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Social Media Numbers and the Bottom Line

June 13, 2012 37 Comments
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Numbers are important, because they give us an idea of how successful something is.

Even small numbers can mean a big success. While two might seem a relatively little number in the grand scheme of things, you probably won’t complain too much if your sales team doubles your profits for you.

Big numbers are easier. Ten million products sold is a big success in any language.

In social media, though, the waters are a little less clear. 100,000 Twitter followers might mean something substantial, or it might mean a lot of autobots and gaming the system. 30,000 blog subscribers doesn’t necessarily mean 30,000 active RSS readers.

But a lot of social media experts will tell you numbers are key to succeed in social media – the more your social reach, the more your clout.

To business owners, though, there’s only one real number that’s important – the bottom line.

So, Social Media Expert X, how are your numbers going to increase my bottom line? The clock starts… NOW.

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About Danny

Danny Brown is Chief Technologist at ArCompany and an award-winning marketer and blogger. His blog is recognized as the #1 marketing blog in the world by HubSpot. Danny is also co-author of Influence Marketing: How to Create, Manage and Measure Brand Influencers in Social Media Marketing.

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PrimeOutsourcing
PrimeOutsourcing

This number of users are relevant if they are active in interacting with your account. Thanks for sharing! :)

SuzanneMannion
SuzanneMannion like.author.displayName like.author.displayName 2 Like

Establishing the objectives of a social media campaign or online activity is the most important step: the company is looking to sell or is it looking for brand awareness? The next step is to set the conversion rates for the numbers in social media. Big numbers in social media bring brand awareness, that's a fact. If the company is looking to sell, maybe that is not the best method. Social media should not have the purpose of bringing leads to the business, there are other activities that have this result. However, in regards to the ROI, this will increase in time, not immediately.

Danny Brown
Danny Brown moderator like.author.displayName 1 Like

 @SuzanneMannion Hi Suzanne,

 

I'd agree with most points except the "social media should not have the purpose of bringing leads to the business". Because of its relationship to transactional value, social media can be (and is) a very strong tool for lead generation, especially when tied to offline tactics.

 

But, yes, like any solid strategy, a long-term mindset is needed before you even start.

 

Cheers!

jonharules
jonharules like.author.displayName 1 Like

 @DannyBrown I agree about partnering social (online) efforts with offline strategies. In the last company I've worked with, it's not just the numbers that matters (especially when we've only explored the possibility of lead generation through social media when I came in). It wasn't easy because the company doesn't only need the number of followers and likes but just like what you said, "To business owners, though, there’s only one real number that’s important – the bottom line."

 

So what we did was establish online relationships and follow THROUGH through phone calls (no longer cold calling since they already know you or even sought after your services online) 

 

SuzanneMannion
SuzanneMannion

Establishing the objectives of a social media campaign or online activity is the most important step: the company is looking to sell or is it looking for brand awareness? The next step is to set the conversion rates for the numbers in social media. Big numbers in social media bring brand awareness, that's a fact. If the company is looking to sell, maybe that is not the best method. Social media should not have the purpose of bringing leads to the business, there are other activities that have this result. However, in regards to the ROI, this will increase in time, not immediately.

DannyBrown
DannyBrown

 @SuzanneMannion Hi Suzanne,   I'd agree with most points except the "social media should not have the purpose of bringing leads to the business". Because of its relationship to transactional value, social media can be (and is) a very strong tool for lead generation, especially when tied to offline tactics.   But, yes, like any solid strategy, a long-term mindset is needed before you even start.   Cheers!

jonharules
jonharules

 @DannyBrown I agree about partnering social (online) efforts with offline strategies. In the last company I've worked with, it's not just the numbers that matters (especially when we've only explored the possibility of lead generation through social media when I came in). It wasn't easy because the company doesn't only need the number of followers and likes but just like what you said, "To business owners, though, there’s only one real number that’s important – the bottom line."   So what we did was establish online relationships and follow THROUGH through phone calls (no longer cold calling since they already know you or even sought after your services online)   

Rhysorwin
Rhysorwin like.author.displayName 1 Like

You know what, this is always where I fall down. I know how to do it, I know how to make it work but selling it I struggle with,

Rhysorwin
Rhysorwin

You know what, this is always where I fall down. I know how to do it, I know how to make it work but selling it I struggle with,

DannyBrown
DannyBrown

 @Rhysorwin I tend to keep it simple, mate - let's work on it together. :)   So far it's worked, thankfully!

