As we start to integrate Social Media into our business we need to consider ways to calculate and measure the return on investment it represents.
This on the surface is a reasonable request, there is an obvious resourcing cost to business, which initially will be our time - but where do we start to measure? We know that effective social media campaigns are long term, are about engagement and ultimately about relationship development; but can that ever equate to dollars and cents?
“To determine return on investment (ROI) for social we must put metrics around human interaction and communication – Is this even possible? “
To compare this with another technological innovation that is now integral to almost every business, the telephone, could we possibly measure its ROI? Most of us just factor it in as a necessary overhead and leave it at that, and we certainly wouldn’t consider being without it.
For any social media engagement to be undertaken successfully there is a great deal of planning and strategy to be undertaken first. Sure, a try it and see approach would be possible, and in some cases successful, but there are real risks that you may damage rather than benefit your brand or image. Clarity of purpose and a staged action plan delegated to capable people who buy-in and ultimately take ownership of your vision is a logical approach. Without this we will certainly waste valuable time and cause otherwise preventable roadblocks and frustrations moving forward.
If your goal is to achieve more online mentions of your brand or company then you must know where you stand right now, this is called benchmarking. It would also help considerably if you knew why you wanted to achieve this. You must find tools that can measure the impact of your campaigns (in this case a word search tool) and know how much resource is used to achieve this outcome in any given period. You should also apply a similar measurement to a complimentary or competing firm to see how they are doing over the same timeline. It would also satisfy your financial controllers (those that will ultimately allow or deny your social media marketing budget) if there is a pathway to you sales funnel so this PR is converted to a tangible revenue stream.
As a standard formula, ROI is pretty basic, ROI = (X – Y) / Y, where X is your final value and Y is your starting value. In other words, if you invest $10 and get back $50, your ROI is (50 – 10) / 10 = 4 times your initial investment. In this financial sense, ROI is measured purely in the context of dollars and cents, however, the principles can be applied to other forms of investment (i.e. Time).
So to begin you must have the end in mind. Planning and having solid goals and concrete baselines is crucial to calculating this return on investment. Add to this the comparative measurement of your competitors’ performance as a benchmark and you have the basis of some valuable metrics.
So when you suggest you’re a “Thought Leader” what is it you bring to the table? Much the same as the entrepreneur I would presume but with things only at the idea stage? Google “Thought Leader” and there are plenty of people giving advice on how you can be one. This is paradoxical given you should, by definition, have an ability to think without the direct influence of others to qualify for this status.
When trying to put a name to thought leaders of our time its people like Gandhi, Martin Luther King Jr, John F Kennedy and John Lennon who spring to mind. I’m sure each had their fair share of advisors and mentors who filled in the grey areas of their speeches and lyrics; yet it’s the vision and conviction of the individual that gave a voice to once intangible concepts that in time influenced the way entire cultures thought and acted. It’s also tragic that all had a common fate due to this self belief.
In today’s instant information age we have lots of people telling us what we should to be doing. In an age of fans, followers and virtual friends the dedicated followers of fashion rush without hesitation to repeat the words of the chosen few, as long as it can fit the 140 character limitation bestowed upon us by Twitter.
It should make even the most relaxed amongst us a little nervous to know that the combined Twitter followers of Ashton Kutcher and Britney Spears now exceed ten million people. That means there are 141 countries in the world who have smaller populations and only 82 that exceed it. “Oops, he did it again” gushed Britney, “Ashton just punk’d Europe”.
Social Media gives us the opportunity to connect with audiences like never before. Sure we need to nurture our tribe (Thanks Mr Godin) but we also need to build trust (thanks Mr Brogan). Conduct online conversation with the same values and etiquette as you would in the real world and remember to establish meaningful and ultimately profitable influence takes time (Thanks Mr Reality). Listen to what people say, do what you can when you can, and do the best you can with the time and resources you have available.
Don’t let the medium own you, it’s a tool and nothing more. Use it how you want to and forget what “they say” you should be doing. Fashion comes and it goes; if you want to be seen as a thought leader, be yourself. Your real friends and valued customers will respect and thank you for it eventually.
One of the fundamental rules of blogging is to keep on subject. My subject would be best described as “Communications Technology for Business”.
I’m sure that the irony of me writing this post with pen and pad while sitting in the bush on Stewart Island will not be lost on you.
The nearest town is a solid day’s tramp south; my two hunting/camping companions are at different ends of the Murray’s Beach block we have called home for two weeks and all I can see in any direction is trees, moss and fern.
