Yes, social ROI can be determined
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The document discusses how social ROI can be determined for business initiatives. It suggests that social media benefits like influence, loyalty and engagement can be converted into monetary terms to show a defendable ROI. An example is provided showing potential revenue gains, cost savings and social monitoring solution costs over time, demonstrating a 488% ROI. The document advocates expressing social media results in terms that executives understand, such as dollars, to justify the costs of social strategies.
Yes, social ROI can be determined
- 1. Yes, social ROI can be determined www.kathyherrmann.comwww.webershandwick.com
- 2. 2 The rules of business remain in effect even when you transition your company to a social business model.
- 3. Social media can and should be valued.
- 4. Expect high social margins $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 1 2 Dollars Year Gains versus Costs (Undiscounted) Revenues Cost Savings People Costs Social Monitoring Solution Costs Gains Costs ROI = 488%
- 5. Show social media results in ways client CXOs will best understand…. …and that’s dollars and sense, with a defendable ROI.
- 6. Convert social benefits (like influence, loyalty, engagement, etc.) into monetary terms…. …yes, it can be done.
- 8. 8
- 9. Social Gains versus Costs
- 10. 10
- 11. Sales Revenues Earn higher revenues from better messaging. Expand revenues by extending Impact, Reach, and Yield.
- 12. Consumer Insight Savings Social Monitoring – Gain cost savings by substituting ongoing and real-time social monitoring for traditional market research.
- 13. Brand Protection Savings Gain savings from early warnings to brewing crises, conversations and events. Fast action means revenue preservation and lowered agency costs for crisis mitigation.
- 14. Lead Generation Savings Gain savings via • Lowered cost of lead acquisition, and • Shortened sales cycle.
- 15. 1. Lower the number of incidents (or cases). - Identify brewing situations. Respond quickly and effectively. Call Center Savings 2. Decrease the time per incident or case. - Through better knowledge management or triage.
- 16. People costs… • Client employees who make up the social team. • Third parties can include: – PR agency. – Marketing agency. – Consultants.
- 17. Tech costs for Social platform Pretty doggone low compared to gains potential.
- 18. Summary
- 19. Social business initiatives can and should be valued.
- 20. 20 Know social value and risk, and then you’re ready for the big leap.
- 21. Contact information Kathy Herrmann 571-236-7929 [email protected] www.kathyherrmann.com Natalie Petouhoff (310) 854-8270 [email protected] http://www.webershandwick.com