Forget  ROI A Theory on Social Media and How To Swing It Justin Whitaker Shogun, MicroNiche Consulting
Social media  is online content created by people using highly accessible and scalable publishing technologies.
Social media  is a shift in how people discover, read and share news,  information and content.  -Wikipedia
<ul><li>The goal in getting involved In  </li></ul><ul><li>Social Media is to get people  </li></ul><ul><li>generating con...
<ul><li>How do you  prove  expending resources </li></ul><ul><li>on Social Media is worth it? </li></ul>
<ul><li>How do you  swing  it? </li></ul>
Engagement  Measures?
Return on  Investment ?
Return on  Assets ?
Wait, Return on  Assets ?
Engagement Measures  ! = $
ROI = ( Gain  on Investment – Cost of Investment)/Cost of Investment
ROI = How  efficiently  capital is used
ROI= Assumes  discrete  project/ milestone
ROI= Assumes  attributable  revenue
Social Media is not a  campaign
Social Media may not generate  attributable  revenue.
(Engagement-Costs)/Costs  !=  ROI
(At least not to corporate  decision makers .)
ROI is the  wrong  tool.
ROA  =  Net Income / Total Assets
ROA =  Efficiency of  Asset Usage
But, isn’t Social Media an  investment ?
Social Media is a  time  investment.
Social Media is a  cultural  investment.
Social Media is an  expense .
Social Media =  - Net Income
Social Media =  + Brand Value  (Recognition/$)
Social Media can  influence  the perception and value of your brand.
Social Media =  + Customer List  (Community Engagement)
Social Media allows me to  efficiently  increase # of engaged customers.
More engaged =  more value .
Via Social Media you can generate measurable deltas in two key  intangible assets .
Intangible assets are  balance sheet  items.
(In Case You Were  Wondering .)
Business 101:  + Net Income /Total Assets
+ Differentiation  = +  Net Income
+ Engaged customers  = +  Net Income
Business 102: + Net Income/  + Total Assets
+ Differentiation  = + value to  Brand
+ Engaged customers  = + Value of Customer List
Successful  Companies Have High ROAs.
Social Media  can help you swing it.
?
Contact:  Justin Whitaker MicroNiche Consulting Twitter: Justinmwhitaker Email:  [email_address]
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Forget ROI

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Presentation I gave at Podcamp Boston 4. Still needs some work, but the general idea is there. Please feel free to share, remix, distribute, contact, etc!

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Forget ROI

  1. Forget ROI A Theory on Social Media and How To Swing It Justin Whitaker Shogun, MicroNiche Consulting
  2. Social media is online content created by people using highly accessible and scalable publishing technologies.
  3. Social media is a shift in how people discover, read and share news, information and content. -Wikipedia
  4. <ul><li>The goal in getting involved In </li></ul><ul><li>Social Media is to get people </li></ul><ul><li>generating content and sharing </li></ul><ul><li>information about you & your </li></ul><ul><li>products ! </li></ul>
  5. <ul><li>How do you prove expending resources </li></ul><ul><li>on Social Media is worth it? </li></ul>
  6. <ul><li>How do you swing it? </li></ul>
  7. Engagement Measures?
  8. Return on Investment ?
  9. Return on Assets ?
  10. Wait, Return on Assets ?
  11. Engagement Measures ! = $
  12. ROI = ( Gain on Investment – Cost of Investment)/Cost of Investment
  13. ROI = How efficiently capital is used
  14. ROI= Assumes discrete project/ milestone
  15. ROI= Assumes attributable revenue
  16. Social Media is not a campaign
  17. Social Media may not generate attributable revenue.
  18. (Engagement-Costs)/Costs != ROI
  19. (At least not to corporate decision makers .)
  20. ROI is the wrong tool.
  21. ROA = Net Income / Total Assets
  22. ROA = Efficiency of Asset Usage
  23. But, isn’t Social Media an investment ?
  24. Social Media is a time investment.
  25. Social Media is a cultural investment.
  26. Social Media is an expense .
  27. Social Media = - Net Income
  28. Social Media = + Brand Value (Recognition/$)
  29. Social Media can influence the perception and value of your brand.
  30. Social Media = + Customer List (Community Engagement)
  31. Social Media allows me to efficiently increase # of engaged customers.
  32. More engaged = more value .
  33. Via Social Media you can generate measurable deltas in two key intangible assets .
  34. Intangible assets are balance sheet items.
  35. (In Case You Were Wondering .)
  36. Business 101: + Net Income /Total Assets
  37. + Differentiation = + Net Income
  38. + Engaged customers = + Net Income
  39. Business 102: + Net Income/ + Total Assets
  40. + Differentiation = + value to Brand
  41. + Engaged customers = + Value of Customer List
  42. Successful Companies Have High ROAs.
  43. Social Media can help you swing it.
  44. ?
  45. Contact: Justin Whitaker MicroNiche Consulting Twitter: Justinmwhitaker Email: [email_address]

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