Many marketing managers are reluctant to use social media for a simple reason. That is, they cannot find an answer to the long-lived quote from the movie, Jerry Maguire: "Show me the money!" They simply see no point in focusing on social media unless there is some sort of immediate financial return.
And to be completely honest, they are partly right. Compared to traditional media, social media does still struggle in a number of areas when it comes to producing decent ROIs. And, furthermore, it should be pointed out clearly that measuring ROI on social networks is not as simple as it seems and there is no universally structured method of doing so.
Notwithstanding the above, it should be noted that while the ultimate goal of marketing is to generate a profit, this does not always mean money. Having said that, we have pointed out seven benefits that social media can provide to companies looking to market their brand - benefits that could give you an incredible ROI:
1) Connect with potential customers
It is not necessarily the case that a person who enters your store or visits your site for the first time will buy, however, there is a good chance that they could buy something in the future. When we set up our social network accounts, every follow, every like, every recommendation all means a potential client or customer.
2) Customer service
How many times have you spoken to customer service and, ironically, you were answered by a machine? Now, it is social networks taking the role of customer service and it is far better that there is someone there to answer, because if not it could become tricky to manage a crisis.
3) Public Relations
The most valuable intangible asset for a brand is its corporate reputation. A brand that can speak directly to the world and give answers immediately minimises the risks of seeing its reputation tarnished.
4) Human Resources
Social Media is not limited to Facebook and Twitter. There is a network of networks out there, and although many could be classified as entertainment networks, LinkedIn is a professional network that is an effective tool for headhunters when it comes to finding talent.
5) Loyalty
We used to go to the market and go to the same butcher and the same grocer. We trusted their recommendations and returned week after week to buy their products. With social media the same thing will happen: the closer consumers feel to their brands, the more trust they will have in them and therefore more loyalty. Not to mention that there are already many loyalty programs that make good use of social media.
6) Gather Intelligence
Intelligence is the process of gathering information relevant to a company in terms of its niches, opportunities and consumers. With it, good strategies and decision making are realised. Each day you are on social media you are listening to what potential customers, clients and followers are saying, and you can learn from that to create incredible returns on your investment.
7) Promotions
As previously mentioned, many brands are now starting to use their social networks to run promotions that improve their loyalty programs. Likewise, social media has become an excellent channel to inform your followers about offers, special sales, auctions, etc.
As seen, it is true, social media may not be generating the ROI that many marketers dream of, but it is only a matter of time before they begin to do so. What is true is that it is an instrument that no marketing professional can stop using... and very soon it will "show us the money" too!
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