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December 26, 2011 By Erik Deckers

You Don’t Get Social Media ROI Yet? C’mon, Man!

I was feeling good about social media ROI, and how/whether people understand it. I figured, at least my people — marketers — get it. They understand how to measure social media, or at least the principles behind it.

Apparently not.

eMarketer dashed those hopes to the ground with their December 20, 2011 article When Will Social Media Measurement Mature?.

Marketers know that counting fans, “likes” and followers is not the best way to measure success in social media marketing. Yet these metrics are often the top benchmarks for performance. It’s not surprising, then, that marketers consider calculating return on investment to be the biggest challenge of using social media, and that a majority of them believe they cannot measure social media campaigns effectively.

How to Calculate Social Media ROI

Calculating the ROI of anything is easy. Subtract how much you spent from how much you made, and that’s your answer. If you spent $10,000 on a social media marketing campaign, and you made $50,000, your social media ROI is $40,000.

Simple, right?

$50,000 – $10,000 = $40,000.

So how do you know whether sales are coming from your social media efforts?

I’m not going to delve into the step-by-step process, but I’ll give you the tools and concepts you’re going to need to get started.

  1. Set up Google Analytics, and install the code on every page on your website. If you have a blog, it only needs to be part of the code. If it’s on a website with pre-built pages, it needs to be on every page.
  2. Set up a Bitly account. Bitly is a URL shortener that also lets you do some basic analytics on the number of people that have clicked your link.
  3. Create a Google Analytics tracking campaign for any and all major links you’re sending out. This is how you’re going to measure a particular blog post, tweet, Facebook status update, etc. If it’s just a basic link to the website, a campaign code is optional. But if it’s a blog post about a particular marketing campaign, set up the Google Analytics campaign.
  4. Put a hyperlinked call to action in your blog posts that take people directly to a sales page or order page. Make sure that the hyperlink is given a unique campaign code.

Here’s what will happen:

  • You’ll send out a link to a blog post via Twitter, Facebook, etc. Let’s say that 10,000 people see that link on your various accounts.
  • 1,000 people visit your page and read that blog post, all within a 6-hour span.
  • Of that 1,000 people, 100 people actually make a purchase with a total of $10,000 in sales.
  • Those 100 people also fill out their contact information, which gets placed into your CRM.

By looking at these numbers, you can determine a number of things.

  • 1,000 visitors out of 10,000 social media followers, fans, and friends means you have a 10% click-through rate.
  • 100 sales out of 1,000 visitors is a 10% close rate; out of a 10,000-person network, that’s a 1% close rate.
  • By looking at the entrance and exit paths of that particular 6-hour period, or particular day, you can see that a majority of people were moved enough by the blog post to go directly to the order page. Compare that to another blog post that only lead to 30 sales out of 1,000 visitors, and you know it wasn’t as effective in moving people to act.
  • You can then subtract the cost of that particular campaign from the amount of money you made to calculate the total ROI for the day/week/month.

Calculating social media ROI is not that difficult. It’s just a matter of having the right tools and knowing basic analytics and campaign creation. There are literally hundreds of articles and several books on each step I first described. It’s just a matter of reading, and then trying out what you’ve learned. With some trial and error, and constant measuring, you’ll soon learn what works and what you can stop doing.

Or you could just hire a social media professional to do it all for you.

Filed Under: Marketing, Social Media, Social Media Analytics, Social Media Marketing Tagged With: marketing, ROI, social media marketing, social networking

December 23, 2011 By Erik Deckers

50 Things That You’re Not Measuring for ROI, But Should

I’m so sick of the “what’s the ROI of social media” question. It’s asked by people who a) think it makes them sound clever, and they’re hoping to show that social media “doesn’t work,” or b) think they’re supposed to ask it, because they read an article that said they should ask it.

The problem is, we can’t answer the ROI question during out first meeting. We can answer it after your social media plan has been up and running for six months. We set goals and then measure to see whether you made them. We count how much money the social media campaign made — because we can do that — and we subtract how much money it cost.

But we can’t predict it accurately beforehand, and anyone who tells you they can is lying.

What about you and your business? What’s the ROI on the stuff and the staff at the office? Have you measured them? All of the things you buy and the people you hire have a direct impact on your bottom line. Some contribute to revenue, some take up space, and some are a drag on your bottom line.Number 50 painted on a wall And yet, the people who are so quick to pull the “what’s the ROI of social media?” trigger haven’t asked that question about anything else in their own business.

