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ROR = Social Media’s ROI


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Return on Relationships is Social Media’s ROI. This presentation aims to explain how the old paradigm of "Pay to Play" has been replaced by "Play to Play" and why investing in dialogue and Relationships has replaced huge financial budgets in the Social Media space.

Published in: Business, Technology

ROR = Social Media’s ROI

  1. 1. ROR = Social Media’s ROI<br />How Return on Relationships makes THE difference<br />
  2. 2. The Old Model<br />ROI = Return on Investment<br />In marketing terms, huge investment was made in creating content for:<br />TV<br />Radio<br />Magazine/Newspaper adverts<br />Direct Mail<br />Billboards<br />
  3. 3. The New Model<br />Social Media Channels<br />Reach people where they are interacting<br />UGC – User Generated Content<br />Get your consumers talking about your product<br />Create dialogue<br />Get into a conversation with consumers<br />Viral and Word of Mouth<br />People trust people – have a virtual (global) sales force<br />
  4. 4. The Basics of Social Media ROI<br />Where’s the money.....?<br /><br />More on Olivier Blanchard (worth a look!):<br /><br />
  5. 5. The Context<br /><br />
  6. 6. Facebook’s Stats<br /> (as at 31 Jan 2010)<br />&gt;350 million active users (that’s more than the population of the USA!)<br />50% of our active users log on to Facebook in any given day<br />&gt;35 million users update their status each day with more than 55 million updates<br />&gt;2.5 billion photos uploaded each month<br />&gt;3.5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each week<br />&gt;3.5 million events created each month<br />&gt;1.6 million active Pages on Facebook<br />&gt;700,000 local businesses have active Pages on Facebook<br />Pages have created more than 5.3 billion fans<br />About 70% of Facebook users are outside the United States <br />&gt;65 million active users access Facebook through their mobile devices. <br />Mobile device users are almost 50% more active than non-mobile users. <br />
  7. 7. Facebook’s Population<br />
  8. 8. Social Media Marketing by Definition<br />Organic<br />Transparent<br />Authentic<br />Community<br />User generated Content<br />Word of Mouth<br />Viral<br />Social media marketing is about building ways that fans of a brand or company can promote it themselves in multiple online social media venues.<br /> -Wikipedia<br />
  9. 9. Social Media ROI: Socialnomics<br /><br />
  10. 10. Gary Vaynerchuck: On Social Media ROI<br />
  11. 11. Gary Vaynerchuck: On Social Media ROI<br />
  12. 12. Cost Comparison<br />Direct Mail - $15k = 200 new customers<br />Billboard - $7.5k = 300 new customers<br />Twitter - $0 = 1,800 new customers<br />To get the same from traditional channels:<br />Direct Mail = $135k for 1,800 new customers<br />Billboard = $45k for 1,800 new customers<br />
  13. 13. The Trust Equation<br />Nielsen Global Online Consumer Survey of &gt;25,000 Internet consumers from 50 countries.<br />
  14. 14. The Trust Equation (cont’d)<br />Economist - A special report on social networking – “Profiting from friendship”<br />
  15. 15. Traditional Marketing<br />One mouth - Telling isn’t Selling<br />
  16. 16. Social Media Marketing<br />Dialogue - Two ears, two eyes, one mouth<br />
  17. 17. Pay.....! Attention......?<br />“You can’t buy attention anymore. Having a huge budget doesn’t mean anything in Social media ...<br />The old media paradigm was PAY to PLAY.<br />Now you get back what you authentically put in.<br />You’ve got to be willing to PLAY to PLAY”<br />Alex Bogusky, Co-Chairman, CP&B<br />
  18. 18. ROI of TV.......?<br />
  19. 19. Old ROI versus New ROR<br />Traditional - ROI<br />High up-front investment<br />High on-going investment<br />High additional PR costs<br />Not easily measurable<br />No active dialogue<br />Mainly –ve feedback<br />High customer support cost <br />($12 via contact centre)<br />High market research costs<br />High product development costs<br />High customer acquisition cost<br />Social Media - ROR<br />Low up-front investment<br />Low on-going investment<br />Low additional PR costs<br />Totally measurable<br />Active dialogue<br />Mainly +ve feedback<br />Lower support costs <br />($0.25 via self-service)<br />Low market research costs<br />Low product development costs<br />Low customer acquisition cost<br />
  20. 20. Direct ROR of Dialogue<br />Increased Trust<br />Increased Affinity<br />Increased Advocacy<br />Increased Satisfaction<br />Reduced -ve sentiment<br />Reduced complaints<br />Reduced resolution times<br />
  21. 21. Heaven or Hell?<br /><br />
  22. 22. Your Social Media Presence<br />Must Be........ <br />Open – a true dialogue with customers<br />Promote free speech (-ve comments are opportunities to learn!)<br />Welcoming – your customers should feel that they matter<br />Getting customers to create content and share with their friends is marketing you simply can’t buy at any price!<br />Personal – people like interacting with people<br />Create an approachable and available persona to front your interactions<br />Honest – admit when you get it wrong and fix it (fast!)<br />You gain greater loyalty when you handle problems well<br />Authentic – true to your brand’s marketplace<br />Your Brand integrity and tone of voice must feel (and be) “real”<br />Coherent – resonate with your Marketing<br />Social media must have the same “feel” as your other (traditional) channels<br />Used internally too – create the same dialogue with staff!<br />With a tool this powerful, you’re able to engage your employees in a deep and intimate dialogue too...<br />
  23. 23. Some Successes - Socialnomics<br />
  24. 24. Some Successes - Socialnomics<br />
  25. 25. Some Successes - Socialnomics<br />
  26. 26. Some Successes - Socialnomics<br />
  27. 27. Tangible results<br />
  28. 28. Sean McDonald from Dell: Traditional vs. Social Media investment<br /><br />
  29. 29. Some Successes - Socialnomics<br />
  30. 30. Customer conversations<br />
  31. 31. Some Successes - Socialnomics<br />
  32. 32. Some Successes - Socialnomics<br />
  33. 33. Online is the future<br />
  34. 34. Budget Allocation<br />
  35. 35. And finally.........<br /><br />
  36. 36. Do you remember when a website was optional.....?<br />Do you remember what happened next....?<br />If you’d like to discuss your Social Media Strategy:<br />Rory Murray<br /><br />@rorymurray<br />Rory (at)<br />+44 7813 939916<br />