The ROI of Social Media:

Social Media & NetworkingTo Build Client Relationships

Diana Hong dhong@crainc.com

Source: Twitter, November 2012http://advertising.twitter.com/2012/11/twitter-and-compete-study-how-tweets.html

TWILIGHT BECOMES FIRST MOVIE TO REACH 1 BILLION FOLLOWERS2

51 percent of Facebook users say they're more likely to buy a product after becoming a fan of the product developer's Facebook page.

Source: Jim Bennette, CEO of VisiStat, Online Marketing Summit 2012.What makes social media different?TraditionalOnlineSocialDefinitionRelationshipInformationCommunityDirectionFluidMostly one-wayInteractiveProsEffectivenessClient relationshipsVendor marketService salesLow costEase of useSearch enginesVendor stabilityProduct salesLow costEase of entryTargeted audiencesFan community salesVirality (positive)ConsCost to changeCost to operateBroader audiencesStatic contentLow response rateRapid changeResistance to salesVirality (negative)ExamplesNewspaper storiesFlyersCouponsConstant ContactE-commerceGoogle AdWordsFacebook stories / adsRetweets / trending #AnalogyBillboardYellow pagesCocktail conversationMetricTraditionalSocialSales ($)Coupon / promo(Targeted) coupon / promoLeads (#, quality)ReferralsCold callsNetworkingConversationsSearch public posts / tweetsPurchased email list / banner adsOnline events: meet-ups / jamsBlogs, Facebook / Twitter feedsCustomer loyalty ($ repeat purchases)FlyerEmail blastLoyalty cardFacebook / Twitter adsPrivate messagesSign-ups for exclusive groupsPopularity (varies)Media coverage (print or digital)Foot traffic / visits

Digital media coverage: # of mentions in posts or tweetsSite visits / clicks# of Fans or FollowersVirality (# per time period)Customer referral programs# of Likes / # of SharesWhat makes social media different?What makes social media easy?Data

Ease

CostTarget people by demographics

Click < EnterShare < ReferBookmark < Take a flyer

Often free or small budget

What makes social media difficult?Relationship building

ComingApartComingTogetherTime (or frequency of interaction)Degree of Trust (or closeness)INITIATINGEXPERIMENTINGTERMINATINGINTENSIFYINGSTAGNATINGAVOIDINGRelational MaintenanceBONDING DIFFERENTIATINGINTEGRATINGCIRCUMSCRIBINGKnapp ModelTheyDropYouYouChaseThemTime (or frequency of interaction)Degree of Trust (or closeness)STRANGERPROSPECTVENDORTARGETCONTRACTORSERVICE PROVIDERLong-Term RevenuePARTNERSCLIENTCONSULTANTHong version of Knapp ModelTime (or frequency of interaction)Degree of Trust (or closeness)The relationship also withers faster at the end.To build relationships through social media, you need more time than in-person interactions. Face-to-face Web Confer-Phone ence Social

EmailHong version of Knapp Model by media channelType of ResponseRateSourceFacebookClick-through0.05%WebTrends, imgrind.comEmail campaignClick-throughConversion6.64%1.73%Direct Marketing Association (DMA)Direct mail (letter)Response3.42%DMAMeaningful interactions are more difficult than clicking. So what does this mean in terms of relationship-building through social media?

Lots of time for little depth.What makes social media difficult?Relationship building

Effort

Source: Aliza Sherman, Founder of CyberGrrl, December 2010http://gigaom.com/2010/12/01/how-much-time-does-social-media-marketing-take/

Is it worth it?

$150(7.5 hrs)$200(10 hrs)$300(15 hrs)$240 - $400 (12 - 20 hrs)$400 - $800 (20 - 40 hrs)One month @ $20 / hr:

One month @ $50 / hr:$375(18.75 hrs)$500(25 hrs)$750(37.5 hrs)$600-$1,000 (30 - 50 hrs)$1,000-$2,000(50 - 100 hrs)What makes social media difficult?Relationship building

Effort

Noise

400 million tweets per _______?

1.06 billion Facebook users active each _____?

1000 Instagram comments per ________?

4 billion YouTube video views per _______?

People tune out digital noise.All social media is not alike.

How do I decide?Is your company already there?Are your consumers / clients there?Can you build interest and trust there?Will you benefit from an army of fans?Is it worth the time / money?Can you get out quickly?Do you want to do this?

If yes to socialStart small but daily (or 3 times / week)Experiment once at least every weekInformal tone. Personality counts.Create stories:Setting / Hero / Enemy / Conflict / ResolutionUse media, not text whenever you can.Evaluate success weekly, monthlyHave walk away criteriaClients / sales that wouldnt appear normallyMeaningful Interaction

Mass Communication

ResourcesMashable.com/Social-MediaChesterCounty.Score.orgChester County Library: www.ccls.org/cwo/Find_a_Resource/Business/LibraryKutztownSBDC.orgPewInternet.org

Diana Hong, dhong@crainc.com