Which Social Media Platform Drives Sales

Social Media Logotype BackgroundWhich Social Media Platform Drives Sales. What started as a nice place to hang out and meet people is really bringing in the sales. In the beginning social media was seen as a another channel into the market place, with emphasis on the social. A place for the trivia of life.

Now it is the place to be for a large sections of the populace. Once that critical mass was reached the big brands had to follow and they moved in with money and professionalism. The pictures of lunch mover over for images of real food and brand campaigns.

The sales are really happening and a new report from Shopifi.com shows how. They analysed data from 37 million social media visits that led to 529,000 orders. Most of these sale came through Facebook which had the highest conversion rate for all social media e-commerce traffic at 1.85%

There were some surprises in the stats, click the image below to see the full report and info graphic.

How does the help you are you getting sales through social media? Regardless of this success social media must be seen

as another channel in your marketing plan and integrated with other tools. What this report does not show is these successes related to other aspects of the marketing mix, for many of the larger brands social media is one of many sales tools.

For the smaller business you have to be on social media but is worth reviewing the process. While this is working for the brands social media does take time energy and resource. Make sure it is right for your business and fits in with other sales marketing processes. There may be other more direct channels that could serve your business better.

 

Social Media Platform Drives Sales

Which Social Media Platform Drives Sales
The shopify.com report

 

 

How do I reduce my promotion costs?

I have had a clients ask?

How do I reduce my promotion costs?

I can understand the question.  It is important to stay within your resources. I can see where it comes from. In traditional accounting principles, everything has a budget line and the plan is to stay within the lines.

However.

This is a limiting concept and it creates average companies that bring in average profits.

This tight budget approach is based on borrowed money and moving into quick profit, it comes from the money lending mentality of the last century. Banks like to see budget lines in a project that lead to the repayment of the loan.

Thankfully this thinking has changed, and many well-funded corporate projects have what they call a burn rate.

The burn rate offers a more flexible approach. The technique frees you from the tyranny of the question because to build a business the question needs to be reversed.

The question is not:

“How do reduce my promotion costs?”

But:

How much money do I need to spend to get a customer and move into profit?

If you knew that spending £1.00 would return £5.00

would that be a good investment?

When the numbers look like this it is not about saving money but spending more.  Getting to this point is dependent on many factors. Know your numbers, like the transaction size and frequency and lifetime value of a customer. Primarily it is a technique that requires you to track and work with information that allows you to determine its value.

Looking at an example …. lets

–  place an advert in a magazine, cost £300.

–  The result is 5 telephone calls and 2 orders the total value of sales was £300.00

So

–  if we’re buying those phone calls they cost £60 each and it was £150 for each customer.

–  We lost money on the cost of the goods,

but

–  broke even on the cash spent

and

–  gained the contact details for 3 prospects and 2 customers.

That was looking at the immediate result.  From that perspective, we can see that the sales did not cover the costs. However, you have the contact details and continue to market to these 5 connections over the next year. With the result of 2 new orders and one repeat order. Total new sales are £450 plus £300 from the first sales.

That £300 has now generated £750 of sales in just over 12 months

Another year on with more marketing, there are 2 more repeat sales and another new sale, that is another £450

This brings our total income from £300 to £1500.  Wow, that took 2 years but look at that a 5 to 1 return.

This is simplistic the numbers are fake.  In reality, the returns are more like 1:1.5 and dependent on many factors, there are lots of variables to get this working. Yet returns like the above example are possible.

Also, magazine advertising would be expensive, and the responses are variable and difficult to track. However online tracking is much easier with Google or Facebook advertising and email marketing.

What I am talking about here is the development of a process called a sales funnel, when you know a customer will spend £1000 with you over 5 years and more over ten years it is just a matter of deciding,

  • How many of those customers do you need to build a thriving business.
  • How much can you afford to pay to buy one customer

Sales FunnelThe point is prospects come in at the top but they leave through the side of the funnel if what you are offering is not relevant to them. You have the opportunity to offer something else and divert them to another funnel. The ones that arrive at the bottom are customers. This is a powerful process and lets you decide how your business grows.

Building a sales funnel is a process and will take an investment of time, it is quicker and costs less using online tools. Once created it will put your business in the fast lane, where you are looking to spend more on promotion. You choose how many customers you need and how big your business gets.

If you have a successful business you already have a funnel and may not be aware of it. If you want to improve your processes, start testing. If you want support with that complete the 20 minute free review form, I will get back to you and we will see what is possible.

https://market-that.com/coaching/general-pre-phone-call-review/

To your success

Paul Harvey

Promote Your Events on Facebook

Facebook Events

I was asked today how to promote your events on Facebook. This was one of the first apps on Facebook, that has fallen out of favour of late. However it is a useful tool for party invitation and event promotion, from a personal profile it allows you to invite friends, and send updates.

You can also create events from a business page, you may need to activate this app in the page admin panel. If active you will find it in the tabs under the cover image. The event system on pages is more limited which is unfortunate, there is no facility to invite your page fans or notification of updates. You can of course share it to your profile and boost the post using facebook advertising.

If you need reminding how to set an event on a personal profile see the video below.

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Here is a link to facebook event page support

https://www.facebook.com/help/search/?query=facebook%20events