social media marketing - what not to expect

8/8/2019 Social Media Marketing - What Not to Expect

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2009 Confidential | Think Innovation 1

!

Social Media Marketing: What Not To Expect

think innovation

1-888-REGALIX | [email protected] Alto, USA | Bangalore, India | New Delhi, India | Chandigarh, India


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2009 Confidential | Think Innovation 2 2006 Confidential | Think Innovation 2

Speaker Nimish Vohra

Vice President and Country Head at Regalix Inc.

Decade of experience in Digital Marketing, Human Factors and Creativedesign

Previously with StarTV (one of the largest Entertainment and Media

companies) as Program manager for the R&D and production of nextgeneration Cable/Satellite Television programs

Built ChaiTime, a large online community of NRIs

Worked as Creative Lead in agencies with many of his creations goingon to become memorable house-hold names and still featured onseveral Asian Networks

Masters Degree in Industrial Design from IIT Mumbai and an

Engineering Major


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Contents

Social Media Marketing: Some success stories

Three examples of what not to expect OR how

to set the right expectation

Establishing a reach metric for your program

Quick take-aways

Questions

POLL >>


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Social Media Marketing: Success Stories

1.5MM followers!Directly engagedwith about 1% ofthe US votingpopulation


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AT&T usingTwitter as acustomer servicetool


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DellOutlet got $3MMin additionalrevenues attributedto their Twitter effort


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Palm reaches out toits fans with latestpromos and productofferings


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More than a millionfans to whom theadvertiser can reachout to


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More than 600episodes reviewingwine, more than600k views


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Social strategy spanning YouTube, UStream,Facebook, Twitter, etc


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Home Depot channel onYouTube, with numerous how-to videos

WHAT NEXT >>


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What Next?

- Nature of the medium: wehear the best stories!- Dont start out to write asuccessful monstrousvolume of a book. A draftwould serve well enough!

?POLL >>


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Example 1/3:

Do not expect 100k active users in 2months1.You have launched an online public service

site that answers questions about Taxes,Mortgages, Investment Options, etc

You have launched a site connecting serviceproviders and consumers of Taxes, Mortgages,Investment Options


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Example 1/3:

Do not expect 100k active users in 2months1. You have launched an online public service site

2. You plan on trying out social media right choice asthat is where your users are. You set yourself a goalof 100k active users, and the following team

1 person to identify traffic sources and 5 member team todrive conversations to your site You plan to engage users on groups and forums

Conversations on blogs and articles

Manage your own blogs and twitter page

Create pages and communities on Facebook and other sites

Create content on Wikipedia, Squidoo, Hubspot, etc


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Example 1/3:

Do not expect 100k active users in 2months1. You have launched an online public service site2. You plan on trying out social media right choice as you that is where your

users are. You set yourself a goal of 100k active users, and the following team

3. Does the math work out?

To get 100k active users, you probably need 200k users on thesite. For 200k users you need 200k x 10 visitors to your site (ifCR is 10%). Or 2MM users.

Each person participates in 40 conversations a day that drives20 clicks each. Total clicks to site: 20 clicks per conv *40 conv per day

*30 days *5 resources *2 months = 240,000 clicks. Short by a factorof 8!

To reach your goal you require 6*8 or 48 people to do socialmedia marketing! If you are a new business with a new site,would you have the budget?

POLL >>


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Example 1/3:

Do not expect 100k active users in 2months1. You have launched an online public service site2. You plan on trying out social media right choice as you that is where your

users are. You set yourself a goal of 100k active users, and the following team

3. Does the math work out?

4. How would PPC fare? Social marketing cost: 48 resources * $2000 per resource permonth++ = $96k per month or $192k for two months

Spend this money on paid search: @ 15 cents a click (includescost of managing the campaign) it gets you 1.31MM clicks

You are still short!

++ cost with an agency such as Regalix who works with an extended high quality team in India

EXAMPLE 2 >>


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Example 2/3:

Do not expect sales funnel to fill up in amonth1.You sell content management system, priced at

$25k per installation

Your pre-sales and sales team is currently handling20 qualified leads a month, and has the capacity to

take on another 10.

2. You have heard about social marketing successstories and you think investing $10k a month in

social marketing should give you the return youexpect. Would you be justified?


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Example 2/3:

Do not expect sales funnel to fill up in amonth1. You sell content management system, priced at 25k per installation. Your sales team

can take on 10 additional qualified leads

2. You have heard about social marketing success stories and you think investing 10k amonth should give you the return you expect. Would you be justified?

3. Calculating current CPL: Source of leads is PPC,

organic traffic on the website (= content, SEO),database building (events, database vendors) andmailing. Breakup:

PPC media ~ $10k

Website content and SEO ~ $8k a month (includes articles and whitepapersyou write and put on the website)

Whitepaper marketing ~ $5k a month (pay per lead from B2B sites) Database acquisition and mailer ~ $8k a month

Marketing cost to manage the above programs: $10k a month

Total ~ $41k per month for 20 qualified leads; CPL ~$2k per lead


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Example 2/3:

Do not expect sales funnel to fill up in amonth1. You sell content management system, priced at 25k per installation. Your salesteam can take on 10 additional qualified leads

2. You have heard about social marketing success stories and you think investing10k a month should give you the return you expect. Would you be justified?

