4 Keys To Getting Great ROI From Social Media
Sales & Marketing for Professional Services & Strategic Issues

4 Keys To Getting Great ROI From Social Media

December 9, 2013

by Tony Vidler

Why do some professional service firms seem to do so well with social media and market engagement, while others find it laborious?

The simple answer appears to be that those who succeed in this area adopt a “customer care” approach, and support that attitude with active monitoring and analytics of their chosen channels, and then perhaps most importantly they respond quickly to engagement opportunities.

A very interesting report by the Aberdeen Group (www.Aberdeen.com) distributed by CIO Whitepapers provides a number of interesting insights into what separates the “best in class” business when it comes to Social Customer Care.  Perhaps the standout statistic is that companies with social customer care programs are 2.5 times better at customer retention.  That has an enormous impact on the bottom line of any business.

The 4 keys to getting a great return on investment from social media by the best businesses are:

  • They monitor and track customer conversations via social media
  • They track, test and measure the effectiveness of individual social media channels
  • They capture customer information and actively use CRM systems to build customer knowledge.
  • They refer intelligently.  That is, they direct customers to the most appropriate person quickly.

The result of doing this is that these “best in class” companies are increasing revenue growth at a 40% higher level than average companies.  This would appear to be largely driven by the far higher average revenue per client contact and significantly increased up-selling and cross-selling activity. While it is clear that the best are far more likely to be even using CRM systems to support their social media activities, it is also clear that the best use social media as a business intelligence tool and many use it measure customer sentiment as well.

To summarise all of this in plain language: the best businesses using social media are constantly testing, measuring and refining; they capture the information they learn in CRM systems; they USE the improved knowledge to provide more relevant service and support; and; they pay attention to what the market is saying about them and then respond accordingly.

This would suggest that social media is an excellent opportunity for any business that is prepared to apply some science and good business sense to their hard work.  Without supporting that social media activity with the right attitudes, systems and management then there is every risk of it simply being another laborious chore that produces little in the way of business results.

 

© 2013 Tony Vidler.  All rights reserved.
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