Following the Dollar: Social Media Revenue
Nov 04, 2016 Beth Smedinghoff
The question is a valid one: How do you measure the return on investment for your social media strategy? As digital marketing has emerged as the primary force in today’s business world, there is no question that social marketing is beneficial.
A recent Entrepreneur article reports that, “Companies are spending anywhere between $100,000 to $300,000 (and sometimes even more) to build and maintain their social followings. Between ads, salaries of social media managers, and of course the requisite marketing tools and services to keep it all together, social is now a significant investment for most brands.”
But, how do you actually place a dollar amount on your efforts?
The recent Oracle blog by Steven Woods identifies the following ways that marketers can drive real revenue with their social media strategies.
Expanding your reach with social media
The reach of your marketing is defined by the number of prospects you are able to reach with your message. Fortunately, social media has expanded the potential for reaching more people.
Because users are interacting with content on social media, there is a definite advantage to creating shareable material. Either through paid advertising or organic searches, businesses can now reach more prospects by seeing how users interact with their material.
Drive conversions through influencers
In the early days of marketing, conversion was all about trust. That much hasn’t changed. What has evolved with social media is the ability to gain the trust of more people through influencers.
More and more people are turning to trusted influencers to gain insight before making a purchasing decision. The good news is that if buyers have more access to influencers on social media, then so do you. Social media makes it easier for marketers to build trust by gaining the trust of influencers. That trust will trickle down to prospects, and will ultimately lead to conversions. Check out our post on tools that help find industry influencers for more information.
Speed up the velocity of your pipeline
Doubling the size of your pipeline can often have the same effect as doubling your database. In order to accomplish this, you need to make content that users can easily find and access.
Utilizing landing page editors is a simple way to graft prospects social graph onto marketing assets. In addition, social sign-on makes accessing your content easy while giving you the insight into necessary customer data. Combining these methods is an easy way to speed up the process through the sales funnel.
Getting more value from your marketing efforts
Making a sale is great. But, what if you could get even more from that sale in the form of a loyal customer? Then, you are not only gaining revenue from a sale, but you will also gain revenue in future sales.
How does this work? The key element here is trust. Think about a testimonial. These are designed to provide customers with first-person validation from trusted sources. However, you won’t get much from this testimonial unless your customer feels that the source of the testimonial is trustworthy.
This is where social media comes in. With the expanded circle of trusted sources in any individual’s network, we can personalize our content to reach an individual or someone in their network to create the trust that our prospects value.
Social media allows for better leads
Determining actual ROI on your social media strategy is a hot topic of debate and, unfortunately, one without a definitive answer. However, when done correctly, social media marketing definitely offers a real return.
Social media gives marketers the opportunity to identify what matters to prospects. Using data from social sign-on, viewed content, and influencer interactions, we can identify what our prospects are viewing and tailor content accordingly. We can also provide this information to our sales department so that they can leverage it when contacting prospects.
Social media is always changing. As marketers continue to refine their approach, we will see more ways that you can drive revenue with digital marketing. Think you have the next big idea for your company? Here is how to get it funded.