The Sales Funnel and Social Media, Part I

Here is a PowerPoint presentation that illustrates this content and more.

“Social media for business is crap.”

“There is no ROI for social media.”

These are titles of discussions, slide shows, blog posts, etc. I’ve recently seen.

If you use a screwdriver to use a hammer’s job, you may still get the nail in the wall but you shouldn’t expect the same results. Use the hammer to drive in the screw and negative outcomes are likely.

I think businesses have been sold–because a self-proclaimed “social media expert” told them or because it’s what they wanted to believe–on social media as a replacement for above-the-line marketing. I also think that due to the robust audience filtering and targeting capabilities used by Internet social networks that they might have expected some sort of magic metrics bullet from the medium, and none availed in 2009.

2010 is the year these chickens come home to roost. CEO’s can’t continue to allow “engagement” without return.

The tool, due to the fact that the audience is very much “opt in” only, does not easily fit into any customer acquisition model. Businesses will continue to need to gain exposure initially through traditional means. Social media is a downline tactic presenting opportunities for:

• Customer retention
• Customer education that can lead to an increase in wallet share
• Marketing, in its truest sense. Your most loyal customers will tell you how you must evolve. They will alert you to market opportunities.

Therein lies your ROI. 

1. Count the customers opting into your social media campaign
2. Measure them for customers saved vs customers lost who did not opt in
3. Measure those who opted in for changes in average revenue per unit.
4. Measure content contributions from customers against costs for independent market research.
5. Consider, continuously, how your strategy might yield better results before dropping it completely.

Something to consider before you split another screwdriver handle or strip out the thread.

Hanbery Marketing's Swift Kick

• The Sales Funnel and Social Media, Part III
• The Sales Funnel and Social Media, Part IV
• The Sales Funnel and Social Media, Part II
• Social Media Marketing: Who gets it and who doesn’t?
• The Evolution of Social Media for Business

Swift Recommendations

• SGB Media Group's "Social Views": Online Social Networking Sites, Facebook, Twitter, Ning, Business Networking Sites, Blogging, Social Media, Web Marketing  (Stephen G. Barr, Group Publisher)
• The Future of Conducting Business with Social Media  (Resource Nation Blog)
• 25 Common Social Media and Web Marketing Mistakes …  (Stephen G. Barr, Group Publisher)
• SGB Media Group's "Social Views": Junta42 Content Marketing blog: Five Reasons Social Media Marketing Comes Last  (Stephen G. Barr, Group Publisher)
• The Complete Novice's Guide to Social Media  (Stephen G. Barr, Group Publisher)

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