I have forsaken technology for a more primal hunter/gatherer lifestyle. My cell phone is of little use as Vodafone have no coverage here, so the only real modern tools at my disposal are a battery-powered lantern to light my tent, an LED headlamp and a torch.
We cook our meat and other food by campfire and brave the elements as best we can. For early May, considering we are so far south and despite the rain, it is reasonably warm. One of my companions is my father – the reason I have made this trip. He brought me here at 16 and that was 30 years ago now so I thought it was well time I made the effort to spend some time with him again. He has made the pilgrimage to Stewart Island almost annually, this being his 25th trip.
Making the effort to spend some quality time with people certainly helps you to understand them better and more importantly, to appreciate them. Dad’s knowledge of the bush, its flora and fauna has amazed me. Where I see endless bush, he points out endless varieties of native plants and shows me how to use them for medicinal and other purposes. His skill has taught me a valuable lesson in how to make what would be to some, basic survival, into a relative luxury by the application of common sense and practical know-how. This is something I will apply to my everyday and business life moving forward, we are all capable of so much more than the self-imposed limits we bound ourselves by whether deliberately to be safe or subconsciously because of fear.
My fathers bush dexterity also has extended to the cookhouse. A few tarps, a table built out of manuka poles with a thatch top and a campfire have produced meals consisting of venison steaks, stew, pot roast, scones, pikelets, “Billy” bread, and “Floaters” – which are reputedly a handed-down Maori version of fried doughnuts (complete with sugar and cinnamon coating with long-life whipped cream and jam). We’ve also dined on paua fritters on a few different occasions and we have yet to try our luck at fishing, given we are on the coast. Needless to say going hungry has been the least of our concerns.
The removal or escape from technology certainly has been refreshing. Its forced retirement has enabled me to temporarily abandon responsibilities (and stress) that used to take up the majority of my working day. Of course this has done little good for my business as being “off the radar” means that I would quickly become irrelevant in today’s fast paced, need it now society. I loved every second of the isolation I have experienced but would I forsake modern technology for it, I think not.
A little bird told me that we will soon be seeing Twitter move into revenue generation mode, it had to happen eventually. Before we throw our hands up and say it was all too good to last this may actually be a turn for the good, from a marketers and consumers perspective at very least.
According to Mashable the new platform called “Promoted Tweets” is to launch next Tuesday afternoon (US Time) beginning with promoted tweets appearing in Twitter search results.
The ability to pay to get your self above the rest of the conversation on the surface makes good sense. The roll out will start with search results then enter the Twitter.com stream and third party applications like TweetDeck and Tweetie with only one advertisement appearing at a time.
Like any good social media platforms they are basing the introduction and expansion on how users react. From where I sit now, being able to interact in real time with an advertiser on a product that is relevant to my immediate interest makes sense. Like we have accepted Social Media so readily I believe this advertising platform will give more value than we may credit it for. Time and social commentary will tell all.
Suggested posts to read on this topic: New York Times, Advertising Age and Mashable
Yesterday, Sunday the 21st March was Twitters 4th Birthday. Last month Twitter hit 50 million tweets a day and Twitter as a word is to be accepted into the Collins English Dictionary. When was it you first heard about Twitter? I suspect for most it was within the last year.
This months NZ Business Magazine has a cover story headlining “The Business Case for Social Media - Why You Can No Longer Ignore It”. In this story they make some bold statements which include “Anyone that says they don’t have time for Social Media is just ignorant of what the benefits are” and “The longer you leave getting started in Social Media the harder it will become”.
This is of course opinion. Should we just accept this form of scaremongering journalism on face value, I think not. I would recommend though that if their claims have any sort of merit it may be worth the effort of a little research. I would suggest a great way to do research about Social Media is by using Social Media itself. Here are some great places to get started: - Twitter – people will give lots of shorts sound bites and point you toward some valuable online resources, and it’s free.
- Facebook – Join a group of likeminded folk and share in some discussions, and it’s free
- LinkedIn – this one is for the grownups. Join groups that are oriented toward your industry or niche then watch or engage in the forum discussions, and this one is free too.
While you are conducting this research you may accidentally discover some alarming side effects of the Social Media platforms you have just introduced yourself to:- You may become a little better informed
- It may actually become apparent not everyone in cyber-land is a con artist and that there are some genuine folk that are there offering good advise that will help you grow as a person and develop as a business
- You may gain a better insight into the power of Social Media
- You may actually get noticed by existing or potential customers who will be reminded of why you are more important, accessible and relevant to them than your competition are.
If you still don’t get it and decide that it’s still a waste of time then simply delete your profiles, turn off your computer and go back to the counter to wait for the customers to file in the door like they always have.
