Social Media ROI Study

Social media marketing is maturing. Research results are beginning to reflect the shift, as well. For instance, the 2011 Social Marketing Benchmark Report from MarketingSherpa found that the overall average social media ROI reported by CMOs who are measuring it is a whopping 95 percent. What’s more, nearly one-third (30 percent) of those in the survey reported a ROI of at least 150 percent!

That’s a dramatic shift from MarketingSherpa’s first benchmarking report in 2009. Back then, soft objectives such as building customer awareness were key, and marketers said they were having a tough time demonstrating any ROI from social media, at all.

Plenty has changed in just a few short years. For its latest report, MarketingSherpa polled 3,342 consumer and B2B marketers, giving us valuable insights about how they are using social media to engage audience, build brand, generate leads and drive sales. In other key findings, the data showed that:

Developing social media strategy and proving ROI remain top challenges. When survey participants were asked which were the most frustrating challenges to social marketing effectiveness, the top five responses were: developing an effective and methodical social marketing strategy (55 percent), achieving or increasing measurable ROI from social marketing programs (54 percent), converting social media members, follower, etc. into paying customers (45 percent), achieving or increasing measurable lead generation from social marketing (37 percent) and increasing website traffic through social media integration (36 percent).

For those who are measuring it, social media is showing positive ROI. Based on the survey results, The overall average ROI reported by CMOs who are measuring it is 95 percent. One-quarter said they have achieved 100 percent ROI. Higher percentages were reported, too. Twelve percent said they have achieved 200 percent ROI; two percent reported 1,000 percent ROI.

We have one real estate client who reports two known buyers who came to her via Social Media, and if she had to calculate an estimated ROI from those two home buyers versus what she’s paid for her Social Media presence, it might range in the 5000 percentile, or higher.

Unfortunately, many are still looking for that “quick fix.” MarketingSherpa did a nice job cross-tabulating response data to show that marketers who are new to social media tend to focus on “fast and easy” tactics (social sharing button on email/websites, e.g.) rather than on those that show a much higher level of effectiveness (blog relations, SEO, e.g.). More advanced social media marketers work from a strategic plan and know that often the most difficult and time-consuming tactics are worth the extra effort because they are the most effective.

We have taken that pain-staking time element out of the mix for our clients who utilize our hands-off Social Media Marketing package. For those clients who value their time more than a few dollars to have someone else managing all of their Social Networking, the services we offer is a priceless commodity to them.

Social CRM is gaining momentum. Only six percent of those polled have fully implemented social customer relationship management (CRM), but more than half (56 percent) said their plan in either partially implemented or in the planning stage.

Social media allows us to reach consumers in new ways, and what’s more, a number of innovative tools enable us to track responses to campaigns more easily than ever before. With the right tools, marketers can gain valuable insights to make campaigns ever more relevant, even as they demonstrate real ROI and enhance accountability in the boardroom.

Check out this video:

If you are not utilizing our complete Social Media Package to its fullest potential, talk to us about how we can increase your ROI. We’re here to help! We’re also launching (4th quarter 2011) a complete marketing package that will not only include our complete Social Media Package, but SEO and Complete Business Marketing that will give local businesses more exposure across the Internet than even possible with Pay Per Click.  Details coming soon on that.

2 Words Confusing Most Business Owners

These days, the words “Social Media” seems to be somewhat intimidating to most business owners.  It is relatively new technology (comparatively speaking) wherein they do not have full control over what’s happening and where everything leads, not to mention, it’s very hard to determine which specific social media outlet is responsible for generating leads for the business.

Most business owners understand how a website works, and they appreciate they can have an online store that can take customer orders, sell their products, and allow their customers to get in touch with them or get to know their products or services better.  With a website, communication is one way, everything is under their control.

The 2011 Social Media Marketing Industry Report has some good news for small business marketers. Small business owners are seeing the greatest results from social media marketing. Michael Stelzner authored the third-annual industry study in which he surveyed 3342 marketers, 47% of whom were either self-employed or small business owners. This group reports some amazing results from social media marketing.

Here’s a quick summary of their primary findings:

  • Marketers place high value on social media: A significant 90% of marketers indicate that social media is important for their business.
  • Measurement and integration are top areas marketers want to master: One third of all social media marketers want to know how to monitor and measure the return on investment (ROI) of social media and integrate their social media activities.
  • Social media marketing takes a lot of time: The majority of marketers (58%) are using social media for 6 hours or more each week, and more than a third (34%) invest 11 or more hours weekly.
  • Video marketing on the rise: A significant 77% of marketers plan on increasing their use of YouTube and video marketing, making it the top area marketers will invest in for 2011.
  • Marketers seek to learn more about Facebook and blogging: 70% of marketers want to learn more about Facebook and 69% want to learn more about blogging.
  • The top benefits of social media marketing: The number-one advantage of social media marketing (by a long shot) is generating more business exposure, as indicated by 88% of marketers. Increased traffic (72%) and improved search rankings (62%) were also major advantages.
  • The top social media tools: Facebook, Twitter, LinkedIn and blogs were the top four social media tools used by marketers, in that order. Facebook has eclipsed Twitter to take the top spot since their 2010 study.
  • Social media outsourcing underutilized: Only 28% of businesses are outsourcing some portion of their social media marketing.