Rhysorwin
Rhysorwin

 @DannyBrown I will keep reading!

Andrea T.H.W.
Andrea T.H.W. like.author.displayName like.author.displayName 2 Like

This is surely true. Also as politicians always demonstrate at every election numbers are opinionable, if the term is correct. And we thought math to be a precise science. :D

 

Happy weekend to everyone!

Andrea T.H.W.
Andrea T.H.W.

This is surely true. Also as politicians always demonstrate at every election numbers are opinionable, if the term is correct. And we thought math to be a precise science. :D   Happy weekend to everyone!

ikinci el esya
ikinci el esya

 @Andrea T.H.W. by the number of followers are starting to work now. companies as a customer sees is ready followers. 

DannyBrown
DannyBrown

 @ikinci el esya  @Andrea T.H.W. Not the smart ones. And none of the bots that make up these "fans" will ever buy from you because they don't exist.

DannyBrown
DannyBrown

@PurePerComm Thanks kindly, guys! :)

DannyBrown
DannyBrown

@PurePerComm Thanks kindly, guys! :)

bradleyjaypatterson
bradleyjaypatterson like.author.displayName like.author.displayName 2 Like

Great post, Danny, which asks "the" question:  what is the ROI of social media?

 

The problem with this question is the diverse populations that surround it:  entrepreneurs/marketers who might prefer direct action, direct sales and social media folks who know that there are no shortcuts and that relationship comes well before sales in many cases.  

 

Talking "bottom line" with social media managers distracts them from their job which is to engage a longterm relationship with clients with the brand as the behind-the-scenes focus.  Their job is not sales.  It's buzz.  It's developing loyalty through an attractive story.  The sales are what happen as a result of the revolutionary two-way exchange that businesses can now have with their clients.  

 

And as far as numbers go, I think they're the quantitive push that please "bottom line" folks as they can see them grow (just as they can sales), but it's the qualitative part that counts:  the tribe of 100 dedicated clients à la Seth Godin who share and grow as opposed to the million indifferent Facebook fans that can nowadays be bought anyhow.

 

 

 

 

 

Danny Brown
Danny Brown moderator like.author.displayName 1 Like

 @bradleyjaypatterson Getting the right measurement for the right people is key, Bradley.

 

An HR person wants to know that the pressures to reach the bottom line aren't impacting employee morale or health.

 

A sales guy wants to know how much profit is left to offer up his or her incentive.

 

And the boss just wants to be in the black with a healthy cash flow.

 

Okay, that's simplifying it a little - but it connects to your point about distraction.

 

Cheers, sir!

bradleyjaypatterson
bradleyjaypatterson like.author.displayName 1 Like

 @DannyBrown well-said, Danny.  BTW, love how interactive you are with your readers.   Not surprising that there are so many when they are treated so well!  Cheers, Brad

Danny Brown
Danny Brown moderator like.author.displayName 1 Like

 @bradleyjaypatterson Thanks, mate - the way I look at is is this: you've been kind enough to take the time out of your day to come here, when you could have gone elsewhere, so the least I can do is recognize that with a reply.

