If you work for an agency or are spearheading the social media efforts for your company, this may not be the news that you want to hear. But Gary Vaynerchuck points out the obvious in a compelling way – NOT engaging with your customers via social media creates opportunities for your competitors. And while you may not lose your whole market, you may well lose the high yield, low churn folks who are your bedrock, or you may lose the low yield, high maintenance influencers who help attract a wider audience.
Don't forget, social media loves a niche – and you don't have to serve the needs of your entire community in the same way. Identify key audience segments, understand their expectations and communication needs and then design your efforts around the way that adds value to your mutual relationship. If that means social media, great. If it means, "just give the me a good product when I need it", do that. But make sure you PAY ATTENTION.
Because if you don't, someone else will.
6 thoughts on “Gary Vaynerchuck on Social Media ROI”
It’s a good point, but I don’t know if it’s a compelling argument to the average marketer. They’re already know that if they don’t advertise on TV someone else will and if they don’t put an ad in the latest niche magazine their competitor will – marketers are used to that dilemma. I find case studies like ‘Cancel AOL’ (http://au.youtube.com/watch?v=xmpDSBAh6RY), and ‘Dell Hell’ a much stronger way of selling social media because marketers can see that if they don’t pay attention to the social media sphere there can be serious repercussions (AOL had to pay the State of New York a massive fine) and if they do pay attention, they can achieve quantifiable benefits (Dell reduced customer complaints 16% in 6 months by engaging bloggers).
Hey Matt … very true. I think that at this stage social media does not yet
appeal to the “average marketer”. It’s those with a more strategic view that
are moving in this direction.
Thanks for the comment – hope to meet in 09!
I think this argument is compelling for those ‘fame hungry’ marketers of which there are quite a few. Because it appeals to the ego and can provide the kudos that comes with jumping in first.
Who doesn’t like to think of themselves as a bit of a trailblazer?
I’ve certainly sold a few ideas that way.
Kate, ego is one thing, convincing your boss to give you more money to try something new and relatively unproven is a whole other ball game!
Gavin, I know where you are now, so I’ll drop you a line next time I’m in Sydney 🙂
Not entirely off-topic, but since I don’t ‘tweet’, I have taken the ‘old-fashioned’ option of commenting on a few of my favourite blogs (and you are OF COURSE on the list 🙂 to engage in discussion about the question: what will change the world? The question was asked and answered by over 100 of the brightest on Edge.org (it is not a blog) so I have summarised their views on my blog. One answer is ‘social media literacy’ – and I wonder what you think?
The Social Media Academy worked on a research to identify a method to calculate ROI that is mathematical correct (currency on both sides of the equation) and is relevant to a CFO.
CM / IC = SM-ROI
You find the details here: http://xeeurl.com/A0567
And a discussion on Social Media Today here: http://xeeurl.com/A0568
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