Talking about social media getting real, delivering ROI and what that ROI means, both quantitatively and qualitatively. Money is a stored form of energy, so why not bring thermodynamics into this too....

1. photo credit flickr.com/johnnyvulkan
Social + Cash = Good
A few big thoughts from
Chris Heuer, Founder Social Media Club

2. WTP?
Whats The Promise?
photo by Chris Heuer

3. The Promise
“at the Social Cash conference
we'll do our best to give you the
inspirations, ideas and knowledge
of how to turn your social media
photo by Chris Heuer
investment into a great return on
investment”

4. but I disagree,
we have already been
seeing ROI, but it
often isn’t focused
on the business
bottom line

5. Has Social Media Been Wasted Effort?
photo by Chris Heuer
• Or has your focus been
misplaced?
• Or have you already
seen the benefits?

6. I propose we simply need to
move the lens of focus
• It’s time for us to
change our focus from
the promise of social
media, to delivering on
that promise
• Which means its time
for managers to give
the social leaders the
tools and resources
they need... or get photo by Chris Heuer
leaders who they can
trust to deliver.

7. What’s the ROI on:

8. What’s the ROI on:
• Lunch with a journalist?

9. What’s the ROI on:
• Lunch with a journalist?
• An article in the newspaper?

10. What’s the ROI on:
• Lunch with a journalist?
• An article in the newspaper?
• A good review of your product?

11. What’s the ROI on:
• Lunch with a journalist?
• An article in the newspaper?
• A good review of your product?
• Attending a conference?

12. What’s the ROI on:
• Lunch with a journalist?
• An article in the newspaper?
• A good review of your product?
• Attending a conference?
• Joining a club or association?

13. What’s the ROI on:
• Lunch with a journalist?
• An article in the newspaper?
• A good review of your product?
• Attending a conference?
• Joining a club or association?
• Steve Jobs responding to a single user?

14. What’s the ROI on:

15. What’s the ROI on:
• Listening?

16. What’s the ROI on:
• Listening?
• Converting an upset customer to a
happy one?

17. What’s the ROI on:
• Listening?
• Converting an upset customer to a
happy one?
• Being a part of an online community?

18. What’s the ROI on:
• Listening?
• Converting an upset customer to a
happy one?
• Being a part of an online community?
• Educating your market?

19. What’s the ROI on:
• Listening?
• Converting an upset customer to a
happy one?
• Being a part of an online community?
• Educating your market?
• Connecting customers to each other?

20. What’s the ROI on:
• Listening?
• Converting an upset customer to a
happy one?
• Being a part of an online community?
• Educating your market?
• Connecting customers to each other?
• Allowing your employees to blog?

21. “How Twitter and Facebook
Make Us More Productive”
“People are more successful if
we force them to move away
from a problem or distract them
temporarily,” observe the authors
of Creativity and the Mind, a
landmark text in the psychology
and neuroscience of creativity.
They found that regular breaks
enhance problem-solving skills
significantly, in part by making it
easier for workers to sift through
their memories in search of
relevant clues.
http://www.wired.com/magazine/2010/02/st_essay_distraction/

22. these things aren’t
quantified, they are
qualified.

23. notice a pattern?

24. but,
we are here to talk
about the problem
social media
has with money,
so lets look closer

25. Money is a stored
form of energy.
so lets do a little physics lesson before proceeding

26. 1st Law of Thermodynamics
The law of conservation of energy is an empirical law of physics. It states that the total amount of energy in
an isolated system remains constant over time (is said to be conserved over time). A consequence of this
law is that energy can neither be created nor destroyed, it can only be transformed from one state to another. The only thing
that can happen to energy in a closed system is that it can change form, for instance chemical energy can become kinetic
energy.
Albert Einstein's theory of relativity shows that energy and mass are the same thing, and that neither one appears without the
other. Thus in closed systems, both mass and energy are conserved separately, just as was understood in pre-relativistic
physics. The new feature of relativistic physics is that "matter"
particles (such as those constituting
atoms) could be converted to non-matter forms of energy, such as light; or kinetic and potential
energy (example: heat). However, this conversion does not affect the total mass of systems, since the latter forms of non-
matter energy still retain their mass through any such conversion.[1]
Today, conservation of “energy” refers to the conservation of the total system energy over time. This energy includes the
energy associated with the rest mass of particles and all other forms of energy in the system. In addition the invariant mass of
systems of particles (the mass of the system as seen in its center of mass inertial frame, such as the frame in which it would
need to be weighed), is also conserved over time for any single observer, and (unlike the total energy) is the same value for all
observers. Therefore, in an isolated system, although matter (particles with rest mass) and "pure energy" (heat and light) can
be converted to one another, both the total amount of energy and the total amount of mass of such systems remain constant
over time, as seen by any single observer. If
energy in any form is allowed to escape such systems
(see binding energy) the mass of the system will decrease in correspondence with the
loss.
A consequence of the law of energy conservation is that perpetual motion machines can only work perpetually if they deliver
no energy to their surroundings. If such machines produce more energy than is put into them, they must lose mass and thus
eventually disappear over perpetual time, and are therefore not possible.
http://en.wikipedia.org/wiki/Conservation_of_energy

27. so why do we need
to talk about
social cash?

28. It’s Chris Anderson’s Fault
or its the fault of those who misinterpret his point

29. Free is not Free

30. Free is not Free
• It costs time

31. Free is not Free
• It costs time
• It costs money

32. Free is not Free
• It costs time
• It costs money
• It costs us attention

33. Free is not Free
• It costs time
• It costs money
• It costs us attention
• Or rather it costs energy

34. Free is not Free
• It costs time
• It costs money
• It costs us attention
• Or rather it costs energy
• And as we just learned, only the least
efficient systems lose energy, which is
what happens when everything is free!

