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Saturday, September 10, 2011

Use Social Media For Retention, Not Acquisition

In a Gallup Poll (October 2010 Survey of 17,000 social media users), as reported by Click Z (September 9, 2011), social media is most effectively used for customer retention.  The article (Aim Social Media Marketing At Loyalists, Not Prospects) reported the following:

  • Companies should combine Twitter, Facebook and others with offline word of mouth
  • "It is largely a myth that branded social media will generate sales from new customers."
  • Marketers should encourage customers to advocate on their behalf
  • Approximately 3/4 (74%) of loyal customers engage their social media in a complimentary way.
  • Metrics like "...Net Promoter, followership, app downloads, hashtags, and click-throughs are not useful for revealing a brand's social engagement..."
Most importantly (for multi-channel marketing), the study revealed  that brands should be evaluated across ALL channels, on and offline.  Gallup Analysts (Jim Asplund and Blaise James) stated, “Digital-only social media initiatives are leaving far too many prospects and customers untapped. Our analysis suggests that the most frequent type of social networking is still analog -- face-to-face or over the phone. Don't confuse the channel (social media) for the desired outcome, (social networking)..."

The take away of this is avoiding the natural inclination to silo a marketing channel.  Analyze how your customers and prospects reach your company.  Use the  most effective media for your objective (i.e. acquisition vs. retention).  Since Gallup revealed that social media metrics mentioned earlier are not useful in identifying social engagement, more traditional ones need to be incorporated.  Combine social media by:
EBM's Social Media Social
Media Business Card
  • Creating links to a contact form
  • Creating links back to your website and a particular landing page with additional information about your brand
  • Building an opt-in email database with Constant Contact..  Embed Constant Contact's Facebook widget into your Facebook page.
  • Leverage customer relationship marketing by hyperlinking to a contact form triggering automatic email/direct mail for future sales.
  • Placing a QR Code for your twitter, facebook, linkedin and blog (or any other site) on the back of your business card like I did on mine card above.  When handing it out, mention your social media venues on the back.  As Gallup pointed out, social media should be combined with face to face interaction.  Handing your business card to prospects and customers solidifies the process.  Chances are, you'll pick up followers and they'll be impressed with your marketing creativity.
The true measure of social media (as well as other advertising channels) is your ability of calculating your return on investment.  Since Gallup's survey reveals social media's metrics do not compute a brand's social engagement, incorporating these examples (and others) can provide an integrated approach to engage, reward and compute your effectiveness and ROI.

1 comment:

Timmy.Norris said...

This is definitely a great idea in marketing, thank you for sharing this information.
experiential marketing