What is always intriguing to me – is the way these events work and whether for those that attend – do they receive or perceive their attendance to provide value? How to do you get those who are not as apt in this face to face environment to engage? What makes them want to reach out? For me – I love meeting new people so moving around, seeing new faces, approaching someone new and introducing myself is fun and energizing. Learning new things and the interesting paths and journey’s that people take – is always inspiring. I tend to go with no expectations so that I get a surprise with – what may or may not occur.

The best part of networking is sourcing out that one or maybe many whose interests, thoughts and ideas may be synergistic to your own. You connect in comfortable ways and are eager to exchange information so that you might connect again. The idea on both ends – is a mutually beneficial relationship. Maybe it’s friendship, maybe it is a referral for the possibility of new business, maybe it is for ratings and reviews on products, services or experiences – with the things you both have mutual interest. Ultimately it all begins with a relationship of like minded individuals – who find delight in the discovery of one another and the opportunity to share information.

The beauty is that this wonderful offline experience has now been extended with the advent of social media. On the flip side social media communities are bringing their networks to real life – with Tweet ups for Twitter followers and new friends on Facebook, families and moms in forums and so on. The key always begins with a network and someone’s interest in sharing with someone else – for the exchange of information. Without it in some format – most of could not live on this planet – as it is how we move from one space to another, whether business or personal.

So how important is networking to you? How do you network, where do you network and what are some of the direct benefits you have received recently. Tonight I spoke to an inspiring marketer who carved a niche in the construction business and printers who are already looking to mold their business – to minimize the amount of printing product – that is not used and focusing on print on demand – so only that they only print the materials that are needed. They are also looking at online resources and offerings to supplement less printing. The really cool part is that – I will be able to access these interesting new contacts online and offline – but what is most important is the networking we shared – to launch a relationship and who can’t benefit from that!

Best Nicole

Social media is the tool of today that will do just that. Ask Dell. To date, they have reaped $7 million dollars in global product sales using Twitter. Yes, you heard it—Twitter. They’ve taken the “Mom and Pop” philosophy and used social media as a conduit to engage their customer in conversation. It’s that simple. I came across an article in the Huffington Post by Manish Mehta, VP of Social Media and Communications for Dell, that discusses how simple their successful use of Twitter and Facebook has been.

As an agency that specializes in social media and creative design—supporting businesses in creative ways to connect and engage with their customers directly—we can vouch for his article and tell you that it IS simple. People want to know that there is a human face to that name and brand and that you are eager to listen to them, assist them in solving their problems and, in turn, build a meaningful relationship with them. In return, they want to share their awesome experiences with you—and with everyone they know.

How easy can it be?

Best Nicole

Today’s corporate leaders are struggling to figure out how to use social media to further their business strategy. At Dell, we believe this is backwards thinking. Social media isn’t a means to further a corporation’s strategy, it’s a means to help determine it.

The “Mom and Pop” businesses in our neighborhoods have always followed sound and pragmatic business practices, rooted in developing, maintaining and strengthening relationships with customers. The customers and the businesses valued those relationships because “Mom and Pop” offered convenience. They listened to their customers and used their suggestions to improve the business. They provided great service and found ways to thank their clientele. Social media is really nothing more than the simple application of these business practices in a digital form.

So if you are wondering about how to leverage Twitter, Facebook, blogs, forums, and the company Web site to achieve your organization’s goals, perhaps you are starting from the wrong point. As with the corner store, if your business uses social media to engage in conversations on a human level, you strengthen your business and allow your strategy — both corporate and social media — to evolve based on customer feedback.

At Dell, we have a longer perspective on the social media conundrum than most. We’ve been an active leader in the space since 2006, with a depth and breadth to our social media presence that has earned top billing among brands using social media to engage stakeholders.

What we’ve learned is that social media has transformed the large corporation of the millennium into the Mom and Pop shop of the old days. The emergence of social media simply makes it more possible to connect directly with customers every day. Dell’s community goes well beyond our own forums — it now extends to direct contact with more than three million followers worldwide. Even during a historically difficult time for businesses of all stripes, Dell has generated nearly $7 million in global product sales on Twitter.

“Mom and Pop” knew that their business was only as successful as their relationships with customers could make it. That’s the value of the direct connection to your customer, and that’s how every company can achieve success using social media — by facilitating the conversation. No strategy necessary.

