There is a lot of buzz around social media and its potential to yield positive returns on investment. But businesses have been burned in the past by failing to approach social media strategically, leading them down a dark path toward irrelevance and failure.
Olivier Blanchard, who oversees strategy for SAP’s Social Business Enablement (SBE) team, outlines nine lessons to help companies go beyond social media hype to realize their ROI.
1. Admit it’s not all about you
It used to be enough for brands to produce good products and provide great customer service. But consumers are no longer content with passive forms of communication, says Blanchard. “Today’s consumer wants to be engaged, to have a dialogue. So social media has become an opportunity for businesses to listen more closely and get closer to their customers.”
So why do many companies still treat social media as a one-way broadcast channel? They need to stop talking about themselves and start listening. “Social media is not about the brand,” Blanchard says. “It’s about what customers are saying. If brands don’t listen, they miss the opportunity to provide insights that will help them better understand their audience, competitors, and the market at large.”
2. Don’t become a slave to vanity metrics
While it’s true that companies are now able to measure their social media activity more accurately than ever before, there is still no foolproof way to track ROI. “Don’t let the lack of instrumentation drive your SMM strategy,” Blanchard says. “Measure your progress with metrics that matter to the business and support the company’s overall goals.”
For example, success can be defined by increased sales lead conversions, the improved social media buzz around a new product launch, or a surge in online traffic from social sources. “Don’t get seduced by vanity metrics,” Blanchard warns. “They’re not relevant to your business.”
3. Focus on business goals first, then social media tactics
Many organizations now see social media as a strategic priority, but that doesn’t mean it gets top billing in the budget process. Marketing managers are still struggling to define specific goals for social media, which often results in either low spending or questionable returns.
“The social media budget should be allocated in the same way as any other important business initiative,” Blanchard says. “At SAP, for example, we look at where social can help us drive change and generate real value.”
Marketing managers must resist the temptation to throw money at social media initiatives simply. Instead, they should define specific business goals and determine which social media tactics can help them achieve those goals.
4. Be patient — it takes time to see results
You may need to exhibit a high level of patience before you reap social media activity benefits. Blanchard says it’s important to look at overall activity over several months, not just a few weeks or days.
“You can’t simply start a Facebook fan page and expect the world to fall at your feet,” Blanchard says. “What you do today on social media will bear fruit in one to three months.”
Of course, the rules of social media engagement have changed over time as some platforms have evolved. “Just because you might have used a specific tactic in the past doesn’t mean it’s appropriate today,” Blanchard says. “Always keep up with new developments.”
5. Prioritize platforms that match your business goals
Social media platforms are constantly evolving, making them difficult to navigate for companies that don’t have a specific social media strategy. “You have to define your goals early on so you can choose the right platforms,” Blanchard says.
At SAP, for example, we’re using LinkedIn and Twitter to establish thought leadership and connect with influencers in our industry. We’re using YouTube and SlideShare to host video content that helps engage customers and partners. And we’re using Facebook and Pinterest to develop a closer relationship with our target audiences.
6. Let customers participate in product development
In the world of social media, companies should learn from their customers and let them influence the products they buy — or even help create them. “Social media is all about user-generated content,” Blanchard says. “If you can get customers involved in the conversation, they’ll feel more connected to your brand.”
For example, Audi UK created a wildly successful YouTube video by inviting six customers to film their own experiences driving the hot-selling new A3 model. More than 2 million people have viewed the video so far. “It’s a great example of how a company can use social media to create buzz around its brand,” Blanchard says.
7. Take advantage of influencers in your industry
Not all social media interactions are created equally, which is why it’s important to tap the experts when you launch a new campaign. In many cases, it makes more sense to partner with a social media influencer who already has a large following of engaged customers or prospects.
“Influencers are seen as credible sources of information because they’ve worked hard to establish their expertise in the industry,” Blanchard says. “They can be far more effective than traditional advertising.”
For example, SAP partnered with influential management consultant Charlene Li on a project that helped us reach out to senior executives who manage large IT budgets. “Li has a tremendous following of business leaders and CIOs, so the campaign gave us access to new audiences we might not have reached otherwise,” Blanchard says.
8. Make it easy for customers to advocate your brand
In the social media age, it’s up to marketers to find creative ways to encourage customers and prospects to spread the word about their products. “You can’t just sell something anymore — you have to motivate people to share your message with others,” Blanchard says.
SAP uses social media channels like SlideShare, Facebook, and Twitter as part of a new customer advocacy program that rewards our best customers for sharing relevant content with their networks. “We’re giving them incentives to participate, which helps us reach a broader audience,” Blanchard says.
9. Set up analytics tools to measure success
Monitoring social media activity is important, but it’s equally crucial to set up the right metrics and analytics tools to measure your progress and show the financial impact. “You need to establish clear metrics and goals early on so you can say, ‘This is what we want to do,'” Blanchard says.
At SAP, for example, we’ve set specific goals around audience growth and engagement rates. We also use Omniture software and content management to understand better how customers and prospects interact with our social media channels.
“It’s easy to set up analytics tools — the hard part is knowing what you want to measure and how it can drive business results,” Blanchard says. “You need to define your goals clearly, so you know when you’re successful.”