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…and more importantly, how can I measure the impact and ROI of my social media marketing investment as a brand?
This is an interesting and often-asked question by CMOs, but is it the right question?
ROI has always been a pretty basic formula: ROI = (X – Y) / Y, where X is your final value and Y is your starting value.
But the real question I have to ask is why are CMOs asking – nay, demanding – that their agencies quantify something that is in essence not really media at all but more akin to a conversation? A meal? An interaction?
You and I broke bread last week over breakfast. Did you “convert” me? Or were you more interested in growing a relationship? What was the ROI of that meeting for us?
In 2009, Mashable reported that over 84% of brands did not measure their social media marketing efforts. Now, this means one of two things: A) They didn’t know how to; or B) They were testing and assumed that it was indeed healthy to listen and engage with those who used their brand.
What so many people fail to realize is that Social is NOT ABOUT “MEDIA”. It’s about ENGAGEMENT. It’s NOT AN AD CHANNEL. IT’S A CONVERSATION. It’s NOT AN INFOMERCIAL OR FAUX CONVERSATION WITH ULTERIOR MOTIVES to convert sheep, it’s a GENUINE CONVERSATION. With PEOPLE.
Can you buy ads on Facebook? Absolutely. You can buy ads on almost anything these days, including the foreheads of college students. That doesn’t necessarily mean that it’s the right approach for your brand. I think it’s unfortunate that the term “Social Media” was coined at all and that “Marketing” was added to it, because it implies that it’s an advertising channel. It’s not. Those brands who understand it are using Social more as a CRM channel, “Social CRM” or “sCRM”, than anything else.
That a 0.005% response rate on Facebook ads is considered “Good”, should tell us that users don’t want to see ads in their conversations, they want to have conversations with real people at brands that care.
I hear all the time from brands trying to Quantify Social Media Marketing. I see 90% of most brands doing it wrong. Perhaps more. I see PR agencies trying to “do social” for their clients.
You know what that’s like? That’s like me as the Brand sitting down to nice meal with a customer who just took a flight on my airline. Except I’ve brought my agency dude with me. We both listen to the customer – he sometimes more intently than me, because frankly, I have no way of measuring the ROI from this lunch, so I’m just going to let my agency dude handle it and continue to justify the need for me to use an agency and pay him his monthly retainer.
So we’re sitting at lunch, the three of us – my customer, me the Brand and my Agency Dude, and there’s such a real opportunity here for me as the brand to have a conversation with my customer – more than just listening, but engaging. And yet I choose to remain silent and eat my sandwich, while my agency guy talks non-stop to the customer, trying to upsell her on her next travel plans and telling her about our new Mileage Plus Rewards program. Eventually he shoves the URL to an online frequent flier miles branded credit card application across the table on a napkin at her.
She looks over at me, the Brand, and says, “Have you been listening to the feedback I’ve been giving you about my last experience flying Brand X?”
My mouth is full of sandwich, so I just nod my head and look to my Agency Dude, who starts talking again on my behalf. After all, that’s why I pay him, isn’t it?
A few minutes later my Customer looks over to me and asks the question that is on every Customer’s mind when they see a brand’s PR agency try to “do Social”:
“How come your Agency Dude is doing all the talking? I’m your customer. I just flew your airline. Don’t you want to have a conversation with me about it?”
I chew my sandwich, remain silent, shake my head and thumb over to my Agency Dude.
How do you think that makes the Customer feel? Maybe like you’re a brand that doesn’t listen? Doesn’t care? Doesn’t want to engage?
As the Customer, I’m flying a different airline. You and the Agency Dude can continue to try to crack the social media ROI code algorithm on your napkin after I’m gone.
As the Customer, please don’t outsource trying to court me. It’s fine if you want to have someone else do the Listening, but I still want to hear from you that you’re listening and acting and I want to hear from you, not someone with non-genuine motives.
And don’t try to over-think this. Just because you can measure something doesn’t mean that you’re using an accurate measuring stick, a calibrated caliper or the right algorithm.
Focus on engaging the Customer and business will follow because of that engagement. Brand preference will follow because of that engagement. New ideas for R&D will flow because you’re now listening instead of transmitting.
What’s the ROI of putting your pants on in the morning? Exactly. You DON’T KNOW, because each day you wake up and you never know what opportunities await you now that you’re no longer naked.
Adam Boettiger is a Senior Digital Strategist, helping large brands, small businesses and startups create, leverage and deploy web marketing strategies & tactics that drive measurable results since 1994. adam@adamboettiger.com / 503.946.6450 / Twitter: @AdamBoettiger / On the web @ http://www.adamboettiger.com/