3. CPA from current marketing activities ~$2k per lead

4. Assuming social media marketing is not any less expensiveover the first 6-9 months, you should provision for $2k a lead,or $20k as budget for social media to get 10 qualified leads amonth.

It is a new channel you are experimenting with before

efficiency builds up, you might need to invest in the channel -$3k per lead to begin with or $30k per month for thefirst three months is what you should provision for

EXAMPLE 3 >>POLL >>


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Example 3/3:

Do not expect 50k card sign-ups in 2months1.You are a bank, and want to promote a credit card

online

2. You estimate that social media has the potential to

deliver an additional 30% leads. For you currently paid search + banners and are turning out

leads @ around $3 per form fill up, and accounts for 70% ofthe leads. The website accounts for 30% of the lead volume the cost is not clearly benchmarked.

Given that this is such a B2C product which usually gets talkedabout so frequently on social media, would you be justifiedin your expectations?


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Example 3/3:

Do not expect 50k card sign-ups in 2months1. You are a bank, and want to promote a new credit card2. You estimate that social media has the potential to deliver an additional 30%

leads @ $3 per lead

3. Perhaps not. The regular approach of talking about

the product on social media could fall flat.The need isclear, and most users would be comfortable with directadvertising.Forums and social channels would discourage directadvertising messages

Two types of conversations are happening online: People unhappy about their experience go online and vent their

feelings

People and experts are talking about credit cards, interest rates,offers, etc on blogs, forums, articles, comparison charts, etc


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Example 3/3:

Do not expect 50k card sign-ups in 2months1. You are a bank, and want to promote a new credit card

2. You estimate that social media has the potential to deliver an additional 30% leads @ $3per lead

3. Perhaps not

Approach 1: Monitor and gather REAL feedback on the

product, and invest in REAL online customer satisfaction Engage directly with all unhappy customers, as the Banks authorized representatives

Address customers unhappiness in a fair manner (charge-back? transaction reversal?)

Take feedback to the product team, and try (at least try) to provide what the marketdemands

Real word-of-mouth will spread, and cost of acquisition could drop to 50% of currentchannels!

Of course, it would require REAL intention on part of the bank, and top managementsponsorship


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Example 3/3:

Do not expect 50k card sign-ups in 2months1. You are a bank, and want to promote a new credit card2. You estimate that social media has the potential to deliver an additional 30%

leads @ $3 per lead

3. Perhaps not

4. Approach 1: Monitor and gather REAL feedback on the product, and invest inREAL online customer satisfaction

5. Approach 2: (1) Invest in creating non-brandedassets of value (microsites, apps, etc), such asproduct comparators, that push the Banks products

on genuine grounds.Product comparators can move beyond

static website pages to RSS, desktop based, experts with channels on

YouTube, Twitter, etc. (2) Invest in winning over expertsor establishing experts over a period of time

Establish a METRIC >>


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Establishing Reach Metric

Channels Reach for a monthper upload

/conversation

Conversations permonth, per person

Total Reach

YouTube 500 30 15000

Forums 400 30 12000

Blogs 50 30 1500

Social NetworkingSites 400 60 24000

Q&A 100 60 6000

Image marketing 10 30 300

Social BookmarkingSites

10 100 1000

Polls 10 10 100Application 100 10 1000

Others (twitter, etc) 500 50 30000

Total ~100,000Very approximate! Will depend on yourdomain, channels you choose, etc


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Plan for Normal and Mean Results

It is no mean happinesstherefore, to be seated in

the mean Shakespeare,The Merchant of Venice

Try and be here!

Last Slide NEXT >>

PP

C

SEO

BANNER

S E

MAIL


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Take-away Tips

1. Create a metrics model, however crude

2. Benchmark cost of acquisition from otherchannels

3. Take initial learning as investment

4. Do not be afraid of experimenting

5. Start small

6. Do not market blatantly it can be counter-productive(How-to of Social marketing? See other webinars on www.regalix.com,

or write to us)

About Regalix >> Questions??
http://www.regalix.com/http://www.regalix.com/


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About Regalix

Forefront of Online Marketing,Research and Web 2.0 portals

Multi-disciplinary Leadership Team

Fortune 500 and Venture-BackedCustomers (B2B and B2C)

Global Operations: HQ in Silicon

Valley, 4 Offices

150+ Team, Built on 8+ years ofresearch

Recognition

visit: www.regalix.com

For a free evaluation of your socialmarketing plan, please get in touchwith Namrata Kumar,[email protected]

If you have any questions aboutsocial media, PPC, digital marketing,etc please feel free to get in touchwith the speaker Nimish Vohra,[email protected]

Questions >>
http://www.regalix.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.regalix.com/


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Questions?

1. How to divide connections into different groups for

different target areas?A bit of a problem! For most social networks every connection is equal(friend, contact, ). Use an external layer (excel, customdevelopment) depending on your exact need

2. How do people integrate social media with their CRMsystems?Depends on your exact need or goal (traffic on site, footfalls, email,DRIP marketing, etc). Very crudely, when a lead can be tracked to asocial media channel, assign a lead source and export to your existingCRM system.

3. What strategies can be used to attract "followers"?Make the content unique or valuable (of course!). Begin with followingpeople who might be interested in your content. Make the profileimage human, and attractive it works!

social media marketing - what not to expect

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