Correlating social media with ROI… a ‘this much I know’ blog post)
It’s been almost a week since the end of Social Media Junction 2 and this has given me some time to digest that tricky conundrum of equating social media with a return in investment.
Business being business before investing considerable time and resource into social media I can imagine that a lot of senior executives will want to know what this will do to their bottom line, but the thing about social media ROI is that there is no hard and fast answer on what impact it will have on sales. For a start, not everyone is engaging in the social media space the right way. For example, posting tid-bits of information about your products and services on Facebook is unlikely to win you many friends (or their influence) and may even impact negatively on your business… because no one wants to associate with a tin of spam, hey?
One thing we can be sure of however, is social media, when done right enables businesses to “get social” with their clients, customers and potential customers. And, if this social engagement is of the friendly feel-good kind it’s likely to generate feelings of goodwill towards your company and service, which may one day eventuate in someone choosing to do business with you.
Louise Denver’s (@ldenver) presentation demonstrated how social media has improved the bottom line for Deloitte. She mentioned in her presentation that back in 2003 Deloitte was struggling, it had an image problem, but by adopting an attitude of being open to innovation (such as social media) Deloitte has been able to fight back. It’s now seen to be one of the best firms to work for in Australia. Their staff sound like happy campers indeed – and we all know how invaluable happy, committed and proud staff can do for a company’s customer service and brand profile.
It’s something to think about next time you go to look at your bottom line and try to evaluate the impact your investment in social media has had. If it’s not doing much maybe you need to ask yourself:
- Is my engagement social? Does it bring a personal feel-good dimension to my businesses’ communication?
- Are my staff passionate brand ambassadors? Does my business inspire them to deliver brilliant customer service and build my businesses’ feel-good factor?
Because without doing these essential things, it is likely your investment in social won’t amount to much. Your online telephone might be connected, but no one will necessarily be listening.
Nice one, Robyn. Yes… I hear you
The image in your post took me right back to Lee Odden’s opening line at the #SMJ2 conf… “To question RoI on SM is like asking What’s the RoI of having a telephone in your company? Can you imagine the cost of not having a telephone line? Can someone tell me the cost of not engaging in SM?”
I think that very well answers the constant line of questioning from SM sceptics. It’s not enough to have an instrument or facility, it’s what you DO with it that matters. Going one further, as Lee summed it up “Don’t just do social. Be social.”
Thanks Amar
I think the sceptics will eventually come on board to social. It’s becoming an expected form of communication and customers will expect to be able to engage across social platforms… I guess one aspect of ROI for businesses already doing social is that they are ahead of the curve, they are learning how to engage online, they know the lingo and this experience in itself is invaluable.
BTW It was great to see you again at the event and I loved scrolling through your photos the other day – you know everyone!!
thanks dude…….
