Social Media ROI: The Dollar Value of a Facebook Fan

There’s a certain term in the social media lexicon that I really don’t like. It’s not the meaning or even the use that I have an issue with. It’s the way it’s used. Overused. Thrown around. Thrown in when one is coming up dry. This word works as a shield for many folks in our industry – “Hey, what I do has value to you. Here’s an acronym we can use when I am trying to convince you of this, and the important-sounding-ness of it will put both of us at ease.” That term is ROI.

Alas, when talking about any investment, the return on that very investment is obviously something worth talking about. In fact, it’s the whole point, isn’t it? But sometimes the term ROI gets thrown around when you aren’t really talking about that. ROI at its core is about financial return, not “buzz” or “sentiment” or “engagement.” Of course, I would argue that those things can and do have real impact on the bottom line – often, a greater impact than other approaches. But while it’s valuable to measure metrics like audience growth and community engagement, that’s not really ROI. When you say ROI, you should be talking about numbers – numbers of dollars.

The good news is that as social media is becoming less of a trend and more of an expected component of a marketing plan, folks are studying the dollar value of marketing on social networks. For example, there’s a new report out: The Value Of A Facebook Fan. And as GigaOM puts it, “The key findings of the report are likely to come as music to the ears of advertisers that have been pursuing a Facebook-based social media strategy.” That’s because Syncapse, a social media measurement firm, found that each Facebook fan has a dollar value – $136.38 on average.

They came up with this number by surveying Facebook fans of 20 of the top brands on Facebook. Starbucks was one of them. At over 24 million Facebook fans, their Facebook community is worth $3.2 billion (at least according Syncapse’s conclusions). What does this really mean? Well, fans spend an extra $71.84 on average compared to those who are not fans. They are also 28 percent more likely than non-fans to continue using a specific brand, and 41 percent more likely to recommend a product they are a fan of to their friends. Now, that is some REAL return on investment.

Of course, you can’t just create a Facebook page and watch the Benjamins roll in. Syncapse is careful to point out that all comes down to how active the fans are. The top brands Syncapse studied are all excellent examples of pages that drive meaningful activity. They also use Facebook to foster customer satisfaction and loyalty – a key component to marketing ROI online and off. Still, the facts remain that there is real, measurable value to social media marketing. When you have that, there’s no need to put an acronym on a pedestal – the numbers speak for themselves.

Email 2.0: You’ve Still Got Mail

With all the excitement over the latest online marketing techniques, email seems to have lost its appeal. Perhaps you’ve seen open- and click-through rates dropping and you’ve moved on to greener pastures, like search engine marketing and social media. Certainly we are all jaded by the incessant, often indecent, random appeals that flood our inboxes. But email is not quite ready to go the way of the broadcast fax. Email is still very effective for an engaged audience that expects and wants to communicate with your brand.

The problem is that most marketers are still just indiscriminately blasting out email to large groups – which today is barely one level above a Viagra offer. If you take even a modest step up from the discount email systems, there is a powerful world of tracking, segmentation and a/b testing available to you. It requires a bit more strategy and campaign management, but when you realize the money you are leaving on the mousepad right now, you’ll be plenty motivated. Here are just a few examples that have proven to produce double-digit increased click-through rates:

Capture shopping cart abandons – Send offers within 24 hours, consider additional incentives.

Welcome series – Craft a progression of emails when people join your list.

Personalize – Not just a name, but based on their profile, browsing activity, recent purchases.

Transactional emails – Cross-sell when you confirm shipment or send a Thank You.

Triggered mail – Engage soon after a visit to your site or a recent purchase (online or in store).

Let me leave you with one simple tip that can double your overall open rate: Simply re-send the exact same email offer to all your “unopens” several days later with a new subject line. Moral? It’s not that they don’t care, they’re busy – and inundated. As always in marketing, we need to cleverly cut through the clutter. With email, it just means a bit of technology added to the strategy and the creative.

Social Good for a Social Media Generation

These days, it seems like everyone is “going digital” and leveraging social media to communicate their message. But, as we’ve mentioned before, it goes way beyond just Facebook pages and Twitter accounts. We’ve noticed that Web 2.0 is emerging as a way for newer generations to change the world without even leaving home. People are already making friends and doing things online based on their interests – its a natural next step to use social networks to connect to causes you care about.

