Social Media Marketing & Your Business

Joseph Gustafson Joseph Gustafson | October 30, 2017 Comments

How much to spend? How much time to take?

There are a multitude of ways to bring people to your website; offline channels such as billboards, radio, TV, and print ads, along with digital avenues like SEM/SEO, PPC campaigns, email, and finally social media. All of them have the same purpose: bring traffic to your site, and they all serve a purpose in your marketing plan, but the biggest difference is how much time each channel takes from your business, and how much money it takes to effectively use the channel. When it comes to social marketing, there’s only one thing that matters - not engagement, likes, or comments - but ROI.

In terms of effort vs. reward, social media is near the top for both. Social media is an excellent extension of both physical channels and digital ones. And, with over 2 billion users on Facebook alone, social media is a massive channel for exposure of your brand. However, it is reliant on constant content updates and engagement. Companies that spend less than 20 hours per week on social media marketing show no real movement to their bottom line for this simple reason: there’s no investment in their profiles.

Without constant photos, videos, and engagement on user posts, people won’t come to it. If you don’t build your social media profiles, they won’t come.

So, the big question is not, “Will social media marketing work for me?” Instead, it’s, “Will more than 20 hours provide relevant ROI for my business?” That’s the key to effective social media marketing - simple math.

For example, let’s say you’re a local plumber looking to have a social media page for your business because your teenager says you should. You operate a smaller franchise that has a 50 mile customer radius with about 500 homes. Your average plumbing job is $400, and you convert about 2 people out of every 10 that call you – a 20% average, and you get on average 50 calls per month.

Local social media can bring an additional 100 calls per month. If you convert 20% of those calls at your average transaction price, you’d make an additional $8,000. Awesome! However, it takes you 30 hours per week for social media marketing at a rate of $150/hour. That means that you’d have to spend $12,000/month. The numbers don’t add up. 

However, let’s say you’re a clothing company that focuses on blue jeans. Your jeans are, on average, $100, and you’re nationwide. You convert 5% on your website. Social media marketing can bring in 10,000 clicks to your site, out of those, 500 purchases based on your conversion rate. That’s an additional $50,000. Now that $12,000/month investment for social makes sense because you have more than doubled your money.

For social media, it’s easy for every business to set up and costs the same amount to keep running effectively. When determining your social media efforts, it’s not about “doing social” - it’s if the ROI makes sense. 


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