So I’d like to see companies start measuring ROI on these things.

  1. Your college interns.
  2. Your brochures. You pay professionals to design these things. What have they gotten you?
  3. Your weekly staff meetings.
  4. Every other meeting you have to attend. They’re a big time suck and productivity killer. Yet we go to them without question. So what’s their ROI?
  5. The person who answers your phones. Don’t you think the voice of your company contributes to customer satisfaction?
  6. Your accounts receivable department. What does it do to your cash flow if they’re on time versus late with sending out invoices?
  7. The paintings and furniture in the front lobby.
  8. Your telephone hold music. People actually study this kind of thing, so it should be possible to figure out.
  9. That lunch meeting you had.
  10. Your mobile phone.
  11. The company mission statement that took eight people three months to write over six hour-long meetings.
  12. Your membership in three different trade associations. You should get valuable sales and clients from these. Are you?
  13. Your Chamber of Commerce membership.
  14. The company car. Lease costs, gas costs, maintenance. Are you making your money back on that?
  15. Your HR department.
  16. Your legal department. They’re great for keeping you out of trouble and for helping with intellectual property. How much did they make you this year?
  17. Your sponsorship of a Little League baseball team.
  18. Your fax machine. Seriously, do people still use fax machines? They have online services you can buy to send and receive faxes, instead of paying $40 a month for a separate phone line.
  19. Your voice mail system.
  20. The PR agency you hired for your latest campaign. And none of this “this is what your media coverage is worth” stuff — how much money did you actually make?
  21. Your office coffee machine.
  22. Your annual industry conference in Las Vegas.
  23. The business class flight you took to get to the conference. Execs need more leg room than regular staffers, apparently. So did you make more money by taking the more expensive flight?
  24. Your trade show display. These things are expensive. But did you make the money back?
  25. Your marketing department. These are the ROI experts. How much money did they make you?
  26. The cleaning service.
  27. The office Christmas party.
  28. Your office location. Retail stores can demonstrate how one location outperforms another. But what do you get for where you’re located? Do you really need an office downtown in the big city, when a location in the suburbs will cost less?
  29. The water cooler.
  30. The TV commercials you ran on cable TV for six months in 25 major markets.
  31. The IT department.
  32. Your CIO. Should your CIO really have the same decision-making abilities over the CMO? Should they be able to tell the CMO, “no, you cannot use social media tools to help market the company”? Hopefully they generated revenue to make up for all the lost sales they just caused.
  33. Staying at the conference hotel instead of a cheaper hotel a mile away.
  34. Your sponsorship of the local chamber event.
  35. The 90-minute morning networking meeting you attended. You go to this once a month. Have you gotten sales directly from going?
  36. The giant flat screen monitor in the conference room.
  37. The big table in the conference room.
  38. The conference room.
  39. Your administrative assistant.
  40. The company website. If you don’t sell anything on it, is it still making you money? Why did you spend $10,000 to get it designed?
  41. Subscriptions to all the business magazines that decorate your lobby. Did you even read them?
  42. Your newspaper ads.
  43. Your business cards.
  44. Casual Fridays. And while we’re at it . . .
  45. Appropriate business attire. There must be a reason we have to dress up for work. So how much money did you make from it?
  46. Your customer service department. You know how much they cost you, but do you measure how much they made you?
  47. The accounting department.
  48. The 12 books on new management ideas you bought and never had time to read.
  49. Your industry trade magazines.
  50. You.

I am not opposed to the social media ROI question. I just think it’s an easy fallback question that people use as an excuse, whether it’s out of fear or disdain. And I encourage businesspeople to ask that question. After all, you’re going to spend money on it, so you’d damn well better know how much money you’re making from it.

But you should do the same thing for some of these other things you have in your business as well.

Photo credit: duncan (Flickr)

Filed Under: Social Media Tagged With: business, marketing, ROI, Social Media, social media analytics

December 15, 2011 By Erik Deckers

Who Should Rule, Content or Marketing?

Over on his blog, Nashville writer Jeff Goins questions whether content is really king.

Well, actually, no he doesn’t. he said content is not king anymore. It’s a “fat, dethroned monarch, dis-empowered of his royal ability to influence.”

Janus, the two-faced Roman god, should represent content marketing.
Janus, the two-faced Roman god, should represent content marketing.

Marketing — or as Jeff calls it, “relationships” — are the true king. Without relationships, without marketing, it doesn’t matter how awesome your writing is.

I used to be terrible at this. I thought all I had to do was be a good writer. But I was wrong.

