Photo: Business Insider / Matthew Lynley
Everyone loves to tout Facebook and other social media sites as huge sources for traffic.But how do you actually convert that to revenue?
We sat down with a bunch of startups and companies that are using social media to generate new sources of revenue at the Social Commerce Summit in New York. Here’s what they had to say:
Tim Mahlma, Chief Revenue Officer of Klout:
- You have to engage with your audience with something that’s authentic. With Klout, we aren’t telling people to speak on behalf of these brands, they already are. Our code of conduct stipulates that the reason you have a relationship with a brand is simply because of who they are.
- It’s genuine and it’s trusted and it is authentic — we’re just introducing people from every day life. Maybe we don’t know who she is, but within her circles, she has massive influence. She can spread that message, and it’s authentic. It engages new customers that you wouldn’t get your hands on without her.
Kip Levin, EVP of eCommerce at Ticketmaster:
- We aren’t just going after the advertising, we want our users to share. Now, after you purchase, you can share your seat location. Your friends can come into the events page and actually see where you’re sitting. We’ll scan recommendations from Spotify and plug that in. Every time someone shares something, it’s worth $6.
- Our relationship with Facebook was really driven by what we were already doing, they proactively reached out to us. Facebook has teams dedicated to working with brands and e-commerce sites. They’ve been adaptable and really easy to work with. Twitter and LinkedIn, too.
Allyson Hugley, EVP of measurement and analytics for Weber Shandwick:
- You have to play on natural habits — bragging rights, where you are. It’s understanding what your audience is doing. They are more likely to share if it’s based on a natural habit.
- You basically want to look at the success of the community management. You have to continually grow a community and continue to build content for that community. You have to deliver on basic goals and objectives. If you can’t create content people are going to like, then you’re going to compromise that brand.
Dave Thomas, director of community and social strategy for Radian6:
- Ideally, you already understand what your business and your goals are. If you establish those goals in advance before you start any campaign, that’ll give you a leg up. Tie them to your existing goals.
- Every part of your business will have its own definition of return-on-investment (ROI). Your sales team will want to close sales, your marketing team will want to drive ROI. Social media ROI means different things for different departments.
- Break those goals down to campaigns. You can do that by making your campaigns trackable. Set up a landing page, for example, and drive all that traffic to that landing page.
- You need to understand ROI is a formula, you aren’t going to be able to truly calculate that ROI unless you have all the elements of that data. It’s gain minus cost divided by cost.
- Google+ doesn’t have nearly the penetration of Facebook, but Google is starting to index more in search. If you’re active on Google+, you’re more likely to get indexed in search.