How to get an advertising ROI on Social Media by using ‘word of mouth’

I’ve just come across a course/ system that  promises to actually give your business an ROI  on social media ( return on investment), specifically Facebook. While I have yet start using the system ( it’s not open for sale till next week) I have been impressed by the pitch.  Probably like you I have become more cynical on all forms of advertising and over-hyped press on social media driving business too my store. I’m sick of wasting money!

 

UPDATE: Smash it Social (Review Engine ROI) Is now up and running, and I am following the course with great results, click on the ads for more info. Click here for my next post.

 

 

And here what really works in my experience, ‘word of mouth’. The majority of my new customers that come into my store have been referred by their friends, family and acquaintances. And what’s even better they BUY. They come in knowing that my products are quality and therefore cost more, so they are prepared.

While, I have not have  any personal experience with reviews on say, yelp or google. They have not been so common in my little city as say in the States, (though I  have seen  an increase lately). In my reading and research I have found that reviews are a significant driver for local new business.  It seems as though people trust reviews more than advertising, I wonder why…..

So here’s what I like about this new system. It combines Facebook with reviews. The reviews then are pushed out to friends of the reviewers….

 

It’s ‘word of mouth’ on auto pilot

 

Have a look at the sales pitch to see what  I mean :)

 

I would really be interested in hearing your experiences with social media. For the amount of effort and time involved, have you achieved a ROI? Have you new customer or clients, and has this resulted in repeat business? Are your fans on Facebook engaging with your brand and does this engagement actually mean SALES? My gut (unproven) feeling is that there are some industries/businesses that do well with selling via social media, by two way communication with their fans, and there are others that don’t……..Reviews though are ‘word of mouth’  via the written word ….

 

 Note: I may receive compensation from clicking on the links in this post

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Clearing Excess Stock – how about bonus deals

Clearing excess stock is a major headache for those in retail & wholesale. Cash is tied up and we need to free it  to buy in the new seasons ranges, hence

Clear excess stock - use  bonus offers

Clear excess stock - use bonus deals

the original idea for end of season sales. Something I have been watching here in my neck of the woods is the ‘Buy One Get One XX% Off’ ( BOGO), or ‘Buy One Get One Free’, and it sounds like it’s wide spread throughout the world.

According to a recent article in the Globe and Mail, which mentioned an (undisclosed) article  in The Journal of Marketing, customers are spending large on these types of deals. Even when 2 items are not required the deal just sounds too good to many shoppers and they just have to buy.

Now… if this works…it is a win-win for us that are trying to clear excess stock!. We get cash in and clear hopefully more volume. Of course my proviso is the conditions and discounts that have to be offered to get the best buy in from the customer. Is 25% off the second item enough of an incentive? Mostly it seems here that the large chains are offering Buy One Get One 50% Off.  Now, as a small independant buisness owner I hate the thought of following the big boys, but this may be something that we can use to our benefit.

Note that the offer conditions are important. To make it work to our advantage the second item has to be of equal or lessor value.

Clearing excess stock without too much of a margin loss

So how good is your math? Say the customer wants 2 items at $100 ($200), so the price would be $150 after 50% off the second item. The total discount in percentage terms is 25%off. The real winner is when the first item is $100 and the second lower, say $50 ($150 total at full retail) the price is now $125 only a 16.7% total discount.

The word is that customers love this type of deal, it seems to work really well with  FMCG (Fast Moving Consumer Goods) such as groceries, fruit and veg etc where perish-ability is a big issue for businesses.

But how about your business? Do you think this could be a good strategy to clear excess stock?

I would love to hear if you have tried it and it it work! So please comment.

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