Are businesses spending too much time on social media?

social-media-roiSocial media has changed the way we communicate. A single person can reach millions of others with just one comment – the staggering speed and reach of communication via social media is something that could not be achieved just 10 years ago.

 

The existence of social media couldn’t be more perfect for businesses in today’s times. It has coincided with the biggest recession to hit the global economy in many a year. The recession has forced many businesses to be smarter about their marketing and how they spend their marketing budget. Cue social media.

But is social media marketing really making a difference to your business?

A free marketing channel where a business can reach their target market instantly. Wow. No wonder a single visit to Twitter and you find yourself inundated with businesses from all industries and all corners of the globe, telling you all about what they do and how your life would be better with them in it.

I know of businesses that use social media well, that integrate it with a wider marketing strategy that results in more sales. Good for them.

I also know of businesses that blindly dedicate several hours a week to pushing out messages on social media, with no strategic thinking behind it. Yes, maybe it is driving some brand recall. Yes, it may result in an enquiry or two. And yes it’s free. But is it providing a sufficient ROI (return on investment)? “What investment” I hear you ask.

Your time – that is your investment. And your time is precious.

facebook and twitter roi

So how does your ROI from social media compare to if you were to spend the same equivalent amount of time to promote your business using other marketing methods?

Take a business that spends just one hour every weekday on social media. That’s 260 hours a year. If a typical working day is 7 hours, then 260 hours is the equivalent of 37 days.

37 days! Now just imagine that your target market is other businesses. If you spent 37 days in a row, networking and making prospect phone calls to other businesses, do you think you’d get more or less business than your social media activity?

I’m not saying social media isn’t important, but we must not get carried away with the fact that it is free. It still requires a strategy, it still needs to deliver a ROI and it must be right for your business.

I’m now about to post this on facebook and twitter. Things could get messy. Wish me luck!

Many thanks for reading my thoughts.

For a free consultation, give me a call and I’d be more than happy to chat about how this and other marketing ideas can be applied to your business.

Steve Landon, Landon Marketing and Design.