Best Nicole

“There’s so much talk about social media that it is easy for people to become cynical, perhaps losing track of the fact that it can have a positive impact on your business.”

So how can you determine whether a social media strategy is proving beneficial to your business? How do you know that it is working out for you? And is now really the best time to find out?

Rather than focusing on individual social media campaigns, I’d like to look at social media measurement from the perspective of a business that a) buys into social media, b) commits to it over a period of time, and as such c) has an integrated social media strategy. You people know who you are!

Let it breathe

The key with social media measurement, I think, is to stand back and take a widescreen approach to measurement. 

Rather than focusing on the smaller, campaign-specific metrics, such as traffic from Twitter or the number of fans on Facebook, wouldn’t it be better to look at how it helps to shift the most important business KPIs, such as sales, profits, as well as customer retention and satisfaction rates?

To do this effectively, you’ll need to give your social media strategy time. Like a good wine, it needs to breathe. In doing so you will be able to look at your overall business performance, as well as the performance of your social media campaigns over the duration. 

Take the Skittles campaign. I called it ‘brave’, ‘amazing’, ‘sensational’ and ‘ballsy’. I still think it is all of those things, and I’ll think that next year even if it fails miserably. It was a big move. But nobody yet knows for sure whether giving over a brand’s entire website to consumer-powered media channels is a smart move. Only time will tell.

Social media vs TV advertising

Here I want to make a small point on accuracy, and attribution. I firmly believe that if you can spend tens of millions on TV ads and make any kind of sense out of that investment, in terms of TV ads helping to boost sales while increasing the key brand metrics, then you can make sense of your (much smaller) investment into social media. 

TV campaigns can run for a long time, and the effects on the business are a) not known immediately and b) possibly overstated. Hindsight is a beautiful thing, and advertising executives (and creative agencies) like to take credit for improving sales, when really these sales might have little or nothing to do with TV ads. Attribution is one thing, but knowing that something works is entirely different. Social media appears to be a mixture of the two.

Maybe we can create a model for scoring the performance of social media, or for splitting up attribution by channel, but the truth is that there needs to be some room for manoeuvre when making sense of things. There are few absolutes in measuring advertising campaigns, if you work outside of paid search. You can far more accurately measure social media than you can a TV ad, but like TV advertising, or PR for that matter, there has to be some scope to play around with attribution.

Like TV advertising, social media will play a role in moving brand metrics, and perhaps more so (it is easier to make a noise and to be socially active; there’s an anytime, anywhere factor at work here. And hey, shit sticks around longer when you throw it online). There is a huge viral factor with social media sites (behold ye retweeters). You can really see word of mouth in action on social media sites, and as such there is less guesswork involved when measuring the results – less extrapolation is needed. If 500,000 consumers start saying good things about your brand, with few dissenters, then surely it is fair to say that brand favourability will have improved?

If brand indicators matter, or if you subscribe to the AIDA model, or if you care enough to undertake research to find out your own brand metrics (PDF), then by all means factor in your social media efforts when attributing the success of your overall marketing campaigns.

Take a snapshot

Before you start the clock it is a good idea to benchmark where you’re at…

1. Make a note of the obvious numbers (number of Facebook fans, Twitter followers, Digg links, Delicious bookmarks, and referrals from social media sites, plus existing website traffic).
2. Make a note of the less obvious benchmarks (such as SEO rankings and referrals, customer satisfaction scores and other business data). 
3. Make a note of ROI benchmarks. How much are you paying to acquire customers via other marketing channels? How vast is that advertising budget, and how is it being split up? And what proportion is being directed into channels that you cannot accurately measure?  

After that make sure you’re doing the right things. There are lots of social media experts handing out lots of advice for free. There are all manner of social media agencies out there that will help you, if you don’t have the appetite to do this in-house. And there are sites devoted to measuring social media. Get some, get some.

Measuring the effects of social media in 10 steps

1. Traffic
This is one of the more obvious ways of measuring social media. Remember that quality often beats quantity, though not always (as many CPM-focused publishers will surely testify). 

2. Interaction
Participation is a valuable indicator for many publishers (and brands). It says something about the kind of traffic you are attracting. Remember that an engaged customer is a highly valuable one. Interaction can be anything from leaving comments, to participating in support forums, to leaving customer reviews and ratings. It can happen on your website and on other websites. Keep your eyes and ears open!

