Every company has different objectives, some may want to build brand awareness, some may want to increase customer satisfaction, the list goes on and on. However every single business has the same end goal. Sales.
How beautiful are sales? without sales you wouldn't have a brand to build awareness around, you also wouldn't have any customers to satisfy. I came across a book called "Social Media ROI: Managing and Measuring Social Media Efforts in your Organisation' and it spoke about a beautiful methodology called FRY (Frequency, Reach, Yield).
Developed by Microsoft whilst trying to educate their distributors on increasing sales, the primitive concept of "Sell more stuff" was not good enough, and whilst sales may seem one dimensional, it really isn't, and thankfully social media can enable us to unravel the sales process and help us understand the various ways sales behaviour can be influenced.
Lets kick off with the three most basic ways a business can increase sales, and how FRY coincides.
1. Get existing customers to buy from you more often. (Frequency)
2. Aquire new customers. (Reach)
3. Get existing customers to spend more with you every time they buy something. (Yield)
This can be summed up with one question, "How do you get existing customers to buy more often then they do now?"
The aim here is to shorten the purchases intervals over time.
Create an awareness campaign that educates your customers on why they would be better off purchasing a particular product more often.
How would a tyre company encourage their customers to purchase tyres once every two months rather then once a quarter?
It could create content based on factual evidence that tyres are at their prime within the first 2 months of purchase, then wear and tear begins to take its course. This content could be created in the form of a blog, fact sheet, podcast, infographic and then be amplified via the companies social channels to begin educating its audience.
This can again be summed up by one question "If your message currently reaches 1000 people, and 10 people are converted into purchasing customers, would it be viable to say that sales would increase 10x if you were to reach 10,000 people? Yep. Think of it as building a pipeline, using social media as the funnel.
Thankfully there is an endless amount of ways to build your reach through social media. Such as:
- Increasing ad spend across social channels to achieve higher reach
- Creating campaigns that people willingly build reach for you by liking and sharing with others (Contest and giveaways work extremely well)
- Offering content packed with value across your social channels to increase amount of followers and engagement
- Create a contest where your customers need to like and share your image in order to be in the running to win something.
- Post content that is rare. For example a pizza restaurant could post tons of safe images of pizza, although how many other restaurants do the same? Spice it up a little, get some shots of where the ingredients are grown, maybe post a "How-to" video on how people can make their own pizza in your restaurants style. Keep brainstorming and the possibilities to keep your feed fresh are endless.
Yield is the average dollar value per transaction, how could you convince your customers to spend more with you when they transact?
By increasing the value of a particular product and making it difficult for your customer to resist, you will see an increase in yield. This is obviously easier said then done but there is nothing a well thought out strategy cannot achieve when aiming to incentivise upgrades.
- Use your social media channels to re-target customers who purchased something of lesser value with something of higher value, or an "add on"
- Play around with pricing, lets use a milk shake for example, a small costs $3.00, a Medium $3.50 and a large $6.00 - The average consumer would opt for the medium as they are "only spending 50c extra" then something with a much lesser value, and the $6 seems to expensive unless someone extremely thirsty walked in. In other words offer a good mid-tier product/service with great value that the bulk would opt for. I call this perception pricing.
Who ever said Social Media Marketing cannot influence sales has their head in the clouds, your social channels should be an extension of your business and must be able to adopt and influence the same objectives. Integrate them and your business will reap the benefits.