I was scared. And lazy. I didn’t want to have to actually meet people. I just wanted to write.

But that’s not how the world works. So why would I think for one minute the Web would work that way? Yes, even in real life, it’s not just what you know that matters, but also who you know.

And even in business, the best way to promote an idea, product, or service is relationship. We all know this, because in this day of media saturation, we don’t buy what the ads tell us to buy. We buy what our friends recommend.

If I have to give an edge to either of them, I still side with content. Because hidden content can accidentally be discovered one day. I might write a post that gets picked up by search engines, and I could start being found for that topic.

But I could optimize and promote the bejeezus out of something really awful, and a lot of people could see it, but what do you think would happen if everyone showed up and saw — and said — how awful it was?

Still, it’s not a question of whether content or marketing is king.

Content Marketing Rules

This does not have to be an either/or proposition. You shouldn’t have to choose one over the other. And no, this is not one of those “why can’t everyone just get along” cop-outs that I detest. This is like arguing about whether peanut butter or jelly is more important on a PBJ.

Content and marketing have a symbiotic relationship. One cannot exist without the other. You can have great content, but if your marketing sucks, no one will see your stuff. And you can have great marketing, but if your writing sucks, no one will care.

There has to be a happy medium here. Or at the very least, we have to recognize that Content/Marketing is a two-faced king, like Janus, the Roman god of beginnings. You can’t have good marketing and lousy content, and you can’t have lousy marketing and good content. Without one, the other will die.

Content without good marketing is a private diary. Marketing without good content is spam.

I think once writers realize they need to market, we’ll see a bigger explosion in books and ebooks. And once marketers realize that content is not some throwaway afterthought, they’ll start seeing an explosion in sales and profits.

And if you want to learn how to do both, you can buy Branding Yourself or No Bullshit Social Media to see how.

(See what I did there?)

Photo credit: mscolly (Flickr)

Filed Under: Blog Writing, Blogging, Business Blogging, Marketing, Social Media, Social Media Marketing, Writing Tagged With: content marketing, marketing, social networking, writing

December 7, 2011 By Erik Deckers

Four Online Predictions for 2012

Okay, I’m going to jump on the trends bandwagon and offer yet another online predictions blog post where I polish my crystal ball and predict the future of social media. I think I have a decent track record going for me. In 2010, I predicted that Android sales were going to outpace iPhones, and I was only six months late on that (it finally happened earlier this year). Of course, I also said SMS would become obsolete, and that ain’t happening any time soon, so I’m batting .500.

Emboldened by my previous success — and with a promise to Allison Carter (@allisonlcarter) that this list will not mention mobile or geo-location networks — here are my four predictions for 2012.Crystal ball

1. An even bigger focus on quality of written content.

Thanks to Google Panda, the traditional SEO techniques of on-site optimization and backlinking is not as effective or important as it once was. Now, Panda measures things like bounce rate and time on site. In other words, if your site sucks, your rankings will drop. If your site is good, your rankings will rise.

Want to improve your rankings? Improve the quality of your content, especially your writing. The better your writing is, the longer people will stick around.

We’ll see a bigger push for web designers and bloggers to have better writing, not just a bunch of schlocky writing. So for anyone who has been in the quantity-over-quality camp of blog writing, you’re going to have a tough time of it in 2012.

2. Disruption will be the watchword, and the way to make money.

We’re already seeing how social media, broadband, and mobile phones are disrupting some middle men businesses. People are canceling their cable and satellite TV, and instead watching videos on Netflix and Hulu. We’re getting local news from local bloggers, or national news from each other, instead of TV news and newspapers. I even quit listening to local commercial radio, choosing instead to listen to an awesome public radio station out of Louisville, KY. Traditional media has been disrupted, but that’s not all.

We’ll continue to see more middle men being disrupted by fast phones and social media — look for advertising and PR agencies, publishers, banks, and credit card companies to take a big hit as people figure out how to circumvent these gatekeepers. Look for other people who figure it out to make a buttload of money being the disruptions, or taking advantage of the new disruptions.

(Case in point, Dwolla, which only charges $.25 per transaction for anything over $10 (under $10 is free), and is currently on course to move about $350 million per year.)

3. Citizen journalism will continue to grow and become more important.

Newspapers have taken a big hit in the last 10 years, thanks to online media — a disruption that’s been years in the making — but people still want local news. The newspapers that will survive and thrive will be the dailies in smaller cities, and the weeklies in small towns. In the big cities, we’ll see more citizen journalism as people report on their local stories. More Twitpics, more cell phone videos, more stories that are pieced together through people acting like their own journalists.

