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Just the Facts - How Top Companies are Using Social Media 'Right Now'

PURPOSE

This is a quick summary of the Marketing Sherpa report “CMO Perspectives on Social Marketing ROI” released in June 2011. It provides business owners some keen insight into where companies are focusing their Social Media Marketing efforts. The data below came from surveying 760 CMOs (Chief Marketing Officers) who shared their insights about social marketing.

Top CMO Priorities for Social Medial overall

  • Achieving real ROI from Social Media campaigns
  • Converting social medial followers into paying customers (B2C companies)
  • Generating measurable leads from Social Media (B2B companies)
  • Improving the cost efficiency of their customer support programs

TOP Strategic Objectives for Social Media Marketing

  • Increasing website traffic – 71%
  • Branding – 66%
  • Converting social member followers into customers – 63% (B-to-C)
  • Developing an effective social marketing strategy – 53%
  • Increasing search engine rankings (SEO Support) – 50%
  • Increasing lead generation – 43% (B-to-B)

Organizations by Maturity in Social Media Marketing

  • TRIAL Phase – 35% (no processes for social marketing)
  • TRANSITION Phase – 46% (informal processes, a few guidelines it sporadically performs)
  • STRATEGIC Phase – 19% (formal processes that are routinely performed)

Notes on Maturity:

  • Some industries such as healthcare, financial services, and legal services will lag because of legal or ethical issues affecting sharing of information
  • Larger organizations (over 1,000 employees) are more than twice as likely to have reached the “Strategic” level as small companies (less than 100 employees)

Correlation of Maturity to ROI Creation

  • 47% of the Strategic phase companies report producing measurable ROI from Social Media Marketing today compared to only 11% of those in the trial phase
  • 70% of companies in the Transition phase said Social Marketing will eventually produce ROI, compared to 60% of those in Trial and 46% of those in the mature Strategic phase.
Note on ROI Perceptions: 93% of companies in the Strategic phase said they either ARE producing positive ROI or will produce a positive ROI from social marketing.

75% of CMOs will increase social marketing investment in 2011

  • 21% by more than 50% investment
  • 20% from 20% to 50% investment increase
  • 4% by less than 20%
Note: 16% had no change for 2011. Only 2% were going to decrease investment.

Average ROI from Social Marketing was 95%! Over 200% ROI was reported by 20% of the CMOs.
Note: This does NOT include the added benefits of customer support, corporate social responsibility, and the long term value of a NETWORK of company supporters (and probably hundreds of benefits I can’t think of right now)

Top metrics CMOs use to measure ROI (percentages for “Strategic” phase companies)

  • Actual Sales – 62%  (more B2C)
  • Value of New Leads – 54%  (more B2B)
  • Number of fans, followers, and subscribers – 48%
  • Value of increased website traffic – 48%

For assistance setting your social media roadmap, please give me a call at 843-559-0753 or contact us.  Our passion is growing B2B companies!

For a full copy of this report please visit http://www.SherpaStore.com. Marketing Sherpa is the leader in researching what works in digital marketing and publishing exclusive Case Studies, surveys and results data analysis. Visit them for more in-depth information at http://www.marketingsherpa.com/.