By Jamie Turner, Founder, 60 Second MarketerEach week, I send special tips and techniques to subscribers to our e-newsletter. The people who have signed up are interested in getting additional tips on how to improve their social media and mobile marketing programs.Today's e-newsletter focused on two interesting topics: 1) Social media ROI and, 2) How to get more from your social media campaign by actually doing less.It was such a popular e-newsletter that I decided to post it on here so our blog readers could enjoy it.Here goes:Did you know that a good social media campaign can increase your Customer Lifetime Value?In its simplest form, Customer Lifetime Value (CLV) is the amount of revenue a typical customer generates for your business during the time that they're a customer.So, if you're a lawn care company and you charge $80 per month for lawn care and your typical customer stays with your business for 3 years, their CLV is $2,880.Here's how that calculation works:
CLV = $80/mo x 36 months = $2,880(If you'd like to learn more about CLV and social media ROI, check out the e-book I wrote that's available here: Social Media ROI Explained)So, How Does a Good Social Media Campaign Increase CLV? The answer is pretty simple -- studies show that people spend more money with brands they trust, and they trust brands that they have ongoing relationships with.Let's say you own a hardware store and the only time you engage with your customers is when they're in your store buying products. On average, they might spend $35 on each visit. But if you have an email campaign, a Facebook page and a QR code campaign -- and you use those campaigns to stay in touch between visits -- you can change your customers perception from "They're trying to sell me something" to "They're trying to help me."When customers feel as though you're trying to help them rather than sell them, they'll buy more stuff from you.The end result is that instead of spending $35 per visit, they might spend $45 or $50.How You Can Put This Insight to Work. Most businesspeople will admit that they don't actively engage with customers through their social media campaigns. For some reason, they believe they can set-it-and-forget-it. But that's not true.With that in mind, here are a list of actions steps you can take to help solve that problem:
By Atri Chatterjee, CMO, Act-On SoftwareAt Act-On, we do a monthly survey of marketers at large; in the last year, we’ve heard from over 14,000 people. They’ve told us that over time, more and more resources are going to social media...but that social’s contribution to the sales pipeline appears paltry.
July 2012 Survey Results, Act-On SoftwareThe problem might actually be that social media’s contribution is difficult to track. In a recent research report, Gleanster’s Ian Michiels mentioned that 93 percent of B2B marketers rank “measuring the return on social media campaigns” as the number one challenge in social media marketing.In some sense, this is inevitable. Social media functions as the online version of word-of-mouth and overheard-in-the-hall conversations, which are notoriously difficult to quantify. Studies have been done (primarily in B2C) that indicate findings, but the real world is a messy place to do research in, and social media is relentlessly real-world.Social media also functions like advertising. The meeting planner looking for a venue may hear of a fabulous place with a limited offer via Twitter or Facebook. Her next step will probably be to peruse the venue’s website. When she becomes a prospect, it’s likely that the website (or a direct mail piece) will get the credit.Most B2B buyers are influenced by multiple channels. This is why it’s important to make your messaging consistent – it helps buyers recognize your brand and reinforces your offer. But it can also blur the origin of a lead. Perhaps social should be budgeted (at least partly) as brand awareness.Despite the difficulty of measuring it, nobody is retreating on social. Gleanster’s study shows that “top performers” are twice as likely as “everyone else” to use social in inbound and outbound marketing. It may be that top performers get better results because they do everything (including social media) well. Regardless, social media is still emerging and evolving, and we have much to learn about how to use it.All that said, there is a way to measure social media programs and get usable information about how it affects ROI: