In order to be as effective as possible when using social media, you must have a strategy. Without a plan, you don’t know why you’re using these tools and for what aim. Identifying your profit centers and points of conversion are the next step in this journey.
What is a Profit Center?
“In the business, a profit center is an area of a company that adds directly to its bottom line profit.” according to Joshua Kennon at The Balance. Whether your organization is for-profit or not-for-profit, the goal is the same. Increase income of assets, decrease expenses, so as to profit. In for-profit businesses, profits go to owners or stockholders. Not-for-profits profits are reinvested into operations and/or support program(s).
Once you know where your money arrives into your coffers, you can start identifying how to get more in there.
What Do You Want Them To Do?
Think for a second about what you want to happen when potential customers, clients, or investors see your digital assets – your website, Facebook, LinkedIn, Instagram and otherwise. What actions do you want them to take?
Here are some ideas:
- Visit a key web page (not just the homepage, think Store)
- View a marketing video
- Download a value based asset (whitepapers, ebooks, etc.)
- Sign up for email list
- Open an email
- Submit a web form (Contact page or inquiry)
- Scan a code
- Call you on the phone
- View of map or directions page
- Click to purchase
- Click to donate
- Click to sponsor
- Click to volunteer
Take another look at that list. Did you notice that each line starts with a verb? These are calls-to-action and they’re imperative to be successful in generating profit or donations. Jot down ideas on what you want your audience to do when they encounter your brand.
Here’s the thing: your marketing won’t work if you don’t include calls-to-action. People won’t just buy or donate because they feel like it. You must TELL THEM what to do. Think of yourself as herding, firmly directing your audience to where you want them to go.
Points of Conversion
If you are unfamiliar with this, it’s “the point at which a recipient of a marketing message performs a desired action” according to David Kirkpatrick at Marketing Sherpa . It’s the instance that a viewer becomes a customer, a buyer, a client, a patient, a donor, subscriber or volunteer – where your marketing converts them from one category to another.
Think about the exact places, buttons, forms, and digital locations that your audience will perform your desired calls-to-action. Points of conversion are commonly buttons with verbs on them but it’s not always that obvious. As a professional and a consumer, you interact with them almost daily. It’s time to think of your own. If you already have developed digital assets, investigate every inch of them to make sure CTAs are included as much as possible. (Tips on creating strong CTAs.)
The final consideration is to make sure that you test each of those buttons to make sure they perform correctly. Buy buttons should actually buy and Donate buttons should actually transfer money. Error messages are likely to occur. The key is catch and fix issues before you direct hundreds and thousands of people to your important point of conversion. If it’s broken, you may not learn about it for some time and your potential customers are frustrated, possibly never returning.
In addition, you’ll want to track your performance. You can learn what your rate of conversion is with this formula:
Conversion Rate = # of Goal Achievements/Visitors.
Pulling it All Together
Now that you’ve identified the important actions you want your audience to take using points of conversion, you’ll be driving traffic from social media channels to those locations. Social media is where you find that audience, it’s the vehicle that you use to navigate them to points of conversion. Social media isn’t the final point and this exercise reminds us what we’re really doing there.