Tag Archives: Social Media Platforms

Major Brands: Social Media Is Great – How Do We Make Money Off It?

Social media has captured the minds of the world’s population, especially those of corporate marketing and sales executives. While social media platforms and its users are having a great time, sales and marketing ideas are still limping and it seems nobody is able to come up with reasonable ideas to monetize on the new way how people interact with each other.

Recent reports about Facebook and some of their clients display the misery quite drastic. In the week of Facebook’s IPO, General Motors announced to quit buying ads on the site. At that time GM had a social media budget of $30million and intended to buy Facebook ads for $10million. This is plain and simple unbelievable. GM’s idea gives the impression that many big companies see social media platforms as nothing else than new age magazines.

Taking a look at the diverse GM’s Facebook pages and Twitter profiles opens up an unused treasure box. There are hundred thousands of likes and follows, but it seems that there is not much of real social media action going on.

The corporate Facebook page has 400,000 likes and 9700 talking about it. That’s roughly 2% of all likes. What? GM is posting on a regular basis and people like the posts and comment on it. Here is when the problem of social media hits GM: There is nobody to interact with the people commenting on the posts. GM seems to respond to comments that display negativity, which is a good thing. However, there are 100’s and 1000’s of opportunities daily “to sell”, and these opportunities are wasted, by ignoring the interaction when people enter the showroom, which the Facebook page actually is.

Think back 10 – 15 years. You stand in your showroom, somebody walks in and is looking at the cars, nobody cares about the prospect and the prospect walks out without any communication whatsoever. Can you imagine what the sales manager would say? This might sound ridiculous to some, but in essence, this is what the Facebook page is, your showroom.

Here is another example: Again, go back 10  – 15 years and imagine what a company would have done with 400,000 contacts that showed interest. And? What do you think? At that time the phone number was the hot commodity. Remember telemarketing? That’s what they did. They gave the numbers to a marketer and called all 400,000 people, and they made sales. I know, selling a car is different from selling a credit card or life insurance, but it will create a lot of leads and they will turn into sizable sales.

This is the concept that will make your social media presence on Facebook, Twitter or any other social media site successful. People like and commenting on your page is your phone number that you need to get in touch with them. Buying ads is not what will create a lot of leads and sales. Keep in mind, your likes and the comments are warm leads, people came to you, they must be treated as such.

I was riding the GM story in this example. GM is not the only one that is performing poorly in the new sales environment. You can take a look at almost any corporate Facebook page or Twitter profile and see the same negligence. Food stores, any other retailer and everyone else that has something to sell. Look at your social media sites and connect the dots to your old conventional sales methods. This is how you can make money and profits from social media. And connecting the dots is really all you need to do.

Read also: Why Every Major Brand Should Use Empire Avenue

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Social Media Marketing And Social Media Engagement Must Be Measured – Infographic

Understanding different aspects of social media could be an intricate task. Considering all the major platforms – Facebook, Twitter, YouTube, Google + and others – marketing your brand socially requires a comprehensive approach; much more than just understanding one platform or one metric. Because social media involves a great deal of human interaction in its entire complexity, aggregating results to just one digit would be grossly inaccurate and frankly impossible. That is why many of our customers have already decided to use a dashboard which includes multiple metrics for measuring each of these social networks and different aspects of their performance.

In social, you need to measure different things:

Fan growth, posts from you, your fans interactions (At Socialbakers we refer to this as Engagement), your users’ wall posts, and the speed of your response determine your social success. Since all of the above metrics are public, you can and more importantly shoud analyze these metrics for your competitors as well. Social media conversations (and logically marcomms) take place in an open environment, and learning form successes (and failures) of your direct or indirect competition, is something that just works to improve your engagement and fine-tune your social marketing tactics! Additionally, there are metrics that are strictly platforms based, like Facebook Insights, which for example include “reach” or “talking fans”.

The best metric for benchmarking: Engagement Rate

We at Socialbakers believe and our clients’ successes stand as proof that the best way to compare social performance is to analyze Engagement Rates. The beauty of this calculation is that it can be applied for any social network that uses public data, such as Twitter and Google +! The formulas for average Engagement Rates are:

It’s true that Average Post Engagement Rates can range from 0.01% to 1%, but people keep forgetting thats the people interacting, and that its for every post. If 1% of people interact with EVERY one of your posts, that means a majority of your fans have seen it. So it’s the exact reason why Engagement Rate is a metric worth monitoring!

Source: socialbakers.com