For the past eighteen months companies have been setting up Facebook pages, collecting fans and spending money on consultants. Why? Because their competition is – not necessarily because they had a goal in mind. Smart brands are wising up and are setting the goal where it should be – on revenue. Today I’ll give you some insight into best practices for companies making the most of social media to drive revenue.
Focus on Engagement not Building Facebook Fans
Look at two very different Facebook pages – check out GoPro and then look at Red Bull. Both brands target the exact same demographic, with very similar lifestyle. Red Bull has significantly higher Fans on Facebook than GoPro – in fact Red Bull’s 28 million fans is more than thirteen times more than GoPro’s 2.1 million. But as Bill James figured out in Baseball (see: Moneyball the movie or book) batting average doesn’t really matter – it’s how often you get on base that wins game. Similarly Facebook Fans don’t matter, it’s how often they engage with your brand that drives revenue.
The Brand Audience Rate of Engagement (BARE) is the best way to measure social media success and likelihood of driving revenue from your social media efforts. BARE measures how many people Like, Comment, or Share your content on Facebook. In other words how engaged people are with our brand in an on-going way. Red Bull’s BARE is less than 1% (.92% to be exact). Compare that to GoPro with over 6.7% BARE Score.
GoPro interacts with fans 600% better than Red Bull.
Social Media Driving Revenue
The higher the BARE, the more people are interacting with your brand. This means you can drive a more active and consistent message. You can glean feedback, increase brand equity and most importantly create a call to action that people will heed – such as a sales offer.
One aspect of Facebook that is a mystery to many people is the EdgeRank algorithm. This is the highly secretive formula that determines what makes it to a person’s newsfeed or timeline. The one-shot offers to convince people to be a Fan of a corporate page are just the start to social media marketing. Once you have them you have to engage them consistently, with high quality content and do it in a timely manner. There is one way to do this that is better than anything else – and it ensures your brand will get high engagement in front of your targeted audience.
Events are the key to Facebook success.
If you run marekting for a Fortune 500 company chances are your brand is already spending millions on real world events. Do you sponsor sporting events? Co-host concerts? Have naming right at an arena? Your goal is probably to get impressions and brand recognition thourgh those people at the event or with those covering the event in the press. With the new digital word-of-mouth that is social media you can now reach on average 200 other people for every person at your event who is on Facebook. You just have to make it frictionless and make sure your brand is associated with it.
Combine RFID as a single sign on to social media so your attendees don’t have to use a phone and create photos that are not obtainable anywhere else. Mount cameras on the bow of your ships, at the top of your Jumbotrons, on the Green Monsta! You get the idea – then use dwinQ’s social media software to automatically update the images, tag them and then post to Facebook in real time– with your logo superimposed on the photo. It will increase your event ROI by 10-50 times what you were getting before. Read more about it by downloading our free whitepaper on social media at events.