Being A Part of the Online Experience.

Non-profits and corporations alike are embracing the web to get their message to millions of people. These groups can have enormous success by taking their causes online. While non-profits traditionally promote one fundraising event at a time, social media allows charitable organizations to become part of the online experience, enabling more frequent interactions with their audience. And if organizations make it is easy to get involved, people are more than willing to contribute.

It could be on a Facebook page where you can “like” an initiative you’re passionate about. In the case of Pedigree’s “Become a Fan, Help A Dog” campaign, fans can actually make a difference with just one click. Or you could use Twitter hashtags like #AmericaWants to share information with like-minded people and get your cause noticed. You can donate online, and not always just with your money – you can find volunteer opportunities through search engines, message boards and online communities like Jumo. It’s never been easier for people to support a cause.

So what?

Companies are seeing big results from engaging in social good. For example, Pepsi took their Super Bowl advertising budget and turned it into a social good phenomenon. Their Pepsi Refresh program has engaged thousands of regular people by giving them the opportunity to win grants for their grassroots projects. Even more so, Pepsi set aside an additional $1.2 million for projects dedicated to helping the Gulf after oil spill crisis occurred. Since January, more people have voted for Pepsi Refresh causes than voted in the last presidential election. Amazing, huh? And the best part? Pepsi hasn’t suffered from taking their Super Bowl ad money and setting it aside for good – they’ve received a tremendous amount of publicity for encouraging others.

What We’re Doing.

Here at The Cyphers Agency, we’re engaging in some social good of our own by support a local Annapolis grassroots effort, Carol for a Cause. The mission of this community project is simply promoting goodwill, and so we leverage social media and word of mouth tools to engage with people and spread our client’s message. Right now, we’re building some meaningful relationships with bloggers who care about the same things we care about and become ambassadors on our behalf. We’re also running an awesome contest where Carol for a Cause fans can show what “doing good” means to them. The winner will get money towards their favorite charity.

We’re happy to be taking part in social good. We’ve seen some incredible things happen through the web, and we’re glad that we can help businesses use such a powerful and multifaceted tool to make a difference. Have you seen anything like this online? We’d love it if you shared it with us by leaving a comment below.

We’re With Stupid…

Oh, 2009, You Were Good To Us…

Well, 2009, we bid you adieu. This past year has been many things for us as an agency. We’ve survived a recession, gained some new clients, and celebrated our 20^th anniversary as a force in the industry. We’ve also continued to think outside of the box, living and breathing creativity.

Now that this hectic year is over, we’re taking a moment of reflection, thinking about the things we learned (or re-learned) in 2009 and applying them to our future in 2010, which we welcome with open arms. So now that 2010 is officially here, we wanted to countdown 5 of the most essential lessons that our clients learned this year. (OK, so maybe we learned a couple things too)

5. Interaction and Participation: Actually Do It.

Both interaction and participation are important for social media to really work. It doesn’t help just to sign up for a Facebook account. Yeah, that may mean that you are technically using on social media, but it doesn’t mean you are using it the right way. To gain all the benefits of social media, you’ve got to be ready to participate, plug in, and converse with others. That is just the way it is. You’ve got to give to get.

Comcast is a great example. They have taken the time to embrace social media, allowing it to help their company connect with its consumers

4. Tools & Strategy that Work.

Lately, we have noticed a lot of social media obsession. Basically, we have experienced a lot of this: “I want a Facebook!” or “Can you create a Twitter page for me?” We call it Facebook-itis and Twitter-itis, and it is a serious, serious affliction.

You know that saying “there is a time and place for everything”? Well, this rings true here. Yes, Twitter and Facebook are powerful tools and can work, but they aren’t always the right option for our clients. We have developed our ability to assess clients individually, giving them the social media tools that match their specific strengths and that they need to achieve their goals. Sometimes this will include Facebook and Twitter, sometimes it won’t. Either way, we have learned to remain focused on tailoring social media strategy that is specific to each of our clients.

