Social Media Role Will Soon Shift From Driving Awareness to Creating Revenue

tzimmerm    November 20, 2014

Organization Name: Entrepreneur

Entrepreneur

Industry: Social Media

Web References: Entrepreneur

Description:

Social media has become a necessary part of building brand visibility and connecting with consumers world wide.

The past few years for brands have been about building their social communities and establishing brand loyalty through direct social channels.

Now that brands have established and integrated social media into their marketing the questions becomes how can they convert followers to customers? How can brands actually make social media a sales channel?

Brands need to start transforming their social communities from cost centres into profit centres

Leverage Existing Data to Drive Advertising

Successful brands on social media know who their audience is and how to speak to them. Each interaction that users have with a brand’s posts or updates contains meaningful information that brands need to use to their advantage.

The most effective social advertisements are the ones targeted at a specific audiences and have a well defined intent.

Brands can actively measure the efficacy of an ad performance before and after optimization through audience segmentation and targeted messaging

Activate Social Media as a Sales Channel

There are many ways you can find new customers through social media.

1) Referral Programs:  Dropbox is an excellent example of a successful customer program – where customers invited friends to sign up via Facebook, Twitter or email to receive extra perks.

Friend recommendations dramatically increase sign ups – over 71% of people are more likely to make a purchase based on social media referrals

2) Comment Selling: allows consumers to make a purchase directly on a brand’s social media posts. Instead of redirecting shoppers to an e-commerce site, they can buy within their news feed, uninterrupted.

Currently, online retailers experience a 68% cart abandonment rate on average, which is terrible. Comment selling streamlines transactions and shortens the sales funnel.

3) Use Customer Support to Drive Top of the Funnel Leads: social media empowers every brand to turn fans and followers into advocates. Every interaction with a customer is an opportunity to earn and re-earn trust.

There is a simple power of direct interaction and excellent customer & community service.

But what should we take away from this?

Brands that continuously interact on social media will see an increased lift in customer engagement and leads.

They key is providing real value to your community and that value will come back as direct ROI when you activate sales campaigns

Social Medi ROI

Social media is not just about generating awareness anymore. It’s about generating revenue. The most effective brands already know this and are getting ahead.

Links

Entrepreneur

Baymard

Hubspot

Dropbox

Pinterest

Submitted By: Tara Zimmerman – SMBP Student, University of Waterloo.

To contact the author of this entry please email: tara.zimmerman1@gmail.com

If you have any concerns as to the accuracy of anything posted on this site, please send your concerns to Peter Carr, Programme Director, Social Media for Business Performance