Social Media Marketing: Time and ROI

Posted by Ann Evanston on Dec 21, 2011 in Business Strategy |

In my blog post Social Media Marketing, Does it REALLY Work, Robbie Schlosser of the Magnolia Jazz Band asked a great question. He asked: “Does time spent marketing with social media have as much earning potential as traditional methods, how does it compare with what it replaces?”

Great question Robbie! In one of the three books I highly recommend to entrepreneurs and small business owners CJ Hayden’s “Get Clients Now” shares traditional marketing methods, amount of time spent and return on investment (ROI). The basic premise of the model (in the picture) is that direct contact and follow-up, although it takes more time, yields a greater ROI. Those that may cost more, like advertising, take the least amount time but often result in a lower ROI. When looking at this model you can see that social media marketing can actually fall on either end of the spectrum.

Since 2007, I have been teaching my clients to treat social media like direct contact and follow up. I recommend that they spend 30 minutes two times a day seven days a week until they are viral and then they can go down to 3 to 5 hours a week.

The Social Media Marketing Industry Report authored by Michael Stelzner shows a significant 56% of businesses marketing are using social media for six hours or more every week with significant return on investment. If you combine that with last week’s blog post about lead generation and closing business that is a great ROI.

One person in the same blog I wrote, Abigail Gordon, stated that she spends an average of eight hours a week in referral marketing, which is direct contact and follow up marketing strategy. She even wondered what would happen if she shifted even 2 of those 8 into social media marketing…interesting!

So here are my questions to you:

1-Are you developing a social media marketing strategy that is direct contact and follow-up, or advertising?
2-Are you developing your time accordingly based on that strategy?
3-If you have chosen direct contact and follow-up, as your social media marketing strategy, have you developed your strategy to include “follow up” (lead generation/relationship building) from social media?

Remember I am known for saying: “your job is to market.” Marketing can take many forms– it’s the consistency in your plan, the diversity of your plan, the correct content for the correct plan, and the ability to follow up with the time spent that creates significant return on investment.

Ann Evanston, MA, has been named by About.com as one of the Top Six Marketing Consultants, Feb 2011, and recognized in the Huffington Post for her unique approach in using Facebook to increase profits though giving. In October 2008 Ann created the Social Networking Coaching Club, a forum where you get personalized support to learn how to “discover your REAL edge” and make more online in less time with integrity.

http://www.abigailgorton.com/ Abigail Gorton

Thanks Ann, Yes I find this to be very true. —Reality is this, people hire YOU first, to get to what you do In person or online!—. It was not in my business plan that they would hire me for ‘me’ - I thought they would hire me for ‘my skills’, but most clients hire me rather than my skills.. I need to ponder this more, but what I am thinking coming out of this discussion is to let the business profile be more about ‘me in business’ and less about ‘the business’. Very interesting…
http://twitter.com/MosaicTutoring Cory Zacker

I’m still in the process of building my social media marketing strategy to help promote my tutoring business. One of the walls I’ve come up against is that there are still a lot of my potential customers that either do not use or rarely use social media. Most parents I know are not on Twitter and only a handful are on Facebook. That being said, I do know it’s worthwhile to pursue anyway. My online presence has definitely increased so I’m hopeful this will in turn promote my business. Thanks, as always, Ann for your insight.
http://julieannecasefromtheheart.com Julieanne Case

I’d say that was a good call! I hate structure. I hate boxes, I hate rules. I want to flow with what feels good, with the moment. How do I assimilate that with the SoMe guidelines? I have been working at it in a way that feels good for me.
http://www.vickidellojoio.com Vicki Dello Joio

Yep, thanks for the encouraging reply, Ann. I am definitely in the consciously incompetent stage. But love that you and SNCC are lighting the pathway. btw, My twitter handle is now @vickidellojoio. Followed Louise’s lead to make it my name…
http://www.warrior-preneur.com Ann Evanston

wow! This sparked energy for you This is what I work on with my clients! I know have 2 web designers that now have so much work they cannot take on new business! I think the biggest limiting beliefs I find are some you mention up here: not wanting to “bug” your facebook friends, using your profile or not, how to grow a following that wants to work with you and are they online. Reality is this, people hire YOU first, to get to what you do In person or online!
http://www.warrior-preneur.com Ann Evanston

you are a free spirit @JulieanneCase:twitter so my take is it might be the discipline of structure?
http://www.warrior-preneur.com Ann Evanston

