Control & ROI for Businesses Involved in Social Media

April 16, 2008

As a company providing content marketing programs for business clients, a big part of our efforts with clients include the use of Social Media & Social Networking approaches. Now, let me couch this statement by saying that, in many cases, many Social Networks are overkill for many businesses. There are 5-10 new sites popping up each day, so it can be a challenge to manage a budget and true involvement necessary to support such wide-ranging efforts.

We keep a narrow Social Media /Social Networking focus for clients just getting involved - Internet Video, Internet Audio & Podcasts, Blogging, Linked In and perhaps a FaceBook or MySpace, depending on the client. Social Media sites serve as the the medium for Educational and Conversational Content Marketing programs that companies must be including in their mix today if they want to remain relevant in the eyes of their buyers. Social Networking sites serve as the community connection for buzz, listening & engaging in customer conversations and for developing the super user or evangelist network. For a business to really engage in this way, there must be a commitment to be involved and not try to ’skid across the surface’ and apply a corporate PR-type approach. If a company is not truly willing to get down into the trenches of SN, they should stay away so as not to do more harm than good.

The two major questions & objections we get from business clients about Social Media/Social Networking are:

1. Control & Transparency
2. ROI

Control & Transparency
Companies are very concerned about HOW to add business blogging, for example, without losing absolute control. Many are afraid of User-Generated comments or complaints ending up on the corporate site in a way that can’t be controlled. Our response is usually that there needs to be a corporate training & mission to allow each department within the entire company to blog & share in that conversation. The only thing worse than not being in control is not being involved in that conversation AT ALL.

A great example of this is the Sam Adams beer recall this past week. This wonderful, conversational-marketing company that has connected with so many customers through its commercials with the founders, brewers and staff, raised the PR-Brick Wall this week and didn’t get involved in the conversation & concerns by its customers. They have tarnished a stellar image by allowing their corporate PR company or team to go into Damage Control mode that downplayed the issue as if nothing really happened. This is bad!

ROI
This is the other big question… How do we determine Return On Investment. This is why many companies have hired Social Media Marketing specialists who have no budget, no revenue-related goals and no real mission except to “Go figure out what the hell this Social Media thing is all about!” BtoB Magazine has connected the ROI to Search Engine Optimization efforts in its mission to connect its readers to something tangible to Online Marketing.

In our view, the real ROI debate comes down to this… Buyers, whether consumer or business, want to truly connect with a company before making a purchase. So, if a company does not start to engage in this new form of building connections with its constituents, then the company will begin to lose market share to those perhaps smaller, more agile competitors do.

SM/SN allows a company to build credibility in the eyes of the buyer and, implemented and managed correctly, can lead to quantifiable results to capture leads & ultimately to lead to revenue like Direct Response can. BUT, a company can’t view this as just another advertising or marketing medium - it requires a whole new way of thinking to benefit from this shift in commerce.

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