 

Thanks again! :)

bradleyjaypatterson
bradleyjaypatterson

Great post, Danny, which asks "the" question:  what is the ROI of social media?   The problem with this question is the diverse populations that surround it:  entrepreneurs/marketers who might prefer direct action, direct sales and social media folks who know that there are no shortcuts and that relationship comes well before sales in many cases.     Talking "bottom line" with social media managers distracts them from their job which is to engage a longterm relationship with clients with the brand as the behind-the-scenes focus.  Their job is not sales.  It's buzz.  It's developing loyalty through an attractive story.  The sales are what happen as a result of the revolutionary two-way exchange that businesses can now have with their clients.     And as far as numbers go, I think they're the quantitive push that please "bottom line" folks as they can see them grow (just as they can sales), but it's the qualitative part that counts:  the tribe of 100 dedicated clients à la Seth Godin who share and grow as opposed to the million indifferent Facebook fans that can nowadays be bought anyhow.          

DannyBrown
DannyBrown

 @bradleyjaypatterson Getting the right measurement for the right people is key, Bradley.   An HR person wants to know that the pressures to reach the bottom line aren't impacting employee morale or health.   A sales guy wants to know how much profit is left to offer up his or her incentive.   And the boss just wants to be in the black with a healthy cash flow.   Okay, that's simplifying it a little - but it connects to your point about distraction.   Cheers, sir!

bradleyjaypatterson
bradleyjaypatterson

 @DannyBrown well-said, Danny.  BTW, love how interactive you are with your readers.   Not surprising that there are so many when they are treated so well!  Cheers, Brad

DannyBrown
DannyBrown

 @bradleyjaypatterson Thanks, mate - the way I look at is is this: you've been kind enough to take the time out of your day to come here, when you could have gone elsewhere, so the least I can do is recognize that with a reply.   Thanks again! :)

Darren Sproat
Darren Sproat like.author.displayName 1 Like

Why do I have the post-commercial "tick-tock" from the hit TV series "24" running through my mind right now? @dannybrown , your posts, all of them, are always so thought-provoking and "now" for me. I am considering these exact points now and in the past several weeks (as I took 3 days to unfollow 30,000 people on Twitter) while understanding how social influence impacts the top/bottom-lines.  Great conversation, as usual, that I am following with interest.

Danny Brown
Danny Brown moderator

 @Darren Sproat Now there's a conversation to be having - how "social influence" (and its definition) impact the lines. Hmm, got me thinking now. :)

Darren Sproat
Darren Sproat

Why do I have the post-commercial "tick-tock" from the hit TV series "24" running through my mind right now? @dannybrown , your posts, all of them, are always so thought-provoking and "now" for me. I am considering these exact points now and in the past several weeks (as I took 3 days to unfollow 30,000 people on Twitter) while understanding how social influence impacts the top/bottom-lines.  Great conversation, as usual, that I am following with interest.

DannyBrown
DannyBrown

 @Darren Sproat Now there's a conversation to be having - how "social influence" (and its definition) impact the lines. Hmm, got me thinking now. :)

ElaineJoli
ElaineJoli like.author.displayName like.author.displayName like.author.displayName 3 Like

Just above us in this post, Danny says , "Join over 54,000 smart readers who get my latest post..."  Kinda big numbers.  So just the number alone says something to the audience. In Robert Cialdini's book - Influence - The Psychology of Persuasion, he says we are wired to just accept stereotypes, because our brains simply cannot handle all the data that it encounters second by second.  So things like expensive= good have become the stereotype the brain relies on (you see two watches on the counter, you know nothing about watches, but one is priced at $19.95 and one is priced at $10,000).  I think numbers fall into the same stereotype (within reason).  Bigger numbers= influence. if I see Danny's numbers and he tells me he has 54,000 subscribers, I think a) he is popular b) maybe he is popular for a reason c) if I follow him and he gets to know me as a follower, I can parlay that somehow, eventually - (just me - I know no one else thinks like that) . So numbers are not personal - good or bad - but I think they can be leveraged - we have a million subscribers speaks to a certain group - we have 250 followers that we care deeply about speaks to another.  But both have leverage and impact the bottom (or point taken - top line). 