I would love to see some news-minded entrepreneur figure out a way to gather all of this content and monetize it. While that may not happen in 2012, look for online-only newspapers like The American Reporter to pick up the slack of the big city papers, and local news outlets like Patch to become more widespread and easier to use.

We’re going to see more news, commentary, sports, etc. covered up by real people, not professional journalists. I also think we’ll see smaller print newspapers get smarter about their online efforts, and even TV stations to continue to embrace the web. Could we also see someone start an Internet-only TV news style of website?

4. Teenagers will begin to leave Facebook in droves.

Their moms and dads are on Facebook. Their grandparents are on Facebook. The whole point behind Facebook was it was a place to go where you could be cool. And as everyone knows, it’s impossible to be cool when your parents are around. They’re moving to other networks where their parents are not. Even Ben Bajarin (@benbajarin) of Time Magazine is questioning whether it’s the beginning of the end for Facebook. (Hint: No, not yet. But don’t be surprised if it happens one day far off into the future.)

Where they’re all going is still unknown. MySpace is still popular among teenagers. YouTube is actually the second biggest network among teenagers (Facebook is still first). And the gaming console networks are seeing a big uptick. But when all the stats are showing that 1 in 5 teenagers are leaving Facebook, it’s time for marketers to stop with this “social media is for young people” nonsense and recognize that the parents and grandparents are embracing it more easily now.

Photo credit: JasonLangheine (Flickr)

Filed Under: Blog Writing, Blogging, Broadcast Media, Business Blogging, Citizen Journalism, Facebook, Marketing, Print Media, Social Media, Social Media Marketing, Social Networks, Traditional Media, Writing Tagged With: citizen journalism, Facebook, marketing, Social Media

November 28, 2011 By Erik Deckers

How Writers Can Use QR Codes

What can writers do with QR codes? Do we even need them? When most writers still have that “I’m a writer, not a marketer” attitude, embracing something as 21st century as a smartphone, let alone a QR code, is going to be difficult.

But, if you’re trying to reach a particular kind of audience — let’s say a tech-savvy audience — or people who might not otherwise discover your work, a QR code could be a great way to market your work in some surprising and creative ways.

QR Code to my About.me page
QR Code to my About.me page

The whole point of a QR code is to reach a mobile audience. People who use their mobile phones to read articles and watch videos. People who use their tablets to read ebooks. Basically anyone not using a laptop or desktop computer, or reading paper-based articles and stories.

By tapping into the growing mobile market — and it’s growing fast — writers can get their words in front of a brand new audience, or at least an audience who can access your old work in new ways.

You can reach that mobile market in a few different ways, including emails, or making people tap long URLs into their web browser. But a QR code — that funny looking pixelated square — is something people can scan with their mobile phones to perform a certain action, like open a website or a video.

For writers, you can point a QR code at some of your work, and allow people to read it on their mobile phones. Here are a few places you can point them:

  • At one of your best articles or short stories: This should be the first place your QR codes should go. Point them at some of your best work, and then put the QR code on a business card or writer’s resume. Or if you’re at a conference, put it on a t-shirt. Make sure that your website is mobile-friendly. Best way to do this? Install WP-Touch on your WordPress.org blog, or use Blogger, Posterous, or WordPress.com for a mobile-ready blog. Warning: Do not just point a QR code at your main website. For one thing, it’s boring and unimaginative. Hopefully you’ve already got a short, and clever, domain name, so a QR code is wasted. But if you don’t have anywhere else to point it, at least make sure your site is mobile friendly. A site designed for a desktop is awful to negotiate with a mobile phone.
  • Your book page on Amazon.com: Have a book flyer or sales card? Put a QR code on it and let people scan it. They can make their purchase right on their mobile phone and have it shipped to their house or office.
  • A mobile-only video: If you have a book trailer, consider making one especially for mobile use, and maybe even specifically for QR users. Speak directly to the user — “Hi, thanks for scanning the QR code and checking out the video.” — and tell them what is so special about this particular video. (“I’m sharing three additional personal branding secrets you won’t find in the Branding Yourself book.”) Make sure the video works on your mobile phone too. Some videos can’t play on mobile phones, so make sure you choose the right format and size.
  • At your ebook: If you’ve got an ebook for sale, whether it’s on Amazon.com or another ecommerce page, write up a small card about the book, and put a QR code on it. People can read the ebook on their phone or tablet, especially if they’re using the Amazon Kindle app.
  • At a secret page on your website: One of the best uses I saw of a QR code was a friend who put it on a t-shirt that he wore to conferences. People who scanned the code were immediately taken to a hidden page on his website where they could find how to connect with him via Twitter, LinkedIn, etc., as well as some special information that wasn’t available on his regular website.

