Social Media Marketing
According to a recent survey by Manta,
“Social media marketing is an evolving arena for small business owners and many seem unsure about whether or not to invest marketing dollars”.
- Only half of respondents said that they are willing to spend money on social media marketing.
- And of those who do spend, most (47 percent) commit less than $100 per month, while 40 percent spend between $100 and $1,000.
- Fifty-nine percent (59%) of respondents acknowledged no ROI (return on investment), with Facebook generating the most return.
- The goal for nearly 40 percent of small business owners using social media is to acquire and engage new customers, while the majority of the rest use it to drive awareness and market their business (17 percent) or to get leads and referrals (15 percent).
See Infographic below.
Here is what these study findings tell me. Small business owners are not changing their spots. They’re still trying to market their businesses on a shoe string. No matter how inexpensive the media is, they will always short-circuit the results.
Sounds harsh? I don’t think so and here’s why.
1. It has been my long experience that most small business owners are always hesitant to spend any money on advertising – online or offline.
2. Those that do spend on advertising – big and small business owners – couldn’t or won’t calculate ROI for the following reasons:
- Don’t know how to calculate ROI
- Don’t care
- Think it is too much trouble
- Don’t understand how to use the ROI information to guide their efforts in the future
3. Many THINK their advertising efforts are generating results, but they are just hoping. If you asked them to show you the numbers, they couldn’t. They would say things like:
“Well, we’ve seen a lot more activity.”
“It just feels like there is more interest”.
4. Business owners are always focusing on “acquiring new customers”. The really sad part is once they acquire a ‘new customer’, they tend to ignore them like they do all of the other existing customers.
5. These same business owners – who dabble with Facebook but not make a commitment –ignore a relatively free and often more effective marketing tool, email. Go figure.
The ROI calculation is simple. You spend $100 in advertising. This effort generated 15 email subscribers, or 245 Facebook likes or $1000 in sales.
# of subscribers/# of Likes/$ of sales divided by $100 = ROI
- Was it worth it?
- How much do these new customers represent over the next year, next two years in sales?
- Will another offer do better?
Calculate your ROI. Do it. Use it.
Which are you?
Are you one of the business owners that are just dabbling with social media?
Are you hoping for results instead of measuring results so you can do better?
Why aren’t you truly committed to marketing your business?
Do you not know how? Are you afraid? Do you really think your business will market itself?
Come on! Tell me! What is stopping you?