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In 1 Simple Ingredient for All Your ROI Needs, I discussed using a key code system to track the performance of individual social media efforts. While this practice is a great step towards tracking the sales performance of the social media channel, it is not enough if you truly want to learn how your social relationships are influencing sales in the long term.

What does it mean to measure impact on long term sales?

Think about it this way. Evaluating long term impact means there is going to be a starting point, a building up of history, and then a point where you measure what has happened since the starting point.

Starting point: Date of first sale

Building of history: Transactions made over a period of time

Measurement point: Recording cumulative sales that have occurred since the date of first sale

How do you apply this analysis to social media?

The goal here is to look at the buying history of the customers you have social relationships with versus those you don’t.  This requires that you:

1. Identify which customers are Facebook fans and/or Twitter followers.
2. Append this information to your customer database or marketing database for future reference.
3. Segment your database into  groups based upon relationship.
4. Further segment your groups into months or quarters based on first sale date.

In the example above, sales to Twitter followers is 14 points higher than average and 20 points higher than customers where there is no social relationship.  To fully load this analysis to get a total ROI, you would need to load in the costs associated with social media. I’ll save this discussion for a future post. Please leave a comment or email me if you have any questions in the meantime.

In the couple of years that I have been involved with social media marketing, I have seen much correlation between what what works for driving engagement and what works to drive a direct marketing response. I have become convinced that there is one area of focus that is sorely overlooked by brands seeking to build a vibrant and constantly growing Facebook community. There lacks an attention to the influence of copy.

Over the years I have pushed hundreds of millions of offers out to consumers and learned that what drives response holds true to the old folk wisdom—

“It’s not what you say, but how you say it.”

I have seen numerous tests where a different set of words or something else said or not said can produce a variance that can amount to a huge pile of cash to the bottom line.

Translating this idea to today’s social media world, most Facebook marketers haven’t quite realized that the Wall is a vehicle for generating response and that post copy should be formulated with care. Don’t let the real-time nature of the platform fool you into thinking that your messages should not require some planning.

5 tips for writing effective Facebook updates:

1. Speak to your fans in a style that makes them feel like you are addressing them individually. Develop the message to read like you were speaking 1:1.
2. Keep it short. No more than 4 lines in the post wherever possible. Make every word play a role in the message. Eliminate those that don’t.
3. Say something designed to inspire enthusiasm or emotion. Keep in mind that many Facebook users are hunting for posts to like and comment. Give them a reason to stop at yours.
4. Create sentences that flow smoothly. Awkward wording can lead to abandoned eyes.
5. Always have a photo or a link with an image attached to the post. Pictures are more engaging and heart-inspiring than flat text.

I’d love to hear any tips you have to add!

In our conversations with potential clients, the most frequent goal we hear is the desire to monetize social media. To this end, we at Inner Architect have begun to take a unique approach that enables email to monetize social media.

Think about it this way. Your goal with social media is to build relationships that positively influence customers’ lifetime purchasing with your brand. Rather than look to social media to make the sale, leverage your social media relationships to influence sales in email, postal or telesales efforts. By doing so, you:

• Personalize the outreach
• Strengthen the relationship
• Increase the potential to make a sale

Let’s face it. Facebook and Twitter have changed our culture. Customers who engage with your brand on Facebook or Twitter want to be recognized. If you are not sending those customers personalized messages that acknowledge your Facebook or Twitter relationship, you miss the opportunity to leverage the social relationship. You defeat the whole purpose of social media by sending messages that are not personalized.

We are recommending strategies that segment customers into targeted groups that enable you to send relevant messages. This level of  segmentation also helps you to capitalize on opportunities to outreach when purchasing history indicates a likeliness to buy.

Want to learn more? We’d love to hear from you.

Let’s face it. While social media is the trendy new marketing kid on the block, email remains the channel that most companies rely upon to execute their direct marketing programs. Why?

• Email is easy and inexpensive.
• Social media is new and time-consuming.

Many marketers make the mistake of assuming that since email is cheap, there’s no harm in blasting the whole database with the same message. Yet this strategy produces an unhealthy syndrome called list fatigue. Without a strategy for sending the most relevant messages to the most targeted customers, your emails can begin to be perceived as irrelevant and your customers stop opening them. If your customers shut down your only touch point, you lose your ability to communicate with them and increase the likelihood of losing them. Not good.

This is where social media can play the hero. Social networks give you another channel in which to get your customer’s attention. By making the effort to maintain social network contact information on your database, consider the power of what you can do:

• Best customers: Show them that you care by acknowledging them in a social relationship.
• New customers: Get the relationship off to the most promising start by welcoming them to a social relationship.
• Lapsed customers: Seize the opportunity to re-engage those who are no longer responding to your emails.

Are you thinking this sounds too time-consuming and something you can’t afford? Think about it this way. Back in the day direct marketers spent tons of money on four-color printing on high quality paper. But they didn’t mail these expensive pieces to everyone. They only invested in the people they predicted were most likely to buy or those they sorely did not want to lose.

This is the kind of science that now needs to be applied to social media marketing. How prepared are you?

Last week we met with a small retail business whose direct sales dollars depends heavily on direct marketing efforts. We were on the topic of email marketing and I learned that they had never done any testing. I described the concept of A/B testing, and while they understood the potential value, they perceived it as “too complicated”.

Trust me on this one. Over the course of a 20+ year career, I’ve tested pricing, lists, subject lines, offer copy, packages, creative, engagement devices, premiums, even stamps! Here’s what I learned:

1. Slight variances in performance can easily add up to tens of thousands of dollars. Over the course of time, a better performing effort can amount to hundreds of thousands of dollars.
2. There is psychology involved in motivating a customer or prospect to buy. Testing enables you to learn about what works and what doesn’t, which can lead you to develop your own theories that guide you moving forward.

Where should you test? Every channel where you are delivering marketing messages should be considered fertile testing grounds. Despite popular fallacies, you can measure ROI on social networks like Facebook and Twitter.

Tips for testing:

• Keep your laboratory as clean as possible. Make sure you’re comparing apples to apples with regards to list and delivery times. Any variances between the two samples will fuzzy your results.
• Create test panels of equal size in channels which allow for list segmentation.
• Think in terms of having a “control” and “test panels”, with your goal always to beat your control to increase your sales.

Let me close now by passing on my mantra: Always be testing!