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Computerworld takes a look at the value of social media; featuring two PerkettPR clients & their ROI

rdWhether you call it social media, new media, social marketing or another moniker, the big question remains the same – how do you measure its value? We’ve been able to measure value from day one of jumping into the social marketing world here at PerkettPR, and now we’re thrilled to be helping clients to do the same. Reality Digital and Litle & Co are both featured in a series of articles on Computerworld today regarding the value and ROI they’ve seen with their social media efforts.

In “One Company’s ROI Tally for Social Media,” Reality Digital’s CEO Cynthia Francis says calculating return on investment starts with understanding what you want to accomplish. She includes a breakdown of investment vs return, including:

  • Total investment for social media programs (including technology costs and PR agency hours): roughly $3,000 per month
  • Total sales leads generated in April, May and June: 72
  • Average sales leads per month: 24
  • Average cost per sales lead: $125
  • Lead conversion to sales opportunities: 11.1%
  • Lead conversion to closed deals: 1.4%

Litle&coIn “What’s your Twitter ROI? How to measure social media payoff,” our client John Stevens, director of corporate content and communications at Litle & Co., says the company has seen “six-figure revenue come in because of the connections made through social media.” He discusses the need for firm ROI figures and future decisions around using public sites such as Twitter or building proprietary systems.

What’s your return been on social media investments to-date? Do you expect the ROI to increase, decrease or remain the same in the next 6-12 months? How are you using social media in your business? CMOs and marketers, what kind of help you do plan to enlist for PR, social marketing and advertising in the next year? Please take our survey – it’s only two questions and we’d love to hear from you. Thanks!

He Said, She Said – Confusion on Social Media vs Social Marketing

I’ve learned a lot about social media over the last several years but one thing that really sticks out for me now is the confusion between social media and social marketing. Part of this problem stems from the multitude of people using social media that equate it to the ability to use social media effectively in marketing. This confusion may be one of the biggest misnomers in business today. Your ability to chat on Twitter, create a video or “friend” all the most influential bloggers does not mean you’re good at social marketing.

Part of the problem is that suddenly, just about everyone claims to know social media – or more specifically, how to do execute social media in marketing. A lot of “one hit wonders” – someone who struck gold with a video that went viral, or a firm that had early success with one client (usually, a major brand name) – are claiming to be the “gurus” but aren’t necessarily delivering consistent and whole strategies for a variety of clients or businesses. Take, for example, Jill Peterson and Kevin Heinz’s wedding video – aka, “The wedding dance video.”

I’ve read plenty of blog posts where people are touting this as “a great example of marketers taking advantage of video and social media.” But that’s not wholly accurate. No marketers planned this as a campaign – it happened to be a video of a couple at their wedding that was incredibly entertaining, accumulating more than 10 million views on YouTube in less than one week. Then the marketers took notice, as written about by Google: “The rights holders for the song in the video – “Forever” by Chris Brown – used these tools to claim and monetize the song, as well as to start running Click-to-Buy links over the video, giving viewers the opportunity to purchase the music track on Amazon and iTunes. As a result, the rights holders were able to capitalize on the massive wave of popularity generated by “JK Wedding Entrance Dance.'” And that’s fantastic. But the truth is, it was happenstance – and yes, the marketers caught on in time, in order to increase sales. But I wouldn’t say that they “used the video for promotion,” rather, it happened organically. It wasn’t a planned “viral video” (because you don’t create “viral videos” – you create great video that you can plan a viral marketing campaign around) by brilliant marketers. And this video doesn’t make Jill and Kevin, Chris Brown or the rights owners brilliant marketers.

The truth is, while social media isn’t as radical as some may claim it to be, it has presented an entirely new way of thinking and interacting – especially for businesses – and for the most part, we’re all on a pretty level playing field. What will shake out in the next year or so is the “social media expert” moniker – we’ll see who is really developing ongoing and persistently smart and effective social marketing strategies, vs those one hit wonders or “I can set up a Facebook fan page for you” consultants.

It’s been interesting watching the explosive growth of social media’s popularity, especially for marketers. When we first introduced Twitter to clients over two years ago – suggesting its use as part of marketing, PR, customer service and sales strategies – we were one of the first PR firms that had established a corporate entity on the now-explosive microblogging service. In fact, we were part of the early discussions around whether or not corporations should be on Twitter at all (and maybe a little too ahead of our time, but that’s another blog post). Luckily, our stance was yes. What’s really interesting in that post, by the way, is reading the comments and comparing the attitudes then to now.

Today, what we’re finding is that our counsel isn’t needed to convince clients that social media is important. Rather, it’s to help clients understand the definition of social marketing vs the “social media” buzz-worthy moniker. I’ve been interviewed several times over the last couple of months about social media for business. In almost every interview the question arises: “What’s the first thing a company should do when thinking about social media for business?” My answer is always – “Know your business goals. Be clear on what you are trying to accomplish first.” It’s surprising how many businesses just want to jump in feet first now that social media for business is all the rage. But the bottom line is, whatever you do with social marketing should tie back to your business goals – whether it’s increased awareness, definitive thought leadership, sales, better customer service, leads, business development, partnerships, etc.

