Rory Martin

Social Media ROI for a Business to Business (B2B)

Return on Investment Projection

Introduction

In order to measure Social Media ROI you must define clear measureable goals. RoryMartin.com’s online marketing campaigns deliver both measureable revenue as well as ancillary brand building benefits for your company. For business to business (B2B) brands, building a successful social campaign allows you to engage communities and respond to customer service calls-to-action. In fact, Social Media in B2B scenarios are no different than any other sales-focused marketing effort: social helps you attract and engage business customers throughout the sales cycle, creating awareness and interest, and through brand recognition, enhances your sales. This social sales cycle is often measured as “ancillary” even though it directly affects your financial bottom line.

In a B2B setting, organizations are looking for targeted buyers in specific roles and functions; the offering is more complex, pricing is complicated, and multiple decision makers often influence the final outcome. Moreover, investments in marketing are highly scrutinized with respect to return – marketers must be laser-focused on streamlining the buying cycle and influencing the pipeline.

For the purposes of this document we will focus on transacting customers and the projected Return on Investment.

Background

A recent survey by PulsePoint group and the Economist Intelligence report that “Executives who said their companies had established an extensive social media presence reported a return on investment that was more than four times that of companies with little or no social network engagement activity.” Social Media has a pronounced affect in marketing and sales efforts, allowing businesses to increase their market share.

In several cases, the report states that social media efforts improved the quality of the service provided to clients, improved speed to market innovation, and helped to decrease overall costs. These companies used social media to create a space where consumers can have meaningful conversations with the brand and other stakeholders. In fact, business customers are more likely to expect social interactions from industry peers and the companies they do business with than ever before, giving businesses a chance to leverage social content beyond the sales cycle to retention and advocacy.

Gleanster Research performed a study that showed that about half of top performing B2B marketers incorporate social media into their marketing execution, outperforming their industry peers in revenue growth.

By the Numbers:

  • Among B2B companies, LinkedIn was the most effective in generating sales leads through social media, with 65% having acquired a customer through the professional network, followed by company blogs (60%), Facebook (43%), and Twitter (40%).
  • 77% of buyers say they are more likely to buy from a company whose CEO uses social media. 82% of employees say they trust a company more when the CEO and leadership team communicate via social media.
  • Only 27% of B2B leads are sales-ready when first generated. This makes lead nurturing essential for capitalizing on the other 73%. But 65% of B2B marketers have not established lead nurturing campaigns
  • SEO-driven leads have the highest lead-to-close rate (15%) among common lead generation sources. Paid search leads average a 7% rate, while outbound marketing leads (e.g., direct mail, telemarketing) close at a 2% rate.
  • 57% of B2B marketers say SEO has the biggest impact on their lead generation goals
  • Search provides the highest quality leads. According to research by HubSpot, “SEO leads have a 15% close rate, on par with the close rate for direct traffic, and ahead of referrals (9%), paid search (7%), social media (4%), and outbound leads (2%).”
  • B2B companies with blogs generate 67% more leads per month on average than non-blogging firms.
  • The most popular content marketing tactics used by b2b marketers are article posting (used by 79% of b2b marketers), social media excluding blogs (74%), blogs (65%) and e-newsletters (63%). Just 10% use virtual conferences.
  • The average cost to generate a lead through inbound marketing ($143) is about half the average for outbound marketing ($373).
  • 84% of b2b companies are using some form of social media marketing. However, “best in class” companies generate over 3X their share of all leads (17% vs. 5%) from social media as do average performing companies
  • 90% of b2b marketers are doing some form of content marketing, and b2b marketers spend on average 26% of their marketing budgets on content. The most effective content marketers spend twice as much as their less effective peers on content development, and consider buying stage when developing content.

A strategic approach to leveraging content in social media is key to gaining and retaining customers across the lifecycle of a product. B2B marketing should use social media and content as bait to attract hyper-targeted buyers in specific roles, within specific industries, and who perform specific functions. Social media should be viewed as a way to assist sales instead of a direct channel for sales.

Based upon current research and trends we are projecting approximately a 2-28% increase in engagement and an increase site traffic. There will be many more benefits we can’t yet measure based on the unknown positive impact we’ll have on your target audience. We are using a median industry standard of 13% to show you real ROI to justify your investment. However, the return could be much higher.