35. Advertising Creates the
Perception of Free
photo by flickr.com/JillClardy

36. Advertising Creates the
Perception of Free
• But you are really
exchanging your
photo by flickr.com/JillClardy
attention for money paid
by a company to a
publisher

37. Advertising Creates the
Perception of Free
• But you are really
exchanging your
photo by flickr.com/JillClardy
attention for money paid
by a company to a
publisher
• Who is exchanging their
money for an opportunity
that you may spend
money with them

38. Advertising Creates the
Perception of Free
• But you are really
exchanging your
photo by flickr.com/JillClardy
attention for money paid
by a company to a
publisher
• Who is exchanging their
money for an opportunity
that you may spend
money with them
• In the original newspaper
model, advertising merely
subsidized the costs, but
did not make it free

39. Which is why so many think
media is free or should be
photo by Just.LUC flickr.com/9619972@N08

40. Which is why so many think
media is free or should be
• Media is knowledge
photo by Just.LUC flickr.com/9619972@N08

41. Which is why so many think
media is free or should be
• Media is knowledge
• Knowledge is free (or photo by Just.LUC flickr.com/9619972@N08
should be)

42. Which is why so many think
media is free or should be
• Media is knowledge
• Knowledge is free (or photo by Just.LUC flickr.com/9619972@N08
should be)
• But it can’t be given
away freely

43. Which is why so many think
media is free or should be
• Media is knowledge
• Knowledge is free (or photo by Just.LUC flickr.com/9619972@N08
should be)
• But it can’t be given
away freely
• Everything needs a
return, our education
system is premised on
this, that those who
receive a public
education give back to
society in some way

45. How did we get here?

46. How did we get here?
• Money is the most taboo topic

47. How did we get here?
• Money is the most taboo topic
• More people want to live from their heart
instead of their wallet

48. How did we get here?
• Money is the most taboo topic
• More people want to live from their heart
instead of their wallet
• We are rebelling against those who would
take exploitative profits, and like the
hippies before us, are fighting the
entrenched systems (to our own
detriment)

49. It’s a Perfect Storm
• The current capitalist
system is inefficient to
the benefit of the most
powerful, the most
aggressive, the most
socially ill adapted and
the most entrenched
oligarchs
• Most humans, with the
exception of those
mentioned above, want
the system to change,
which is why we are here,
which is why so many
think social media is free photo by flickr.com/
davemorris

50. the industrial age separated
managers from the people they mange
• Managers have
confused the numbers
in their spreadsheets
with the shadows on
Plato’s cave wall

51. ok,
I will move past
the social problem
and get back to
business

52. We all seek:
• Return on Time
• Return on Investment
• Return on Attention
which is essentially the same thing
something received for something given

53. which is why its fair
for management
to ask
what’s the ROI on
Social Media?

54. it is your job to prove
that the time invested
is contributing to the
bottom line
and not a waste

55. photo credit flickr.com/ISphoto
Time is our most
valuable resource

56. Time can not be
captured, but the
output of time can
be captured as
objects, memories
or money.

57. if it can’t be measured
it can’t be managed

58. despite everything
I said before,
we still live in a world
that is run by
managers,
this is our reality
and its ok.

59. Money is but one organizational benefit
You can also receive:
•awareness
•opportunity
•experiences
•goods/services
•self esteem
•respect
•love
•social good
•future promises
•savings
•positive sentiment
•trust flow photo credit flickr.com/johnnyvulkan
•page rank
•discoverability
•future serendipity
•purchase consideration at POS
•Customer Support from customers
•and so much more

60. problem:
man can not live
on whuffie alone

61. problem:
the power of language

62. problem:
social media experts

63. opportunity:
success doesn't require accolades

64. opportunity:
serve the market

66. IMPORTANT TO
UNDERSTAND

67. The Because Effect
“The because effect is a
kind of jujitsu. While
other people look to
make money with
something, you're
finding ways of making
money because of
something.”
QT- Doc Searls

68. Price is Relative to Perception
• Of course this has always been true, but...
• The more you like someone, the more you are likely to
be willing to pay, or the less you are likely to ask if you
are the seller. This is a problem and an opportunity.
“the context for finding prices is both conversation and
relationship. In many cases, relationship is the primary
concern, not price. The bottom line is not everything.”
QT - Doc Searls
http://www.linuxjournal.com/content/building-relationship-economy

69. A New Way
• We shouldn’t forget
the past or throw out
the old for the new, we
need to harvest the
best ideas and destroy
the ones that no longer
serve us.
• Our collective future is
dependent on us
discovering a new
model for conscious
capitalism in the
wisdom economy
http://consciouscapitalism.com/

70. A New Way
EVERYONE
NEEDS
TO GET
PAID

71. A NEW
SUCCESS STORY

72. #TheSocialStrip

73. #TheSocialStrip
• Los Angeles Sunset Strip
has become a vibrant
neighborhood again
• Competitors are working
together online and off
• The Viper Room has cut
advertising budget in
half
• All involved are not only
listening, but responding
to what they hear

74. CONCLUSION

75. social business mastery
is leadership,
not management

76. business in balance,
as energy in physics,
requires a balance
of what you give and
what you take

77. exploitative
profits
are no longer
acceptable

78. the karmic cookie jar
is open to everyone

79. photo credit http://flickr.com/esti
Don’t be a cookie monster.
#shareordie

80. @ChrisHeuer
001.408.834.0884
chris@socialmediaclub.org
http://socialmediaclub.org/