Another post escapes my agency firewall (I blog several places)
Several people have been asking/chatting about Social Media ROI lately so I thought I would pull together some quick stats and links on the topic. To sum up, nobody has really broken the code and has been able to equate a number (impressions…yuck) to Social Media or WOM. And honestly, how could you/why should you.
I’m not sure I want to know a X value on my friendship and what we talk about. More so to the point, the age of conversation and how we measure don’t fit the old paradigms. Impressions, page views, etc are all built on a broadcast reach/frequency paradigm. For social media and WOM, we need to start thinking in what a conversation/engagement really mean to us (marketers/company/brand) and what that means to a consumer (real people). But here are some links to get going on the topic.
Online Communities and ROI
Community users remain customers 50% longer than non-community users. (AT&T, 2002)
– 43% of support forums visits are in lieu of opening up a support case. (Cisco, 2004).
– Community users spend 54% more than non-community users (EBay, 2006)
– In customer support, live interaction costs 87% more per transaction on average than forums and other web self-service options. (ASP, 2002)
– Cost per interaction in customers support averages $12 via the contact center versus $0.25 via self-service options. (Forrester, 2006)
– Community users visit nine times more often than non-community users (McKInsey, 2000).
– Community users have four times as many page views as non-community users (McKInsey, 2000).
– 56% percent of online community members log in once a day or more (Annenberg, 2007)
– Customers report good experiences in forums more than twice as often as they do via calls or mail. (Jupiter, 2006)
From the Forum One OC ROI Survey (April 2007):
– Only 22% of respondents had clear ROI Model
– 42% had staff of 1-5 people
– 49% Report Monthly to Mgmt
– Establishing ROI Model was a priority for most respondents in the near term
Forrester has an ROI of blogging report...might be good to track down.
GM’s first-year ROI on the blog was 99%. The primary contributors to the top line: 1) $180,000 in customer insight, which was estimated by assuming a cost of $15,000 for running a monthly focus group with 10 participants over the course of a year, and 2) $380,000 in press coverage, calculated by estimating the value of “high-visibility Web placements” and the cost of CPM advertising on sites like InformationWeek.
Social Media ROI
From the blogosphere, some must read on the topic –
Connie Bensen My Conversation Blog – was tagged in an ongoing pass along ROI discussion. Her post digs into both quantitative and qualitative variables on ROI measurement.
Rohit Barghava Influential Marketing Blog Guest Post: Is Word of Mouth a Discipline or Just a Channel? – Tackles some core issues of WOM
Brains on Fire – “As the engagement and involvement of your community – your passionate fans – increases, the less money you need” Awesome!
Conversation Agent ROI = Return on Involvement This is required reading!
Update: fixed Conversation Agent link. And here is another suggested link from Conversation Agent – Measurement and ROI for Social Media
(thanks Valeria for stopping by!!!)