What do you think are the top 3 ways companies generate leads and potential new clients?
If you said, advertising, marketing and word of mouth AKA referrals, you are a smarty pants and you are also correct (high five). Long gone are the days of door to door sales, telemarketers, and the use of yellow page ad’s.
In the US alone, the average person spends more than 6 hours a day consuming data online. Whether they are on their phone scrolling through social media, visiting websites, listening to podcasts, that’s a hell of a lot of hours considering we work an average of 8 hours a day, should sleep a recommended 7 hours a day, then there’s commuting, family time, eating, exercising, chores…You get the drift.
With so many people consuming data online it’s only natural for successful businesses to gravitate their advertising and marketing online as well. So where are some small businesses failing while others are succeeding?
Listen I’ll be straight up and tell you, my expertise isn’t in advertising and marketing. It’s in sales. So why am I writing about this topic? Because I figured out how to succeed on social media. Sales are the bread (probably should be gluten free) and butter (hopefully vegan) of any business.
Without CASH MONEY, businesses don’t have revenue to invest in advertising and marketing. Without MONEY, employees don’t get paid. Overhead (if you have any) can’t be paid and the company doesn’t generate a profit. Therefore CEOS/Founders/Owners end up with empty pockets and failed business ventures (been there, done that).
Strong sales and sales leads are the foundation to a successful business. The pipeline of opportunities via social media is endless. There are currently 3.484 billion people using social media today. This means EVERY. SINGLE. BUSINESS. has an opportunity to reach and connect with their target market audience and produce leads which turn to sales and generate revenue and profits for businesses.
As a sales person who now focuses on digital content creation and social media consulting I continue to see the same mistake made by many businesses. I’ve even committed this mistake. That’s why I decided to write this blog post. I wish someone had shared this information with me while I built up my first company, Chica Chico aka The Sociial Collective.
The mistake small business make on social media is two fold.
The first part of the mistake is focusing only on increasing the # of followers one has on any single social media platform. WHO CARES about the # of followers you have, if you leave zero impression on them, have minimal engagement with them and you don’t have an ability to convert them into a customer. I’ve have seen way too many people desperate to get to 10k followers on Instagram so they could have the swipe up feature. Individuals and businesses so obsessed with increasing their follower count they buy followers or participate in giveaway after giveaway.
Let me say this now and I hope these two phrases stay with you. The # of followers does not equal the # of revenue generated for any single business and people buy from people they like.
If Sally has 20k Followers on Instagram but only has 300 followers engaging, leaving impressions and commenting on her account. This means only 1.5% of her followers “like” her. One of the first rules I learned in sales is the 80/20 rule. It’s also known as the Pareto Principle, it states 80% of sales are made by 20% of sales reps. However this rule can also be applied to sales leads and opportunities. For example, 80% of sales a business conducts will come from 20% of their clients. So In Sally’s case, if she only has 300 people who engage, comment and “like” her posts on social media, this means only 20% of those 300 followers would potentially buy from her. Thats 60 people. 60 people out of her 20,000 followers would potentially buy from her. Ya, I’ll leave that with you to take in, ‘cause thats a hard pill for someone like Sally to swallow.
Now, let’s look at Charlie. Charlie has 6k followers on Instagram, she has 500 followers engaging, leaving impressions and commenting on her account. This means 8.33% of Charlie’s followers “like” her. If we apply the same math rules for Charlie’s sales opportunities that we applied to Sally, Charlie has 100 people out of her 6k followers that would potentially buy from her. Thats 40 more people, 40 more sales opportunities with only approx. 1/4 the following as Sally.
This is why # of followers does not equal more sales.
The second part of the mistake is focusing on only one social media channel. The following is a common conversation I have with clients through my social media consulting business.
Client: “How can I grow my Instagram following?”
Me: “Why do you want to grow your Instagram following?”
Client: “because I can get new business opportunities.”
Me: “maybe true, but what about your existing following and why do you think Instagram is the best fit for your business.”
Client: “because everyone is on instagram.”
Yes, there are 1 billion monthly active users on Instagram, but has anyone bothered to look at stats for other social media channels?
There are a lot of users on Instagram, but with conversations in the industry stating organic growth and reach on Instagram has come to an end, why are businesses not focusing on leveraging the other big 6 social media channels to help generate leads and revenue?
Is it fear of the unknown? Is it the extra work required? Or maybe, it’s because businesses have no idea how to leverage other social media channels for their success.
advertisements on how to succeed online or what I like to call “get rich quick schemes”.
The reality is social media and all its different channels have their own advantages, disadvantages and target market audience. So as a business, how do you know which platforms will work best for you?
By working with me.
I combine my knowledge and experience in sales and social media to create customized strategies built for your financial success. Social Media isn’t a one size fits all. Not every platform will generate the same amount of success for every business. By working together I will ensure your business goals are in alignment with your social media approach.
Let’s begin our journey together by booking your FREE 1 HOUR CONSULTATION. You’re unique, your story is unique and thats why I create unique social media plans for your financial success.