Director - eCommerce & Direct at MaxiNutrition (GSK Group)
31 March 2009 23:13pm
I am looking into what success anyone has had/suggested methods of making social media (Facebook, Twitter etc) work from an online marketing perspective.
As a business we use the likes of Twitter and Facebook widely to raise awareness and buzz - but as yet we have not seen a direct impact on sales via CTA's,
I have read several conflicting reports and seems to me that whilst the core demographic audience is an ideal fit, the ROI on spend just does not exist. Would love to know what experience others have with this method of marketing?
Ecommerce Manager Europe at Wolverine Worldwide
02 April 2009 09:31am
I can't give you a direct response to this but we are using for brand awareness only and not as a sales tool. I just don’t think people want to be sold to during their leisure time.
Yet to be convinced that advertising on social media sites actually does anything for you apart from waste your time.
I do want to be convinced like you it is a worthy effort.
Head of SEO & Social Media at Make It Rain Ltd
02 April 2009 11:07am
In terms of Direct Response we've seen great results using demographic targeting and niche segmentation on Facebook across various sectors. Run of site CPM is definitely not the way to go. Do you have specific landing pages for traffic from the social web?
From the POV of a soc med engagement strategy I'd be wary of focusing on channels before either manually or using a monitoring tool, finding out who your advocates and detractors are and where they broadcast their opinions. These findings will then inform how you engage with and amplify the positive while dealing with the root causes of any negativity towards the brand.
Owner at Digital Juggler
06 April 2009 12:23pm
I think it is very hard to create a financial ROI for sites like
Facebook & Twitter. Social media is more about building an engaged
community and creating/maintaining a positive online brand identity than direct
ROI. It is a bit like the investment in TV advertising versus direct response. The
very nature of a social networking site indicates people are there for social
reasons, mainly to share content and not to buy. That's not say you can't get a
sales but you have to find an audience that is willing to interact with your
social media channels for buying purposes and you also have to understand the
different communication channels available for each social media option.
If you look at the Dell Outlet account on Twitter, it has
generated over $1m in sales. However, Dell has about 50 Twitter accounts and
the Outlet one exists purely to offer discounted products - they also have
excellent customer service and relationship building accounts so customers
aren't being sold at, they are choosing to also follow a sales based service as
part of their Dell “Twitter experience”.
If you look at Facebook, Wiggly Wigglers is using this
effectively. The group page is based around adding value and engaging with
members. Heather’s team post regular content, link to their podcasts and information
& products on the website. This does drive traffic. However, the key
marketing tool to generate sales is the weekly email that is sent to the group –
this email is more like a story newsletter, fun & interesting but with a
clear sales message and unique offers to the Facebook group. The reason it
works is because the focus on the group page is to provide relevant, fresh
content that people can use & share, so people are more willing to receive
an email that is promoting products & offers. If you want I can post their
latest email to this thread – the content is brilliant and whilst it directly
sells, you just don’t feel that you are being sold to.
What are you doing on Facebook and Twitter at the moment? How much
value are you adding to your fans/followers? Are you making it interesting and
relevant for them to regularly visit your profiles? Also, are you promoting
these social profiles across your marketing mix so that anyone who visits your
website/blog etc can access these? Do you use the group email option in
Facebook to give that audience unique offers?
With social media, I personally believe the key is brand
reach. I also think that in time we will learn that the ROI comes from increased
loyalty and repeat visits/purchases – perhaps now is the time to define loyalty
metrics using your analytics tools and measure how the % of revenue from
returning customers changes in comparison to new customers. If you can increase
repeat purchase and lifetime value, perhaps that is a telling ROI measure for
social media investment.
Econsultancy's UK Social Media Statistics document is one of 11 individual downloads that make up Econsultancy’s UK Internet Statistics Compendium, a comprehensive compilation of statistics and online market research with data, facts, charts and figures that are essential to understanding the marketplace as a whole.
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