Here’s an rock solid presentation on social media return on investment (ROI) to your CEO (or your boss) by Olivier Blanchard on slideshare. He made these available 2 years ago; that’s a long time in Internet years, maybe even longer in Internet marketing years. But his message is still quite relevant today and will be still relevant tomorrow. For business leaders who (still) have challenges in understanding this social media thing, this should help make things clearer.

Takeaway points:

• Social media is not free. It takes 1) people, 2) technology, and 3) time.
• Social media, like everything else in a business, must help reduce cost and increase revenue.
• Analytics only reports on non-financial impacts of social media.
• Social media performance needs to be tied to financial impact.
• To measure financial impacts of social media efforts, try the following:
  1. Establish a baseline (pre-social media measurements,)
  2. Create and report on social media activities timelines (social media activities over time,)
  3. Compare sales figures, number of transactions, net new customers before and since social media started; and be sure to include plenty of specific details on transactions.
  4. Measure transaction precursors such as new mentions, store traffic, website visitors, click through rates, blog comments, etc.
  5. Overlay all timelines to view transactions cause and effect together at the same time.
  6. Look for trends and related patterns.
• Then make business decisions to enhance what ‘s working and rectify what’s not.

Post from: Marketing Autopsy Blog
© 2009 Marketing Autopsy Blog.

The Basics of Social Media ROI

Online marketing. It’s very important to know your numbers. For marketers, especially Internet or online marketing professionals, analytics is an absolute must-have. But while your own numbers can tell you a lot about where you need to improve, looking at the wider market analysis and trends can quickly point out where the big holes are in your marketing strategy. If you’re not targeting your products or services to the 45-and-older demographics, you may be leaving a lot of cash on the table.

Here’s the problem. Many think of the younger generations as being web savvy. You know, the Gen-X and Gen-Y demographics. This is definitely true. However, the latest numbers may surprise you. In the post called “Generations Online in 2009“, Sydney Jones, Research Assistant, and Susannah Fox, Associate Director, of Pew Internet & American Life Project, reported on the latest trends of online activities of different age groups by specific activities. While you can go there and read the complete article, here are a few things online marketing professionals can take some action on immediately based on the numbers. All graphics courtesy of PewResearch.org.

Below is the definition of generations as segmented by the Pew Internet & American Life Project.

Internet use and email

While the younger generations (Gen-X and Gen-Y in the 18-44 age groups) dominate Internet use, older folks are actually getting more involved. At 22% (ages 45-54) and 13% (ages 55-63) for a total of 35%, older Internet users are coming on strong and are expected to continue to push this trend in the future.

There’s no surprise here as we’re really looking at the group of Boomers. With modern advancements, life expectancies continue to increase and people stay active for many years longer, further contributing to the growth of Boomers’ presence on the web.

With respect to email usage, the tendency is also similar. While the younger users prefer instant messaging, social networking, and blogging as their communications tools of choice, email are still the most popular application among older Internet users.

So without knowing these facts, many may not realize the following:

• A third of Internet users are above the age of 45. And the trend is continuing upward, not downward.
• Though the exact numbers can be argued, the Bureau of Labor Statistics shows that peak earning years of U.S. male workers are now between the ages of 45 and 54 (1999 data). That’s exactly the leading group of this 35% older Internet users.
• If you’re not marketing to this group on the Internet and via emails, you’re missing out.
• The point: Don’t forget the 45-and-above demographic!

Tool for research, shopping and banking

While fully 80% of Gen-Xers continue to lead in online shopping, noted the study, the 45-and-above crowd prefer information research (mainly health care and other products), shopping and banking. And even though still trailing behind younger generations in shopping, 56% of users ages 64-72, and 47% ages 73 and older do in fact buy products online. However you look at it, these are pretty big numbers.

In the online banking segment, both Gen X and Gen Y maintain their high rate of activity to manage their day-to-day spending and finances online. And as these users grow older, they will effectively take their habits with them into the older age groups. Again

• The point: Are you prepared for the 45-and-above demographic?