3. Sales
We at Econsultancy are tracking sales from organic Google referrals and also paid search. It didn’t seem like much of a leap to track other channels, such as Twitter. Try it. Dell did, and discovered that it made $1m from Twitter in 18 months. Blendtec’s ‘Will It Blend?’ campaign on YouTube helped to drive “a five-fold increase in sales”. 

4. Leads
Some companies simply cannot process sales online, because their products or services do not allow for it. For example, the automotive industry, which tends to measure the effects of its online ad campaigns by the amount of brochures requests, or test drives booked in (as opposed to car sales, which is, in marketing terms, an altogether more macro effort). B2B operators are in a similar position. If you are a consultant and spend time interacting on LinkedIn Answers then there’s a way of tracking that activity to enquiries about your services. The same applies across the spectrum of social media sites. Choose your weapon, thought leaders.

5. Search marketing
The SEO factor cannot be understated. Social media can be far more powerful in this regard than you might initially imagine. For example, a well-placed story / video / image on a site like Digg will generate a lot of traffic and a nice link from Digg itself, but the real win here is that it will generate a lot more interest beyond Digg. Bloggers and major publishers are following Digg’s Upcoming channel to unearth new and interesting stories (Sky News now has a Twitter correspondent). One link and 20,000 referrals from Digg might lead on to 40,000 referrals and 100 links from other sites. The long tail, in action. 100 links means that your page might well wind up being placed highly on Google, resulting in lots of ongoing traffic. Remember too that you can use sites like Twitter and YouTube to claim valuable search rankings on your brand search terms (‘social search optimisation’).

6. Brand metrics
Word of mouth and the viral factor (inherent in sites like Twitter, Facebook and Digg) can help shift the key brand metrics, both negatively and positively. These include brand favourability, brand awareness, brand recall, propensity to buy, etc. Expensive TV ads are measured in this way, so if these metrics are good enough for TV then they’re surely good enough for the internet? Positive brand associations via social media campaigns can help drive clicks on paid search ads, and responses to other forms of advertising. We know that TV ads boost activity on search engines, resulting in paid search success stories, so I’d bet that social media can do the same.

7. PR
The nature of public relations has changed, forever. The last five years have been largely about the traditional PR folks not really being able to figure out the blogosphere. But if PRs cannot control the bloggers, then how on earth will they handle consumers? The distinct worlds of PR, customer service, and marketing are fusing. Twitter means everybody has a blog these days, and somewhere to shout about things to their friends (and beyond). Social media sites are the biggest echo chambers in the world! In any event, if you can measure PR (beyond adding up column inches and applying a random multiple to the equivalent size on the rate card!), then you can measure social media.

8. Customer engagement
Given the prevalence of choice, and the ease with which consumers can switch from one brand to another, customer engagement is one of the most important of all metrics in today’s business environment. Engagement can take place offline and online, both on your website and on other sites, particularly social media sites. Customer engagement is key to improving satisfaction and loyalty rates, and revenue. By listening to customers, and letting them know that you are listening, you can improve your business, your products, and your levels of service. The alternative is to ignore customers, which sends out a terrible message. Our research found that an engaged customer will recommend your brand, convert more readily and purchase more often. 

9. Retention
A positive side effect of increased customer engagement – assuming certain other factors in play work in your favour – is an increase in customer retention. This is going to be a crucial factor in the success of your business in the years to come. Make no bones about it: we are moving into an age of optimisation and retention. Watch your retention rates as you start participating in social media. Over time, all things remaining equal, they should rise. Zappos, which is a case study in how-to-do-Twitter (and active on MySpace, Facebook and Youtube), is closing in on $1bn of sales this year, and “75% of its orders are from repeat customers”. Go figure, as they say.

10. Profits
If you can reduce customer churn, and engage customers more often, the result will surely be that you’ll generate more business from your existing customer base (who in turn will recommend your business to their network of friends, family, and social media contacts). This reduces your reliance on vast customer acquisition budgets to maintain or grow profits. It makes for a far more profitable and more efficient organisation. I really hope that more businesses will find a better balance between acquisition and retention, sooner rather than later, from a resourcing standpoint. Too many acquisition strategies appear to be ill-conceived, are not joined up (both in terms of marketing and also operations), and as such are ripe for optimisation. Plug the leaky bucket and you won’t need to turn the tap so hard to top it up. And remember that old adage about it being cheaper to keep existing customers than to seek out new ones.