Know your business goals. Recognize the difference between social media and social marketing and beware of “social media experts” that don’t bother to ask about your business goals. If they don’t understand what you’re trying to accomplish as a business, all the greatest videos, Tweets or Facebook fan numbers will be a moot point.

Persuasive Picks for the week of 07/19/09

Twitter 101Twitter Launches “Twitter 101″- Step One Of The Business Plan
Still looking for self-help in understanding what Twitter is and how to use it? Now you can get that information straight from the source with Twitter’s new online guide for business.

Nine Marketing Tips from a Six-Year Old’s Lemonade Stand
Jim Lodico guest posts on WebDesignerDepot.com with this great set of marketing tips inspired by his daughter’s lemonade stand.

Why Customer Service Should Be in Your Social Media Marketing Strategy
Tamar Weinberg shares this great post that reminds us how important customer service can be when engaging in social marketing strategies.

Deep social media engagement pays dividends
Sally Falkow provides an overview (with links to the source) on the eConsultancy.com blog of a recent ENGAGEMENTdb study thats shows how companies with the deepest and widest social media efforts gained revenue over the last 12 months.

Amazon Buys Zappos, Gives Press the Boot
Amazon and Zappos show that sometimes you can deliver the news on your own terms without the help of the media. It was certainly an interesting move considering the size of the news – and it has been yielding opinions on both sides of the fence. Here’s the video that Jeff Bezos released on YouTube:

Persuasive Picks for the week of 06/21/09

Facebook Marketing for Dummies5 Tips for Optimizing your Facebook Marketing
Facebook’s 200+ million users make it an increasingly attractive place to try some social marketing efforts. Paul Dunay of the Buzz Marketing for Technology blog shares five ways you can optimize those efforts.

The Forgotten Social Media Tool
With so many social networks and platforms to utilize these days, it’s easy to forget the countless bulletin board systems out there that still have incredibly active communities covering limitless niche topics. Robert Quigley brings bulletin boards back into perspective with this post on MediaBullsEye.

How to Use Social Media: An Interview with Lee Aase of Mayo Clinic
Guy Kawasaki shares this interesting interview (via Amex’s Open Forum blog) with Lee Aase of the Mayo Clinic on how they have been utilizing social media.

My Top 10 Sources of Content Inspiration
Being able to generate a continuous stream of content for blog posts comes naturally for some. For others, it can be a torturous process. Duct Tape Marketing’s John Jantsch shares 10 places where he finds inspiration for writing a plethora of great content.

Report: Companies Should Organize For Social Media in a “Hub and Spoke” model
Many companies diving into the social media space are still trying to figure out what department actually “owns” social media. Should it be part of an existing internal group or is a re-organization in order? Forrester’s Jeremiah Owyang shares three different models of company organization that can be found in his latest report.

Scott Porad at SXSWi 2009

While asking random people at SXSW what two words described their experience at the conference, I ran into Scott Porad, Cheezburger Technology Officer for I Can Has Cheezburger – a website well known for its cat pictures with hilarious captions that has been going strong since January 2007. I just had to speak with Scott about the site that is currently attracting five million page views a day and closing in on hitting two billion (BILLION) page views this year. See what Scott has to say about I Can Has Cheezburger.

David Meerman Scott at SXSWi 2009

I ran into David Meerman Scott , author, speaker and marketing strategist during SXSW and asked him a few questions about his newly released book – World Wide Rave and his thoughts around what to look for when hiring a PR (or advertising) agency to handle social media projects. Be sure to download World Wide Rave onto your Kindle or get a hardcopy for yourself. I got mine!

Persuasive Picks for the week of 02/01/09

MC Hammer TransitionHow MC Hammer went from caricature to human being – the social media story
Jim Tobin from IgniteSocial.com shares a few simple lessons for corporate marketers citing how MC Hammer has leveraged social media to help build his business and reputation with social media marketing.

ROI (Results on Insights) of Online Communities
Beth Kanter consistently offers up excellent information on her social media blog for non-profits. This post includes several perspectives and great links to additional supporting posts around the topic of ROI and Online Communities.

8 Questions to Ask Your “Social Media Expert”
Using a product or service doesn’t instantly make you an expert. How do you differentiate between the knowledgeable folks and the snake-oil salesmen in the social media space? Dave Fleet offers up 8 questions to ask any “Social Media Experts” you might be considering doing business with. Be sure to browse the comments for additional advice and opinions.

The Importance of a Social Media Support System
Are you the sole evangelist for deploying a social media strategy in your organization? Have you given much thought to how much support you’ll get from the rest of the organization? This post from marketer Jacob Morgan provides some food for thought in that area.

