Uploaded byJustin Hartman
Social Media ROI... does it Exist?
The document discusses the ROI of social media, presenting various case studies that illustrate how businesses can generate significant revenue and savings through social engagement. It highlights successful examples like Dell's Twitter sales, Best Buy's customer support initiative, and Cisco's social media-exclusive product launch, demonstrating the effectiveness of social media in building brand equity and enhancing customer experience. Despite the low marketing spend in social media, the potential benefits are seen in improved customer interactions, reduced support costs, and increased long-term sales.
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Social Media ROI... does it Exist?
- 1. Social Media ROI... Presentation by Justin Hartman CEO - Afrigator & Social Code ...does it exist?
- 2. Who thinks SocialMedia ROI is about............... Sales
- 3. What about............... Leads Sales Measurability Brand Equity Support Communication Cost Savings New Customers One on One conversation Engagement
- 4. Profit = R1,000,000 Cost = R200,000 ROI = 400% effectwebagency.com http://tinyurl.com/WTF-SM-ROI
- 5. "ROI of SocialMedia is that your business will still exist in 5 years time...." -- by, Very Smart Person
- 6. Media Types andtheir measurability Media Type Measurement Track ROI? Mobile text ads CTR Yes Banner ads CTR Yes Search ads CTR Yes Opt-in email Reads / Opens Yes TV ads Viewership No Radio ads Listenership No Magazine ads Readership No Newspaper ads Readership No Social Media ??? ???
- 7. Consumer Trust Levelsby Media Type Mobile text ads 18% Banner ads 24% Search ads 37% Ads before movies 53% Opt-in email 55% TV & Radio ads 61% Magazine ads 62% Newspaper ads 66% Brand sites 69% Editorial Content 70% Recommendations from people I know 92% Nielsen Online global survey, April 2009
- 8. Consumers consider word-of-mouth as2X more trustworthy as traditional media when choosing products yet Social Media makes up less than 0.1% of total marketing spend.
- 9. Why is this?Does Social Media not work?
- 10. @DellOutlet • Sell refurbishedequipment exclusively via Twitter using coupon codes. • With 2,500 followers they sold $500k worth of equipment. • In June 2009, with a little over 600k followers they passed the $3 million mark in sales. • Today they have 1.5 million followers and their sales figures for 2010 are unknown.
- 11. @Twelpforce • Best Buyencouraged hundreds of employees to engage with customers who have questions about the company and products. • At the end of 2009 Twelpforce answered 19,500 questions and over 2,300 employees are signed up. • They've set themselves apart from competitors by sharing knowledge on demand to anyone. • Through Twitter they have humanised their organisation and exposed their employees to Social Media.
- 12. Best Buy Shop •Setup a virtual storefront on Facebook where you can purchase products from within the application. • Customers can search for products or ask friends to review products before they buy them. • Beyond @Twelpforce this drives sales and revenue derived straight from Social Media. • Facebook virtual storefront has over 1.2 million fans....
- 13. Better examples ofSocial Media ROI • Cisco study found that 43% of visits to online support forums are in lieu of opening a support case through standard methods. • Cost per interaction in customer support averages $12 via a call center versus $0.25 via self service options. • Forrester reports that customers report good experiences in forums more than twice as often as they do via calls or mail. • eBay found that participants in online communities spend 54% more than non-community members.
- 14. Better examples ofSocial Media ROI These examples concern far greater sums of money than say the $3 million @DellOutlet generated. • Better customer experiences, • Far lower support costs, and • More buying activity in the long run.
- 15. How Cisco saved$100,000 off a Product Launch Launched a new router using social media exclusively. • Second Life • A 3D game • YouTube • Video Conferencing • Mobile • Facebook • Widgets • Blogs • Forums
- 16. Social Media LaunchHighlights • 9000 people attended the launch event - 90x more than in the past. • Saved 158k litres of fuel. • 3x as many press releases to the normal traditional outlets. • 1,000 blog posts & 40 million online impressions in exposure. • One-sixth the cost of a traditional launch. • Was classified as one of the top 5 launches in company history.
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- 18. Learning Channel • Strategywas to engage target market with LC offering. • Want to sell items from their eshop website lcdirect.co.za • Students kept asking for free learning tools, advice, etc. • Use those students to find more info about them and convert them into a lead with the school they attend.
- 19. Using Social Mediato build a business • Afrigator.com used social media exclusively to promote, engage and grow our product. • Got international coverage in CNN, nytimes.com and top tech blogs in the US. Local press coverage followed. • Ad networked spawned from this and has paid bloggers over R520k this year. • Startups are driving innovation using Social Media because of realtime interaction, low cost marketing and support.
- 20. Analysing the casestudies SM effort Primary ROI Secondary Rev/Saving Cost saving @DellOutlet Sales $3 million+ & new cust Brand equity @Twelpforce Support $230k & sales Cost saving Best Buy FB Shop Sales $?? million & new cust Cost Brand equity Cisco $100,000+ savings & sales Learning Channel Engagement Leads R??? Product dev, Sales, brand Afrigator R2 million engagement equity, bus
- 21. "10 years agoyou could not engage with users you had not met yet...." -- by, Another Smart Person
- 22. http://afrigator.biz http://socialcode.biz Twitter: @justinhartman http://facebook.com/justinhartman.co.za justin@hartman.me http://justinhartman.com