Social Media has untraditional ROI’s

Social Media = Positive ROI

Companies that are widely engaged in SOCIAL MEDIA surpass their peers in both revenues and profits.

300,000+ business have a presence on Facebook

Dell sold over 3,000,000 computers over Twitter.

Blendtec quintupled sales with “Will It Blend?” YouTube videos

37% of Generation Y were aware of the Ford Fiesta via Social Media before it even launched.

What these statement speak LOUDLY is Social Media has given POSITIVE RESULTS with low overhead.  THATspeaks volumes by itself.  BUT marketing wants ROI’s drawn up on paper.  In today’s marketing….not happening presently. Traditional marketing has lost it’s high dollar appeal, fueled by this economy, its generating a mass movement to Social Media Marketing.  Only 18% of traditional TV campaigns generate a positive ROI…old media was Pay to Play…do you think the majority of media dollars will reside there tomorrow?

WHAT ABOUT THE ROI’S?

Good question…but shouldn’t we be answering:

“WHY ARE WE TRYING TO MEASURE SOCIAL MEDIA LIKE A TRADITIONAL CHANNEL?”

71% of companies plan to increase investments in social media by an average of 40% because:

1. Low Cost Marketing
2. Getting Traction
3. We Have To Do It

Socialnomics blog states really well:  Social media touches every facet of business and it should be viewed more as an extension of good business ethics.  Which, if done properly, will harvest sales down the line.  Enjoy this video by Socialnomics.  It gives you a simple straightforward ROI explanation…

Social Media ROI: Socialnomics

ROI’S?  Most definitely Social Media is moving and keeping up with technology.  Marketing – traditional marketing has just barely started moving in that direction.  Realize that people have taken the power of conversations into their own hands. Most people become informed on whether a product or “brand” is worthwhile by opinions and comments from consumers via reviews, Social site, email, and twitter.

Those can’t be tracked as traditional ROI’s.  So quit trying. Think OUT OF THE BOX!

Mcdonalds says it plainly: “Our head of Social Media is the customer”

It’s a new era, with old value’s…at the speed of the internet = realtime: word of mouth.

What’s your opinion?

Smart Marketing: Consumer needs

Consumers have four universal needs.

Connection, Uniqueness, Comfort and Variety. These needs vary in importance for each individual and each person’s need can also shift resulting in trading off needs. Example: Connection during holidays might be very important to some….others might need comfort, others crave uniqueness (standing out in the crowd) while others yet might like variety or choices (visiting lots of friends/family).

Marketing has only focused on the middle of the curve area…and not worked with consumer NEEDS. So the consumer navigates through the world without the influence of marketing.

How can they do that?

Consumers have shifted their spending with an awareness using online reviews, social media sites, chats and emails from friends. This puts the reins in their hands, helping them make informed decisions. Meanwhile, marketing budgets have been shrinking making it harder for marketers to create awareness let alone interest in their products. With budget cuts tight, marketers need to lean to digital as opposed to traditional. Smart Marketers will take that jump using digital to enhance the brand experience with current customers and acquire new ones through “word-of-mouth” marketing.

As 72% of consumers say prior experience has driven their brand loyalty, 58% of online adults say they trust online reviews MORE than any other medium except chat/emails from friends. For marketers to do more with less dollars, they will need to STOP focusing on gaining and spend more with current customers.  Those customers will be your “word-of-mouth” marketing campaign.  

Also use digital means to enhance how you connect with consumers making your brand responsive and connected to the consumers ever shifting needs.

10 Things you can do:

• use online reviews
• redesign your website with an interactive design or SEO friendly WordPress site allowing comments
• redirecting your marketing budget to SMM
• training your marketers with SMM
• Use YouTube with video’s of one minute or less
• Create a Facebook fan page
• Create a Squidoo “how to” page
• Be an information source for your industry
• Build relationships
• remember, YOUR NOT THE FOCUS – the consumer is

In this Recession people have moved toward comfort and connection.  Marketers and businesses MUST be reassuring and comforting to the consumer meeting their unique needs.

Bottom line – How available and helpful are you?