Make Money with SOCIAL MEDIA
Understanding the Value of Social Media Buzz and What It Can Do For Your Business
These days, social media is the buzz word in marketing and a global trend that has gotten everyone of every age engrossed in one, two and possibly even several social media sites. Everyone is on it, in one form or another. But what is it exactly?
Social Media Explained in Plain English
The term social media has been carelessly tossed around and used too often in online marketing. But what is it really about? In essence, social media incorporates the use of online technologies and methods that allow people to share personal opinions, content as well as swap insights and perspectives with the rest of the world.
Social media content can take different shapes and forms:
Text – often used to write or put across personal opinions or posts
Images – photos are used to display anything of interest
Audio – podcasts can be created to other users to download
Video – video content can be shared to engage, entertain or educate
Among the most popular social media sites at the moment include:
Social Networking: Facebook, LinkedIn, Twitter, Google+
Video Sharing: YouTube
Photo Sharing: Instagram, Pinterest, Flickr
News Aggregation: Digg, Reddit
Online Gaming: World of Warcraft
Discover the Social 5-Pack
Highly competitive companies have taken the aggressive path and actively pursued the “Social 5-Pack”, made up of: Facebook, Twitter, Google+, LinkedIn and YouTube. This is in line with the aim to engage their target market and existing client base in order to fill the top of the sales funnel as well as understand the prevailing consumer preferences and behaviors to ensure brand loyalty.
However, signing up and maintaining multiple accounts on all social networking sites is not as easy as it seems. Jumping right in without any in-depth understanding of the social media process can prove to be potentially detrimental for a company, which can lead to exposing its online presence at serious risk and leading it towards an unproductive direction.
Converting Leads to Sales: The ROI of Social Media
Like any business endeavor, you naturally want to have a fair idea on the return of your investment in social media and not simply jump right in just because it’s the popular thing. The ROI cycle of social media can be separated into 3 stages.
Stage 1: The Launch
At this stage, 100% of your focus is on setting up accounts on the 5 Social Packs: Facebook, Twitter, Google+, LinkedIn and YouTube. While there are a number of other popular social networking sites, the 5 are considered to be the critically important ones. You simply can’t afford not to have presence on all 5 platforms.
The Launch stage is more of a start-up, with the primary goal of getting started. Here are the details of this stage:
Approach: Start-up: Social Media Presence Focus: Short-Term Results: Negligible
At this point, you won’t be able to expect any significant impact or derive results.
Stage 2: Management
At this stage, about 60% of your company’s efforts will be focused on developing the 5 social media sites. About 10% of the focus is directed towards the creative and brand offer and 20% on setting up quantitative metrics like inbound links, traffic, Facebook “likes”, etc. The remaining 10% will be focused on qualitative metrics such as survey results, pools and studying brand sentiment.
Stage 3: Optimization
Approach: Tactical Objectives: Customer Engagement Focus: Mid-Term Results: Increase in Traffic
During the Optimization stage, 25% of the focus is on gaining more leverage on all 5 social media platforms, and 30% will be distributed to creative and brand offer development, as well as the quantitative and qualitative metrics. The other 25% of the focus will be directed to improving the conversion rate and the optimization of campaigns. The remaining 20% will be used to measure success of the campaign which will be the basis of your ROI.
Strategic Objectives: Social Media ROI Focus
Despite what many social experts claim that ROI of social media cannot be measured, there is actually a way to measure it. This process will require a better understanding of your customer lifetime value (CLV) or the average revenue generated by a customer during their entire engagement period with your products and services. This figure will be used to compare the results that have been generated on your campaign in social media.
For instance, if a typical customer spends about $10 every month on a particular product and has been a loyal patron of a certain brand for about 3 years, this equates to the average customer lifetime value of $360.00.
Most companies are willing to spend about 10% of their CLV for the acquisition of new customers. This means, that they are willing to spend $36 to acquire a new customer who is expected to spend $360 all throughout her engagement with the brand.
So if your social media efforts cost you $36, 000 per year, and your campaigns can generate an average of 1, 000 new customers every year, then you definitely have a clear winner in your hands. To generate new customers, it is important to have sources of consistant social media traffic.
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