There is some lopsided thinking out there. There is a “belief” that just because a consumer becomes a customer of your brand that they want to have a relationship with you that extends beyond the 4 P’s. For a lot of brands this just isn’t true. Just because I like pudding doesn’t mean that I want to have a relationship with you on Facebook.
Social media is taking up a bigger portion of marketing budgets, but few companies said they have been able to quantitatively measure its impact. Despite the increasing investment in social media, it’s still difficult for marketers to quantify their return on investment. Only 15% of marketers in the study said they can show the impact of social media on their businesses using quantitative approaches, while 40% of marketers can only demonstrate the impact qualitatively. Nearly half of marketers said they haven’t been able to demonstrate the impact of social media spending on their business at all.
How many articles do we have to read about social media marketing ROI before marketers realize that you can’t measure the ROI on every conversation? The truth is that many marketers have to justify their budgets because company executives are used to cutting “expenses” to improve bottom line results and because too many agency people and “experts” have over sold social media as a golden path to increased sales.
According to “Work horses and dark horses: digital tactics for customer acquisition” social spending is set to increase, but we discern some buying on faith with social. More marketers plan to spend more on social media marketing than any other digital tactic. But when we asked marketers to describe their perceptions of social media marketing, more marketers agreed with the statement “It is difficult to prove ROI for social media marketing” than with any other statement. Stupid is as stupid does.
Marketing can be downright self-indulgent. Too many marketers are still caught in the “business of marketing” and by that I mean that they love the eye candy too much and the press releases that mention their names so they can add a nice line item on their resumes. According to Sean Duffy “CEOs need to hire competent CMOs. These CMOs need to be able to explain their approach to marketing, be held accountable to marketing objectives and be able to show a result for their investments.” I could not agree more.
Does it ever stop ? The never ending chase of marketers to prove ROI for everything they do is draining the life out of marketing and wasting time and money. If marketers spent 50% of the their time on understanding what makes a consumer a customer rather than trying to prove ROI they would be a hell of lot more successful. It seems, however, that management wants to understand why marketers are spending so much money and that every dollar they spend is driving ROI. A lot of executives know the cost of everything but the value of nothing.