The nice thing about QR codes is that you can point them anywhere you want. When you want to change pages, just edit the QR code. No need to create a new one or get rid of anything with the old code on it. Just go to the place where you created it, change the destination URL and you’re set.

You can put your code just about anywhere it can effectively be scanned, and point it anywhere that makes sense. On your business cards pointing to your book pages. T-shirts to your About.me page. Book covers to mobile videos. Anywhere you can think of, you can point it. Just don’t point it at your regular website, or put it on a highway billboard.

Watch Scott Stratten (@unmarketing) talk about QR codes and how they should and should not be used.

Filed Under: Blog Writing, Blogging, Marketing, Personal Branding, Social Media, Social Networks, Video, Writing Tagged With: marketing, Social Media, writers

September 12, 2011 By Erik Deckers

Copywriters, Use the Words Other People Use, Not the Ones You Use

Do you know what audio theater is? Does it make you think of something to do with speakers at a movie theater? Or maybe it’s a subset of home theater equipment. Or maybe you’re supposed to go to a play and shut your eyes.

It’s none of those. It’s what we used to call radio theater. (Or radio theatre, if you’re Canadian or British. Or a snooty purist.)

Decoder Ring Theatre cast
Cast of Decoder Ring Theatre, an audio theatre company in Toronto.

You know what radio theater is, right? Remember when Ralph and Randy sat in front of the big giant radio and listened to Little Orphan Annie? We all know what that is, even the people who only hear about it from their grandparents.

But the people who actually do radio theater want to call it “audio theater” instead. Why? Because people don’t listen to the plays on the radio anymore, they listen to them on CD players, iPods, computers, car stereos, etc.

So in order to be more accurate, they changed the name of the art form to more accurately reflect what it is that they produce.

And lost out on a large portion of their potential audience.

There are still plenty of people who used to listen to radio theater with money to spend, but they don’t spend it on the entertainment form from their childhoods because they don’t know it’s called “audio theater” now. Companies like Decoder Ring Theatre have worked hard to overcome this hurdle by being one of the most progressive and dedicated audio theatre troupes I’ve ever seen, embracing social media and Internet marketing, as well as podcasting. (Full disclosure: Decoder Ring Theatre produced and aired six of my Slick Bracer radio plays this summer.) But a lot of other companies have only seen a fraction of this success, and I believe it’s primarily because of this language disconnect between what is “correct” and what is “best.”

How many times have companies harmed their marketing efforts by insisting people call a term by what they want to call it, not what the customers want to call it? How many times have government agencies lost the respect and credibility they worked for, because someone who knows nothing about public communication insisted the agency use the accurate term, not the best term? How many news programs get laughed at because they try to change the commonly accepted term to something that better suits their political biases?

  • An agricultural equipment company I know calls its products by the term they want to use, rather than the more common term their customer uses. This is evidenced by the 1,200 Google searches for their term, and the 20,000+ searches for the common term. While they may rank well for their chosen term, they don’t rank at all for the term their potential customers are using nearly 8 times more often.
  • When the H1N1 epidemic flu first started, the public was calling it “swine flu,” but the media managed — with a lot of work — to get people to start calling it H1N1, because it was harming the pork industry. But the government agencies wanted to call it the human flu, and flu pandemic. Regardless of what they wanted to call it, the media ignored them
  • Fox News’ insistence on calling suicide bombers “homicide bombers,” as per the Bush White House, made them a laughing stalk among journalists and news watchers.

If you’re not sure whether people are using your terms or theirs, go to Google’s Keyword Tool and put in your term and any industry terms you can think of. See which terms have the most global (worldwide) searches and the most local (US) searches. The ones that win are the ones most people are using, and the ones you should be focusing on.

Update: Deleted “Audio” from “Decoder Ring Audio Theatre” above, because despite being a loyal listener for 5 years, and now a contributor, I still can’t get their name right.

Filed Under: Blog Writing, Blogging, Business Blogging, Communication, Marketing, Search Engine Optimization, Social Media Analytics, Writing Tagged With: copywriting, digital marketing, language, marketing, writing

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