This post is dedicated to those who use Twitter to listen rather than just make noise, to the few who genuinely care enough to take some time out and help others who ask for it and make the lives of those around them that little bit better. Thank you, thank you.
Our cat Yasmin went missing last week. Cats do that sort of thing; they demand food and respect and have the run the home on their terms. If they decide to go on a roaming adventure then so be it, that’s what they do. Yasmin was a rescue cat, found on the street in a terrible state as a kitten; she needed a lot of care and attention at first. She was a timely gift for our daughter Maggie on her 8th birthday and much loved.
At first we were not too concerned that Yasmin was not in the kitchen demanding her breakfast on Wednesday, we just assumed she was off having another one of her adventures. Though not a year old she was a tough cat that had ensured all other cats in the neighbourhood respected her territory, though often spotted venturing over the fence investigating the domain of others. She loved climbing trees, especially when we were watching (such a show-off) and was always waiting on the drive for our kids to arrive home from school so she could stretch out and get lots of attention.
After an absence of two days we were touched by a handwritten note from Maggie saying “I miss my cat but don’t know what to do, I need your help”, it was a timely call to action. We checked the usual websites and uploaded her details. It was then I said to Maggie that we would try Twitter. I didn’t think this was going to find our missing friend but what did happen was quite amazing.
The great thing about Twitter is its immediacy, as soon as I had posted a picture to TwitPic and done a couple of Tweets we started to get all sorts of valuable advice and encouragement. People gave suggestions of useful websites and tips on getting attention in the neighbourhood. People gave their own stories of how their cats went missing and turned up days and weeks later.
The greatest effect here, apart from some good advice, was hope. Maggie went from being so very sad to extremely excited that so many people genuinely cared about her issue and were taking the time to talk to us about it. So a big thanks for that to Vicky @vickytnz Tara @tarasutherland, Rebecca @becs355, Sandra @sandrareidnz, Kirsten @kistenmcrae, Simon @simcmanus for the advise and to the others who passed on their wishes.
I’m sorry to say that this tale doesn’t have a happy ending. We, as recommended, posted posters and did a regional mail drop. Within minutes of doing so started receiving phone calls, one of which directed us to a place a block away saying a cat of that description had been hit by a car. Sadly it was our cat, it had been quick at least and the lovely person there had taken as much care of Yasmin as possible. Unsurprisingly Maggie has taken this hard, its one of those cruel life lessons we have to accept with the loss of something we love. If you have taken the time to read this I’m sorry if it seemed pointless and self indulgent but I genuinely wanted to thank those that helped. You did made a difference and it was very much appreciated.
With a relatively small time investment you can create a Twitter background that can align with you existing branding and help stand you out from the crowd.Twitter does not supply an official guide on creating Twitter backgrounds so I have made a few notes from my personal experimentation.
In this simple tutorial I am going to give some of the key considerations for designing your own Twitter background and will make available a downloadable Photoshop template to get you started.
The options for creating a background vary, it’s a little like creating wallpaper for your computer, you can tile an image (repeats over and over) or you can create a solid image.
My personal preference is for the solid image so as to make use of the space available to create some branding impact. With the solid image you have to either fade to a colour that matches the background colour to ensure a visually seamless transition or make the image large enough to ensure it will fill the screen for those fortunate enough to have large monitors set to high resolution. For this I would suggest an image size of 1600x1200 pixels though be sure to optimise the image so file size does not become a problem.
Resolving the ResolutionOne of the main considerations when creating a Twitter background is that not all viewers have the same monitor size and resolution settings. The Twitter menu, logo and frame are floating over the background so they will centre on any screen. This will change the amount of viewable space either side of the main panel. Some of the popular resolutions are: 800×600, 1024×768, 1280×800
The 1024x768 is what I would recommend that the design should be targeted for. The space at the left of the main twitter frame is the best for your visual branding the remainder is free to be filled with graphics or colour.
Dimension Detail- Use Adobe Photoshop to open the downloadable template (link at bottom of this post)
- Fill the full 1600x1200 pixels with your design. If you want to use a smaller space be sure to fade out or edge with a matched background colour in the settings to ensure colour continuity.
- Use the 1024x768 pixel space to contain the most impact as this will be the most visible space to the majority of viewers.
- Use the “Viable Branding Space” shown in yellow on the left of the template space to create your branding or message impact (123x658 pixel area)
- Ensure that you optimise the image to ensure a fast download when viewed. (less that 100kb is recommended)
To download the free Adobe Photoshop Template visit our website here.
