I was recently invited to speak on Social Media at the
Startup Saturday Event in Pune.
During my interactions with various organizations and people, I realized that while many people do agree that social media is powerful and should be used for marketing; lot of them are concerned about the ROI and the measurement of the same. This made me choose “Social Media ROI – Why, What and How?” as the topic for the speaker session.
Here is an excerpt of what was covered in the session.
As a first step, we need to acknowledge that social media a combination of psychology, sociology and technology. So while defining the social media strategy for your company/ brand, you need to be extremely cautious about ALL these aspects.
The next thing is the approach which is taken while planning the social media campaigns. The ideal approach is:
- Define Goal
- Identify Tools
- Decide Approach
- Execute
Many of the social media campaigns do not yield the desired results because many companies and brands directly jump to execution without going through the first three steps.
Companies need to first define as to what exactly they would like to achieve from their social media campaign – is it customer feedback, user engagement, leads or sales. Once the goal is defined, companies need to choose the right tools. For example: Although Twitter and Facebook are the popular social media platforms, there is no point in being on Facebook if your target audience hangs out on MySpace! Once the tools are identified, get a clear consensus on the approach and tone of your communication. And then the final step is execution.
Assuming that you followed all the steps and have started with your social media campaign, the next question comes to mind is – how do I calculate the Return on Investment (ROI). While considering the ROI, you need to decide what exactly you want to measure? Because social media has got “media” which has quantitative measurement matrices and “social” which has qualitative measurement matrices. By quantitative measurement matrices, I mean number of leads or increase in sales/ revenue. By qualitative measurement matrices, I mean interaction, feedback, loyalty, passion and brand awareness.
Here are some examples which describe how companies have got both, qualitative as well as quantitative ROI through social media.
ROI Examples - QUANTITATIVE
- Southwest Airlines: Southwest Airlines attributes more than $1 million in additional ticket sales to its presence on Twitter.
- Marriott: Marriott has made more than $5 million in bookings from people who clicked through to the reservation page from Marriott's blog.
- Dell: Dell Outlet made more than $6.5M sale through its Twitter presence.
- Lenevo: Lenovo attributed a 20% reduction in call center activity to use of a community website for answers.
- Naked Pizza: 68.60% of total dollar sales for Naked Pizza came from customers who said they are “calling from twitter”.
- Blendtec: Increased sales 5x by running the humorous "Will it Blend" Videos on YouTube.
ROI Examples - QUALITATIVE
- Starbucks: Generated lot of new product ideas by asking users what want from Starbucks.
- TurboTax: TurboTax started a Twitter campaign to respond and answer questions during key tax season. This helped them in establishing themselves as experts in their field whom the users could trust for opinion.
- Kogi Korean BBQ: Uses Twitter to let the customers know where the truck was and when it would be in their neighborhood. This made the customers happy and of course more number of customers for Kogi.
- Comcast: Provides customer support on Twitter which has got it more satisfied customers who are happy to receive instant online support
- Home Depot: Appreciates technical support employees on Twitter - Whoever provides the support through support tags the tweet with his/ her name. Customers love this because they exactly know who is supporting them and the employees’ moral is boosted with such public appreciation!
So, in a nutshell, for a successful social media campaign:
- DEFINE what you want to measure
- DEFINE your message and tone
- DECIDE your approach
- SELECT appropriate tools
- EXECUTE with diligence and consistency
If you have any more examples of successful social media campaigns, do share those as comments!