Social media ROI

Social Media ROI

Hareesh Tibrewalahareesh@socialwavelength.com

Agenda

• Risk Of Inaction

• Return On Investment

• My ROI

Risk Of Inaction

Gap Logo Change

• More than 1000 posts on FB page lamblasting the new logo

• @Gaplogo twitter handle set up by irritated fan

• “All roads were leading us back to the old logo”

• Social Media saves the day for Gap

Kryptonite Disaster

• Lock is compromised by a Bic pen

• Brand caught unaware• Poor response,

plummeting sales• Finally forced to withdraw

the product, offer 100% replacement

• Social Media became their Waterloo

Return On Investment

• Viral Videos• Cost of creation : $1000• Cost of promotion : $0• Revenue growth– 5 times revenue growth in

one year

Gary Vaynerchuck

• Wine selling• $15,000 direct mail– 200 new customers

• $7,500 on billboards– 300 new customers

• $0 on twitter– 1800 new customers

• Grew his business from $4mn to $50mn using social media

Gary Vaynerchuck

• Daily video blog– Tv.winelibrary.com

• 800,000 Twitter followers• 50,000 FB fans• Created a community• 1st time wine buyers• Converted a “snooty”

category into a “fun” category

• New Orleans based Pizza outlet

• Found direct mailing option to be expensive

• Used Twitter to reach out to consumers

• Created its own “list” and community

• 60% sales via Twitter – “I am calling from Twitter”

• Burger King Whopper Sacrifice on Facebook

• Costs– Application : $25K– Gratification : $75K

• ROI– 32 mn free media

impressions :$2000K value– New sales : $750 K– Top of mind recall:$$$

• Created peer-to-peer community support platform

• Studied consumer feedback – Marketing. Sales,

Product, Custserv

• Reduced laptop support cost by 20%

• Increased productivity for agents and NPS

• Lead generation company

• Reports that 24% of social media leads convert into opportunities

• Finance and accounts management software (Quickbooks)

• New product :Turbo Tax• Used customers to create

communities to test the product

• Got product feedback• Increased sales by 30%

Barack Obama

• 5mn fans on social media• 3 mn online donors gave

$500 mn • 92% donations were in

increments less than $100

My ROI

Identify Business Objective

• Brand Building• Generating Sales• Customer Service• Reputation Management• Co creating products• Creating B2B relationships

Objective : Lead Generation

• Beginning of the Funnel : Awareness• Fans, followers, blog views, connections

• Middle of the Funnel : Engagement• Likes, comments, re-tweets, blog comments,

participate in an engagement

• End of the Funnel : Conversion• Call to action

Objective : Reputation Management

• Sourcing conversations• Doing a sentiment analysis• Generating a SIM score– SIM Score : ((Positive+Neutral)-Negative)/Total– Benchmark SIM Score sub-category wise– Benchmark SIM Score over a period of time– Benchmark SIM Score wrt competition

Key Takeaways

• Is there ROI in Social Media– Yes there is (Risk of Inaction / Return on

Investment)

• Key is to define your business objective• For that objective, define metrics to benchmark• Social Media involves investment of time and

money.• Social Media is evolutionary– Initial ROI graph will be low, then it will scale up

Listen

Questions?

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Hareesh TibrewalaJt. CEO, Social Wavelength.hareesh@socialwavelength.com

Company blog: blog.socialwavelength.comLinkedIn: linkedin.com/in/hareeshtibrewala