Social media marketing just isn’t working for me.
Social media marketing is just a waste of money.
How can I make money with social media marketing?
These folks are not alone. Even my class of social media marketing students don’t BELIEVE social media marketing can generate significant ROI. They’re think a company suffers when they don’t use traditional media — like print and broadcast.
Recommended for YouWebcast: Relationship Marketing: How to Build a Relationship that Converts to Sales
Well, here are some great examples of how businesses actually make money with social media marketing.
With a modest number of Twitter followers, Coffee Groundz increased sales by 20% – 30% by setting up an online store with Twitter.
Maybe you think social media marketing ONLY works for consumer products and retailers with mass appeal. But, that’s not true. Social media marketing works really well with more complex consumer products and B2B firms. Vitabiotics is a great example. Using a combination of Facebook, Twitter, and BLOG (don’t forget the importance of a blog in your social media strategy), they built a community willing to provide insights on unmet needs that provided rich opportunities for new product development. This saved the firm a lot of money normally required for ideation and market testing.
Don’t you just love their shoes? But, where to find them?
So, Jimmy Choo using Twitter to geo-locate and feature stores selling their sneakers. The result? Both increased sales and positive mentions. Plus, more sharing.
Wow, how’d you like to increase sales by over 100%. That’s exactly what Kraft did in the Philipines. They created a national day for thanks and supported it with social media and their website. Coolness.
Coupons are a great tool. And, when you use social networks to spread the love, you build your social network and amplify the message across the networks of that community. Organic Tea DOUBLED sales with these coupons on Facebook and Twitter.
Also built a more engaged community using Twitter as their social maitre’d. They saw sales increase by a whopping 60%. Bombers even added Foursquare to the mix by creating a Swarm Badge that increased sales 110% for the day.
So, take a look at the other companies making money with social media marketing and you’ll see a variety of tactics that bring in ROI.
Make money with social media marketing
The trick to making money with social media is knowing how to use it right. My best practices include:
- Put your community front and center of your social media marketing efforts. Be sure your posts provide VALUE to THEM.
- Only talk about your brand rarely and try to do it in a way that is sensitive to your community. For instance, offering advice, discounts, or behind the scenes access is a good way to let folks know about your brand without coming across as too commercial.
- Be a member of the community. Social media marketing is about two-way conversation, not advertising.
- Think strategically about which networks you should use. Don’t feel limited to JUST Facebook and Twitter. LinkedIN is great — especially for B2B firms and for more complex products. And, think groups. YouTube is great for businesses where demos are important or for visual/ audio products , like artists. Pinterest is great for product companies to show their brands. You get the idea.
- Measure. Maybe you’re not seeing ROI because you’re not measuring the outcomes of your social media marketing. Establish a comprehensive analytics program that consistently assesses metrics reflecting both macro-conversions (sales, leads generated, email subscriptions) and micro-conversions (reflecting your KPIs- Key Performance Indicators, such as sentiment).
- Learn how to tag and assess performance of your posts across various social networks. BTW, Twitter metrics are coming soon. Monitor what’s working and what’s not so you can optimize your ROI.
Whether you need a complete social media marketing strategy or some consulting to optimize your existing social media marketing, we can fill your digital marketing funnel. We can help you do your own social media marketing better or do it for you with our community managers, strategists, and account executives. You can request a FREE introductory meeting or sign up for my email newsletter to learn more about social media marketing.