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Social Media ROI is one of the most important challenging aspect of Social Media Investment. This presentation will outline the key challenges or Social Media ROI and its solution.
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$ 5000000
$4500000
ROIfor
Social Media
Why Social Media??General questions asked by executives when introduced to Social Media:
Why should I invest my valuable resources in Social Media?
What business impact it will have on my business?
What will be ROI in terms and time and resources invested?
What are the key metrics to follow for measuring ROI in terms of engagement, sales, brand loyalty and customer retention?
Types of Social Media ROI..
Revenue Generation
• Increase in number of new customers
• Increase customer retention
• Increase in how much people spend
• Increase in how often people spend
Cost Reduction
• Saving on product development cost
• Saving in research costs
• Saving on transaction costs
• Saving on technology or business costs
ROIMeasurement
Source: http://tomfishburne.com/2012/02/social-media-roi.html
It is difficult to measure social media ROI…….……
But have to find it……..
Things happen in sequence
Non financial Impact does not directly translate in ROI but necessary for business and financial impact
Investment in Social media:
Time, People and Money$$$$
Non-financial Impact
Business Impact
Financial Impact
$$$$
The sequence explained
Non-financial Impact •Brand Awareness•Brand engagement•Word-of-mouth
Business Impact•Increased revenue through new customers•Reduced advertising cost•Reduced customer service costs•Reduced product design cost
Financial Impact•Revenue Generation•Cost Reduction
$$$$
What the survey says…
58 % says that social media campaigns helps in generating more revenue but only 41% thinks that it reduces cost.
3 steps to
Social Media
ROI
•Measure the Conversion rate •Have
the increased number of visitors also increasing number of transactions?
Step 1
•Measure Cost reduction through customer engagement•Have
the increased followers and interactions decreasing the PR and CRM costs?
Step 2
•Measure the Financial Impact•How the
revenues and profits moving with social presence?
Step 3
3 Steps
Step 1: Conversion Rate
www.brandbuilder.wordpress.com
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb0
2000
4000
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10000
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14000
16000
18000
0
10000
20000
30000
40000
50000
60000Transactions
No. of Vistitors
Months
Tran
sacti
ons
No.
of V
isito
rs
Social media management campaign was launched in September.
As shown in graph:Customer transactions has increased along with increase in no. of visitors
Before Social Media Since Social Media
Step 2: Cost Reduction
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb0
10000
20000
30000
40000
50000
60000
70000
80000PR Costs
CRM Costs
Followers
Conversations
MonthBefore Social Media Since Social Media
The number of followers and conversations have increasedWith Social media program.
As shown in graph:PR and CRM costs have first decreased and then increased due to increasing revenue. Overall, Both PR and CRM costs have decreased in proportion to sales revenue.
www.brandbuilder.wordpress.com
Step 3: Financial Impact
Mar AprMay Jun Jul Aug Sep Oct Nov Dec Jan Feb0
2
4
6
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REVENUE (Millions)COSTS (Millions)PROFITS (Millions)
Before Social Media Since Social Media
www.brandbuilder.wordpress.com
The revenue has increased proportionally more than the cost. Thus increasing profit by the use of social media management
Now you may want to be more Social...
Dildar SinghSocial Media Analyst, Inrev Systems.E-mail: [email protected]. : 08943400766
Reference
Slide No. Source1 http://www.accountservonline.com/Resources.html
2 http://hr2012.wordpress.com/2011/08/01/top-10-donts-for-hr-metrics/, http://searchengineland.com/acquisition-marketers-and-the-seo-roi-dilemma-70926, http://www.inflexion-point.com/Blog/bid/81928/Why-you-may-need-to-redefine-your-competition,http://www.winceron.com/BusinessApplications.aspx, http://businesstraining.com
5 http://tomfishburne.com/2012/02/social-media-roi.html
12,13,14 www.brandbuilder.wordpress.com
15 http://socialmediatoday.com/vanessa-dimauro/428672/social-mindhttp://www.lystproject.com/2012/03/01/what-in-the-heck-is-a-twitter/
Social Media Monitoring Platform Visit : www.simplify360.com for FREE Demo
If you make customers unhappy in the physical
world,
they might each tell 6 friends.
If you make customers unhappy on the Internet,
they can each tell 6,000 friends.
- JEFF BEZOS
Social Media Management SAAS Infrastructure
Visit : www.simplify360.com for FREE Demo
If you make customers unhappy in the physical world,
they might each tell 6 friends.
If you make customers unhappy on the Internet,
they can each tell 6,000 friends.
- JEFF BEZOS
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