Tom Levers

Whats the Business Value of Social Media

Posted in BUSINESS DEVELOPMENT, MARKETING, PUBLIC RELATIONS by Tom Levers on January 19, 2010

To many organizations are setting up Twitter, Facebook, Company Blogs without a clear plan. Its not done with Advertising, Direct Response, or Public Relations, and Social Media should not be any different? So here is what you need to ask yourself to succeed.

If questions below are not asked before employees are encouraged to tap social networking sites they can fritter away hours, or worse. Their lack luster commentaries can spill company secrets or harm corporate and partners relationships. Skeptics can draw from plenty of examples of social media experiments run amok.

What’s Your Pitch?
Can you describe what your company does in 120 characters or less? Most companies can not. With all the communications ability we have, our attention span is shorter.

Because the number of people we connect with each day forces us to edit our communication. We cannot have fully formed conversations with dozens of people every day and still have time to write, eat, sleep, drive, play games on our iPhone, complain about the housing market, and look at multiple media formats.

Also, the interconnected nature of communication today makes long-form communication less necessary. When I talk to my friends on the phone, it’s usually a pretty quick conversation. Not because I don’t like my friends, but because they already know much of what’s going on in my life via text message, Twitter, Facebook, email and other short-form missives.

As individuals, we know this is true, and we see how it impacts our daily life. Yet as businesspeople, we can do a better job.

What’s the Type of Result You Want?
What type of program is this? Awareness, Lead Generation, or Loyalty?

What Type of Relationship Do You Have and Want with Your Audience?
What does your audience know about you today? Nothing… to an advocate. Pick segments to focus upon, but make sure they are adjacent on this scale. It’s too confusing to have a strategy that targets advocates AND people that have never heard of you. That would be two strategies, not one.

How Does Your Audience Use Social Media?
Using the Forrester Social Technographics Ladder see http://blogs.forrester.com/groundswell/2007/04/forresters_new_.html , understand how your target audience (as defined by gender, age, and geography) uses social media. If your audience skews older, you may not want to engage in a lot of “make a video” contests, since that segment indexes low on the “Creator” scale.

What’s Your One Thing?
What’s the soul of your brand. What’s the one thing – and it’s not features and benefits. Volvo = Safety. Apple = Innovation. Disney = Magic. What’s on the other side of your = sign? Brand anthropology, and have an agency help you find your one thing.

How Will You Be Human?
Social media is about people, not logos. How will you let down your guard? If you’re a small company, congratulations, this should be pretty easy. If you’re a big company, how can you act small again?

How Will You Measure Success?
Lots of ways to measure social media success, so make sure you determine your key metrics BEFORE you get started. I recommend picking three solid metrics to track. Appropriate metrics differ based on what your objective is for the program.

Focus on what you can actually measure. Unless you have a unlimited budget, enormous resources and extremely sophisticated data management capabilities, you aren’t going to be able to capture and measure every bit of data that comes your way. While some of you may be able to implement fairly impressive measurement practices over the next few weeks and months, most will find that much of the data you wish you could capture, plot and analyze will be beyond your reach. Don’t panic. Measure what you can, make the most of it, and don’t worry too much about what you aren’t able to measure yet. Your ROI analysis will require a little more art than science, but that’s okay. As you will soon see, certain key metrics should give you a pretty good idea of the effectiveness of what you are doing.

Financial outcomes are the most basic metrics. Opportunity sales funnel metrics. No interpretation or estimation required. The most obvious is of course sales performance and prospect generation. So get yourself some sales data.

Along a timeline, your sales data when it comes to analyzing the impact that your activities is having on your sales knowing whether revenue deltas are coming from Yield, Frequency or Reach is pretty important.

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