Posts tagged ‘ROI’

February 15, 2012

4 conclusions on Social Media ROI [Video]

This week, I was invited to participate in a unique event put on by VIA Rail and the Fairmont Royal York on the opening day of Social Media Week: Toronto 2012. The event spanned the entire first day of the conference and was focused on discussing the business case for social media:  in other words, the “social media return on investment” (ROI). Social media bloggers from Quebec City, Montreal, Ottawa, Toronto, and Kingston gathered on VIA’s recently restored Glen Fraser Lounge car to debate topics centred around social media, community management, client relationship management, mobile marketing, customer service, and of course ROI.

The “pre-conference” aboard @VIA_Rail ended with a great 2-hour speaker panel and Q&A session at the @FairmontRYH. The speakers included academics, entrepreneurs, C-level executives that were seasoned media, PR, and marketing leaders from both the public and private sectors (learn more about the speakers). Some tried to explain ROI with mathematical formulas, some took the “trust me it works” approach (then asked for the ROI on a toilet), but all of them provided examples of where they saw ROI for their particular brand(s).

After 8 hours of constant talking about social media ROI, I came to a few conclusions (for now) about calculating social media return on investment:

1. Social media ROI is difficult to do properly, but it’s completely doable. There’s no magic formula, or straight-forward way, to calculate social media ROI that applies to each case. The first thing you really need to understand is how social media is used in your industry, then figure out what you want social media to do for you. If your goal is to have  a Facebook page for your business, you have already failed. If you plan to use a Facebook awareness and acquisition campaign to drive traffic to the eCommerce section of your website because you know that customers referred from Facebook are more likely to make a purchase than those referred from Twitter, you’re off to a great start. Those are the outcomes you are looking for.

2. You don’t need to measure EVERYTHING. Once you know what you want to do, you now have to measure your efforts to see if you are working towards achieving those goals. It’s important to find the “right metrics” to demonstrate the effectiveness of your tactics, and, as importantly, to help you make decisions. If you measure everything, and draw no insight, then you wasted time measuring for the sake of measuring.

3. Measuring social media ROI requires a tailored solution. After reading my first two points, you’re probably thinking, “OK, what do I do now?” Well, it’s time for the hard work, so start thinking about your goals. Start answering some of the tough questions. What do I want to achieve? How can social media help me deliver on my business plan? What business function can social media assist with? What are the costs if I don’t engage? What are the costs if I do engage? Do I work for a social organization? What are my competitors doing? If we implemented social media, what would it look like? What is our content creation strategy? How far do we go with content curation vs. creation? How can social media be tied into the DNA of your organization and to your existing business practices? Etc. etc. etc.

The good news is that there are people out there to help us do this. Academics, business leaders, strategists, and entrepreneurs lose sleep about this each night, and many of them are for hire to help organizations thrive using social media. And don’t be shy, most organizations need some level of specialized help with this. One thing that is certain, measuring YOUR social media ROI is not easy, and there isn’t a one-size-fits-all solution.

4. It’s all about influence. At the end of the day, we as social media participants (including brands) want to be influential. We want to be able to drive consumer behaviour, influence legislation, promote our personal brand, make connections, etc. You can’t do them all, so you need to pick what your want to have influence over, and tailor your social media strategy to achieve that.

The video clip below is just one of the presentations at the Social Media ROI: Myth or Reality evening event at the Royal York. This clip features Dr. James Norrie, who presents his quadratic equation for measuring ROI that revolves around leveraging the power of your “captive community.”

Social Media week is where social media becomes even more social. It is a 5-day conference that takes place in 21 cities around the globe.  Each year, Social Media Week attracts more than 60,000 attendees across thousands of individually organized, and mostly free, events. It’s a great collection of minds, from the casual social media user looking for more information on their newly forming passion, to business and academic leaders who share their latest insights on the future of communication and ROI for business. And, of course, there are a lot of us nerdy bloggers.

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November 16, 2011

6 Tricks for providing great customer service through social media

SocialMediaCustomerServiceSocial media networks are rapidly becoming the go-to place for customer service complaints to be aired and resolved.  People turn to social media because it often provides a more direct connection with an employee from the offending company, not just a conversation with a telephone-answering robot.

Recently, I received some bad customer service. Instead of calling the company and arguing with the sales representative who was rude to me, I turned to social media to see what the company’s reaction would be.

