What is the ROI of building up fans? I spent a while with two big brands recently – one is in the top three of cruise ship industry, and the other a global exercise clothing brand. The cruise ship company had a $10 million Facebook budget last year to reach a goal of one million Likes (for those of you who failed math that’s $10 a Like!). The sports brand has a huge budget that they have used to expand into Facebook, Twitter, Pinterest and micro sites. Yet they had a rate of engagement on their Facebook page of less than 1%. So what is their ROI?
Back of the envelop numbers for the cruise ship brand suggest that they would have to sell $120,000,000 of cruises to break even on that investment. At an average cost of $4,000 a cruise – (which is probably way too high) they need to sell 30,000 customers. Did their million Facebook fans convert to 30,000 purchases? You’ll have to look in their annual report.
Both are building a fan base, and the athletic brand is building every flavor of the day it can find – with no regard for engaging in the right conversation for them. The conversation that is going to build brand and sell product. That’s the key – what is your brands right conversation platform and why?
My award for using social media optimally goes to Charmin – yes the toilet paper company.
They picked the right conversation to be having which is going to build brand and sell toilet paper. They built a social app called sit or squat that shows you any where you are the closest toilet and it’s cleanliness. Then after you use that nearby outhouse you can rate it for cleanliness. That’s a brand that knows how to have a conversation and get an ROI from social media, no buts about it!
What is your strategy to have th wright conversation which drives sales and builds brand?