Small Business Find ROI in Social Media

Or do they?

Social Media OptimismA new study from Manta regarding the top concerns of more than 1,200 small-business (SMB) owners offers some keen insight into what it takes to succeed, and fail. 

The report revelas that 49% of SMBs have increased time spent on social media compared to a year ago – no surprise there. More than one in three owners dedicate between one and three hours each week managing their social media channels, while 10% spend even more time.

How many hours a week does your company spend (cumulatively) on social media per week? Leave a comment below.

Thirty-six percent (36%) of small-business owner’s primary goal of using social media for is to acquire and engage new customers. I’m not sure how the question was phrased but personally I would flip that to say engage (prospects) first and then acquire new customers (once engaged). Lead generation and referrals (19%) was second. 

Other findings from the Manta social media ROI report include…

  • 79% of small-business owners are optimistic about their business prospects in the second quarter of 2013
  • 53% have one person dedicated to social media activities at the company
  • 39% see a return on investment from social media activities
  • 18% name Facebook as the hardest social media platform to maintain

[ See infographic below ]

I find it curious that some traditional media, have spun this study to say that “Social media is a bust for small business”, like this article from USA Today.  While it may be true that if you are a small business owner that is “doing” social media you are not seeing a positive ROI, don’t blame it on the medium, or the study.

What I wish the study would have asked, and what I am asking SMBs here is:

  • Have you spent the time to create a social media strategy for your business? 
  • Do you have someone dedicated to managing the strategy on a daily basis?

Lets take a closer look at both of those questions.

For those who answered yes to having a social media strategy, here are a few follow-up questions:

  • Is it in written form or just in your head
  • Did you research your category and competitors to see what they are doing and look for best practices / common pitfalls
  • Did you analyze your website statistics
  • Did you talk to / survey your customers to see what social networks they are using and what, if anything, they would like to hear from you on social media or how they would like to engage
  • Does the strategy include a content plan? Content is the fuel that runs the social media engine.  
  • Does the strategy include components for engagement (which tools to use and how to use them), management (who’s going to do it and what tools are they going to use) and measurement (what are your metrics and how are you going to measure and report on them)?
  • What are your objectives for social media? What will success look like 6-months from now, a year from now?

For those who answered yes to having someone dedicated to managing the strategy on a daily basis, here are a few follow-up questions:

  • Are they fully on board with the decision
  • Do they have a copy of the strategy? Do they understand it
  • Has their current workload been adjusted to allow them the time required to successfully manage the strategy
  • Do they have the tools they need to succeed
  • Have they received the necessary training
  • Do they have access to the necessary resources (content, other departments, website stats, etc)
  • Will a portion of their performance review include their new responsibility for social media
  • Are they responsible for reporting results to someone on a regular basis

If you answered YES to all of the above – congratulations, you are well on your way to growing your small business and achieving that positive ROI. If not, this is a good starting point to get on the path to positive ROI.

If you don’t have a strategy or have one but don’t have the time or resources to manage it – we would be happy to talk to you about how we can help.

roi-in-social-mediaDon’t go away yet!

We want to hear what you think. Where do you sit on the social media ROI continuum? Leave a comment below.

 

 

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3 thoughts on “Small Business Find ROI in Social Media”

  1. What I see, I see over and over again. Small business tries to “do” social media, and it’s not their goals that are lacking, it’s their skills in executing that are lacking.

    The same businesses that go it alone on social media, would never dream of creating, or even scripting their TV or radio ads, or creating the artwork for print.

    Yet they try to do that with SM.

    Reply
  2. I don’t think there’s anything wrong with businesses executing their own social media as long as they have a well thought-out strategy to guide them. However, you’re right that many businesses go it alone and the results are predictable.

    Reply
  3. The USA Today article I had read before. The first example, the fabric shop, is a great example of a business owner thinking they are doing it right, but quite simply not.

    Engaging work, interesting posts on your Facbook page are not enough, you need to use strategies to get more eyeballs onto your FB page to begin with. That business owner might have good intentions, but surely she should realize preaching to just 60 fans every day is not going to increase awareness of her business.

    Reply

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