In this growing world of social media, businesses not utilizing this available resource will be left in the dust. Every business requires a unique social media strategy to ensure success. But what is success in terms of social media? The answer is return on investment (ROI). The most important aspect of a social media campaign is creating a hard ROI, or in other words, increasing the dollars and cents. Soft ROI is defined by number of followers, likes, connections, shares etc. that a page gets, but the hard ROI is the conversion between those connections and sales for your company. I have strategically put together a social media campaign that utilizes LinkedIn to provide concrete hard ROI for my employer, World Class Realty LLC.
World Class Realty is a small real estate brokerage company in the Metro Detroit area. Currently, is has no social media plan in place, and I intend to change that. Being in an industry where professional relationships are key, I believe LinkedIn is the most appropriate method for staying in touch with our past clients, and reaching future ones.
The strategy I am proposing will build a connection base on LinkedIn that makes people aware of our service as well as availability of homes for sale, and in the end, completes a transaction with us. In our case, soft ROI will be the number of connections we gain, the number of views our listings get, and even the number of follow up emails and/or phone calls we get as a direct result of our professional company LinkedIn page. Our hard ROI will be the actual transaction dollars that are created from those connections.
By creating a LinkedIn company page, this allows our agents to professionally connect with potential clients as well as advertise listings for all of our connections to see. It would require a $5,000 campaign budget to implement. The goal would be to get 1000 company connections in the first year. To achieve this goal we will advertise our LinkedIn profile on our annual flyers that we send out. Also, our agents will market the page to their past and current clients. In the real estate industry, you often have repeat clients, so LinkedIn is a great way to stay connected with past clients. Listings will be posted on our page to catch the attention and interest of our connections. We will use google analytics to see how often our connections are viewing these listings, and try to perform our own form of market research to see what type of home seems to be of the highest interest to them on LinkedIn. To measure transactions created from LinkedIn, we will add a section in all purchase agreement forms that will have a box that can be checked. This box will state “I found out about this company/listing through World Class Realty’s LinkedIn page”. This will allow us to measure what transactions are directly related to LinkedIn connections and activity.
In the industry, a connection often times leads to a transaction, so I believe that our goal should be to achieve at least a 5% conversion rate. In the Metro Detroit area, the median list price of a home is $115,700. This results in about $580 commission per transaction to World Class Realty LLC. With a 5% conversion rate, that equates to 50 more transactions than before utilizing a LinkedIn strategy which amounts and roughly $29,000 in hard ROI per year. Thats a $24,000 return on your initial $5,000 dollar investment.
This is just the start, as the company continues to get more connections and activity, the returns could be even greater. By implementing this strategy, World Class Realty will generate a transformation of its soft ROI into concrete hard ROI.