I would encourage you to read this full report. You can download it here (no opt in or registration required).

All the hype around social media tends to discourage a lot of business owners.  They set up a Facebook Fan Page, then wait for new customers to pour in, just as the hype promises.  But when it does not happen right away, then they forget about their Facebook pages.  Same goes for Twitter.

Here are the best practices we at Hudson Enterprises always implement in any social media effort.

1. Social Media Takes Time. Social media, like other marketing practices, needs to be done right.  Planning, implementing, measuring, controlling and then revisiting every step of the process is essential in making it work.  A Twitter account will not make your customers flock to your website or store a few hours after you start tweeting.  You have to take time and get involved with your social media efforts before you will see the fruits of your labor.  You have to become “The expert” in your niche first. But trust us when we say, it really is worth it!

2. Get the “FREE” Mindset Out of Your Mind. One of the draws of social media is that people think it’s free.  I hate to pop your bubble, but it isn’t Free.

You may not have to spend any money to join Twitter or create a free-account blog, but you will have to somehow spend time and money making this endeavor fruitful.  You, a member of your staff, or someone else would have to be responsible for the blog posts, or to keep an eye on your Twitter account.  Remember that it’s useless to have a blog that has outdated entries, or a social media profile where inquiries, conversations and complaints are left unanswered. I see it all the time. A website saying, “Visit my blog for the latest updates…”  Then I go to the blog and the latest update occurred 4 months ago! Or I get someone who follows me on Twitter, and when I look to see who they are, they have 3 tweets, the last being 6 months ago. They just decided to activate some auto-follow software to help them build up their following (for free).

3. It’s NOT All About Numbers. Many large corporate Facebook Pages have millions of followers.  While it’s great to get that many people to Like you, you should not measure your success by the numbers.  As a small business, you will probably not get past a few hundred or a few dozen followers or Likers.  Instead, measure your success by the quality of interaction you give your customers who took the time to look you up and follow you or Like you.  From the Social Media Marketing Industry Report (mentioned above) finding showed that 72% of marketers who have been using social media for more than 3 years report it had helped them close business. More than half who spend 11 or more hours per week find the same results. The self-employed and small business owners with 2 or more employees most achieved this benefit (48%).

We have several clients we manage with less than 100 followers (or Likes) but yet, have several clients and sales out of those small numbers. Quality, not Quantity!

4. Take It From the Experts. Take a look at what big brands are doing and try to see which feature, interaction, and promotions are being done by these companies for their own social media efforts. Social media is a dynamic area where new things are always happening.  Business owners should be on top of these changes so they can take advantage of them as soon as they become available or as soon as these changes start to take place.

5. Don’t Hesitate to Ask For Help. Between running your business, meeting with clients, and getting new customers into your business, keep in mind there is only so much you can do.  Most businesses pass up on the opportunities presented by social media because they feel they are just too busy to interact with customers or to go along with the newest trends, like Facebook and Twitter. Most businesses cannot effectively manage a real Social Media presence, and run their business effectively too. There just aren’t enough hours in the day to do both, and to do them well.

Don’t try to be a hero, get help when you need it.  You can hire an employee to do your social media marketing, or get a consultant or a company to help you. We actually offer these services, so contact us at our website if interested.

6. Catch Up With The Times. If you’re still using a cell phone that is 2 to 3 years old… time to upgrade. If you’re not using a Smart Phone (not just a phone with a web browser), time to upgrade. If you’re not using Text Messaging and SMS, time to upgrade.

Listen, you may consider yourself “Old School”, and think you can still run your business the way you did before anyone had cell phones. But if this is your way of thinking, you’re sadly mistaken.

Most of your clients are already using their cell phones to do a lot of things. Not only do they expect you to be there too, many will choose not to work with you if you aren’t. Many potential customers and clients will look for your mobile website. Don’t have one? You better get one!

Mobile Marketing is the wave of the future (at least for the next year or two, until something else comes along to uproot it as the place to be), so you’d better be there. If you’re not, get started!

Have a QR Code on your business card? What’s that you ask? “What is a QR Code?”  If you have to ask, you’re behind the learning curve. You’d better get a QR code for your website, blog, Facebook page, etc., and start putting them EVERYWHERE!  (More on QR Codes in my next post.)