Video downloads, online travel reservations and work-related research

What about these other online activities like video downloads, travel reservations and work-related research? Well an interesting trend emerges here. According to the study,

Generations on the oldest end of the spectrum also became significantly more likely than they had been two years before to download videos. Some 13% of G.I. Generation internet users (age 73+) reported downloading videos, up from 1% in 2005, and another 13% of the online Silent Generation (ages 64-72) say they download videos, up from 8% in 2005.

If one looks at these “smaller” numbers in context, they are actually huge. Considering that the Internet concept itself never existed to these age groups during most of their life, the numbers really indicate that the older folks are not only already savvy with Internet technology and communication, but their numbers are increasing as well. And again when you further consider that the younger generations are growing older all the time, you’re looking at a growing market.

• The point: You need to target for the 45-and-above demographic!

Broadband Internet Access Tripled in Oldest Groups

Let’s take a look at the broadband Internet access in the homes in the U.S.A. This is an indication of the capability of the users to do more online. It really is an enabler, because without it, user experience (or the lack of it) will always keep the users away, resulting in limited Internet use and growth.

Recent technology advancements, and more affordable price points, have helped large growth in broadband install for home use across the board (see graph below). While there was a doubling of broadband access in the home between 2005 and 2008 for many age groups, the real kicker is the tripling of broadband access in the 65-and-older group. Again absolute numbers are probably small, but the growth is phenomenal.

• The point: Go ahead and market to the older demographics. They’re well-equipped and ready for you.

So online marketers, times may be bad and the economy may not recover for a while. But if you dig deep and make an honest assessment of your online marketing goals and strategies, you may find new and untapped opportunities right in front of you in the form of the 45-and-above customers. Like in any other market groups, just make sure you understand your customers, prepare the proper and targeted marketing messages to solve the customers’ real problems and needs, and you can position your organization for growth.

Share your experience with us. All comments and feedback are welcome.

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Post from: Marketing Autopsy Blog
© 2009 Marketing Autopsy Blog.

Online Marketing Success: Don’t Forget the 45-and-Older Demographic

Marketing Charts summarized a recent study done by the CMO Council, called “Driving The Bottom Line From The Front Line”. The study highlights an alarming reality among large, multinational companies: marketing and sales collaboration and effectiveness are rated as poor according to the organizations’ own assessment.

Here are some results summarized at the Marketing Charts page (noted here with my thoughts on the subject):

Unifying Sales and Marketing Still a Challenge for Most Companies.