PS I think size matters:)

Danny Brown
Danny Brown moderator

 @ElaineJoli You got me! :)

 

Blog numbers are definitely just there for social proof. For example, i may have 54,000 monthly readers but my average unique visitors to the blog hover around 40-45k. So, that either means a few thousand have dropped off since subscribing and just haven't unsubbed, or they read by RSS/email alone and never visit.

 

Either way, it shows the folly of the numbers.

 

Your point about "leveraging" is key, and where this post comes from - it depends how the leveraging is being done, and with what message. Is is to get business with genuine skill sets; or is it to shill your wares to unsuspecting suckers.

 

There's an awful lot of the latter out there, and that's where people need to realize that numbers aren't always a reliable source to go with.

 

Thanks for the great thoughts, Elaine!

wmwebdes
wmwebdes like.author.displayName 1 Like

 @ElaineJoli

 "So numbers are not personal - good or bad - but I think they can be leveraged"

Like that Elaine.

And you are oh so right... size does matter.

ElaineJoli
ElaineJoli

Just above us in this post, Danny says , "Join over 54,000 smart readers who get my latest post..."  Kinda big numbers.  So just the number alone says something to the audience. In Robert Cialdini's book - Influence - The Psychology of Persuasion, he says we are wired to just accept stereotypes, because our brains simply cannot handle all the data that it encounters second by second.  So things like expensive= good have become the stereotype the brain relies on (you see two watches on the counter, you know nothing about watches, but one is priced at $19.95 and one is priced at $10,000).  I think numbers fall into the same stereotype (within reason).  Bigger numbers= influence. if I see Danny's numbers and he tells me he has 54,000 subscribers, I think a) he is popular b) maybe he is popular for a reason c) if I follow him and he gets to know me as a follower, I can parlay that somehow, eventually - (just me - I know no one else thinks like that) . So numbers are not personal - good or bad - but I think they can be leveraged - we have a million subscribers speaks to a certain group - we have 250 followers that we care deeply about speaks to another.  But both have leverage and impact the bottom (or point taken - top line).  PS I think size matters:)

DannyBrown
DannyBrown

 @ElaineJoli You got me! :)   Blog numbers are definitely just there for social proof. For example, i may have 54,000 monthly readers but my average unique visitors to the blog hover around 40-45k. So, that either means a few thousand have dropped off since subscribing and just haven't unsubbed, or they read by RSS/email alone and never visit.   Either way, it shows the folly of the numbers.   Your point about "leveraging" is key, and where this post comes from - it depends how the leveraging is being done, and with what message. Is is to get business with genuine skill sets; or is it to shill your wares to unsuspecting suckers.   There's an awful lot of the latter out there, and that's where people need to realize that numbers aren't always a reliable source to go with.   Thanks for the great thoughts, Elaine!

wmwebdes
wmwebdes

 @ElaineJoli  "So numbers are not personal - good or bad - but I think they can be leveraged" Like that Elaine. And you are oh so right... size does matter.

ginidietrich
ginidietrich

I'd argue it's not just the bottom line, but the top line and a shortened sales cycle, too. When working with some companies, you can increase their top line, but they spend unwittingly and that affects the bottom line, which you have no control over (not that I speak from experience or anything, cough, a client bought a Ferrari with the company's profits, cough). Figure out where you can have the biggest affect and make it happen!

DannyBrown
DannyBrown

 @ginidietrich Top line definitely counts, but it's what's left at the bottom line that generally determines the continued existence of a business.   To your example, I'd add I've seen plenty of similar examples where profits have been lavished on luxury items. Yet it was all for show and tell, and it gave off an air of success that brought new clients.   The bottom line was always in the black and, for the owners, that's all that mattered.

AmyMccTobin
AmyMccTobin

 @DannyBrown  @ginidietrich BUT, as a Marketing or PR Agency, YOU can't control the bottom line...  your only input is on the marketing ROI....  And Gini, is that guy still in business?

