The Roi On Social Media Why It Pays To Drive Word Of Mouth

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The Roi On Social Media Why It Pays To Drive Word Of Mouth

  1. 1. The ROI on Social Media: Why it Pays to Drive Word of Mouth Presentation of Findings From Aberdeen Group’s Data
  2. 2. Aberdeen Group <ul><li>Aberdeen Group  is the leading provider of fact-based research focused on the global technology-driven value chain. </li></ul><ul><li>Founded in 1988, Aberdeen has established the market leading position as the “voice that matters” when it comes to understanding the measurable results being delivered by technology in business. </li></ul>
  3. 3. Objectives of the Presentation <ul><li>Identify the Differences between Best-In-Class (BiC), Average, and Laggard Companies’ Social Media Performance </li></ul><ul><li>Pressures on BiC Companies </li></ul><ul><li>Actions Taken by BiC Companies </li></ul><ul><li>Steps for Success for All Companies </li></ul>
  4. 4. The Study <ul><li>The report investigates how companies build market awareness , improve Return on Marketing Investment (ROMI), increase customer acquisition and benefit in multiple other ways by harnessing the power of word of mouth. </li></ul><ul><li>In 2009, Aberdeen examined the use, the experiences, and the intentions of more than 275 enterprises using social media in a diverse set of industries. </li></ul>
  5. 5. Benchmarking the Best-In-Class The Maturity Class Framework Structure <ul><li>Return on Marketing Investment (ROMI) </li></ul><ul><li>Likelihood to Recommend </li></ul><ul><li>Customer Acquisition </li></ul>
  6. 6. Best-in-Class Status Maturity Class Mean Class Performance Best-in-Class Top 20% <ul><li>95%improved the likelihood of customers recommending their products or services </li></ul><ul><li>87%improved their ROMI </li></ul><ul><li>95% improved their customer acquisition rate </li></ul>Industry Average Middle 50% <ul><li>36% improved the likelihood of customers recommending their products or services </li></ul><ul><li>49% improved their ROMI </li></ul><ul><li>58% improved their customer acquisition rate </li></ul>Laggard Bottom 30% <ul><li>2% improved the likelihood of customers recommending their products or services </li></ul><ul><li>0% improved their ROMI </li></ul><ul><li>6% improved their customer acquisition rate </li></ul>
  7. 7. Top Pressures of the Best-in-Class Companies To Use Social Media <ul><li>Improve brand advocacy/”likelihood to recommend” 18% </li></ul><ul><li>Increase customer retention 18% </li></ul><ul><li>Increase return on marketing investment 26% </li></ul><ul><li>Increase customer acquisition 29% </li></ul><ul><li>Increase market awareness 34% </li></ul>
  8. 8. Actions of Best-in-Class Companies <ul><li>Link results of social media activities to increased revenues and other financial outcomes 18% </li></ul><ul><li>Establish a method for engaging consumers in online conversation 39% </li></ul><ul><li>Establish a method for defining social media benchmarks and goals 24% </li></ul><ul><li>Establish a method for driving advocacy/customer referrals 18% </li></ul><ul><li>Instill an organization focus on social media 26% </li></ul><ul><li>Create a team or committee dedicated to social media ROI 21% </li></ul>
  9. 9. Social Media Monitoring <ul><li>Technical solutions are evolving </li></ul><ul><li>Brand management </li></ul><ul><li>Text mining </li></ul><ul><li>“ Human analysis” component in RSS and blogs, photos and video sharing </li></ul>
  10. 10. Steps to Success Class Steps Laggards <ul><li>Define best practices for utilizing and deriving actionable insights for social media </li></ul><ul><li>Train selected employees to engage in online conversations with consumers </li></ul><ul><li>Establish a funding and approval process for social media marketing campaigns </li></ul>Average <ul><li>Use social media monitoring capabilities to identify and measure the value of key influencers </li></ul><ul><li>Segment consumers engaged in online conversations about the company brand </li></ul>Best-in-Class <ul><li>Integrate social media marketing activities with other marketing tactics/media buys </li></ul><ul><li>Correlate customer advocacy to financial outcomes </li></ul>
  11. 11. Last Step <ul><li>Get it done! </li></ul>

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