How to measure the ROI of your social media marketing campaign

The main aim of social media is to engage with your customers, improve brand awareness, and essentially build a loyal fan base online. The end result should have effects financially, but how can this be proved? Typically customers don't purchase solely online, or if they do, not off social media platforms.

Like most marketing campaigns a project proposal will need to be constructed for social media marketing. Establishing the aims, objectives, content and progression of the campaign can be established like other medias. However, measuring the effects of social media can be harder. This makes pitching the idea to a manager difficult if they don’t fully understand the concept of SMM (Social Media Marketing).

Reasons as to why measuring the results is tricky

Social media is the ‘transmission of multiple messages to multiple users who extend conversations that invite responses from others’. The image below shows the transactions of a message on a social media site, as you can see the message reaches multiple people who allow more people to see it. This is the snowball effect displaying an exponential growth in exposure using E-Wom.

However, any form of internet based marketing involves digital footprints. Unlike radio and TV digital marketing leaves trails which can be measured to greater effects. Through these digital footprints a ROI can be established.

Olivier Blanchard (2009) discussed this idea in his book 'Social Media ROI'. He noted several steps which offer an ROI;

1)   Establish Baseline – Start date of operations, this baseline will be the start date for all the data. This includes financial data for that time and data separate from the social media campaign.

2)   Create activity timelines - For all recordable factors, log all data regarding uploads and content updates from the campaign onto a graph with the same x-axis as the baseline.

3)    Monitor the volume of KPI’s - Plot the KPIs onto a graph. These KPIs should include all social media leads, website referrals, comments etc.

4)    Measure the amount of sales - Plot sales (£) onto a graph, this can be replaced by number of sales itself or number of customers.

    

    5)    Overlay all the data - Collect all the data which has been measured. 

  

   6)    Look for patterns - Try and isolate changes in the data since the baseline.

   7)    Prove results - From these changes you will need to establish what caused them. 

    As shown in the graph above there may be changes in your sales or number of customers. You will need to look for correlations, what happened previously to the change, maybe you introduced a new ad campaign on Facebook or used Twitter for effectively. It is advised to try and disprove your findings, there is no point making conclusions at this point if you are unsure.

  There are certain limitations to this method; The type of industry and business can have an effect. This method will favour business with large amounts of their operations done digitally, as there will be more data available. This includes data for all sales, advertising and promotions.

For many business this method can be over-complicated, some business choose to measure ROI from traceable promotions such as coupons or vouchers which are downloaded online. Other marketers choose to save money via social media, website hits from social media are free for example. Adding up these advantages and allocating a cost from what it would cost you if you were paying for it can show a rough ROI.

  it is important to remember that your social media strategy needs to align with the objectives of the business as a whole. Your KPI's by which you measure the effects of the campaign need to be SMART (Specific, Measurable, Achievable, Realistic and Time-Based), this is to ensure that they are suitable for basing conclusions on.  
  
Also, remember that not all the information you need will be available. Albert Einstein stated; ‘not everything that counts can be counted, and not everything that can be counted counts’.

Why all business should embrace mobile marketing

Mobile Marketing: A brief on why mobile marketing is king in 2014

Mobile marketing has been highlighted as one of 2014s most important digital marketings trends, along with customer experience and content, according to Adobes recent report. And much of the efforts will be based on B2C mobile improvements as (31% of managers say) over B2B (17%).

According to comScore (2013) 4/5 of customers use smartphones to shop, the mobile app industry is set to hit $25b. And with smartphone usage on the up with customers having mobile contracts with more data allowances than ever, the trends are set to continue. 

Customers use mobile sites and apps for many services and products, 'click-to-call' measurements were taken and the results showed that restaurants, taxis, car repairs and home repairs were at the top of the list. But many other industries were close behind.

Mobile marketing can provide customers with time and location sensitive, personalized information that promotes goods, services and ideas. (Leppaniemi, 2008)

Mobile marketing complies many functions;

• Applications or Apps
• Web pages specifically made for Android or iOS
• SMS/MMS marketing
• Push notifications/Alerts
• Games
• QR codes

Mobile applications benefit the customer in many ways;

• Making web browsing faster
• Geo-targeting/Location based
• Extra features such as IM
• Higher usability over websites

It is almost expected for large businesses to have an app for their customers, or at least a mobile optimised website. But what about SMB's? 

Statistics from 2013 show SMBs are not up-to-date with mobile tech, with under 10% being mobile-optimised.                                                           

Without a mobile-optimised site the business will be loosing out, customers are 67% more likely to stay on the page on their smartphone if its mobile optimised.

The apps are not just for customers, employees can use apps for business to optimise performance, efficiency and ease of use.

As shown below, for the automotive industry, manufacturers and dealers use mobile apps to help customers assess the status of the vehicle, adjust settings and as a reference for services.

