Big Idea: Changing Perceptions to Social Media and ROI
Thanks to Joe Walsh and Theresa Mencarini of Greenfield/Belser for this guest blog post.
Soft metrics don’t add up to a hill of beans in this crazy world.
Marketers have often viewed social media as a touchy-feely process that does little else but ‘raise awareness’ or increase ‘engagement.’ Firms grudgingly created a presence on sites such as Facebook and LinkedIn because it was a necessary to staying modern in the eyes of an expanding online marketplace. But a new report by Marketing Sherpa dismantles the misconception that social media has no measurable financial returns. Their 2011 Social Marketing Benchmark report shows perceptions of social media as little more than a time drain are changing. And changing fast.
Marketing Sherpa interviewed more than 3,300 social media marketers. The report notes marketers’ attitudes are directly related to how evolved their firm’s social media program is. Programs are broken down into three stages: trial, transitional and strategic. Those firms in the strategic phase (63%) had much higher ROI than those in the trial phase (35%). “Twenty percent of CMOs said that social marketing is producing a measurable ROI for their organization, and that they would continue to invest in this tactic. This percentage has nearly tripled from 7% a year ago and the perception of social marketing’s value continues to improve.” (http://www.meclabs.com/training/publications/benchmark-report/2011-social-marketing)
Businesses that have come to see social media channels as ways to build brand and save on costs associated with research, recruitment and advertising are far more likely to understand its actual value. Amy Jo Martin, writing in the Harvard Business Review blog, suggests thinking of social media as a communication conduit as essential as the telephone: “companies can monetize social media, but they have to stop thinking about it as a way to market products and start thinking about it as a way to communicate brand.”
You may think this trend is limited to products-based sellers. After all, using social media for promotions, to offer discounts to followers or use Twitter as a focus group is a no-brainer for companies like Nike and Coca-Cola. But the truth is that professional service firms are also stepping up their social media efforts. A recent Martindale/Burson Marstellar study noted that law firms are increasing their social media output, often creatively, “using Facebook with supporting YouTube videos for graduate recruitment, LinkedIn’s public and private discussion groups for employees.” Law firms thrive on personal relationships. Social media provides a myriad of cost-effective, timely and efficient avenues to build audiences and deepen communication with clients. Likewise, accounting firms have found social media increases referrals and word-of-mouth. CPAmerica International likens its use to handing out business cards, attending events and other forms of networking professionals take for granted as part of doing business.
As confidence in the utility of social media tools grows, professional services firms are finding they can use them to recruit new talent, display expertise through blogging and online discussions, for monitoring reputation, saving money on research and advertising and, of course, deepening the client relationships that are the touchstone of professional services.
So, social media, here’s looking at you, kid.
