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Why Social Media Doesn’t Bring Your Business Profit: Five Reasons

Chizhov Studio analyzed more than 200 projects and collected 5 popular reasons why SMM in retail does not produce results.

Social media is constantly profitable for businesses. This sales channel is constantly evolving and scalable. The audience is ready to buy online, so SMM is especially interesting in retail.

But when companies come to social networks for a thousand sales in a week, they become disillusioned with SMM. The wrong approach can lead to the loss of tens of thousands of rubles and the promotion of social networks with no visible result. SMM can and must sell, but like other advertising channels, it requires a special approach to promotion.

Since 2015, we at Chizhov Studio have launched 200+ projects on social networks and we know how to bring clients to a business. And in this article, we have collected the 6 most common reasons why social networks in retail do not bring sales.

Reason number 1 – misunderstanding of the essence of SMM

Many companies go to social networks with full confidence that they will receive a return in a week. This feeling arises after looking at the cases and accounts of competitors, it seems that you just need to declare yourself and money from social media will float like a river.

But when thousands or even tens of thousands of rubles spent on promotion did not bring the expected sales, an understanding comes that something went wrong. And the problem is in the very foundation.

Social networks need to create demand for goods and services.

SMM is about working with unmotivated traffic. To put it simply, people did not come to social networks to buy our product. They don’t even know about us. Therefore, the main task is to create a selling funnel and lead customers by the handle from not knowing the brand to buying.

And it is almost impossible to achieve stable results with an acceptable price of the application in a week. SMM is a long-term job. If you want to create an account today, and make 500 sales in a week, social networks will definitely not give such a result.

But at the same time, sales can be received already in the first month of work. And in three days – to make social networks a stable channel for attracting customers. And this work requires a certain approach.

For example, if a business sells New Year’s toys, then the best time to get sales is at the end of the year. And it seems that if you come to social networks in December, you can immediately get a lot of sales.

It won’t actually work. The market by this time is already filled with dozens of competitors who have already launched the project, attracted the audience and gradually show them why it is worth buying from them. Is it possible to break into this chain from scratch? Yes, but sales will be expensive – SMM will be ineffective.

But if you prepare for ad hoc demand in advance, you can get the most out of it. For example, now it is worth starting preparations for March 8, February 23 and Valentine’s Day. In a few months, design the pages, attract the audience with engaging content, show all the advantages of the company and the reviews of satisfied customers. And also prepare and test advertising funnels, creatives and offers.

With the help of such preparation, we will know exactly what brings sales in the project, and will put maximum effort into this point. So there will be more sales, and their price will be lower. If you start now, the promotion will be more effective.

Reason # 2 – head-on sales

Another problem arises from a misunderstanding of the essence of SMM – a business is trying to go on some direct sales. They come to social networks, fill their account with their products, launch ads and even get some results.

The key here is “some”. If the goals of working in social networks are not defined, then even such a result may seem like a success. But in the long run, the efficiency will be low. This is because the audience knows nothing about your company and product. Why would they buy from you, then?

Imagine logging into Instagram to relax and have fun. And then, among the interesting information, a post with an advertisement for a sofa flies by.

Example of an ad with a sofa ad

This description, aimed at direct selling, says little about the sofa itself. You don’t know anything about the company and the quality of the furniture. Is this information enough to spend time and money on ordering?

Going to the profile, you will also not find details – all publications show only the appearance of the sofa and the order number. The company isn’t trying to keep you on the page: either buy or leave. And you leave. The “I’m so handsome, buy me” strategy doesn’t work.

The same situation is clearly visible in projects with ad hoc demand. For example, we launched a project with custom-made cakes. In it, it was necessary to form people’s interest in the company and products, so that they would later buy a cake for some event from us.

Our solution to the problem is to gather people into a subscription base, warm them up and periodically offer to buy goods with good offers. And it worked, after a month of work, a steady stream of orders began to flow from social networks.

And if we focused on direct sales, we might simply not fall into the current needs of a person. At this very moment, the client does not need a cake, which means that he will scroll through our advertisement, will not subscribe, and we will lose it.

Reason number 3 – lack of a promotion strategy

An SMM strategy is a plan to promote a product or service. In it, we define the goals and objectives of promotion and prescribe the vector of work in social networks.

If there is no strategy, work can be carried out in the wrong direction: reaching out to non-target audiences and offering solutions that customers do not need.

