Beyond Buzzwords: ROI vs. Brand Building on Social Media

Beyond Buzzwords: ROI vs. Brand Building on Social Media

November 19th, 2012
ROI vs. Brand Building on Social Media

What’s the difference between return on investment (ROI) and building your brand on social media? Sometimes it can be confusing to tell the difference between the two, so Entrepreneur set out to clarify the differences between the two.

 

According to Entrepreneur,
 
The main problem most businesses have is that they don't approach social media strategically. If you want it to drive sales, you should dictate to your partners, "We want a strategic plan that leverages social channels to drive sales." When your consultant is talking about "building your brand" and seems to avoid the ROI question -- remember, you may have to ask -- he or she likely doesn't have the requisite experience in working with businesses and brands that are bottom-line focused.  Social media offers volumes of intangible or intrinsic value such as brand building, reputation protection and strong customer service; when used strategically and with business goals in mind, it can be used for extrinsic value, too.
 
However, Entrepreneur reminds us that it’s important to remember that social channels aren't where consumers say they want to interact with brands in a sales way. Citing an Indiana marketing company’s survey, they state that “consumers want to receive marketing messages from brands over email (77 percent of respondents), not Facebook or Twitter (5 percent).”
 
So, selling via social channels for many brands may not be easy. This is where the brand-building, engagement, service and responsiveness comes into play for your company. You may need to invest time and resources into the soft benefits of growing customer engagement and loyalty on social media in order to get the hard ones like conversions and sales.
 
But Entrepreneur likens getting an answer to "What's the ROI here?" before implementing a strategy to saying, "How many grandkids will I have?" on your daughter's wedding day. The results depend on the plan and the work you put in.
 
What do you think? Have you seen a boost in ROI following brand building on social media? Let us know in the comments.

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