all the credit. The prospect or buyer likely had several other exposure points to your brand prior to that click (visiting your booth at a trade show, hearing someone from your company speak, seeing an ad, reading about your firm on a blog or an industry trade press article or analyst report, etc.). Assigning proper credit to each of these sources is impossible; assigning all of the credit to any one of them is inaccurate.
Still, much of what happens in social media is highly measurable, and these metrics can lead to an least indirect evaluation of the value of different media, activities, topics and tactics. Here are four areas of social media metrics worth tracking, even if they don’t provide direct ROI calculations.
Influence: a.k.a. “reach,” these are high-level measures of your brand or company’s presence in social media, such as number of Twitter followers, Facebook fans, LinkedIn group members, mentions across social media (you’ll want to pick one social media monitoring tool for this and stick with it for a while, for the sake of consistency of month-to-month comparisons). This category can also include metrics like blog visitors and RSS / email subscribers. While larger numbers are generally better, keep in mind that it’s easy to inflate a Twitter following (note all of the spammy “Internet marketers” with ridiculously large follower counts) and that in terms of generating business value, quality is more important than quantity.
Engagement: A level deeper than influence, these metrics include the number of RT’s and #followfriday recommendations you get on Twitter, posts to your company’s Facebook wall, questions answered on LinkedIn or Yahoo! Answers, comments posted on your blog, etc. Anything that measures social interaction. Again, more is generally better (spammy blog comments aside), as engagement is the “social” in social media.
Sentiment: Are the comments, posts etc. being made about your company, brand, product or service generally positive, negative or neutral? This is a very important metric to track, but accuracy can be a challenge, particularly for mid-sized companies. Small companies may have so few social mentions to track that the process can be done manually, leading to theoretically perfect accuracy. Mid-sized to large firms may rely on fee-based social media monitoring tools like Radian 6, Alterian SM2, Cision or Vocus which provide automated sentiment tracking, while global brands can use tools like Neilsen BuzzMetrics or Cymfony.
No automated sentiment tracking tool is perfect (for example, “It sucks having a cold but NyQuil is helping” may be tagged as a negative brand reference for Vicks because of the way that sentence started). Accuracy is most problematic for mid-sized firms that have too many brand mentions to track manually but can’t justify the cost of the most sophisticated tools. For large brands, the number of social media mentions is so large that errors in automated tracking tend to cancel each other out, meaning that overall sentiment analysis can be highly accurate even though individual items may be mis-flagged.
Activity: Most web analytics tools, such as Google Analytics, can be used to track the number of visits, traffic quality (e.g. average time spent on site, number of pages viewed, bounce rate) and even conversion (lead or sale) sources. Again, while this information is certainly helpful, it shouldn’t be relied upon as a precise ROI measurement for several reasons, including the last-click attribution issue noted above, and the fact that some analytics packages (Google included) don’t measure social media referrals accurately; Google Analytics dramatically undercounts Twitter visits, for example.
Particularly in this tough economic environment, where every expenditure is receiving even greater than normal scrutiny, numbers matter. The C-suite expects justification for every dollar spent, including investments in social media marketing. You can’t afford to ignore what customers and other influencers are saying about your brand, but need to quantify the benefits of social media monitoring and participation, in some manner, as well. Calculating ROI with any precision is problematic, but there are still many aspects of social media which can and should be measured. These provide a picture of the benefits of specific social media tools, tactics and activities which can justify expenses and help guide activities—even without perfect cost-benefit analyses.
Five Benefits of Blogging for Business
Monday, June 21st, 2010Blogging provides business executives and marketers with opportunities beyond and distinct from a typical company website. Because they are less formal, more interactive, and focused on industry issues—as opposed to just the company’s offerings—they provide a forum that is viewed much differently by readers than a vendor website. Blogs are seen as key sources of information rather than just promotion. Blogs are also core to a successful social media marketing strategy.
Here are five key benefits of blogging for businesses.
