Last week I had the chance to bump into Sarah Goodall from SAP; I was very pleased to see her at the usefulsocialmedia conference in London one year after being acquainted with her at a marketing conference in London. Sarah is one of our best social media practitioners in the B2B world and I was lucky enough to sneak out of the B2C session and switch rooms to listen to her. Her presentation was about how to convince your CFO about the benefit of social media. Not an easy task, but Sarah knows how to circumvent the issue; here is how:
Sarah Goodall looks after social media for EMEA and she presented on June 26th at the usefulsocialmedia conference in London. “How can social media generate value? I haven’t got all the answers!” Sarah said as an introduction, but she has a few clues which she wanted to share with us.
Sarah has worked for small and large companies and knows “how to make things work on a tight budget”. SAP sells software and services to businesses; it is forty years old and it comes from “a traditional marketing background” Sarah said, and moving into social business “is a true cultural shift”. Hence, social media “came as a shock” to SAP according to her and “it helped [them] turnaround the sales cycle” Sarah went on. What it means is that there has been more emphasis on posting content on where customers are getting it rather than push that content over to them. Therefore, the transition is to inbound Marketing “even though we are not there yet” Sarah said, very honestly. “Outbound still represents twice the budget which is spent on inbound marketing” she added.
How to attribute social influence to revenue?
At the very heart of the business, there is the owned SAP community, using Jive internally and an external community with customers. On top of that, there are channels which aren’t owned by SAP such as LinkedIn, Slideshare, Facebook, Twitter etc. The SAP community network is fairly known outside of SAP, and is 3 million big nowadays. “A lot of bloggers are contributing in this community, most of them aren’t part of SAP by the way” Sarah added.
On external platforms, SAP have enough fans to fill in football stadiums several times “but this is still not sufficient for CFOs!” she said. Hard facts are required, more arguments needed. So what will it take to drive the point home? “What the CFO is interested in is the impact on customer value, and the bottom line and it’s tough, I’m not going to lie” Sarah said.
So here are a few of Sarah’s secret recipes for getting CFOs to buy in to social media:
- Potential cost of R&D saved: if you use the comments and the voting and offset that against the money saved on R&D, this is tremendous. There is also a cost of loyalty and there are savings which can be made.
- Social commerce: this is a little more tricky because “the SAP sales process doesn’t quite work like that” Sarah said. SAP tried to embed links in LinkedIn and experimented on how Facebook posts can lead to a registration. “It’s not enough to generate revenue” she said “it’s not an exact science but it’s enough to uncover value”. There are also chance engagements, they don’t happen very often, but when a potential customer has been turned into a customer later then it is a great achievement.
- Social intelligence: “this is a little bit more woolly” Sarah said but you can try and get insights from social media, and it can be shown that click-through-rates can be influenced through social media.
- Social insight: social media is also useful in order to measure brand health. SAP is monitoring what users are saying about SAP and their competitors. “There aren’t any numbers but it is useful” Sarah said.
- Sapphirenow: this is the biggest business conference which is organised by SAP. In Orlando, 15% of twitter handles of delegates were identified, and 25% followed the @sapphirenow Twitter handle. “This is still early stage Sarah said but it is very useful to tie to something related to business and prove it’s useful” Sarah said.
- Social efficiency: social media saves a lot of money on support and reduces significantly the amount of inbound calls SAP is getting for support. SAP mentors are SAP’s brand advocates and “this is media which can’t be paid for” meaning that it is invaluable. SAP also launched a #suithugger hashtag which brought amazing results.
the right metrics
As a conclusion, Sarah said that “you would have to “communicate the right metrics to the right audience. Don’t show clicks and followers to CEOs! Show how social media is impacting productivity. You can’t really talk of the ‘ROI of Facebook’” Sarah warned.
Pearls of wisdom … does anyone have anything to add to this? I don’t.