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Social media ROI

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Is Social Media ROI a myth or a reality ? How can it be defined and is there a way to measure it.

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Social media ROI

  1. 1. Social Media ROI<br />HareeshTibrewala<br />hareesh@socialwavelength.com<br />
  2. 2. Agenda<br />Risk Of Inaction<br />Return On Investment<br />My ROI<br />
  3. 3. Risk Of Inaction<br />
  4. 4. Gap Logo Change<br />More than 1000 posts on FB page lamblasting the new logo<br />@Gaplogo twitter handle set up by irritated fan<br />“All roads were leading us back to the old logo”<br />Social Media saves the day for Gap<br />
  5. 5. Kryptonite Disaster<br />Lock is compromised by a Bic pen<br />Brand caught unaware<br />Poor response, plummeting sales<br />Finally forced to withdraw the product, offer 100% replacement<br />Social Media became their Waterloo <br />
  6. 6. Return On Investment<br />
  7. 7. Viral Videos<br />Cost of creation : $1000<br />Cost of promotion : $0<br />Revenue growth<br />5 times revenue growth in one year<br />
  8. 8. Gary Vaynerchuck<br />Wine selling<br />$15,000 direct mail<br />200 new customers<br />$7,500 on billboards<br />300 new customers<br />$0 on twitter<br />1800 new customers<br />Grew his business from $4mn to $50mn using social media <br />
  9. 9. Gary Vaynerchuck<br />Daily video blog<br />Tv.winelibrary.com<br />800,000 Twitter followers<br />50,000 FB fans<br />Created a community<br />1st time wine buyers<br />Converted a “snooty” category into a “fun” category<br />
  10. 10. New Orleans based Pizza outlet<br />Found direct mailing option to be expensive<br />Used Twitter to reach out to consumers<br />Created its own “list” and community<br />60% sales via Twitter <br />“I am calling from Twitter”<br />
  11. 11. Burger King Whopper Sacrifice on Facebook<br />Costs<br />Application : $25K<br />Gratification : $75K<br />ROI<br />32 mn free media impressions :$2000K value<br />New sales : $750 K<br />Top of mind recall:$$$<br />
  12. 12. Created peer-to-peer community support platform<br />Studied consumer feedback <br />Marketing. Sales, Product, Custserv<br />Reduced laptop support cost by 20%<br />Increased productivity for agents and NPS<br />
  13. 13. Lead generation company<br />Reports that 24% of social media leads convert into opportunities<br />
  14. 14. Finance and accounts management software (Quickbooks)<br />New product :Turbo Tax<br />Used customers to create communities to test the product<br />Got product feedback<br />Increased sales by 30%<br />
  15. 15. Barack Obama<br />5mn fans on social media<br />3 mn online donors gave $500 mn <br />92% donations were in increments less than $100<br />
  16. 16. My ROI<br />
  17. 17. Identify Business Objective<br /><ul><li>Brand Building
  18. 18. Generating Sales
  19. 19. Customer Service
  20. 20. Reputation Management
  21. 21. Co creating products
  22. 22. Creating B2B relationships</li></li></ul><li>Objective : Lead Generation<br />Beginning of the Funnel : Awareness<br />Fans, followers, blog views, connections<br />Middle of the Funnel : Engagement<br />Likes, comments, re-tweets, blog comments, participate in an engagement<br />End of the Funnel : Conversion<br />Call to action<br />
  23. 23. Objective : Reputation Management<br />Sourcing conversations<br />Doing a sentiment analysis<br />Generating a SIM score<br />SIM Score : ((Positive+Neutral)-Negative)/Total<br />Benchmark SIM Score sub-category wise<br />Benchmark SIM Score over a period of time<br />Benchmark SIM Score wrt competition<br />
  24. 24. Key Takeaways<br />Is there ROI in Social Media<br />Yes there is (Risk of Inaction / Return on Investment)<br />Key is to define your business objective<br />For that objective, define metrics to benchmark<br />Social Media involves investment of time and money.<br />Social Media is evolutionary<br />Initial ROI graph will be low, then it will scale up<br />
  25. 25. Listen<br />
  26. 26. Questions?<br />If you need a copy of this presentation, please leave your business card. We will email it to you.<br />Hareesh Tibrewala<br />Jt. CEO, Social Wavelength.<br />hareesh@socialwavelength.com<br />Company blog: blog.socialwavelength.com<br />LinkedIn: linkedin.com/in/hareeshtibrewala<br />

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