3. Campaign Integration

In 2009, we learned a lot about integration. Social media tools are great, but rarely stand on their own. We knew this was important, but after taking a look at some pretty integrated campaigns (like this one), we came to appreciate integration in that it must go across all platforms, whether that be between social media tools or fully integrated strategies, from creative to marketing to social media. In 2010, we are sure to see more campaign integration, which makes us happy.

2. Relationships = End All, Be All

Social media is about listening to people. Conversation monitoring and participation is at the center of this emerging industry, and we have really learned to listen this year. We now have a tool that allows us to gather discussions from all social media based on the keywords and parameters that we set. That means our clients can gather and sort through larger amounts of relevant conversations, and use them to expand their footprint and find their target audiences.

Take the Comcast example (again). You have a problem with them? Router not working? Tweeting about it will help get your problem solved. They may even tweet step-by-step directions at you. We call that strategic tweeting; fielding and solving consumer complaints has gotten the Comcast brand name pretty far in the minds of consumers on Twitter.

1. Social Media is Legit: It’s the Real Deal, Folks!

We wouldn’t say it’s something we learned, because we knew it all along. But we are thrilled that some of the largest companies are embracing and verifying it; social media is more than a trend and a hot topic. It has officially arrived as a moveable force in the advertising industry. New technologies, like Google Wave, have been created to take advantage of social media. Big time companies like Starbucks or Wachovia are embracing it as part of their marketing strategy. Even the government has acknowledged its influence. Take Obama’s Twitter page or his recent public address on YouTube as an example of this. The FTC also took a part by creating laws and consequences for misuse, which talked about here.

So overall, we feel great. We love what we do and are excited for a very social 2010. Happy New Year!

We Can See Right Through You

In social media (and pretty much any other type of business), transparency is pretty important. If you are a business that is trying to increase buzz or awareness of your products or services, being sneaky and shady definitely doesn’t help create a pretty picture. If you are open, it allows your consumers to give real feedback and engage in real conversations.

Take Tiger Woods as a real-life example. Yes, yes, we know that everyone everywhere is talking about him (hey, if you can’t beat ‘em, join ‘em). When the scandal broke, Tiger remained hidden and unavailable. Had he responded immediately, even with a vague statement, media speculation would have not been as damaging or rampant. We do have to commend him though, because eventually he did release a statement. Most other celebs choose to just stay cooped up, waiting for the storm to blow over. Or they just go on an interview without ever actually talking to their fans. We may not respect Tiger Woods’ decisions, but at least he stepped up to the transparency plate.

On another, more social media oriented note, Mark Zuckerberg (Facebook’s creator and golden boy) also recently practiced transparency. His recent letter, which first appeared on your Facebook home page and now on the Facebook blog, addressed changes that were being made on Facebook that would directly affect the users. He tells you exactly what you need to know: how these changes will be made, when, how, and why. And even though Facebook received some backlash for their changes in privacy settings, we commend Mr. Zuckerberg on his transparent letter in attempt to let everyone know what was up.

That being said, transparency helps. It just does. Having conversations on the web and engaging consumers is about having real, open discussions with people. You can’t have a meaningful conversation if you aren’t acting like a real person. Even more so, timing in your transparency goes a long way. The sooner, the better.

So take the time to make sure that you are being transparent. Reflect on the conversations you are having and make it a priority to be clear and fully open about who you are and what your purpose is.

Uh Oh, It’s the FTC!

It looks like the time has come for the government to have their say in the phenomenon that is social media, and they are doing it in a big way.

The Federal Trade Commission brought the whip down! For the first time since 1980, they revised the “Guides Concerning the Use of Endorsements and Testimonials in Advertising” by requiring bloggers and other word of mouth advertisers to disclose when they are being paid to review products. And by “other word of mouth marketers”, they mean Facebook and Twitter, too. Not including disclosure means more than just a warning or a slap on the wrist; it can mean a nice $11,000 fine. Ouch.

Luckily for us, we have always put an emphasis on honest and openness, following the WOMMA Ethics Code. From the get-go, it has always been our policy to ask bloggers to disclose their relationship with our clients. But for others who many not have been quite squeaky clean, the WOMMA code is no longer just a mere suggestion; it must be obeyed.

These new rules seem like pretty serious stuff if you ask me. But to be honest, we couldn’t be happier about this. It means that companies are actually relying on bloggers and tweeters to promote their products. Even more so, it means that people are listening to what these social media participants have to say, and taking it seriously. 