Inchcape, an automotive franchise released their own mobile app, which allows customer to connect with the dealership via the program. This allowed customers to book test drives, view cars for sale, contact staff and much more.

Overall, in 2014 business (Especially SMB's) need to embrace mobile marketing more than previously. Customers expect business to have a mobile-optimised site, and if they don't the customer is likely to leave the page and look for elsewhere. Mobile-optimisation benefits the company by adding features for the customer to use and this will increase usability, engagement and sales.

Which social media is right for your business

Tailoring content & platforms

Social media is essential for business, especially for marketing. However having the right mix of platforms can be as important as the content you upload. There are many social media platforms to choose from, many of which use different methods of sharing information and ideas. Each customer group may prefer a different type of platform. This may depend on their age, sex, location or occupation. Using the right platforms for the right content is important, getting the formality/frequency of messages can make or break a social media campaign.

'Each social media platform has a unique identity based on who uses the network and how they're engaging on the site. As network usage develops, each lends itself differently to brands, depending on who their target audience is, and what they're trying to achieve'. (Businessinsider, 2013)

The chart above demonstrates how certain brands have top places on social media. The exposure they gain from each platform may correlates the brands target audience and the social platforms social audience. For example Samsung Mobile uploads short updates about their services on Twitter, their target audience must be preferable Twitter users who want regular, short news updates.

Brands will need to tailor their content depending on the platform. Depending on the type of platform (Blog, Micro-blog, social networks etc) the length of message, amount of media, type of media may change. For example Twitter messages are restricted to 140 characters, if a more lengthy message is required then Facebook or Google+ may be more appropriate. Each platform has their own demographics. The charts below show how certain ages/sexes prefer different platforms;

The charts show that certain platforms such as LinkedIn have more male users, whilst Facebook has more female users. The charts also show how customers use multiple platforms in varying amounts. This means business must offer a range of platforms, but may be able to use some in preference to others.

Establishing the right content and the right platforms

Another way of selecting the right platforms is forming a unique marketing campaign. Depending on your current inventory and what you want to achieve from the campaign, the use of a platform may change.

Here are 4 steps which may help a business decide which social medias to use;

1) Gather your portfolio; Many business set up social media profiles when they acknowledge their existence and importance without properly assessing their purpose/potential. By gathering resources into one list, the spectrum will be clearer. 




Picture Source: Oracle (2013)








2) List your content; Gather the types of content you distribute via social media.

Picture Source: Oracle (2013)







3) Link content to a platform; Some content is best suited to a certain platform, for example many Twitter followers want information about updates and news. Twitter is best used when keeping it for one purpose. By keeping the channels concise readers are more likely to follow the route down the funnel. Link the platforms and contents into lists with contents under a list. 

For example;
• Twitter posts might be mostly about “industry thoughts.”
• A blog might explain product features, analyse industry publications, and tell product stories. Thus, it could be about “product ideas.”
• A newsletter might feature summaries and links to your organization’s best content.

4) How do the platforms funnel your content; Does your content funnel readers? Is there a start/finish point? 'For example, your organization might tweet everything, blog about industry trends, and use a newsletter mostly for promotions. Thinking of that content in a funnel that leads toward a business goal will highlight how and where content gets redistributed.' (Oracle, 2013).

The funnel below shows how there may be layers to your digital marketing campaign, and by 'leading' customers down the funnel they have a higher chance of viewing your website or purchasing a product.

Picture Source: Social-Stampede (2012)

Top of the Funnel

• Where any and all readers are prospects
• General topics regarding your products or services
• Related topics that might interest a wide variety of people

Middle of the Funnel

• Targeted information designed to give more information
• In-depth white papers or ebooks with specific purpose

Bottom of the Funnel

• Free trials, demonstrations, and discounts
• Content for leads who are ready to buy

The funnel will change depending on the business aims and objectives, prospects and purpose. Business should also avoid using social media platforms which don't follow the funnel as they could lead to a dead-end in the customer qualification process.

Overall, business will need to think about matching content to a platform and how they all interact together and follow a shared aim. Ensuring all this, customers will glide through to the business' website, and increase the chance of a sale.

How important are online customer reviews?

Customer reviews are opinions of a product or a service which have been submitted by a customer who has purchased the product/service. They are common on e-commerce sites such as Ebay or Amazon where giving product feedback is very important for both the seller and the buyer. Many sites also reward customers for giving feedback by entering them into prize draws. The feedback is used for business improvement and also for publishing. There are specialist sites which focus on feedback on products and services, for example Checkatrade.com, Yelp and Trustpilot.

Over 40% of Britons have left a review for a product online (The Search Engine People, 2013) 38% of them aimed to influence other buyers. Other reasons for customers to leave feedback may be; to show appreciation for the product, to seek a refund, rewards for feedback and to raise their own profile. 

Customers look for reviews on products and services more frequently now, this is due to there being a greater choice of items due to internet searches. It is also more difficult to test and try a product online as there is little physical interaction with the product, thus asking the opinion of other customers is crucial.

