Is ROI the be-all-and-end all of Social Media?

There is a lot of talk at the moment about the need to assess the ROI of Social Media for businesses. Generally, although there seems to be a concensus that businesses are warming to the idea of using Social Media as a marketiung tool, there is still a degree of scepticism as there is no tangible proof that Facebook, Twitter et al produce revenue.

In this race to keep up with latest technologies, I think it is easy to miss the point here.

What is Social Media all about?

In essence, it is about building relationships, and I have likened Social Media to attending a party: an opportunity to catch up with the latest gossip, find new friends, share news - generally chat and be sociable!

Now, let's look at Sales and Marketing in a nutshell:

The best sales consultants who generate results based on the building of long-lasting relationships with their clients, built on trust and understanding. Marketing is about creating "need"; demonstrating to your potential clients that they can't do without your products or services.

So, how do Social Media and Sales and Marketing mix to your advantage?

1. Firstly, people who join in on Twitter and Facebook chat. They chat about anything and everything. If you listen, you will pick up on snippets about your industry sector, what your competitors might be doing, what products people like and what they don't like, and what is happening in your geographical area. In fact, you will hear all sorts of things that you would never hear anywhere else. This is grass-roots information; an opportunity to eaves-drop on a massive range of conversations.

2. You have listened, and if you hear anything that is relevant to you, join in! This is what you do at a party - you listen in and contribute in order to start a chat and build a new friendship. Hardly rocket science.

3. Once you have dipped your toe in the conversation, you will find that other people come over to listen to you, as you have ignited their interest. At that point, you can start to really work the room - sharing information, comparing notes, keepi up to date with your new-found friends. Relationship-building.

4. Using these relationship, you can drive traffic to your website. This is not hard sell; it is responding to requests from people who want to know more about you. You can expand on your snippets by letting people read your blogs or article. You can show people that you have a finger on the pulse by sharing stories you have read elsewhere. Don't forget - you will achieve so much more by instilling trust and confidence.

So, where is the ROI?

Does it really matter? How many companies pay for advertising in the newspapers, magazines and on-line and don't really monitor the response and conversion levels? I know a large business directory who banks on their clients' ignorance. They ask the client "can you be certain that your enquiries did not come from our directory?" Of course, the fact that the client doesn't really know for sure makes it easier for the sales consultant to close the contract renewal deal.

Social Media is free, and used well it can drive traffic to your website, and isn't that what any business wants? Increased traffic on their website, then allow the website to do the business.

Social Media will drive people to read whatever you post in blogs and in articles, and they will read what you have to say about your business, or your products and services; indeed, anything that you want to use to promote your business.

Social Media, most importantly, allows you to LISTEN IN to what people are saying and that could be vital to the way you market your business.

Don't think just about the ROI. Thnk about the relationships that you can build, and think about business that you can pick up simply by starting to listen.