Ah, yes, more pages, more time that s for sure. Absolutely there is a strategy for this Candace! I will add it to my blog list- will be a couple weeks, I have the next 3 planned!
http://www.warrior-preneur.com Ann Evanston

Well…not so much, when I went to school and knew I wanted to work in the “intangibles”, i.e. coaching, training, facilitation, speaking, marketing I took SEVERAL courses about measuring ROI in those spaces. The problem is many people without that level of study make an automatic assumption about what ROI is. The first thing I do with my corporate clients is discuss ROI and what it REALLY is. Powerful stuff – they are impressed and it leads to (dollar) ROI.
http://www.warrior-preneur.com Ann Evanston

you know what they say about learning @vickiofjoy it is always painstakingly difficult and takes longer when we first start, with consistency and practice it becomes faster and easier!
http://brandymychals.com/ Brandy Mychals

My strategy is to share information and content that is valuable and attract clients from that standpoint. I haven’t checked out advertising much through Social Media. Follow-up could always be improved! I do track the ROI for the time spent and it is well worth it – plus it is fun
Brandy
http://JenniferDuchene.com/ Jennifer Duchene

Yes it works and yes developing a strategy is key. I do enjoy all the wonderful perks and friendships I have gained from being socially active. Working on bringing more focus to what I do, which is exciting.

Jennifer Duchene
Effortless Elegance living for the Moderne Femme
http://JenniferDuchene.com
Author of Le Chic Cocoon
http://www.vickidellojoio.com Vicki Dello Joio

Thank Heavens? God? You? for the SNCC Way. I feel like I am taking incredibly small baby steps to develop my strategy. I figure I am spending a Lot of time at working w SoMe because I am still discovering the joys of on-line community,exchange and ebm. etc. I am loving what I am learning at the same time I look forward with happy anticipation to having some of these foundational pieces implemented and working so I don’t sit at the computer for quite as much time…
http://louiseedington.com Louise Edington

The ROI is difficult to measure but it definitely works in surprising ways, not always new clients but free trips, press etc etc. And yes of course I use your strategy
Louise Edington
Breaking through Frontiers
http://louiseedington.com
http://twitter.com/jenniferpeek Jennifer Peek

This post combined with last week’s really has me thinking about how to more effectively concentrate my social marketing efforts. In looking back at the last six months, I can see that the time I spend on it may add up to nearly 7 hours per week but it has not been focused or consistent. What you have outlined here is the perfect way to upgrade what I am doing and be able to see the results so I know what is working and what isn’t.
http://www.ourlittlebooks.com Candace C. Davenport

Love this follow up to last weeks post. Makes even more sense. I have a couple of questions Ann- have you used advertising with your SM. For example, directed ads on FB. Also, is there a point where it is better to use someone like a VA to do your SM stuff (not exclusively of course, but the main postings that don’t actually require direct connection) and do you use someone like Jan to do so? It would seem, if people start having numerous pages that at a point, either SM takes over or the quality goes down. Maybe future blog posts?

Thanks as always for your willingness to share you vision.

Candace Davenport
http://www.ourlittlebooks.com ~ Little Books with a Big Message
http://susan-berland.com/ Susan Berland

I’m still struggling with time and fitting everything on my to do list into my day and prioritizing. But now that I’ve hired a fabulous business coach, I expect to get a handle on this very soon!

