Don’t-Go-It-Alone eMarketing Blog

A new study has looked in detail at how the 100 most valuable brands in the US work with 11 different social media channels and has discovered a correlation between social media use and financial performance.

When the researchers sorted the brands into groups with similar profiles, the ’social media mavens’ (those with the most social media breadth and depth) on average grew 18% in revenues over the last year. The least engaged companies saw an average decline in revenue of 6% over the same period.

The report’s author, Charlene Li, is quick to point out that “We are not claiming a causal relationship — but there is clearly a correlation and connection. For example”, she continues, “a company mindset that allows a company to be broadly engaged with customers on the whole probably performs better because the company is more focused on customers than the competition.”

The study found that companies that scored well generally have dedicated teams, however small, active in the social media channels they utilise, and that the most successful teams evangelise social media across the entire organization to pull in a broad range of stakeholders. These companies view social media as an indispensable tool to help them achieve results, and their approach is conversational. This differs from the approach of traditional communications and early corporate blog experimentation, says the report, which emphasises messaging and talking points.

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(Excerpt taken from Internet Retailing. To read more: follow this link for the entire article on the link between social media use and firms’ profits)

First of all, we’d like to say “Congrats” to those of you who have held their breath and leapt into the often uninviting waters of social media—despite fears and disbelief that “this thing really works”. Believe it or not, you’re still ahead of the curve as far as Web 2.0 users go, and you should be proud that you’ve already taken the plunge.

We’re sorry that you’re not John Mayer, Shaq, Lindsay Lohan or a boatload of other famous people who instantly attained millions of followers upon their entry to Twitterville. And it’s really too bad that your company might not be as exciting to Facebook users as McDonald’s—whose actual business page gets trumped by a grassroots-created page with almost 2 million fans! Don’t worry, we still like you.

The hard-truth is that social media requires time and effort, and you won’t be instantly popular unless you’re already wildy popular in the mainstream media. Even then, there are stark examples of both how well and how poorly well known brands are doing on Twitter, Facebook, and the likes. Check out Kodak versus Fuji Film; Pizza Hut versus Dominos. Some sink, others swim.

The honest truth is, you have to “work for it” with social media—and we’ll be the first to admit, it’s not easy: we’ve been grappling with ways to promote our Facebook page on a closed network that’s usually meant for chatting and posting funny pictures. The question to ask yourself is—what do I have to offer that people will be interested in (and what makes my company unique)? Whether that means offering daily discounts, positioning yourself as an “expert” in your field by writing helpful blog posts, or using social media as a forum for direct customer relations, your business will dictate the answers. But the first step is doing it, and doing it consistently.

Just think: if you had just left your two-wheeler in the street the first time you skinned your knee, would you have ever learned to ride a bike? If you hadn’t stopped calling until she agreed to see a movie with you, would you have those two beautiful kids and that stunning wife? The point is, every success story starts with a challenge. Sure, adopting social media is tough, especially when it it takes away from “more important things” like paying bills and making money, but we guarantee that it will pay off in dividends if you treat it like any other challenge, and just “keep at it.”

For now, take some comfort in knowing that you’re not the only one who’s sitting in the office scratching their head and asking “But how the heck does this fit into my business plan?” and be proud—thinking about these problems and finding very few solutions is still a thousand times better than just sweeping them under the rug. Give yourself a pat on the back; then start taking the next steps to help build your social media brand (and boost you social media ego!).

Think you might still need a jumpstart to your social media strategy? ListEngage says “Don’t Go It Alone”, we can help you plan the steps you’ll need to take in order to start thriving in social media: contact us or send us a tweet @ListEngage. We’re here to help.

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