B2B Social Media Marketing: Why should you start?
Kate Brodock from the Other Side Group highlights last week’s post B2B social media marketing post from MarketingProfs and expand on it in the areas of brand outreach and thought leadership.

Christine Perkett interviewed on NewMarketingTV

PerkettPR’s own Christine Perkett talks with BMA President Michael Lewis on NewMarketingTV during the last day of the 2008 New Marketing Summit at Gillette Stadium in Foxboro, Massachusetts. All of the video interviews that Mike created during the summit can be found on the NewMarketingTV YouTube page.

Persuasive Picks for the week of 08/25/08

The Best Practices In Social Media Marketing Writing Project
Mitch Joel from Twist Image has launched a writing project that encourages marketers to share their best tips for Social Media Marketing, and hopes to build contributions to the project into an ongoing organic resource for marketers to reference in the future. Mitch’s own best practice contribution revolves around consistency.

Before Consistency in Social Media Marketing
Bryan Eisenberg from the FutureNow blog contributes his Social Media Marketing best practices to Mitch Joel’s writing project – in the form of transparency, being social and communicating values. Make the jump to read more!

Three tips for “company blogging”
Google’s Matt Cutts shares three tips for those who blog for their company. Be sure to read through the 60+ comments for additional tips and points of view.

Community Manager Salary Report
Community Strategist Connie Bensen has touched on the subject of Community Manager salaries for almost a year now. This post is her latest entry on the subject and is a great starting point for companies looking to fill such a role in their organization.

Use Ning to Build a Community Around Your Personal Brand
Personal Branding expert Dan Schawbel expands on the power of using Ning to build an online community around your personal brand – and backs it up by highlighting two “big name personal brands” who are doing it successfully.

5 SEO Tips for PR Professionals

Last night I attended Boston’s March Social Media Club Event in Woburn, Massachusetts. The topic of the evening was “The Search for Results: Social Media and Search Marketing” which was presented by a panel that consisted of:

  • Amanda Watlington, Owner of Searching for Profit
  • Greg Jarboe, President and Co-Founder of SEO-PR
  • Sherwood Stranieri, Director of SEO at SMG Search
  • Thom Brodeur, Senior VP, Global Strategy and Development for Marketwire
  • Andrew Komack, Founder and President of KoMarketing Associates, LLC

Amanda led the panel through several SEO related topics including SEO’s importance in social media marketing strategies, as well as some of the tools and techniques that SEOs use for optimization. The panel discussed different points of view on the topics and strengthened their message with interesting case-study stories.

Towards the end of the evening, the panel separated and joined the audience for small breakout sessions on more specific topics. The session I joined was led by Greg Jarboe and was geared towards SEO and press releases. The primary take-away from Greg’s talk was a 5-part formula for success with online press releases using SEO. The formula was laid out as follows:

Step 1: Do your keyword research.

The importance of keyword research was stressed several times during the event. Your keywords should always be nouns or adjectives. People never search for verbs. Its also important to craft “keyword phrases” rather than using a single keyword. If you can construct a keyword phrase that can be broken up into multiple phrases, your release will have a lot more impact with the search engines.

Step 2: Actually USE the keywords!

This step raised a chuckle when mentioned because it seems so obvious. You’d be surprised to learn how many people go through the process selecting keywords and then don’t use them or use them properly. Always be sure to include your keywords in the title of your release as well as in the lead paragraph.

Step 3: Add a link to the client site in the release.

Online releases need to be written for bloggers and regular readers in addition to the traditional media folks. Adding a link to the client’s site gives the reader the ability to seek out additional information about the topic in the release. Be sure that the link points to a relevant page on the client’s website and not just to the homepage where the reader is left to hunt for the proper page themselves. Those who are familiar with the concept of the social media release will already have this step down and have taken it even farther.

Step 4: Use a search engine friendly wire service.

Not all news wire services are search engine friendly. In addition, those that are search engine friendly not might format their releases in a way that makes all the major engines (Google, Yahoo, Microsoft Live Search, etc.) happy. Take time to discover which services are set up to give you the best results in each search engine. Greg recommended the NASDAQ owned PrimeNewsWire outside of Marketwire, PRWeb, BusinessWire and the others we are most familiar with.

Step 5: Measure the results.

Measurement is definitely a hot topic and a tough nut to crack on the social media side of things, but there are several things that are immediately measurable on the PR side of the house. As always, count your clips. Enough said. Beyond that you should start counting the blog results from your release. Have people started writing about your client on their own as a result of your efforts? One really valuable exercise that might not be easy to pull off is gaining access to your client’s analytics program. You might need to bribe your way into the IT department, but the data being collected about your client’s site can contain a wealth of measurement data as a result of your press release efforts!

Overall it was a good session that yielded several great nuggets to take away. As a PR professional, you owe it to your clients to stay up to date with the ins and outs of basic SEO techniques. Attending Social Media Club events are just one of the many ways to keep up with with the flow.

What tips do you have that could be added to formula?