August 19, 2011 § Leave a comment
I’m a sucker for a contest especially when comes to being able to talk about what Social Media has meant to my business.
Before attending Social Media Camp 2010 I had built a bit of a following on Twitter and our Facebook page was a source of a great deal of fun and engagement. What I took away from SMCV10 was that these platforms were more than simply and new way to communicate, they were nothing more that telephone lines into our business that were operating 24/7 and all we had to do was to answer them.
After having some fun with this we did the big ROI analysis. I can remember quite clearly Scott Stratten almost blowing a gasket when speaking of ROI – “do you question your telephone on its ROI? Of course not your moron!” Although very impassioned I was about to make a pitch to a number of people whose concept of social media was that it was a diversion from real stuff. My pitch was going to be simple – put the money we spend on Traditional media into to two things – 1) the in-store experience and 2) social media.
To make a long story short I was given the green light and the switch was made in January 2011. By the switch I mean that we were re-directing $70,000. So what was the result?
A retailer measures success in two ways 1) the bottom line and 2) the ‘flavour’ it provides its customers. To see if my game plan was working we needed to be able to see it in gross margins and an increase the number of customers visiting our stores each week. After 4 weeks there was reason to be confident, however it was still to early to tell as we needed to see loyalty from our new customers.
As I write this it has been 8 full months since the switch and this is what we have seen.
Advertising Spend $7250 vs $70,000
Gross Margins +5% over same period the year before.
Average Weekly Customer Count +9% over the same period the year before.
I don’t know about you, but that is a success to us. Thank you SMCV10