“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Possibly apocryphal quote often credited to 19th century Philadelphia department store magnate John Wanamaker.

Accurately measuring the impact of the marketing activities you create to promote your company’s services and/or products and, furthermore, analyzing the impact of your marketing to verify that the activities were worth the time and money invested in them can be somewhat of a puzzle for a marketing manager. In particular, the return on investment of social media activity can be nebulous, given that much of its focus is often devoted to relationship-building that stimulates one or more aspects of brand-building, for example, brand loyalty and brand reputation. Determining which of your go-to social media platforms is your top performer might be difficult to confirm, there is not always an obvious path to follow as you track and document your customer’s behavior or buyer’s journey from first contact through purchase; and then there are those who jump ship somewhere between those points and the debrief on that scenario is yet another drama to unravel.

Social media remains a hugely popular marketing tactic that for the most part has earned its accolades in both free and paid options. So, it comes as somewhat of a surprise that recent marketing research shows that at a representative group of enterprise companies, the social media marketing spend is softening. According to the Spring 2024 edition of the CMO Survey, which surveyed 292 marketers employed by leading U.S. companies, social media investments declined from 17% in Spring 2023 to 11% in Spring 2024, reaching its lowest level in seven years.

The CMO Survey found further confirmation of this occurrence in participant responses to the question “Which best describes how you show the impact of social media on your business?” and one-third, all of whom are marketing leaders, reported “we haven’t been able to show the impact yet.” The remaining participants were evenly split on whether they’ve “proven the impact quantitatively,” with some stating that they have a “good qualitative sense of the impact, but not a quantitative impact.”

Maybe you’ll soon decide to pull back on social media paid ads, too, and rely more heavily on the “free” option (free except for the time spent to choose and post content that interests followers, that is) since it remains an effective method of customer outreach and enables you to build and sustain relationships with customers, convert prospects into customers and boost brand visibility. Your social media spend may decrease, but that adjustment could motivate you to make the most of a reconfigured, but still valuable, marketing investment.

Multi-channel is most effective

According to an analysis of performance data associated with social media marketing campaigns, the format produces greater results when used in combination with other marketing tactics, e.g. monthly newsletters and/or case studies, e-books, podcasts, or webinars. Furthermore, when researchers examined 10 years of CMO Survey retrospective data, below-average performance of social media marketing campaigns was reported by participants whose answer to “How effectively does your company integrate customer information across purchasing, communication and social media channels?” revealed weak scores describing the use of that data during the period 2011 – 2023. The performance ranking scale measuring customer data sharing ranged from “not at all” to “very highly.”

In light of the findings of the 10-year retrospective, survey researchers recommend that marketers consult with a Customer Relations Management (CRM) company, e.g., Sprout Social, HubSpot, BuzzSumo, or SalesForce, to ensure accurate interpretations and beneficial integration of their social media marketing performance data to enhance the success of future marketing campaigns. Correctly interpreting and utilizing social media marketing performance data ensures that you’ll have a holistic understanding of customer behavior that’ ‘s inclined to positively impact the buyer’s journey your company provides.

Use social media to grow your customer list

The CMO Survey also found that nearly half of companies use social media platforms to sell their services and products. However, survey data reveals that fewer than 20% of those companies leverage their social media engagement to invite customer feedback that might improve aspects of the customer experience or even suggest new product or service opportunities that the company could explore and possibly launch. Companies that exploit this easily accessible customer feedback opportunity are able to develop a customer experience that responds to and retains customers, encourages referrals and increases sales revenues and profitability.

Improvise to stay timely and relevant

Finally, enhancing your ability to provide a timely response to breaking news that matters to your customers and prospects right now is just about guaranteed to enhance both the relevance and visibility of your brand—and using social media makes this possible. Still, marketing managers often neglect opportunities that are easy to address, as evidenced by the self-reported survey participant score of “average” when describing behavior associated with the statement “Responding quickly to opportunities and challenges when managing your most engaged customers.”

CMO Survey findings convincingly show that adopting a flexible, even improvised, approach to your social media engagement is the most effective aspect of your strategy and that your awareness of breaking news and developing events is most urgent and beneficial when providing a timely response is desirable. Communicating with your customers and prospects by acknowledging the unfolding event or unexpected (surprise) development, with a humorous or witty remark demonstrates your authenticity. In short, building in processes designed to make you ready for and prepared to quickly respond to various types of communication opportunities is able to improve the ROI of your company’s social media marketing and engagement.

Thanks for reading,

Kim

Image: © Simon Smith. Bunhill for Getty Images