Susan Berland
A Picture’s Worth
Http://Susan-Berland.com
http://www.imogenragone.com Imogen Ragone

I am in the process of developing my social media marketing strategy – and thanks for SNCC I can see it beginning to take shape in a way that is organized and manageable. For me the networking approach (direct contact/follow-up) makes the most sense. As an Alexander Technique teacher most people have not heard of what I do, and word of mouth is probably my most important source of clients. Education-based marketing makes a lot of sense for me, whereas traditional advertizing does not – whether online or in-person. All my strategies are not in place yet (have not finished the training!), but I am already seeing a difference in terms of engagement on line. I definitely need to get more disciplined about the amount of time spent in different areas. A very timely post for me, Ann!
http://www.thereflectivewriter.com/ Judy Stone-Goldman

It’s really helpful to be reminded of the “30 min. 2x a day, 7 days” instruction, plus the rationale! It’s easy to get lost in social media time and forget both the boundaries and the purpose. I know that when I reduce my time or get distracted, I see direct results (in the wrong direction) in terms of energy, communication, and responsiveness. I also find that when I lose my focus, I start to resent the time instead of seeing it as an investment (and indeed, without focus, it does become a real time absorber for questionable return!)

Reading this post at this point in the year–end of year, always thinking of year past and year ahead–is a great opportunity to put this goal back high on the priority list for 2012. It really links to overall goals, because if I get fuzzy on my goals, then I don’t know what to communicate in social media time.

Judy Stone-Goldman
The Reflective Writer
http://www.thereflectivewriter.com
http://julieannecasefromtheheart.com Julieanne Case

I still struggle with this. I am not consistent and I would love to understand why I am not consistent. Is it that I hate the idea of marketing? I am getting more exposure, more people are taking the time to talk to me in person and calling. So I’ll keep it up and hopefully will adjust my thinking to assist me more.

Julieanne Case
Always from the heart!

Reconnecting you to your Original Blueprint, Your Essence, Your Joy| Healing you from the Inside Out |Reconnective Healing | The Reconnection| AgeLoc Skin Care | Pharmanex Supplements

http://thereconnectivehighway.com
http://www.abigailgorton.com/ Abigail Gorton

Thanks Ann, I could write an essay in response, most of it positive! Let me try and restrain myself (LOL!).

My 8 hours traditional marketing revolves around my membership in a BNI chapter. ~ 2.5 hours to get to and from the weekly chapter meeting. ~3 hours to get to and from two 1 to 1′s – individual meetings where my referral partners and I spend time learning about each other products and services. ~ 2 to 3 hours following up on phone calls, emails, thank you cards (yes!) and the occasional ‘other’ meeting like Chamber of Commerce. My ROI on all this is HUGE. I track every inbound referral so I know that a good 40% of my business each year comes from my BNI related activities. I do not pay money for any advertizing and I do not run campaigns, but I do invest time. I enjoy the ongoing relationships with other business people around me so it is win win.

In terms of Social Media, the challenge that I have never resolved is just how interesting my own services (primarily building custom websites for local businesses) are to people in the SM arena. I have clients with products like photography, children’s clothes, sporting goods… IMHO they have businesses that flourish on SM because their customers love seeing updates about this stuff while they are in their ‘social space and social emotions’ which is where I think they are in SM – especially on FB. And while my inner geek just loves reading blog posts from my industry leaders I am not so convinced that my ccurrent and potential clients feel the same way about reading my posts. I think that people like me & accountants & mortgage brokers have tougher product to pitch than jewellers and graphic designers.

The clients I have gained form SM so have been through friends / business acquaintances being reminded about what I do, and so giving me a referral. But I don’t want to bore my friends list with my business, so I want to promote via my business profile rather than my personal one.

Overall my challenge is not whether to invest the time but how to invest the time given the nature of my particular business.
http://www.GreatHealthIsPossible.com/ Maureena Bivins, PhD

So much to do , so little time! Since becoming a lifetime member of SNCC I have definitely diversified my marketing. Several years ago I began with advertising. It is very expensive and has not given me an adequate ROI. Since then I have added different forms of SoMe beginning with FB, twitter, and opt-in newsletters. More recently I have begun blogging which I really enjoy. I do see some momentum building now. I spend about 8 hours a week or more on marketing. I’ve found it hard to be consistent with twitter and FB but I think that will change once I form a better strategy for my content. I am also gearing up to begin using YouTube. I’m starting to find my rhythm and voice in all of this. At first it felt completely overwhelming.

Maureena Bivins, PhD
Acupuncture & Somatic Therapy
http://maureenabivinsphd.com
Curious. Committed. Compassionate.
What do you look for in a health care provider?