Social Media ROI : Demystified


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In today's digital age, Social Media Engagement is the way of life. From status
updates on Facebook to tweeting about your new pair of jeans to connecting
with professionals on LinkedIn – We almost live in a 'One button
economy'. Businesses across the globe are leveraging on the C2C Era,
however one prominent question that almost troubles all is - “I will
invest in Social Media, but how do I calculate ROI?”

this documents sheds the much needed light on gauging Social Media ROI.

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Social Media ROI : Demystified

  1. 1. customer centriaThe Customer Engagement & Experience Company Decoding the Science of Social Media ROI Date: 06/09/2011
  2. 2. IntroductionIn todays digital age, Social Media Engagement is the way of life. From statusupdates on Facebook to tweeting about your new pair of jeans to connectingwith professionals on LinkedIn – We almost live in a One buttoneconomy. Businesses across the globe are leveraging on the C2C Era,however one prominent question that almost troubles all is - “I willinvest in Social Media, but how do I calculate ROI?”Social Media and ROI appear in the same statement moreoften than ever today. The question is simple – “Is the spending yieldingany returns?” – But the answer is not that straight forward. The issue ofcalculating the ROI on social media has plagued marketers and brands for along time now. Social media ROI is more than just numbers, as it breaks allconventional boundaries, augmenting brands and businesses inunimaginable ways.A company may choose to spend some thousands, lakhs or even crores on social media – but each organization atsome point shifts its 100% focus on ROI from the activities. ROI can be gauged in two ways here – earnings andsavings. A Cisco case study claims that the firm saved $100,000 by opting for social media initiatives to launch aproduct rather than relying on the traditional ways. Gradually, social media is turning into a single promotionvehicle for many brands, as the returns are high not just in terms of revenue, but reputation management as well.One negative client response is all it takes to lose hundreds and thousands of potential costumers today, not toforget the damage it does to the brand. This makes it essential while devising a social media plan to select an aptROI as a goal, which is beyond just sales.Business leaders have no time to waste, and all they seek is a simple calculation of ROI and connect social mediastrategies with real world business performance metrics. Tracking mechanisms, virals, sales, surveys, andhyperlinks – all these form an integral part or ensuring that the returns on social media activities are visible andeasy to calculate.Starting as mere pilot programs that ran into some weeks, today social media had turned into an every day everyminute affair with professionals dedicated 24*7. So how can companies be certain that the money being put intosocial media will surely bear the fruits?
  3. 3. The good news is that you can always calculate and ensure ROI, by keepingsome basics in mind, and implementing the right social media strategies. Social media should always add the human aspect to brand, as the goal is to evoke trust. Trust is all about 1 brand loyalty, so the aim is to strengthen the client association. Monitoring social media is essential; its the initial baby steps your social mediums take that shape the 2 destiny of your future online conversations. Encourage word-of-mouth, as social media is becoming the primary source of business marketing today. 3 Your customers and clients recommend products, services and brands – wherever whenever – in office, at home and even on the move. Online reputation management is the word – supported by right monitoring of the social presence of 4 your brand. This holds the key to create buzz about your brand online. Your clients and users are reading, talking and leaving their marks online everywhere. They can be 5 existing or prospective customers, but you dont want them to feed any negative byte to the Internet about your brand. UGC (User Generated Content) is the in-thing, and costs come down automatically. When your clients 6 and consumers participate in your online initiatives, companies receive substantial impact and support in brand management and reduction in marketing costs and at the same time, they are more trusted amongst fellow users because it is created by someone from their own community. Engaging the consumer is of highest value as it serves two purposes – cost reduction and direct access to 7 his priorities. Create an interactive game or start a contest – you will get a piece of your consumers mind. And you can achieve a lot by putting all the pieces together! The other plus is that you will also get in touch with some creative minds out there who can take your brand places with some brilliant ideas. How about that for ROI?Leverage each of these points, and you will never have a moment of doubt about social media ROI, as it getsmaximised with each day, apart from enhancing client retention and acquisition.There are multiple ways to measure the benefits of social media and smart tracking and measuring is essentialto capture the effect of a campaign or any other initiative. Social media ROI can come in any form: Direct monetary return (Of Course) Repeat traffic and Customer loyalty Creation of a positive brand buzz Idea sharing for growth through online interactions Global brand exposure Significant cost reduction Community Building and the list goes on….
  4. 4. An important aspect here is defining you success metrics, which essentially doest just mean how many people clicked “get more info” or how many people retweeted your content. Metrics must cover two major aspects: Quantitative (Eg: Subscribers, leads, revenue, etc.) Qualitative (Eg: Feedback, Interaction, Loyalty, Buzz, etc.) Keeping in mind the objective of Social Media Presence and setting the right metrics to gauge the results achieved is the key to ROI measurement. The debate over ROI has inspired many brands to take the rational approach to social media – one based on information, data and resolve. To Conclude, before the I in ROI sounds like Ignorance and not Investment, its time to take charge and design social media plans based on logical and rational ROIs, relevant to your specific brand and services. Thus, its not always about revenues, buzz, optimisation or acquisition... its more about Humanisation!About Customer Centria Enterprise Solutions Pvt. Ltd. Customer Centria is a Global Customer Management Company headquartered at Mumbai with offices across 5 locations around the globe and enables enterprises to design Customer Experience and Engagement strategies, powering them towards customer-centricity. Customer Centria helps create opportunities for brands to interact with customers enabling delightful experiences throughout the engagement lifecycle. Customer Centria offers a complete bouquet of services from marketing automation, analytics & insights, interactive marketing, virtual experiences to loyalty management. Customer Centria has proven capabilities across verticals with tailor made services for sectors such as Banking, Financial Services, Insurance, Retail, Telecom and Consumer Goods.