John S. Wolfe

Participating on the panel for the AMA Phoenix chapter’s “Innovation and RIO” discussion were, from left, Jos Anshell, CEO of Moses Anshell; Chris Hewitt of Lumension; Greg Ensell of Cox Communications; and Andy Parnell, COO of DeferoUsa.

Social media, “hard” ROI and “soft” ROI, and connecting with customers were some of the topics addressed at the March 24 luncheon of the American Marketing Association Phoenix chapter at the Phoenix Airport Marriott.

A four-person panel explained how to use social media like Facebook and Twitter to manage relationships, as part of a company’s overall marketing strategy. It was noted that Twitter is now perceived to be like a company’s 1-800 number of customer comments and complaints, with representatives monitoring mentions and following up when necessary as a form of “brand preservation.”

A company’s return on investment for new media can be difficult to assess. There could be a “hard” ROI figure, with data like coupons redeemed, visits to a store recorded through AIDC methods, or click-throughs on a website. Or “soft” results like the number of fans or followers, news-clip results or perceived “buzz.”

Panelist Andy Parnell, chief operating officer for DeferoUSA, noted that the firm did a national campaign with Cold Stone Creamery that was titled “iMix America” and incorporated an online and in-store contest. Youths were invited to visit stores and create a unique ice-cream mix, which their friends could then vote on.

The campaign generated a lot of “hard” ROI analytics to justify the company’s expenditure, he said.

“The ‘soft’ ROI was 7 million clipping reports,” Parnell said. “In that case, I probably preferred the ‘soft’ return to the ‘hard’ data.”

The panelists were asked to choose one area for investment in digital marketing for their company or a client.

Parnell noted the wide array of choices before settling on email marketing. “Our clients are always happy with the results,” he said.

Greg Ensell, manager of Government and Public Affairs for Cox Communications, said the company has found success using Facebook ads.

“They are well-constructed and they deliver results to our target audience,” he said.

Chris Hewitt, of Lumension, a provider of network security solutions, said that an interesting tool gaining in popularity is the Ning community platform.

“It’s open source, there’s a free level, and its functionality includes discussion forums, blogs and chatrooms to connect with customers and prospects,” he said.

Jos Anshell, CEO of Moses Anshell, reminded the 70 people in attendance that before diving into new media, you have to ask, “What’s the objective? Who am I trying to reach? What do I want to accomplish?”

“You still have to build a brand to stand for something,” he said. “Then combine it with a call to action.”

Hewitt said it’s easy to get swept away by “trendy” new programs.

“I recommend focusing on one thing, doing it well, and analyzing your results,” he said.

Ensell reiterated that social media is about building a community, being responsive to inquiries and holding two-way conversations.

“It’s not just a new freeway to people to shout from,” he said.

Parnell believes you need to think before you jump.

“Don’t just do it for the ‘social’ stake,” he said. “Look into if your customers want you to use Facebook or Twitter.”

The next AMA Phoenix luncheon will take place April 28 and have a focus on professional development.