There’s been much talk about how to monetize Social Media… from tools to actual networks. So far few have succeeded and no clear model has emerged. Many companies are still trying to learn what a social network is, how to set one up and how it’s going to impact their bottom line. It’s a question most are still grappling with and probably will for some time to come.
If you read through any of my articles on this site it won’t be long before you come across the words:
Strategy, goals and objectives
A good deal of the confusion around social media and what to use boils down to ignoring strategy and goals and simply jumping on the bright shiny social media tools bandwagon.
Companies trying to set up social networks often fail because they often focus on the network – not the goal the network is meant to achieve. They are thinking “should we have a social network?” Which social network should we have?” Should we choose LinkedIn or Facebook?” “Shall we get a Social Media Expert to help us?”
These are the wrong questions.
The correct questions are:
- What is our goal? (and why is it important we achieve it?)
- What sort of social network do we need to get to that goal? (should we build one ourselves or partner/buy?)
Most companies lack any kind of clear goal and are unable to assess whether to build, buy or partner for their social network. Without (1.) it’s impossible to answer (2.)
Social networking is not a lot different from marketing via direct mail or email
Think of social networking as a marketing channel with a distinct set of strengths, potential uses and costs. If you use the “If we build it, they will come”, mentality – as many marketers still do – you will fail. They won’t come.
If you are a company you need to articulate the value of the social network to both the end-user and the company. And that means
- marketers need to be able to articulate the purpose for the given social network
- the purpose must align with the other marketing tactics the company uses – so the networking site because part of an integrated campaign rather than a side-show.
Social Networks as support
Social networks can be used to support Lead Generation, Building Awareness and Market Intelligence. Note the emphasis in on “support.”
How Many Goals?
You can have all three goals mentioned above. But each goal needs a different set of tactics and clear success measures set within the social network from the beginning… not afterwards.
Depending on your goal, your network will look very different. A social networking site focused on generating product feedback would look very different from targeting prospects. The costs will be different too…if you are targeting prospects you’d compare the costs of acquisition in other marketing channels, while for product development you might compare costs of doing surveys and focus groups.
When you begin with your goals as the starting point the tactics and metrics become clear and you avoid wasting time and money on costly distractions.
Next: Build, Buy or get a partner for your social network? Questions to ask first.
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I like the setting goals idea. You also have to keep in mind that not every network is meant for each business. So many times I think companies jump in with both feet and do everything instead of thinking about where their customers are and focusing there.