Monday, September 19, 2011

Is Social Media Worth The Time and Money?

We here this question often when we are delivering talks and part of panels on social media. Most businesses are wondering what is the ROI. Just like any marketing from direct mail to radio spots to advertorials in magazines to newspaper ads to eblasts to national publicity campaigns (we've done it all) - marketing is what you make it. Meaning: you have to be consistent, committed, creative and care about the target audience. If not, you're wasting money.

So, with social media - conversations are lower but worth it - see the value in the chart below from Content Marketing News. From Twitter, for example, customers spend more per order once they are on the company site.

It's about having the right plan and the right people in place to execute the plan. We can help.

Social Media Conversion Rates: Low, but Worth It

Content Marketing News
(Sep 18 2011)

  1. Marketers continue to believe that Twitter and Facebook are worth the effort, despite conversion rates that might appear low.

    A new report from RichRelevance shows that online retail shoppers who click through from Facebook only convert 1.2 percent of the time. Twitter’s number is only 0.5 percent.

    But Twitter shoppers actually spend more money when they do order.

    Online conversion rates—the ratio of purchase sessions to shopping sessions—has remained relatively unchanged between 2010 and 2011, based on a year-on-year comparison of mass merchants. This rate was 2.1 percent in August 2010 and remained 2.13 percent in August 2011.

    Overall online average order value has dropped from $128.27 to $116.58 in this period. The decline may be attributed to several factors, including increased cost consciousness and increased shipping efficiencies that encourage smaller purchases.

    Shoppers behave very differently depending on how they arrive at the retail site. For example, while fewer shoppers come from Twitter than anywhere else, they spend more per order once they are on the site.

    Twitter Conversions, Spending


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