Tag Archives: the cluetrain manifesto

Social Media Marketing and going to the gym ( part two)

11 Apr

Hey Everyone,

I wrote a post a while back called social media engagement and going to the gym ( An analogy)

http://community.spiceworks.com/topic/152233-social-media-engagement-and-going-to-the-gym-an-analogy?started_from=new_topic

I received a few hundred responses from IT marketers ( spiceworks clients and prospects I am trying to get invovled inside Spiceworks) saying they see the benefit of engagement but it’s so hard to attribute ROI to any kind of social effort.

Obviously Spiceworks is not just a social media platform but social engagement is a big part of our approach.

So in the Spiceworks spirit of listening to our clients/partners.

Here is my sequel post with a process that a couple of Spiceworks clients have used to show management the value of how social engagement drive’s $100,000’s of dollars to the pipeline and closed business. ( especially in a pure 100% IT platform like spiceworks)

 

The ROI of Social Media within the IT buyer community :

So often we hear people struggling with how to manage the return of their social media efforts. I do sometimes struggle with this when a IT vendor says I can’t spend time or $$ on social media until I can get exact ROI. ( Hmmmm what is the ROI on the beautiful fountain outside the HQ that costs $160,000 a year to run?:) ( True story from a previous software company I worked at by the way)

I sometimes think IT marketers are so focused on the ROI of a one-time ad, web page or action, and therefore they miss ( ironically) $100,000’s worth of opportunities because they don’t see that social media is ongoing conversational engagement. They forget that you need to go to the buyers first, provide them value, and spend time with them before they may take action.

There are 7 Million IT buyers ( 1 – 1,000 employees) who control over $900 Billion dollars of spend globally

4 straight forward tips:

• Engage
• put some roots down
• understand who your buyers are and where they live, work and play.
• Do so and not only will people engage and respond to your efforts, they will purchase your products – and that is the best ROI a brand can get right.

So let’s take you through a proven process for IT vendors, Direct market resellers and VAR’s can use to monitor and track ROI conversations on Spiceworks:

Step 1: Set up a Spiceworks vendor page, run banners, send an e mail out to your specific target audience and start searching conversations topics in your area of expertise. ( Virtualization, Web filtering, security, backup etc)

Step 2: Browse the community and engage in the conversation, get known, be a resource.

Step 3: If someone expresses interest in you and your company , ask them permission to send some info, pricing, documentation etc. Continue the conversation. Shoot the person a note your info about your online store, discount, promotion, webinar, whitepaper, vendor page. RFQ button.

Step 4: If the person is interested, input them into your CRM ( lead source, create a opportunity associated to that conversation)

Step 5: Measure whether they end up buying! You can now track the origin and attribution of that lead, how many days it took to close, what other actions they took place prior to buying (vendor page follower, requested a quote,additional conversation in the community etc).

Step 6: Measure the percentage of time it takes on average to engage in these types of conversations and divide by average hourly rate of paying someone to do this type of activity or compare this to the $1,000,000’s being spent on cold calling teams, adwords, airport sponsorship, golf tournaments, full page print ad’s etc.

Let’s say it cost you $10,000 to get a person ( re the conversation) into the sales pipeline and they bought $50,000 worth of Hardware/software.

Step 7: (Revenue-Cost)/Cost = ROI so given this example: ($50,000 – $10,000) / $10,000 = 400% ROI. That ain’t bad going.

Here is a very funny Video discussing C –suite ROI:
http://www.youtube.com/watch?feature=player_embedded&v=qNL8vAnZ-BY

I would love to hear from the IT buyers on this as well as our partners.

I would love to hear your feedback.

Respectfully,

Kenny

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