According to a study by consulting company Tata Consultancy Services (TCS), 62% of the most successful SMM retail business projects implement marketing campaigns in social networks based on their ROI. They calculate the return on investment and achieve positive values of this indicator. Thanks to this, the business transforms SMM into an effective branding tool, increasing the reach of the audience, expanding the client base and leading generation. The TCS study identified six major success factors for brands on social media. Considering the data obtained, you can significantly increase the effectiveness of your own SMM campaigns.
Almost every business implements marketing campaigns in social networks. Enterprises create public groups and groups, publish content, attract subscribers in one way or another. However, not all projects measure the ROI of SMM campaigns and their individual components. In fact, they spend resources on various types of activity on social networks, not understanding their meaning for business and not even trying to do it.
In the third quarter of this year, the consulting company TCS investigated SMM campaigns of brands operating in Europe, Northern and Latin America, and the Asia-Pacific region. The company's specialists have identified key success factors in SMM. Using the data obtained in the course of the research, you will increase the recoupment of social media marketing and make your SMM campaigns more effective.
The six major factors of a successful SMM are listed below.
1. Transparency of business
This term is determined by the openness of the organization, its willingness to share information with consumers. This concept also includes the ability and willingness of company employees to personally communicate with customers.
For example, the top managers of two thirds of the Fortune 500 brands do not have social media accounts at all. This reduces the openness of the business. At the same time, the active participation of decision-makers and company executives in social media discussions shows the audience that the brand values and listens to its customers.
According to TCS, an average of 30% of brands value the opinion of social followers on the company and its products. For the most successful brands in SMM, this figure is 89%.
Marketing advice: business should show openness in social networks and enable consumers to express their opinions. The company should also listen to the opinions of its customers.
2. Using different social platforms
Successful SMM brands use various social platforms. In particular, 66% of SMM leaders run a corporate blog, and 65% have special mobile apps for users of social networks. 47% of successful brands have a channel on YouTube or other video hosting sites.
The top five most popular global social networking brands include Facebook, Twitter, LinkedIn, YouTube and Google+. Domestic companies should not forget about popularity among retail customers of the Vkontakte network.
Marketing advice: in order to succeed in SMM, brands must have business pages on social networks, have a corporate blog and YouTube channel.
3. Investments in SMM
Promotion in social networks requires investment. It is not only about money, but also about the time and effort of brand employees. Successful companies in SMM also invest in special software for working with social media. Finally, brands do not spare funds to receive advice from qualified experts in the field of promotion in social networks.
In 2013, the companies that participated in the TCS survey will, on average, spend $ 18.8 million on SMM. At the same time, the most successful companies will spend this year $ 27.6 million each. About 37% of respondents will spend on promotion in social networks less than 1 million dollars. About 8% invest at least $ 50 million in SMM.
Marketing advice: To get a real and measurable result of social media promotion, invest in this area of marketing.
4. Having a team responsible for SMM
The most successful in SMM brands are staffed by employees responsible for working in social networks. Nearly half of the brands implement SMM campaigns centrally, while social networking professionals are located in the main office. About 22% of companies have experts in the field of SMM in the state of each regional unit.
A third of the respondents who participated in the TCS study have fewer than 10 full-time employees responsible for SMM. 17% of brands have in their staff more than 100 such specialists. On average, successful SMM companies employ 56 professionals working with social networks.
Marketing advice: When planning your next year’s staffing, consider a social media expert position. This will increase the effectiveness of your SMM campaigns.
5. Attracting employees from non-core departments to communicate in social media
It was noted above that successful brands in SMM have specialists in their staff who are solely responsible for promotion in social networks. Despite this, leading companies attract experts from other departments to communicate on social networks.
It is critical that brand followers on social networks have the opportunity to contact marketers, consumer support specialists and retailers. However, communication with representatives of other departments also helps subscribers to get important information.
For example, 16% of brands encourage their HR managers to actively communicate in social networks. More detailed information is shown in the illustration.
Marketing advice: Ask all your company employees to support SMM events. Such support can be answers to profile questions, the publication of important information or reposts and "likes".
6. Measuring the payback of SMM campaigns
56% of respondents who participated in the TCS survey follow the ROI of SMM campaigns. At the same time, the most successful brands in SMM necessarily measure the effectiveness of promotion in social networks.
Nearly 40% of retailers achieve positive ROI of social media marketing campaigns. Almost every fifth company has a negative ROI. At the same time, 44% of companies do not measure the effectiveness of investments in SMM.
Marketing advice: measure the return on investment in SMM. This will increase the effectiveness of marketing campaigns.
What you need to successfully promote a business in social media
The success of SMM campaigns depends on the readiness of your business to communicate with consumers in social networks. Only transparent organizations successfully attract subscribers and form loyal communities. Brands that succeed in social networks have in their staff responsible for the SMM specialists and encourage employees of non-core departments to participate in marketing campaigns.
Willingness to invest in SMM and measure the effectiveness of marketing efforts are critical success factors. Almost two thirds of brands that successfully implement SMM campaigns measure ROI and achieve positive values for this indicator. By 2015, a successful brand will spend an average of about $ 32.5 million to promote business in social networks.
And how much do you spend on SMM?