Maximizing the ROI for Social Media Marketing

It has always been difficult to quantify the ROI from social media marketing efforts. However, social media does impact the how and why people buy certain products. Current statistics show that 42% of consumers are already using social media as an aspect of their purchasing process. A study was completed recently by Arc Worldwide and Leo Burnett to gain insight into the cross-section of social media and shopping behavior. This study outlines several key items that will help maximize the use of social media in online marketing campaigns. People Come First People have many different motivations in their use of social media based on their needs. However, this study was able to identify eight categories that were at the core of these needs and played into social and shopping behavior. They run the gamut from practical to emotional and span across the entire purchasing process from brand identification to how consumers are sharing their experience with their networks. By understanding the needs of the consumers, social media efforts can then be focused to enhance their effectiveness.rnEngagement by Category Products can be placed into need categories based on their risk and reward. High risk/low reward products such as appliances and financial products tend to have more a functional mindset where a consumer is required to shop around because of the complexity of the items. On the contrast, items such as laundry detergent and batteries that are low risk/low reward tend to be more routine. In this case the shopping is done just to get the task completed. The higher the reward however, the more emotional the mindset during the purchase process is. This includes fashion items, jewelry and restaurants. Not All Channels Are Created Equal There are a wide variety of social channels available and understanding which risk/reward category your product or service falls under will help lead you to the appropriate social channel. Each channel provides a different combination to fulfill the various needs consumers have. Facebook provides conversation and fills the need for connection. Twitter then, allows someone to stay in the know while review sites are a hybrid of both. By using the insights of what your shoppers need and are looking for, it can help you devise a successful social media campaign that will target the purchasing process for your customers. Social media can help create value for your brand and deepen a consumer's relationship with your brand. Once you understand this, it will improve not only the experience that your shoppers have, but also the ROI of your online marketing efforts.