ROI of Social Media Marketing for Direct Sales

One of the questions we need to consider as we begin to contemplate integrating social media effectively into a direct sales company is the concept of social media marketing’s return on investment (ROI). I’ve already touched on this briefly, and certainly believe we need more conversation, and even debate, on the topic. I think that a lot more needs to be said on how we measure the value of social media ROI in the direct selling industry. We need to consider how social media marketing can influence:

customer satisfaction
brand recognition
increased web traffic
increase in online/offline sales
distributor satisfaction/loyalty
increases in distributor base due to social media training/tools

Have I missed anything? What do you think are other things we need to take into account when determining social media ROI for the direct selling / direct sales industry?

There is a GREAT deal of discussion about social media marketing ROI on the web. A Google search will provide you with a lot of great reading on the subject. However, here are some links that I particularly like:

A Quick and Dirty Guide to Setting Up Social Media Monitoring: http://www.socialmediaexplorer.com/2009/02/18/a-quick-n-dirty-guide-to-setting-up-social-media-monitoring/ If you’re going to be measuring ROI, you need data. Here is one way to get it. It’s a beginner’s article, but if you’re looking for a place to begin, there are some great tips here.

Twitter Drives Traffic, Sales: A Case Study: http://radar.oreilly.com/2009/02/twitter-drives-traffic-sales-a.html Do you want to see how some big companies are realizing, in 1 case, a 7 figure return on investment? Here’s a great article that explains some of how they do it.

How to Measure Social Media ROI for Business: http://mashable.com/2008/07/31/measuring-social-media-roi-for-business/ Really good info here on how to begin to craft the metrics that matter, along with some valuable links to tools you can use.

Why Big Brands Struggle with Social Media: http://mashable.com/2009/02/20/big-brands-social-media/ This article discusses how to think about social media from a corporate perspective…where it fits among traditional advertising, PR, etc, and how to implement it effectively.

I’m curious…are you considering using social media marketing in your direct selling business? What are the returns that you’re looking for? What would convince you that social media marketing is relevant to your business? Looking forward to the conversation!

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MiketheWaiter

February 25, 2009 | 7:13 am

Hi there,
I follow you on twitter. Your the first to send me a personalized thanks for the follow and so I take you more seriously than most.
I read your post about twitter feeds and tried it. Thanks!
very informative.
Eat Well. Drink Well.
from Indiana, USA,
mTw

Eric

February 20, 2009 | 4:49 pm

Some interesting stuff. We’re in the process of taking our first tentative steps into Social Media Marketing. It’s a difficult transition for a company like ours that is still somewhat rooted in a “brick and mortar” mentality. However, our first few steps including a Youtube channel and media clippings site have been promising.

I appreciate the post, it gives me a new ideas to try.

KatFrench

February 20, 2009 | 1:07 pm

LiaJen – Thanks for the link, and the recommendation. Jason has had a few posts on the ROI of Social Media over the last year–they’re often the most popular posts.

Sentiment is another metric social media can influence, but one that’s notoriously difficult to measure.

Good stuff here!

liajen

February 25, 2009 | 7:17 am

Mike,
Thanks for commenting. It makes me just a bit sad that I’m the first personalized thanks you’ve ever received on Twitter. I make it a point to read EVERY profile before following back. That’s the point of networking…getting to know someone. It does take me a bit longer to follow back than most, probably, as I do have a day job but I have found most people are patient unless they’re not following me for networking…and then there’s no real loss, is there?