Is social media marketing causing you to lose money? - SmartBrief

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Is social media marketing causing you to lose money?

2 min read

Marketing

SmartPulse — our weekly nonscientific reader poll in SmartBrief on Social Media — tracks feedback from leading marketers about social media practices and issues. Last week’s poll question: Has social networking cost your company money?

  • No, my company has not lost money because of social networking: 71.77%
  • Yes, because we’ve spent too much on maintaining a social presence for the level of return we’re seeing: 25.81%
  • Yes, because it has damaged the company’s brand: 0.81%
  • Yes, because of fines or legal action: 0.81%
  • Yes, because of information that was accidentally leaked: 0.81%

It’s no secret that a good social media strategy can improve a company’s marketing and customer service. There is one more reason to get on board. According to more than 70% of our readers, social media aren’t a source of financial loss.

Less than 3% of respondents reported major money loss from social media use, tied to lawsuits, brand damage or leakage of sensitive information.

But while setting up a profile and sending messages through a social network don’t come with a price tag, there is still a chance your company will lose money because employees expend too much time and effort on maintaining the company’s social media presence. Investing time in social media without seeing real results can be frustrating, and this problem affects about a quarter of our readers who responded to this poll. This could be a result of working hard instead of working smart. Too often, companies rush to embrace social media tactics without considering how their strategy will look. Proper planning is essential to avoiding cost overrun and maximizing value.

For companies that are losing time and money to social media, I want to hear from you. What seems to be your biggest roadblock on the path to social media success? Are you still having trouble using the technology in an effective way, or is there simply a lack of response on the customer end?