DannyBrown
DannyBrown

 @ginidietrich  @AmyMccTobin Agree with both of you, and that the buck stops with the business owner. My point was more in questioning the expertise and showing me (as the business owner) why I should employ you, and how that will affect my bottom line.   Because if you're not going to improve my profitability and effectiveness in my market, why should I employ you in the first place?

ginidietrich
ginidietrich

 @AmyMccTobin  @DannyBrown Totally agree, Danny. But my point is exactly what Amy said. There is only so much you can do...and it's not fair to hold you accountable to results you can't control. We were held to bottom line results for that client so, even if the guy wasn't unethical and we resigned the business, we wouldn't have had an increase in our budget, even though their sales increased nearly four million dollars from our campaign, alone. He also didn't pay sales commissions that year. My point is you should measure against the things you can actually control...and sometimes that's not the bottom line. But, as the owner, that's the only thing you should be concerned with.

AmyMccTobin
AmyMccTobin

 @ginidietrich Absolutely - when I was managing Sales that's all I cared about Gini - the Top Line.  I did not have the power to control the bottom. As a Marketer I realize that what my client spend on Marketing IS within my control to a degree, but I still measure the Top Line first, foremost and often singularly.

ginidietrich
ginidietrich

 @AmyMccTobin We used to measure our results only in an increase in margins. And, after generating millions in new business for this particular client, he used the extra money to buy a car and the bottom line was the same as the year before. I wanted to cry. But I learned a very valuable lesson. 

ginidietrich
ginidietrich like.author.displayName like.author.displayName like.author.displayName like.author.displayName 4 Like

I'd argue it's not just the bottom line, but the top line and a shortened sales cycle, too. When working with some companies, you can increase their top line, but they spend unwittingly and that affects the bottom line, which you have no control over (not that I speak from experience or anything, cough, a client bought a Ferrari with the company's profits, cough). Figure out where you can have the biggest affect and make it happen!

Danny Brown
Danny Brown moderator

 @ginidietrich Top line definitely counts, but it's what's left at the bottom line that generally determines the continued existence of a business.

 

To your example, I'd add I've seen plenty of similar examples where profits have been lavished on luxury items. Yet it was all for show and tell, and it gave off an air of success that brought new clients.

 

The bottom line was always in the black and, for the owners, that's all that mattered.

AmyMccTobin
AmyMccTobin like.author.displayName 1 Like

 @DannyBrown  @ginidietrich BUT, as a Marketing or PR Agency, YOU can't control the bottom line...  your only input is on the marketing ROI....  And Gini, is that guy still in business?

Danny Brown
Danny Brown moderator

 @ginidietrich  @AmyMccTobin Agree with both of you, and that the buck stops with the business owner. My point was more in questioning the expertise and showing me (as the business owner) why I should employ you, and how that will affect my bottom line.

 

Because if you're not going to improve my profitability and effectiveness in my market, why should I employ you in the first place?

ginidietrich
ginidietrich like.author.displayName 1 Like

 @AmyMccTobin  @DannyBrown Totally agree, Danny. But my point is exactly what Amy said. There is only so much you can do...and it's not fair to hold you accountable to results you can't control. We were held to bottom line results for that client so, even if the guy wasn't unethical and we resigned the business, we wouldn't have had an increase in our budget, even though their sales increased nearly four million dollars from our campaign, alone. He also didn't pay sales commissions that year. My point is you should measure against the things you can actually control...and sometimes that's not the bottom line. But, as the owner, that's the only thing you should be concerned with.

AmyMccTobin
AmyMccTobin like.author.displayName 1 Like

 @ginidietrich Absolutely - when I was managing Sales that's all I cared about Gini - the Top Line.  I did not have the power to control the bottom. As a Marketer I realize that what my client spend on Marketing IS within my control to a degree, but I still measure the Top Line first, foremost and often singularly.

ginidietrich
ginidietrich like.author.displayName 1 Like

 @AmyMccTobin We used to measure our results only in an increase in margins. And, after generating millions in new business for this particular client, he used the extra money to buy a car and the bottom line was the same as the year before. I wanted to cry. But I learned a very valuable lesson. 


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