roi of social media

ROI of Social Media

Clo Willaerts

Digital Marketing First

28 Oct 2010

About.me/clo

Return on Investment

ROI = ( Profit - Investment ) / Profit

1. Investment

Overheard at an advertising agency: “Sothis marketing manager tells me we

should do a Fanpage on Facebook. Andhe tells me not to ask for extra budget

“because he KNOWS Facebook is free!””

Budget

1. Marketing budget2. Extra budget

1. Separate project budget, tied to a specificproject or custom media programme.

2. Moved from an other budget1. Agency fees2. Media budgets for mainstream media3. Advertising budgets

2. Return

• More revenue• Saving costs

Establish clear marketing goals+ how you will measure success

1/5 Technology

Is this your target group?

1. Hear what they aretalking about(= listening &monitoring)

2. Give them somethingto talk about

Objective: reflect yourbrand and its values inall of your social mediaassets.

2/5. Brand perception &awareness

?

Is yours a t-shirt brand?

3/5. Traffic & audience

• if– your own website (on your own domain) =

your web publishing home base– your social media real estate = satellites of

this home base• then

– how do you use social media to drive traffic toyour site(s)?

Why would they leave?

4/5 Relationship marketing“As defined by the dictionary, a relationship

is “an emotional or other connectionbetween people.” Not between a personand a company avatar. Not between aperson and an automated response.People to people.”

Humanizing the organization, Lauren Vargas,Radian6

Objectives

• to establish a closer relationship with yourcustomers/prospects

• to identify new customers and prospects• to increase customer retention• to be more able to receive customer

feedback

5/5 Sales and lead generation(aka conversion)

Objectives

• lead generation• to increase sales of existing products• to introduce new products• to enter new geographic markets

Accessing coupons posted on Facebook often require that youbecome a fan of the company by pressing their "Like" button.

3. The Real Return“Being open should not

be a mantra orphilosophy, but aconsidered,rigorous approachto strategy andleadership thatyields real results."

Innovation vs ITIt means your staff are

going to be coming upwith solutions on theirown. [...] Thetechnology doesn’tcome from theinformation technologydepartment; IT’s newjob is to support andencourageemployees."

Innovation vs customer care

“To succeed withempoweredcustomers, youmust empower youremployees to solvecustomer problems.”

Every employee is first line“Companies are unable to scale to keep up with

the social phenomenon.We know that customers are using these socialtechnologies to share their voices, andcompanies are having a very difficult time tokeep up. [...]Customers don’t care what department you’re inthey just want their problem fixed.”

March 2010 Altimeter report

Innovation vs recruiting

Innovation vs CRM

Innovation vs Sales“Cold calling [...] will become less

prominent. Rather than pickup the telephone and callsomeone we have nevercontacted, we will pick up thetelephone and call someonewith whom we have had anestablished relationship viaTwitter or Linkedln.”

(“The New Handshake”, by Joan C.Curtis, Barbara Giamanco 2010)

Social Media are changingthe way we live our lives

and do business

Thank you

c.willaerts@sanoma-magazines.behttp://www.conversity.be