As a community manager, I know what it’s like to receive complaints from dissatisfied customers through social media. It’s important to approach each complaint with a level head and respect for the dissatisfied customer. It is the community manager’s job to have the issue resolved with a win-win outcome. Here’s my list of tips to consider when delivering customer service through social media.

1. Find the complaints and problems

You don’t know what you don’t know. Step one to solving any problem is identifying it. To do this, start by setting up Google Alerts for your organization and it’s products. Each time your organization is mentioned online, Google Alerts will send you an email with a link to the sites containing your keywords so you don’t have to be out there looking for every mention. Next, set-up your social media management tool (TweetDeck, Seesmic, Hootsuite, Sysomos, Radian6, etc.) to alert you (through push-alerts) of every tweet, facebook post, youtube video, blog post, etc. Now you can see the questions, comments, and complaints shared using social media as they happen and you are poised to react.

2. Response time is key

Be fast to acknowledge the complaint and assure the customer you are looking into it. This will often help extinguish the fire before it begins. Continue to converse with the customer by being open, accountable, and focusing on the solution. The last thing an angry customer wants is excuses.

3. Keep a friendly tone

The internet is often a sarcastic place, but when providing customer service remain friendly and sincere. Customers want to be taken seriously and have their concerns addressed. If they don’t get the validation they want from the company, they’ll continue to spread their negative message online. If you are looking for tips on responding to negative comments, check out these tips from the US Air Force.

4. Find the learning moment

Start by focusing on the facts. Reach out to the customer and find out as much as you can about the situation, why they are upset, and what you can do to resolve the matter. Constructive criticism is often masked by angry complaints from customers who truly love your business. These complaints are actually a great opportunity to learn from what they have to say. I have been in this exact situation as a community manager for Algonquin College. In one instance, a student who held the college in such high regard was shocked when he was treated disrespectfully by an employee. He expressed his displeasure on Twitter. I saw his tweet, reached out to him, and we eventually sat down for a coffee to chat it out. Fast-forward to today, and he continues to be one of the College’s biggest supporters (on and offline).

5. Solve the problem and give a reason for the customer to stay with your company

After you have resolved the initial problem, now it’s time to turn that customer into a brand advocate. By giving the formerly angry customer an incentive, you may be able to earn their return business and recommendation. The reward could be a discount, free service or product, behind the scenes access to your company, a meeting with a company leader, etc. Getting free stuff always works for me. On the flip-side, if customer service is a large part of your brand promise, you may want to consider an internal rewards program for employees who deliver the best customer service.

6. Amplify the praise

Most customers are appreciative of the work done by the social media community manager to resolve the situation. These satisfied customers often share their thanks online as well. Now you have a great opportunity to further amplify their endorsement; don’t just say “you’re welcome” be sure to retweet (or reshare) the message of praise with your own audience/community.

I expect to receive adequate customer service when I am doing business with a company. When the customer service is bad, I complain using social media; if the service is great, I share using social media as well- it goes both ways.

August 3, 2011

The value of Facebook friends and Twitter followers [Infographic]

I came across another great infographic this week, this time from focus.com, comparing the cost and benefit of using social media. We are all looking for ways to successfully integrate social media into our professional lives, and/or convince those in our organizations who control budgets to invest in the medium.  Figures like these will add a bit more potency to our arguments when we are after a commitment of human and financial resources. Here are a few things I liked/noticed about this infographic:

1. It disputed some common myths. Social media isn’t free. This is the obvious one, but it bears repeating. It also challenges the idea that “if you join a social network, people will interact with you”. In reality, it’s not the fact that you have setup a Facebook page for your business that counts; your success will ultimately depend on the type and quality of your content, along with your user benefit.

2. The puzzling gap between customer engagement and customer service. One would think if customer engagement ranks #1, customer service would be close behind. In fact, customer service is the absolute last place finisher. Customer service is one of the greatest strengths of social media, I wonder why it ranked so low in this survey.

3. The value of a friend. Finally, the numbers that really talk are the ones around the dollar value of a Facebook friend or a Twitter follower. Consistent on both platforms is the fact that customers who interact with a company in the social space are likely to spend more money on that brand. The gap is so significant that some brands post a 100%-300% jump in sales when you compare the amount spent by Facebook friends and non-friends.

Here it is, let me know what you think:

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