Ultimately, FTC’s recognition of the power of word of mouth as a legitimate means of advertising and communication moves social media above being just “trendy”. This is the real deal, people! And we couldn’t be more excited to be a part of it.

Why Flash Mobs?

What’s a Flash Mob?

A flash mob, defined by Wikipedia as “a large group of people who assemble suddenly in a public place, perform an unusual action for a brief time, then quickly disperse.”

They’ve been used large companies and non-profits alike, as a non-traditional presentation that is used to generate buzz. T-Mobile coordinated the flash mob below to promote its “Life’s For Sharing” campaign, as you’ll see below. This video currently has nearly 14 million YouTube views.

While a flash mob caused a big stir about T-Mobile, they aren’t just something only huge companies can pull off. Flash mobs don’t require a lot of money, making them an ideal tactic for a small business or non-profit. Below you can see video of a flash mob done for a non-profit, Donate Life.

Flash mobs can be as simple as chasing something. Check out the “Official VT Flash Mob Banana Chase” video below. While it looks like something college students did for kicks, if Chiquita or Dole was associated with the coordination of this flash mob, they would have generated a ton of online buzz about their brand.

A coordinated dance, simultaneous freeze or banana-chasing aren’t the only things a company can do to generate some buzz non-traditionally.  Guerrilla marketing, an unconventional and unexpected method of generating buzz, is an umbrella term for pretty much anything non-traditional you can do to get people talking. There’s no rule book for guerrilla marketing; it just takes one objective and a lot of creativity.

The Benefits

1. Break the noise- Flash mobs and guerrilla tactics a fun way to get people talking about your product or service. The average American is exposed to thousands of advertising messages a day.  While traditional advertising is a critical part of most campaigns, if you really want to get your point across, you absolutely have to break through in an unconventional way.
2. Captivate your audience and generate traditional word of mouth. Flash mobs and guerrilla tactics are fun for the audience to watch and interact with. If you give your them something entertaining, they are likely to take their own pictures and video, and tell their friends about it.
3. The beauty of flash mobs and guerrilla tactics is their potential to go viral. They provide entertainment that people want to watch and share. If T-Mobile’s Flash Mob was not recorded and uploaded to YouTube, then 14 million people would have not been exposed to its message.

At The Cyphers Agency, we have an entire WOM team that lives for these kind of projects. And that creativity thing? Yeah, we’ve got that covered.

You’re Hired–Via Social Media

In a year of joblessness and disheartening economic conditions, Julianna Wittig was among many individuals who were laid-off and forced to begin the job search.

In her search for a new job, Julianna, who is now The Cyphers Agency’s newest Account Executive,  headed straight to her computer. In her online search, however, Julianna didn’t rely on typical job search sites such as Monster and Indeed.  Using social media sites such as Twitter, LinkedIn and Facebook, Julianna took a proactive approach to finding a job. She kept her profile updated and her eyes open for any opportunities she found on those sites.

While Julianna was searching, Darren Easton, Vice President and Creative Director for The Cyphers Agency  was using social networks to find a candidate to fill an Account Executive position. For the position, Darren wanted to find a social-media-savvy individual, who could handle several accounts in the agency’s Push-n-Pull division.

Julianna saw the posting on LinkedIn and began researching The Cyphers Agency–checking into the culture, environment, clients and other employees. Darren was researching too. He asked others online if they knew of Julianna and if they thought she would be a good fit for the Account Executive position.

Thanks to word of mouth and social networks, Darren told Julianna in the interview that he “already knew everything he needed to know about her.” It was clear that Julianna knew how to effectively market herself online, therefore, Darren knew she would certainly be capable of marketing clients online.

Social media has impacted so much of our daily lives. It changes the way we do businesses, network, communicate and even find jobs. The days of faxing resumes and mailing resumes on crisp resume paper are done.

Job seekers can use social networks to search for jobs, interact with potential employers and create online profiles that display their skills. Employers can social media to post jobs, find qualified candidates and ask others about these candidates.

We’re glad social media enabled us to connect to Julianna. Welcome, Julianna, we’re happy to have you here at The Cyphers Agency!