A common objection that arises in dealing with marketing executives is the ‘social media’ budget allocation. Social Media is still in the ‘mis-understood zone’ even though we’re making progress at light speed (thank you and not so thank you twitter). Euh, what? “we’re going to spend 20-30% of our marketing budget for social media, are you kidding?”. Obviously, they think it’s too much, they can’t see the value or they decide to throw a youngster at it…hmm. Let’s also remember that it costs at least 5x as much time to find a new customer than nurturing current ones (according to the American Marketing Assoc.). What part of the picture are they missing here? Let’s try to break it down:
Reduce waste, try the long tail: If you invest $200,000 in marketing or 10x this, proportions given to marketing activities will usually stay pretty much the same. A good 50-60% will be allocated to create stuff that won’t last. The impact of traditional marketing has a short life cycle. Worse, people aren’t fools; “infomercial” type articles just reduce their trust. Unless you are in the instant gratification purchasing cycle, relationships matter. There is now a direct bridge to your customers called social media which is relevant in both B2B or B2C environments. Use it. We know that referrals from a friend or someone in your circle of influence (professional or personal) has a stronger influence on consumer choice. It’s important to realize that any work in social media brings double benefits: First, content coming from an organization or person can be shared limitlessly (e.g. youtube video); once it sits there, it will not go away. The Internet has a bridge to the garbage, you can’t delete it anymore. More importantly, someone, somewhere, is crawling the internet to find content related to your industry (like this blog for instance) so be sure that this continue. It’s called the “long tail”. Someone will find it in 10 years. Time is an important factor in calculating a marketing ROI.
Invest in your customers: Zappos was just sold to Amazon.com for doing just that: Personalization and customer service have been rooted within the company since 1999, no wonder why they are an acclaimed social media power house. It fits them like a glove. Your customers are still your biggest asset. I know you’ve closed them already but they have way more value than they used to have. Your customers are certainly the strongest link of your long-tail strategy. I feel it should part of any social media plan to find engaged customers and work with them. Word-Of-Mouth has finally been given adequate tools and this works both ways Positive Mentions: good for you, find your brand ambassadors, generate more buzz about it. Negative Mentions: Learn from it, engage with them, turn it to your advantage. No mention on social networks: Your biggest nightmare, you’re fading away.
Relevancy VS Propaganda: As a consumer or a business customer, we accept to be marketed when the time is right. Agreed? Let’s face it. How much of an average marketing budget is spent creating lead-generation ‘floods’ with lots of propaganda in it e.g static websites? As Jeremiah Owyang puts it: “The corporate website is an unbelievable collection of hyperbole, artificial branding, and pro-corporate content. As a result, trusted decisions are being made on other locations on the internet” ? Most traditional marketing is usually ineffective after it’s been used or because it missed its target. A brand should be relevant to the more-of-the-same customers, THINK COMMUNITY. The long tail strategy relies on the 80/20 rule, 20% of your customers will generate 80% of your revenue. Focusing on being relevant to those 20% will gain you more of the clients you need.
Build relationships: I found this analysis interesting this week as it mentioned that “60% of the companies were using search to generate leads, not all were satisfied with the results.” (search here mean Search Engine Marketing or Search Engine Optimization). Yes, if you apply old thinking to a new problem, it won’t get any better. Marketers prefer black magic.Why would someone refer your business if they feel you’re short term driven? People will refer you if you treat them like human beings throughout the total experience: before, during and after sales, keep empowering your users.
Like in the Matrix movie, “there is no bridge” but the interconnectedness of your community and customers. Now, does spending 20-30% of your marketing budget on Social Media & Community Building look like a lot? Let’s do this
Off you go,