Establish expertise and credibility. Winning the business, particularly in the b2b world, is usually about doing the best job of solving the customer’s problem. Your website is about your product or service, and the benefits it provides to buyers. Your blog is about something related but much larger: your expertise. If your offering is unique, your blog provides a platform for demonstrating your industry understanding and insights that led to your approach. Even more importantly, if your product or service is difficult to differentiate, a blog gives you a way to create differentiation via your knowledge. Expertise is a powerful differentiator; in commoditized markets, it may even be your only effective one.
Become a resource. Following from the first benefit, establishing a position of expertise makes you a resource for industry influencers such as the media and other bloggers. You’re no longer just a source of information about your specific product / service / company, but also about bigger industry issues, trends and developments. This leads to coverage and quotes in a broader array of media, further enhancing the reputation of your blog and the image of your company as an industry leader.
Create a dialogue. Websites are one-way communication, a broadcast medium. I write about my stuff, you read it. Blogs in contrast are interactive: I take a position on an industry issue, you leave a comment, I respond, another reader chimes in with a follow-on comment, etc. Each post can potentially become a conversation, not just a monologue. That creates reader engagement, a deeper level of relationship than just passive information consumption.
Develop new relationships. Becoming an industry expert and resource, and creating dialogs, enables you to establish relationships with prospective customers, potential partners and other industry influencers that likely wouldn’t have happened otherwise. A blog lets you attract readers with your knowledge, interests, opinions and observations in a way your website can’t, expanding your circle of influence and business relationships.
Search engine visibility. Blogs are very powerful in terms of SEO for four reasons:
- • Thought leadership: due to the difference in the nature of blog content versus vendor websites (thought leadership vs. promotional), search engines often give more authority to blogs.
- • Blog-specific directories: while blogs are eligible for most of the same types of links as standard websites (e.g. directories, social bookmarketing sites, news sites, articles), blogs also have their own unique link opportunities through blog-specific directories and RSS feed syndication sites.
- • Recency: blog content is typically updated much more frequently than commercial website content, providing an advantage in increasingly real-time search results.
- • Link bait: again due to the informational rather than promotion nature of the content, blog posts are more likely to draw natural links (e.g. from news stories, articles and other blogs) than website content.
A blog isn’t right for every company (more about that idea in an upcoming post), but where feasible, they provide a powerful complement to standard websites with unique strengths for building a brand’s online presence and impact.
In Minnesota? Don’t miss the SCORE Social Media and Internet Marketing Boot Camp, Thursday, June 24 in Bloomington.
Social Media for Sales
Monday, June 7th, 2010One of the challenges in measuring the ROI of social media marketing is that the use of social networking and social sharing tools isn’t confined to the marketing group. Social media is being used in multiple functions across the enterprise, from product development (e.g. through co-creation and crowdsourcing) and customer service (Best Buy and Comcast for example) to human resources (outstanding HR tweeps: Sharlyn Lauby and Alicia Arenas) and sales groups. Although the efforts may be separate, success (or failure) in one area can certainly impact the effectiveness of social media efforts in other areas; for example, developing a reputation for delivering reliable customer service through social media channels will almost certainly help make social media marketing and sales efforts more rewarding.
In terms of revenue generation, the effective use of social media by both sales and marketing teams is critical. It may be even more important in sales, as sales professionals deal with prospects as individuals (the level where social media can be most impactful) while marketers still for the most part deal with prospects in groups. The opportunities to use social media in the sales process are limited only by the creativity of sales pros, but three critical areas stand out.
The first is for the sales team to understand what their own company is doing with social media, and how customers and key influencers are responding. This means working closely with marketing to understand both what messages are being communicated and how the market is reacting. If customers are praising the company’s service through social media channels, that is a strength the sales person can play to. If they are pointing out quality issues with a specific product, that’s an issue that members of the sales team need to be prepared to address. Sales professionals will be more productive with a solid understanding of the social media monitoring, interaction and promotion activities being conducted by the marketing group.
For more information on essential tactics for social media use by sales pros, see my recent guest post on the Your Sales Management Guru blog.