A questionnaire by Brightlocal in 2013 shows how online feedback is growing in importance;

They also displayed how not only how people check the reviews more frequently but also how many reviews they read;

As you can see people in 2013 read reviews in greater numbers than in previous years, with many people reading up to 6 reviews when obtaining an opinions about a business.

Interestingly, customers are increasingly likely to trust online reviews, more people believe that they are authentic and reliable. However, people are weary of some business reviews. This may show indication of the importance of reliability, and the growth of review sites.

How have business incorporated this new phenomenon? 

It is essential for business to display or promote their customer feedback scores/reviews. Many industry's have their own measurement scale to compare certain products on an industry scale. For example films are rated /10 and many cars are rated in categories /5.

Here are a few examples of how dealerships are reviewed and compared;

For Coulsdon Audi, they post reviews on their website; (www.SGSmith.co.uk)













They have multiple reviews for the group, encompassing a breadth of brands, products and services. However almost all of the reviews are old with many ranging the summer of 2012.

Here is the review of SG Smith on Facebook;

Monitoring the feedback and reviews left by customers is EXTREMELY important, especially if a business has large digital marketing campaigns. A poor review WILL cost customers.

Here is a review of  a car dealership on Motorratings.com;

The review is from a used car dealer, the review is extremely negative (1/5 stars and a sad face). As this was one of the few reviews about the dealer I would avoid the dealership, as I am sure others would, displaying the importance of review monitoring.

Another issue with customer feedback is the threat of review spoofing, where poor reviews are left by a competitor, or a customer who has not purchased the product. As review sites cant check if the member has purchased the item, removing the content is difficult.

There is a internet trend, especially on Amazon where people leave humorous review of a product, whilst attracting publicity and attention they may damage the sales of the product.

Here is an example of a humorous customer review on Amazon;






















It seems that reviews are essential for buyers when considering a product, and results show that they are more likely to trust online reviews. This makes review monitoring more important than ever, along with having detailed, honest reviews. A business can learn much from reviews, they can improve their services, establish weaknesses and set satisfaction targets and work to achieve them. 

Why social media is an important part of the marketing mix

Why social media is an important part of the marketing mix

Business market their products everywhere, from TV adverts to sky-writing, wherever they can reach their target market. In recent years there has been a global shift in where business invest their money for marketing purposes. We have seen a decreasing rate of traditional advertising methods such as TV, Radio, and a massive increase in marketing using the internet and specifically social media. Indicating a future trend in marketing.



Sites such as Facebook, Twitter and Myspace all have hundreds of millions of active users who use the sites, daily, hourly and more recently constantly. The users also tell the providers of the social media what they like and do. This allows a form of data collection like no other, and thus allows a more extreme version of advertising.

Most business use a combination of various social media platforms to help engage with an audience, this is due to their specific market niche. Certain platforms have their own special way of communication, and their users use the platforms depending on their needs.

From the picture below you can see that certain platforms may focus on a certain type of media for example Youtube is made for sharing, Blogger for publishing and LinkedIn for networking. Using this knowledge business can tailor their content to each platform, and use a combination to create the best possible online marketing mix by targeting as many customers as possible.

A business advertising on Facebook can select potential customers using criteria such as; age, location, gender, relationship status, industry of work. Even hobbies and interests. This allows a message to be delivered to a specific audience, making this advertising one of the most effective.



Another reason as to why its so successful is business can engage with customers much easier using these social web tools. For example business can get customers involved, some of the best examples are from Zappos, Blendtec and Audi.

My favorite is Blendtecs 'Will it blend?' series hosted on Youtube.


Source: www.Blendtec.com

Tom Dixon, founder of Blendtec went viral when he showed the public his blenders in action. Creating over 294 million views on Youtube he has created one of the most successful marketing campaigns of all time.

(Other good examples are; Audis #Progressis campaign, Nikes 'greatness' Pre Olympics videos, and Zappos' overall social media strategy.)

Customers are extremely susceptible to online marketing, reviews and opinions of online voices. 'Virtual communities with active members who provide evaluations and opinions on products and firms now provide a venue to tell the world and represent one of the fastest growing phenomena on the Web' (Armstrong and Hagel 1996). A great example of this is Ebay, where customer feedback is key, buyers look for good feedback and may only purchase items of sellers who have high degrees of reputability.

It seems that social media is the way froward for marketing, regardless of business size, industry and service offered. For small business it can facilitate the initial boost in customers and a cheap method of marketing products to a wide customer range. And for larger business to build reputation and increase market share. Customers enjoy entertaining content, almost regardless of industry. They also love sharing thoughts, experiences and giving advice. From a customers point of view one of the most important issues to cover when developing a social media marketing campaign is to make customers enjoy the experience, this will guarantee followers and boosts in brand interest.