Understanding the ROI of Social Media Marketing

Published on May 24, 2014

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Before assuming you know that social media is where every franchise needs to be, let’s take a look at some numbers:

  • 78% of social media users say that the posts made by companies on social media influence their purchases
  • 69% of purchasers are more likely to choose products or services from a business that have social media profiles
  • 81% of customers turn to social media to get their local customer service issues resolved

Those numbers make it pretty clear that customers expect companies (both B2B and B2C) to have a presence on social. They also indicate that social media use does, indeed, translate into purchases, in addition to being one of the most valuable resources for delivering superior customer service.

While it is evident that social media can deliver results…what’s the investment that is required, and what kind of return can truly be expected. Bottom line…what’s the ROI?

This is not an easy question to answer because there are so many variables at play: levels and types of online industry engagement, preferred social platforms, algorithms that influence exposure, and more.

Even so, let’s try to break it down.

First, what is the investment required to run a successful social media campaign? It requires a combination of time and resources, and it is not a quick fix. Think of it as a long-term investment in a solid future.

  • Time to develop relationships with audiences online (just as you do in person)
  • Time committed to consistent content delivery and active engagement with audiences, including customer service
  • A dedicated person or team to handle social media management
  • Possible promotions to help reach your audience initially
  • Funding to support the above initiatives

In a franchise, almost always, it is most advantageous to combine resources between franchisor and franchisees in order to implement and manage an effective social media campaign.

When proper investments of time and resources are made consistently (especially as part of a franchise-wide program), the ROI of social media is so much more than clients. Take a look:

  • Widespread brand recognition
  • Engaging conversations with audiences on social networks
  • Superior customer service delivered in positive and negative situations
  • Consistent, compelling content
  • Deepened audience trust and loyalty
  • An audience that does your marketing for you
  • And…the ability to impact the lives of many with your message

Let’s take it one step further and look at some potential numbers…

  • How would you like reaching 450% more people with your message?
  • Would you like your content to be seen 1000% more?
  • How do 1,100% more fans and followers sound?
  • What about 400% more people visiting your website?

How many new clients could your franchise convert with results like those above?

(Remember, of course, that every social media campaign is different and will generate different results; these are simply real examples of what can be done.)

It does take time. Social media doesn’t build overnight sensations. It builds long-standing relationships and results. So, when you consider the entire ROI of social media… is it worth it? Most definitely.

Author
Frances Leary, President Wired Flare
Wired Flare, Inc., is a Canadian online marketing firm that develops and implements Internet marketing campaigns for franchises and organizations worldwide. She is also a published author and professional speaker, whose MA in folklore led to the development of a unique marketing approach that serves as the foundation of Wired Flare’s methodology.

 

Written by FranchiseGrade.com Team


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