Disclosure: Area 224 does not have a business relationship with either of the companies mentioned in this article.
“Engagement.” This is the social media marketing buzzword du jour. Don’t just talk at people, engage with people. Get them talking to you, converse with them, find out what’s on their minds. Build a relationship. Then sell them something, maybe.
Engagement can probably be described in layman’s terms like this:
Talk with people so they’ll give a crap about your brand.
A lovely case-in-point from two diametric opposites on the Social Media Marketing spectrum: The Fourth Kind (a movie whose “social media hub” is here) and Community First Bank (located in South Carolina, and you can see their Twitter page here.
So, dear reader, why are we betting on the bank?
Well, for starters, there’s a lesson here in a little thing called “lifetime customer value.” We’ll begin with the math.
Really. We’re serious.
Get me “engaged” in this movie, by visiting the Twitter page, sharing an alien abduction encounter story of my own on Facebook, or reading Larry King’s blurb on the movie (center bottom of page) — do all that and I might be convinced to spend $10 on the movie, maybe a little more on popcorn. Perhaps I’ll buy the DVD when it comes out.
As of this writing, 32,000 fans on Facebook (with an estimated fan acquisition cost of $5 per, based on typical spend of Facebook-only ad campaigns plus the creative), plus 650 Twitter followers (use the same $5 per in marketing costs, for setup of your account, staff time, creative, etc.).
So we’ll say it this way:
32,650 times $5 = $163,250 in SMM INVESTMENT.
That’s what it costs this movie to acquire lifetime customers, or engaged fans, or followers.
$10 in lifetime customer value for each fan — assuming (generously) that half will see the movie and the other half will buy the DVD for 10 bucks.
$326,500 for an ROI of 100%.
(Note: we realize this is a very quick math exercise, and that we’re being both overly generous and overly simple. Stick with us.)
What about the bank?
A quick scan of the Community First Fan Page on Facebook gives us 400 followers, give or take. Twitter stream has just 38 followers — but they just launched that on Thursday.
Let’s call it 500 followers to be generous.
500 fans/followers at $5 per to acquire. $2500 total.
PLUS, as you can see, they’re doing a contest where they give away $100 to lucky fans/followers. Let’s put down another $2000 for those giveaways, plus the implementation costs, etc.
TOTAL SMM INVESTMENT: $4500.
ROI = ???
This brings us to the details, the ask, the big question…and why we’re betting on the bank:
What is the lifetime customer value for a new bank customer?
That’s where the math can get fuzzy. BUT, that’s where engagement comes in.
Did you notice the bank’s contest? Get clues through a variety of media — LOCAL media. Find the clues on Facebook, and on Twitter. Win money by visiting a branch. Wait, we’re now engaging.
Engagement – real, true engagement, ratchets up your lifetime customer value, no matter what industry you’re in.
By getting fans and followers to visit the bank to try to win money, the bank is increasing the number of touch points, the number of chances to connect with customers in person. The opportunity to put a human face with the bank’s message.
Is the lifetime value of these customers MORE THAN $10?
We could argue til we’re blue in the face about how much more than $10 a lifetime bank customer is worth. Make a $1000 deposit that throws off 1% in interest revenue for the bank and you’re at the $10 threshold already. Get a mortgage through the bank, open up an IRA, a couple CDs, whatever.
The movie, on the other hand, is engaging just sorta. Oooh, you’ve been abducted by aliens, too? Come see our movie. Thanks for the $10.
Again, folks, we’re betting on the bank. Wouldn’t you?