As a result, you do not get the required sales volume and waste your budget.

The most effective social media promotion strategy is the audience warming up strategy. In simple words, its essence is as follows.

He attracted the audience, warmed it up with expert content, reviews and information about the company, and then sold it.

This is the only approach that works on social media. After all, we need to build a reputation: introduce users to the brand and products, earn trust and loyalty, and only then start selling.

For example, we are promoting a project for the sale of shoes with an average check of 12 thousand rubles. On VKontakte, the sale price is low – 900 rubles, and on Instagram, it is high – 6 thousand rubles. And this happens because at VKontakte we first collect a subscriber base into a mailing list. And in it we are already warming up the audience with content, gradually shaping the need for a purchase.

On Instagram, we conduct direct advertising on the site. A person sees beautiful shoes, goes to an online store, sees a price of 15 thousand rubles. and immediately leaves the site – it’s expensive. But it is expensive because he does not know all the advantages of the company and the product.

Therefore, before launching projects in social media, you need to develop a promotion strategy. And its two main components are advertising and content. Only with simultaneous work in both directions can the result be achieved.

In the strategy, we describe how we will attract subscribers using advertising. Then warm up with content about the company, reviews, expert publications. Finally, sell with suitable offers.

Even the smallest details must be taken into account when creating a strategy. First of all, it is important to know all the numbers – profitability, average check, cost of attracting customers through different channels and LTV. This will allow you to form clear and achievable goals for promotion in social networks.

Then you need to determine the target audience, form a USP, select offers, create a funnel. Also explore the consumer journey, customer pain and objection. Thanks to this information, we will know which audience we are working with and how to effectively influence it.

And this is just some of the data that is important to collect. For example, when creating a promotion strategy, we also conduct a deep analysis of the project, niche and competitors and draw up a mind map with all the data.

Fragment of the mind-map of the analysis of one of the projects of “Chizhov Studio”

From all this information, we formulate a social media promotion strategy in a presentation format on more than 70 slides. In it, we indicate the direction of work, prescribe a funnel, specific promotion ideas, a rubricator, rules for maintaining social networks and show how the analytics will be conducted.

An example of a promotion strategy for one of the Chizhov Studio projects

Reason # 4 – lack of packaging

Promotional strategy alone cannot guarantee good results. You also need to create a bright, attractive and understandable visual concept to represent the business.

For social media, packaging is about branding and photography. And if the first is often already formed for companies, then creating images can be difficult.

The audience is sophisticated now. She needs beautiful pictures, but no stock photo. Glossy quality, but lively filling of the photos. Therefore, before starting to work with social media, you need to create at least a hundred high-quality photos.

This can be a photo of a product, a team, an office or a customer service area. And be prepared to regularly conduct such photo sessions, as well as constantly shoot videos.

Why is this needed? Visual design is the first thing a user pays attention to in social networks. In publications for pictures, in communities for the cover and avatar. On Instagram, photos are the basis of content. Therefore, in order to win the attention of potential customers, you need to have a bright and attractive visual packaging for your business.

An example of the visual style of the profile of the company “Rainbow Smile”

Reason # 5 – Full Price Selling

In social networks, many brands are fighting for the attention of users at once. This means that even with the formed demand and loyalty, the buyer can go to a competitor with a lower price.

Promotions and discounts are tools that allow you to increase conversions on social networks. But that doesn’t mean you need to sell at a loss. If you cannot offer a discount of even 15-20%, try changing your pricing policy and raising prices. Then the discount can be made even more, which will attract the attention of customers.

But don’t make a temporary price hike right before the sale. This is easy to spot and audience loyalty will decline. In the long term, this approach will only bring losses.

Research confirms the need for discounts. For example, according to a study of trends in the online trading market from Yandex.Market and GFK Rus, only 29% of people buy goods at full price and without a discount.

Moris Akline
About author

Speculative operations in the foreign exchange and stock market. Work with futures and indices on CME. Work on FORTS and RTS. Development of portfolios and investment strategies for clients. Knowledge of technical (price charts of various types, indicators and oscillators, trends, channels, support / resistance levels) and fundamental analysis, take note of news. I work according to my trading strategy in compliance with the rules of capital management and risk management. Development of trust management strategies. Technique of order execution, placing and changing protective stop-losses, hedging.
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