Posts Tagged ‘conversions’

Social Media Monetization…Everything New is Old Again

November 1, 2011

MarkeTech’s Social Media Monetizationprogram shows how
your B2B organization can successfully generate revenues
from social media programs.
The secret is nothing new!

Social Media is nothing new. Its market relations principles and practices have a success-based pedigree. The essentials of monetization were rooted in the high-tech marketing/PR disciplines of the mid-1980s. Regis McKenna Inc., the PR firm that virtually single-handed created Silicon Valley, proclaimed that Public Relations was dead. What replaced it was Market Relations (MR), replete with social networking, “the conversation,” and most all the programs and activities that define today’s Social Media. So, except for the sea change of the Internet as a communications medium, there’s little new about relationship marketing as it was originally created by RMI, where MarkeTech founder Joan Naidish was an RMI principal who pioneered many of the original Market Relations techniques.

MarkeTech’s Social Media Monetization program exploits and updates the market relations methodologies used to achieve the success stories of B2B networking and communications companies like AT&T, Motorola, Xircom, and Intel.

But that sea change of the World Wide Web did seriously impact relationship marketing. The business development strategies of high-tech businesses were upset, with attempts to monetize Web 1.0 being mistakenly based on information dissemination. Old-fashioned PR was used to plaster product and company information all over the web ecosphere, using primarily press releases and online articles. Ever since Web 2.0 with its social model came along, B2B companies
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Is Social Media Really a Free Ride to ROI?

September 11, 2011

While the best things in life may be free, social media has a price tag.

Browsing through some survey data recently, I stumbled upon one which indicated that some 113 (15% of those surveyed) Chief Marketing Officers indicated that the cost of social media is basically FREE! This response was to MarketingSherpa’s question of “…how you perceive social media’s ability to produce an ROI at budget time.”

Wait!…What? Do these marketing professionals actually believe that the budgeted investment in social media is ZERO? That would mean that any ROI would yield a de facto 100% profit.

I had to admit, however, that a case could be made supporting the perception of social media costing virtually nothing. There are companies that apply the DIY (Do-It-Yourself) approach to many social media activities. You know, those businesses that do everything in-house. A VP writes the blogs, an engineer or two Tweet, someone else is responsible for content on Facebook, and the sales guys plunder LinkedIn looking for leads. It’s all DIY. But, does that really mean it’s free? It sure would look that way in a budget, because salaries are an operational line item, and not indicated in the marketing budget.

My common sense and experience tells me that social media is time-intensive. Activities that consume significant personnel time should produce financial outcomes that are favorable to the company’s bottom line, either directly or indirectly. Is a VP’s time invested in blogging going to yield an ROI?

ROI at Budget Time
It was MarketingSherpa’s connection to ROI that bothered me the most. How can one realistically answer a question about ROI at budget time when the cost of leadgen is ZERO? The company budget may treat salaries one way, but can we ignore the real company money these DIY social media participants are spending when they use time on the job for blogging, tweeting, and the like?

Some businesses, mine included, do calculate “personnel ROI.” The IRR (Internal Rate of Return) on a reallocation of a current employee’s tasks has implications on the company’s bottom line. I actually have “target” income values that express how any employee’s time utilization should translate into productivity. That productivity is defined as revenue, so it’s “Revenue on Employee (ROE).”

My Hokey Hypothetical Model
Using an ROE approach, I constructed a rather hokey hypothetical model that shows company earnings as an outcome of the time an employee might spend doing social media activities. The following figures are annualized.  

The revenue value of each conversion is based on landing one customer out of each batch of 10 sales leads. The average revenue-per-conversion is $50,000.

This hypothetical employee would spend +/- 7 hours/week (about 20%) on social media pursuits. Thus for a salary-driven budget of $30,000 for 333 work-hours/year, the projected social media revenues are $100,000 for this employee. Personnel time utilization should be budgeted and clearly spelled out. So, it’s always time-is-money, and social media time invested does have a calculable ROI.

There’s also an ancillary issue of personnel time utilization, especially for employees who become addicted to Twitter, Facebook, et al. Productivity of other tasks can erode, perhaps enough to even threaten those other tasks’ ability to generate revenue.

While employees engaged in DIY in-house social media campaigns may believe that everything is free, business owners have a solid case for believing otherwise.

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Email — Workhorse of B2B Lead Gen & Conversions

August 17, 2011

Statistics support the important sales pipeline role of email

clip_image002Email — whether an individual-to-individual communication, an email blast, or bulk email that’s personalized — is a mainstay of B2B lead gen and conversions. Our sales pipelines would just never work without email.

Here are some stats that express the important role email plays:

  • clip_image0033 billion worldwide email accounts
  • 107 trillion emails were sent in 2010
  • 30 million emails sent each day
    • Businesspersons send 33 per day
    • In 1985, 90% of all emails were business related, while only 8% were in 2010
  • 89% of all emails are spam

More and more, email is becoming recognized as a social media channel. As such, the emphasis on quality content and frequency (distribution QoS) are key attributes in making email work for your B2B organization.

Guest blog submitted by: Prez@JSC-DIRECT.com
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Data courtesy Fast Company magazine (http://www.fastcompany.com)

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