Outline of Deliverables on 5K monthly budget

Facebook:

Action

Fans

Monthly Calculation for Best-Case and Worst-Case Promotion Scenarios

Increase visits of current fans

3,679

Best-Case: 25%
= 919 fans dine once a month with a $20 check average
= $18,320

Worst-Case: 10%
= 367 fans dine once a month with a $20 check average
= $7,340

 

2,325

Best-Case: 25%
= 581 fans dine once a month with a $20 check average
= $11,620

Worst-Case: 10%
= 232 fans dine once a month with a $20 check average
= $4,640

 

1,200

Best-Case: 25%
= 300 fans dine once a month with a $20 check average
= $6,000

Worst-Case: 10%
= 120 fans dine once a month with a $20 check average
= $2,400

Increase Fan Base with no incentive

50 – 100 per month

Best-Case: 100 new fans per month
= one visit with $20 check average
= $2,000

Worst-Case: 50 new fans per month
= one visit with $20 check average
= $1,000

Increase Fan Base with second cocktail free incentive

50 – 100 per month

Best-Case: 100 new fans per month
= one visit with $42 check average minus $10 coupon loss
= $3,200

Worst-Case: 50 new fans per month
= one visit with $42 check average minus $10 coupon loss
= $1,600

Twitter


Action

Followers

Monthly Calculation for Best-Case and Worst-Case Promotion Scenarios

Increase visits of current followers

481

Best-Case: 25%
= 120 followers dine once a month with a $20 check average
= $2,400

Worst-Case: 10%
= 48 followers dine once a month with a $20 check average
= $960

Increase Seattle area followers

50 – 100 per month

Best-Case: 100 new fans per month
= one visit with $20 check average
= $2,000

Worst-Case: 50 new fans per month
= one visit with $20 check average
= $1,000

Increase Seattle area followers with second cocktail free incentive*

50 – 100 per month

Best-Case: 100 new fans per month
= one visit with $42 check average minus $10 coupon loss
= $3,200

Worst-Case: 50 new fans per month
= one visit with $42 check average minus $10 coupon loss
= $1,600

Total ROI for One Month of Twitter Promotion Factoring in All Scenarios.

$7,600

$3,560

Event Promotion

Increase in Attendees

Monthly Calculation for Best-Case and Worst-Case Promotion Scenarios

Tuesday Night Events

100

Best-Case:
= 100 new event attendees spend $60
= $6,000

Worst-Case:
= 100 new event attendees spend $25
= $2,500

Tuesday Night Events

50

Best-Case:
= 50 new event attendees spend $60
= $3,000

Worst-Case:
= 50 new event attendees spend $25
= $1,250

Total ROI for One Month of Event Promotion Factoring in All Scenarios.

$9,000

$3,750

How to Track

This strategic approach can be measured through several Key Performance Indicators (KPI), weighted by the relative value to the organization, which represent productive customer lifecycle interactions and success. In measuring the success of these KPIs important to remember that the ROI of Social Media in a B2B platform is based on a company’s overall communications, CMR, and Research and Development efforts.

  • Social KPIs. Fans, friends, followers, comments, likes, shares, votes, and ratings (benchmark, trends, growth, and quality).
  • Social topics. Used in relation to brand name and sentiment (relevance to brand USP and key messages, relevance to what customers care about, and pain points and solutions).
  • Search KPIs. Brand vs. non-brand search keywords and website content (product/sales info, HR jobs, news, and customer service/support/FAQ/knowledge base).
  • Business outcomes.
  • Sales. Inquiries, up-sell/cross-sell, upgrades, order frequency, volume, and net profit.
  • Social engagement. Trend of brand mentions, referrals, endorsements, links/shares, and sentiment over time.
  • Public relations. Unsolicited MSM news pickups, online media blogs, media inquiries, and analyst inquiries.
  • Human resources and recruiting. Candidate inquiries from search- and social-optimized content.
  • Customer service. Rate of traditional support inquiries vs. web visits to support content, and service solutions delivered via social channels.

How to Measure Social Impact

Social impact is based on many factors. The most important of which are:


SCORING:

  • 4 points or less: The business is less than optimized, missing key chances to convert potential sales.
  • 5 points: The basics are covered, which is better than most but far from optimized.
  • 6 to 9 points: The business is doing better than most but is still not fully optimized.
  • 10 points: The business is fully optimized. Consider expanding to events and other promotions.

It is important not only to use social media to promote your brick and mortar establishment, but to also use your social media establishment to promote your social media accounts. If you are not using these social accounts, you’re missing out on valuable opportunities to connect with clients who are waiting to connect with you.

Social Solutions from RoryMartin.com

Ultimately a business’s goals should be to convert potential clients into actual clients. Using social media to promote a brick and mortar establishment, as well as events will ensure the leveraging the power of these interactions. Using social media increases brand awareness, builds excitement around the brand name, and ultimately converts conversations into customers.