Juicy Topics

Monitoring Social Media: How to Measure Conversions, Opt-Ins, and Long-Term Profits

Posted on: July 8th, 2010

Beyond their success in business and entrepreneurship, Seth Godin, Steve Jobs, and Charles Saatchi have one thing in common: their belief that marketing is an art. All three invest thousands of hours into their marketing efforts by crafting advertisements and creative pieces that go beyond converting viewers into measurable customers. Their marketing skills rest in a strange belief that creativity is the driving force behind purchases and their creative ability has pushed them into some of the advertising and business world’s most important positions.

The new wave of internet marketers, however, believe in a very different marketing religion. Their god is numbers or, more specifically, measurable data in terms of customer value and the conversion rates. It is a system that is foreign to creative advertisers, yet one that is incredibly useful for new entrepreneurs, metrics-driven businesspeople, and low-budget marketers.

The social media arena is where the two types of thinkers clash as creativity is a requirement for social media success. This is because the entire domain is interactive, personal, and built on conversation. That effectively leaves those without a dedicated and personal effort without a presence at all. At the same time, the social media world requires measurement. In this arena, marketers who run campaigns without tracking, analysis, and calculation end up wasting time and generating little income in return.

These two tips, tactics, and strategies are designed to bridge the gap between art-driven advertising and action-driven social media marketing. Whether you take a holistic approach to marketing or a distinctly mathematical style, applying these two tactics to your social media marketing efforts will help you learn what works, assess and revise what does not, and scale your efforts to new heights of profitability.

Calculating Expenses:

Social media may be free, but that does not mean it offers better value than paid marketing channels. The common assumption that failing to chase social media is “leaving money on the table” just is not true. Thousands of companies give up on social media campaigns not because they are not profitable, but because they are significantly less profitable than paid marketing channels, all the while costing an equal amount of time.

Assess your social media campaigns not just on invested cash and results generated, but on the amount of time which could have been spent elsewhere. Calculate your effective hourly earnings for social media efforts, and consider how it could improve with a change of strategy.

Gauging Opt-in Value:

There is no scientific strategy for gauging the value of an opt-in subscriber. However, there are several holistic ways to gain an understanding of how valuable your audience could be. The first is to test their interest in your products, services, and opportunities. Put out a simple five-page guide with a sales price of just one dollar.

It sounds strange, but the introduction of a small amount of money can drastically change the way an audience interacts with you. Monitor who buys the inexpensive product and prioritize them in the future, not because they spent money, but because they showed that they have always had intentions of spending money with you. This simple binary-style categorization can be hugely useful for estimating how valuable, action-oriented, and likely to purchase your audience could be.

Tags: , ,