Social media alchemy—core objectives and ROI metrics (PART 1)

Nov 21, 2023

Welcome to another installment of our Random Thought series. This week, we continue to cast a spotlight on the dynamic realm of social media. With an expansive global user base approaching 5 billion accounts (realistically estimated at around 4.2 billion individual users, excluding the multiple accounts that some users have), and users dedicating an average of 2.5 hours daily to social media platforms (as reported by Statista), it has become imperative for corporations and brands to channel their marketing efforts into the social media sphere. In fact, one could argue that social media platforms should progressively emerge as the primary marketing channel, given the manifold advantages they offer in comparison to traditional marketing channels.

In light of this, these crucial questions arise: What should be the goals of your social media investment? What outcomes can you reasonably expect? And equally important, what metrics should you use to measure the effectiveness of your social media strategies?

While these questions have undoubtedly been addressed by many companies/brands in the past, it is vital to acknowledge the ever-evolving technological landscape will continue to reshape consumer expectations, attitudes, and behaviors, and therefore change the answers to these questions. Hence, the ongoing need to revisit and reassess these inquiries remains paramount.

In recognition of the extensive nature of this topic, I've decided to present it in a two-part series. In this initial installment, I will concentrate solely on defining the key goals of social media investment (of which, there are three). The subsequent post, slated for next week, will delve into the crucial aspect of what metrics you should use to measure the effectiveness of your social media investment.

The three core objectives and goals of social media investment are:

1. Building and growing a vibrant, active, and engaged community on each of the major social media platforms:

   1. The fundamental goal should be to cultivate and grow a community of active and engaged followers on your brand account on each of the major social media platform, and subsequently channeling all marketing activities through this community. After all, without the community, there are no customers to market to. The larger the community, the more impactful and cost-effective marketing actions become—an assertion valid across diverse industries, be it B2C or B2B.

   2. Consider Nike on Instagram as an example. With 306 million followers, envision the potential savings and effectiveness in running advertisements and launching new products on that social media platform, especially compared to traditional offline marketing activations.

   3. But of course, building, sustaining, and maintaining continuous growth of such a brand community is no small feat, especially given the plethora of brands vying for attention within the same industry. Cutting through the clutter would require consistently delivering eye-catching and engaging content. As many successful YouTubers and streamers attest, besides their personality and content quality, the key to their success lies in the regularity and frequency of their content releases. Failing to meet the desires of interested followers due to inconsistent content release can lead to follower attrition—an aspect worthy of exploration in a separate post.

2. Enhance and reinforce your brand architecture:

   1. Social media marketing serves as a fundamental tool for constructing and reinforcing your brand architecture, essentially shaping your brand image.

   2. Create a positive brand impression by crafting posts that authentically mirror your intended brand image, incorporating relevant visual and audio components. Each post should consistently convey the brand messages you aim to communicate, ensuring that every viewer experiences a reinforcement of your brand identity.

3. Generate revenue directly on those social media platforms:

   1. In the past, deriving direct income from social media platforms posed challenges due to functional limitations. However, with the rise of social media shopping, exemplified by platforms like Instagram Shop, direct income generation is now a realistic expectation (provided you integrate social media shopping features into your account).

   2. It's crucial to note, as discussed in a previous post ("Social Commerce Might Not Be a 'Revolution,' But Get in on It!"), that while social media can contribute to revenue, it should be viewed only as a complementary component to your overall sales channel. The emphasis lies on showcasing and selling unique and innovative products, positioning social media as an avenue where such offerings stand out and contribute to your broader revenue streams.

Now that we have this key question answered, next week, I will post about what key metrics you should use to measure the ROI in your social media investment as per these three key social media investment goals. With that said, I hope this post helps you in some way. Make sure you do follow us on our LinkedIn account for more! Have a great week everyone!