{"id":1916,"date":"2010-11-21T16:40:29","date_gmt":"2010-11-21T16:40:29","guid":{"rendered":"http:\/\/www.thesocialcmo.com\/blog\/?p=1916"},"modified":"2010-11-21T16:40:29","modified_gmt":"2010-11-21T16:40:29","slug":"determining-and-delivering-the-ultimate-roi-of-social-media","status":"publish","type":"post","link":"https:\/\/www.thesocialcmo.com\/blog\/2010\/11\/determining-and-delivering-the-ultimate-roi-of-social-media\/","title":{"rendered":"Determining and Delivering the Ultimate ROI of Social Media"},"content":{"rendered":"

\"\"There is one thing that makes social media special — not to mention social — and, from a business perspective at least, it\u2019s the one reason SM is worth investing in.<\/p>\n

It comes in the form of the conversations that used to occur at the water-cooler or over the backyard fence, or in the good-old-fashioned (un-choreographed) town hall meetings. It is about give-and-take, and real-time feedback.<\/p>\n

While one of the primary ways we evaluate marketing tools is in terms of how effectively a message is delivered, social calls for a new way of thinking about media. (Or, more accurately, it can actually help refocus our perspective on what constitutes successful communication. But that\u2019s another discussion.) This is a new brand of media, made up of the fabric of relationship. This tool is far from one-way, one-sided or one-dimensional. It is about participation, collaboration and interaction.<\/p>\n

Social media embraces the possibilities of shared experience.<\/em><\/strong><\/p>\n

(Note to anyone still puzzled by its popularity: this relational foundation is the reason that, while it continues to evolve, the growth of social media shows no signs of waning.)<\/p>\n

In other words, if you’re a marketer, social media is for more than simply transmitting highly produced messages. It is tailor made to instigate dialogue, generate feedback and be integral in making an on-going brand experience accessible to customers\/clients and prospects.<\/p>\n

While this seems like good news on the surface — it is, after all, communication theory 101 — many organizational discussions about SM as part of a marketing strategy are stymied when ROI becomes the question. What is the expected return on investment, and how will it be measured?<\/p>\n

The Ultimate ROI<\/strong><\/p>\n

To be sure, some enterprises face unique challenges around the use of social media; however, identifying ROI should not be one of those challenges. Here is the proposition: when properly used, social media delivers the ultimate return on investment. It is a return that transcends sales totals and revenue projections. These inevitably fluctuate dramatically based on multiple market realities. It trumps the fickle “satisfied customer,\u201d vulnerable to a better price or greater convenience.<\/p>\n

The ultimate ROI on a marketing investment is Loyalty.<\/em><\/strong><\/p>\n

Loyalty is not built over the span of a thirteen-week communication blitz. Or a state-of-the-art web presence. It is not the byproduct of any strategy employed to deliver a single message. Certainly, all of these tools can play a part; but loyalty implies relationship, and it is born of experience. Or, more accurately, loyalty is the product of a series of experiences.<\/p>\n

Create the kind of experiences with your brand that engender loyalty, and it will change the way you (and the entire C-Suite) think about and measure ROI. In this context, return becomes exponential. Loyalty not only endures; it instigates whole new conversations in the marketplace — and these new conversations have potential far beyond any marketing message you might create. (Think word-of-mouth on steroids.)<\/p>\n

While certainly not a silver bullet for every marketing effort, when it comes to facilitating an on-going experience with an eye on loyalty, social media affords something few other options can: proximity, presence and unfiltered feedback.<\/p>\n

(As an aside…is it conceivable that the very thing that makes social media a dynamic force — authentic, unfiltered feedback from the market we target — actually strikes fear into the heart of some companies?)<\/p>\n

Certainly, specific executables will vary, but the framework for a social strategy designed to facilitate shared experiences and build loyalty will invest in a three-pronged strategy. Focus on doing these three things well, and you\u2019re on your way to relationships that endure.<\/p>\n