• Barely 12% of sales and marketing professionals say they have a well-integrated, real-time view of all customer interactions, while only 37% report good visibility into prospects, pipeline, deal flow and conversion rates.
  • Thoughts: It is not a surprise on this one since we all experience very busy workload during a typical day, thus having no time to look at or analyze the data. Eighty-eight percent lacks visibility into customer interactions – that could be a lot of sales being missed. And 63% lacks the ability to see the sales process, prospects and pipeline- again this may lead to sales left on the table or going to competitors. To improve these numbers I think companies will have to either 1) add analysts to their team to provide additional support, or 2) implement policy to force the team to regularly slow down and look at what they have and re-prioritize, then proceed again.
• By comparison, 20% indicate that marketing hands off leads to sales, yet marketing has no insight into conversion and close outcomes; 13% say most leads are never captured, qualified or acted upon; and about 11% report they have no on-premise or on-demand CRM system in place.
  • Thoughts: Seems like a regular team communication is one solution to implement here. The goal here should be to get everyone on the team to collect data and report on results. One good approach is to do this manually for a while so it becomes second nature or habit to all parties involved. Then phase in a new work flow to automate and streamline the process. A full-featured CRM system is not necessary in the initial step. One needs to take baby steps first before walking and running. My motto The speed of going slow™ has served me well in many occasions and can be applied successfully here.
• Among those who have CRM applications, only 13% view the application as highly valued and widely deployed, while 42% see growing acceptance and adoption.
  • Thoughts: I think CRM systems are too complex, not user-friendly and require a steep learning curve. And it’s difficult to remember and use all the features in order to maximize the benefits. In addition people tend to have preferences for a particular tool, maybe something they’re already using or have used. On the other hand it’s very important to have a single system that the team can share, especially in corporate environments. Again I think The speed of going slow™ also applies here. The key is do not train people in one single session and turn them loose. A more effective implementation method is to give everyone an overview, then phase in portions of the system over time, in small chunks. This would force everyone to take small bites at a time, use them, get used to them, understand and like them, while keeping the level of competency consistent across individuals. No one on the team should feel overwhelmed or intimidated by the tool. Do this over time and the collaboration will improve. Problem solved.
• While CRM systems tend to be mandated and adopted across the sales organization, they tend to be more selectively embraced by marketing teams in business units and departments.
  • Comment: Ha I spoke too soon. The thoughts above also apply to this one.
• Data analytics, reporting and forecasting tend to be the biggest deficiencies in optimizing the functionality and usability of current CRM solutions. The top three areas highlighted by nearly 50% of respondents were the ability to easily create analytic reports, customization of the application and forecasting capabilities. Real-time and historic analytics placed a close fourth (40%) adding to the call for more analytics and user friendly tools.
  • Comment: While this may be partially due to the tools (and their limitations themselves), I think there are 2 factors playing out here. One, it’s just a convenient excuse by the users so they don’t have to deal with it. Or, two, the organization picked the wrong tool to begin with. While it is expected that tool developers should constantly improve enterprise CRM systems and/or create new and better ones, my experience tells me that, for a tool to be successfully implemented, it has to be properly evaluated and tested against understood, real requirements. Requirements should drive everything. Once the requirements are known, a set of best practices/processes/workflows must be created and evaluated against each candidate CRM system. The two critical elements here are the requirements and the best practices/processes/workflows. Too many people just jump in, buy the tool and start using without doing those two things. They’re setting themselves up for failure for sure.
• While 50% of those surveyed said they had pretty good or extensive visibility in to customer accounts and business activity, the other 50% said they had trouble finding customer account data, did not have enough information, or none at all.
  • Thoughts: Hmmm, assuming these are in context of the previous findings above, I would venture to say: know your requirements, get the proper tool, understand how to use it, then create a process and a habit to use it, and always improve your process and tool.

On other key findings:

• Most respondents consider their companies to be sales-driven and, to a lesser degree, product-centered or customer relationship-based. Just over 10% viewed themselves as channel dependent, and only 27% believed they were marketing-minded.
  • Thoughts: Gotta get 100% (or the majority) of those employees to be marketing-minded.
• Respondents agree that the top three measures of sales performance and productivity are lead quality and ROI, conversion and close rates, and level of action on opportunities – all of which would benefit by a deeper alignment and integration between sales and marketing.
  • Thoughts: I think this should/must be a top-down policy/directive. Left alone, individuals within the two departments may start on their own to collaborate. But in my view it’s just an accident that they do so. Why wait for accidents to happen? The C-levels should initiate it.
• When marketers were asked how they viewed sales, 40% said they had some top producers but there was mostly a need for improvement.
  • Thoughts: I don’t quite understand this one. All organizations have some top producers, and everyone can stand some improvement.
• Sales professionals tend to have a tactical view of marketing, with only 10% seeing marketers as market-savvy and on-target with demand-generating campaigns. Some 41% say marketing provide good/right content and sales-support materials.
  • Thoughts: I would agree with the sales guys here. Not everyone wants/has the ability to do sales. But almost everyone thinks he/she can do marketing. My observation tells me many marketers are not qualified at their posts, lacking a lot of marketing basics (either learned through formal schooling or from the trenches), while they employ the “trial-and-error” marketing technique.

Todd Ebert has his own take about it in his blog here: CMO Council research: 2/3rds of us are not effective.

So what do you think about this sales – marketing relationship? How does it work at your organization? What’s your best/worst experience?

Post from: Marketing Autopsy Blog
© 2009 Marketing Autopsy Blog.

Sales and Marketing: How Do We Join Forces?