Gary explains it much better than me. But I’ve said this before: Social Media=The Internet.
Gary Vaynerchuk is Wrong: There is a Social Media ROI
At last year’s LeWeb, my colleague and social media superstar Ayelet Noff asked my favorite wine guy Gary Vaynerchuk the question that we were all hearing in 2009, 2010, and finally forced to answer in 2011: What’s the ROI of social media.
Gary answered that that’s the wrong question – and it’s a problem. Gary asked, “What’s the ROI of your mother?” It’s not about data or Facebook friends or Twitter fans, he said.
He also said that ROI should be “relationship with consumer.”
But ROI of social media is far more than relationships. It’s not just about the The Thank You Economy
There are a lot of people getting paid for “social media” consulting because they know how to use Facebook but not measuring ROI. This is how we were all doing it in 2009.
In 2012, it’s time for accountability.
At work, I’ve been a passionate advocate for Twitter – not because I love it (I love whatever tool works) but because it has a high click through rate and is an appropriate tool to integrate with other campaigns to achieve one of my key business goals: qualified leads. But I’ll use whatever tool achieves that goal – Twitter or Facebook, a trade show, or a magazine ad. What matters is achieving the strategic goal – using whatever tool is appropriate given my budget and organization. Social media is part of ecommerce. I’ve made clear sales – actual dollars – directly attributable to blog posts.
What’s the ROI of social media? Here are some possibilities:
- Sales – immediate, tangible revenue
- Qualified leads, in whatever form – names/email addresses, downloads, form submissions, etc. – that are targeted and qualified, using your qualification definitions.
- Lowered costs
- Customer service questions answered
Define your KPIs first and maybe social media can help you achieve this. On the other hand, maybe not – either way you should be comfortable finding the tool to achieve your KPI.
Here are some answers from Groundswell, Forrester Research’s first book on social technologies, on how social TOOLS can be used to accomplish BUSINESS functions:
The ROI is tangible and quantifiable. Here is another example on how social tools can help save money in customer service can be seen here.
OK, I admit, this title was a bit of link-bait and I’m being a bit unfair to Gary – who knows that the ROI in social media is what we aim to achieve.
In a later interview, Gary made the point that most social media marketers are clowns — talking about Facebook likes and Twitter followers, instead of how social media is a channel to achieve business goals.
Gary made the point that you need marketers who know how to use digital tools to achieve business goals and hiring some 22 year old kid who knows how to use Facebook isn’t the right person to be managing your business.
It’s time to start being accountable – 99.5% of social media “marketers” are clowns – encouraged by marketers who are technoilliterates seeking out the 22 year old kid who doesn’t understand business – those of us who have been doing this for a long time, like Gary, Ayelet, and me all know that this a tool to achieve business results.
Gary Vaynerchuk: There is a Social Media Bubble
Gary Vaynerchuk has been a social media superstar. Certainly no Luddite, he’s used social media — and most important useful content and real expertise — to real business success, both for his wine business and personal businesses. I first discovered Gary Vaynerchuk three or four years ago, when he was in the early days of Wine Library TV and reviewed some Israeli wine for the first time.
Yet, Gary has said that there is a social media bubble. 99.5% of those who call themselves social media gurus (a terminology I’ve long rejected) are “clowns.”
On a recent TechCrunch TV, Gary Vaynerchuk said: “we are going to live through a devastating social media bubble.”
According to Gary, 99.5% of “social media gurus” (A term I would get insulted if anyone calls me that) don’t know how to define real business value. It’s not about “likes” or “fans” but rather about business value. This doesn’t happen at once. It’s not viral. It’s hard work – Gary is known for being online at all hours and answering emails at 3 in the morning.
Social media performs business functions: it’s not a function in itself.
Social media is a tool, like a telephone. He’s repeating a message that I’ve advised clients for years and longed believed: There is a Social Media Bubble.
Social media is a tool to create business value. It’s a tool to show appreciation to your customers, help them with customer service, and provide real business roles.
Are you hoping for the magic? Or are you focused on real, long-term business strategy.
Gary Vaynerchuk: I hate the word 'social media'
Gary Vaynerchuk discusses branding and marketing in today’s new age. Pay attention – he hates the word ‘social media’ because media implies broadcasting — but today’s age is conversation!