I will be the among the first to admit, often times, I’m so busy helping all our clients run their social marketing, blogs, websites,  and their businesses, that my own goes into major neglect mode. The same held true for me on deciding to finally upgrade to a smart phone. Once I did, I wonder why it took me so long, and how in the world I could manage my business effectively now without it.

The Final Word: You Have to Start Somewhere!

As a business owner, whether you’re just getting into social media, or if you’ve been involved with it for a while, you might have a lot to learn and a lot of things to think about, but the most important thing is you have a plan.  With that plan, you can start little by little.  You do not have to join and try out every social media site there is. I HIGHLY recommend you focus first on the “Big 4,”  Facebook, Twitter, LinkedIn and YouTube.

Know your customers and make an effort to interact with them. Build relationships and follow the 90/10 rule of 90% relationship building and 10% marketing.

If you have a comment or question about this article, or anything having to do with Social Media, use the comment link below to sound off about it. We truly do love comments and questions.

Backing Up Your Social Media Accounts

Have you ever wondered how you can back up all the data that you put onto Facebook, Twitter, and your blog?

You never know what could happen to Facebook, Twitter or your blog. By backing up your accounts on a fairly regular basis you are less likely to lose any important info that keeps your business running.

There are tons of quick and easy ways to back up your social media data.

Facebook: Facebook recently allowed all users the ability to download all of their content – the info on their wall, photos, videos etc. This is how you do it:

  • Go to Facebook and log in
  • Go to Account Settings
  • Click on “Download Your Information” and allow Facebook to download your info
  • Wait for an e-mail that will let you know your info is ready
  • Go through the security test that allows you to download your info onto your desktop
  • Once it’s downloaded, double click it to unzip. From there you can open it and view all your information.

Twitter: There are many ways to back up your tweets. Even the Library of Congress is categorizing and storing tweets. So how can you store yours?

  •  This site has a free version which allows you to sync up to 3 Twitter accounts and provides detailed analytics, or you upgrade to the paid version which allows an unlimited amount of accounts for only $5 a year! The only downside is I found it takes quite a while to sync your data, but the site is really easy to navigate
  •  This site is free and super easy to use. No bells and whistles but it is super easy to navigate and it’s nice being able to sync and save specific hashtags.

Your Blog:

  • WordPress Blog: If you have a WordPress blog, download the plugin WP-DB Manager, this plugin gives you the option to optimize, backup and restore your entire database. If you want to just backup specific parts of your WordPress blog, in your Dashboard, click ‘Tools,’ then click ‘Export’ and you can then choose which posts you’d like to backup
  • Non WordPress Blog: If you don’t have a WordPress blog you can use This service works for all other blog formats, provides a daily backup, runs over the internet, and there is no need to install anything!

So now that you have the tools, I highly recommend before the month is over to go backup your data.

I’d love your comments or feedback on backing up all your Social data. Leave me a comment below.

Which Social Media is Best?

Trying to figure out which Social Media site is best for your business? Obviously you can’t use them all, or if you tried, you probably wouldn’t have any time to actually work your business, since keeping up with 15 or 20 different Social Media sites could literally take ALL of your time.

The question is, should you be: Tweeting, Blogging, Friending, Linking In, Finding Your Space, or what?

I’ve sorted through the dozens of social media networks and summarized the top ones below, in no particular order of importance. I think these three are all important.


Best for: Establishing your reputation, finding new clients

Twitter is the  “micro-blogging” service that everyone is talking about, which means you send really short notes several times during the day to your network of “followers”. Followers are people who have chosen to follow your updates – they could be friends, or total strangers. When you send a message, it’s called a “tweet” and it can be seen by your followers and searched by the public. So, you can generate new clients by tweeting on relevant info in your niche or business. For many, searching twitter for info is just as common as searching Google.


Best for: Industry referrals

Think of LinkedIn (linked in) as a place to post your online resume. You start by creating your resume, entering your current and past jobs, education, etc. just as with a normal resume.

The next step is what makes LinkedIn so powerful: it can scan your email contacts and start linking you to everyone you know (although I have reservations personally about allowing any site or software to have access to my email address book). When you visit your connections’ pages, you can see who they know. This is what LinkedIn is all about: helping people harness the power of their business network to find new jobs, opportunities, or in your case, new clients!


Best for: Keeping in touch with past clients, referrals from clients/ friends

Facebook is a way to connect to your entire social sphere, family friends, and business contacts. You can post updates and photos of what’s happening in your life, and easily view the same from your friends. It’s a great way to stay top-of-mind with past clients. Facebook is a lot more casual than LinkedIn, so keep your tone casual and don’t be afraid to show people the real you (assuming the real you isn’t a shirtless couch-potato).

Madly signing up for a dozen social networks won’t help you – instead pick 2-3 and do them right.

Until next time…

(*Follow Me on Twitter*)