{"id":5497,"date":"2014-06-12T14:44:04","date_gmt":"2014-06-12T14:44:04","guid":{"rendered":"http:\/\/www.thesocialcmo.com\/blog\/?p=5497"},"modified":"2014-12-20T16:46:35","modified_gmt":"2014-12-20T16:46:35","slug":"how-to-find-the-roi-in-social","status":"publish","type":"post","link":"https:\/\/www.thesocialcmo.com\/blog\/2014\/06\/how-to-find-the-roi-in-social\/","title":{"rendered":"How to Find the ROI in Social"},"content":{"rendered":"

In the world of coordinated creation of social\u00a0media\u00a0stories, there\u2019s typically two kinds of\u00a0success, or ROI, on social campaigns \u2013\u00a0Cost\u00a0Mitigation, and Sales Increase. And\u00a0I\u00a0believe there is a Return on Relationship (ROR) fostered by all brand relevant content and communication\u2026 simply put the value that is accrued by a person or brand due to nurturing a relationship. ROI is simple $\u2019s and cents, ROR is the value (both perceived and real) that will accrue over time through loyalty, recommendations and sharing.
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With\u00a0Cost\u00a0Mitigation,\u00a0it is important to\u00a0look\u00a0at\u00a0success\u00a0as\u00a0generating\u00a0more\u00a0impressions\u00a0than\u00a0traditional\u00a0media, for the same spend, or\u00a0generating\u00a0the same\u00a0impressions\u00a0for significantly less money. \u00a0It\u2019s purely a CPM play. This is great for consumer packaged goods brands who have a large marketing budget, and view social as simply one part of their communication plan\u2026 and can work for any other brands who see the important of brand awareness.<\/span><\/p>\n

A valuable method of defining ROI of Social is around annualized customer value. Typically a consumer who regularly absorbs content that references a brand in one manner or another is a\u00a0more\u00a0valuable customer\u00a0than\u00a0a non-fan\/follower\/subscriber. They may spend\u00a0more<\/span>\u00a0(average order value, AOV<\/a>)\u00a0and visit\u00a0more\u00a0often and make\u00a0more\u00a0purchases (frequency of purchase), remain loyal customer for a longer period of time (lifetime value of a customer) and very often all three. Very similar to legacy Loyalty Program metrics. Finding that average value isn\u2019t all that difficult, and can give you a KPI for tracking when starting Social, when ramping it up, or pulling it back.<\/span><\/p>\n

When combining consumer and influencer-generated content, engagement and amplified online syndication, correctly structured and maintained Social involvement, engagement and connection will produce significant results including Search Engine Optimization results that last, an increase in online<\/span>\u00a0Share of Voice (SOV)<\/a>\u00a0compared to competitors (very important and easily measurable), and engaged\u00a0impressions\u00a0and reach that drive brand awareness, loyalty and ultimately sales conversion. In addition start measuring and looking at how a strong Social presence affects your<\/span>\u00a0Net Promoter Score (NPS)<\/a>\u00a0Quarter to quarter (How likely is it that you would recommend our company\/product\/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale).<\/span><\/p>\n

To simplify things a bit into a couple of easily digestible soundbites, this is a basic approach to how I view Social, and it\u2019s long-term relationship to ROI\u2026\u00a0<\/span><\/b><\/p>\n

Being Social drives Engagement, Engagement drives Loyalty and Advocacy, and both correlate directly to Increased Sales. ROR (#RonR) = ROI<\/span><\/em><\/p>\n

Awareness = Revenues, Differentiators = Margins, Authenticity = Loyalty\/Advocacy\u2026 All Measurable AND = Increased Sales\/Profits.<\/span><\/em><\/p>\n

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In the world of coordinated creation of social\u00a0media\u00a0stories, there\u2019s typically two kinds of\u00a0success, or ROI, on social campaigns \u2013\u00a0Cost\u00a0Mitigation, and Sales Increase. And\u00a0I\u00a0believe there is a Return on Relationship (ROR) fostered by all brand relevant content and communication\u2026 simply put the value that is accrued by a person or brand due to nurturing a relationship. … Read more<\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[137,7],"tags":[1370,647,32,358,120,30,1899],"class_list":["post-5497","post","type-post","status-publish","format-standard","hentry","category-all-posts","category-tedrubin","tag-ronr","tag-customer","tag-marketing","tag-relationships","tag-roi","tag-social-media","tag-tedrubin-3"],"_links":{"self":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts\/5497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/comments?post=5497"}],"version-history":[{"count":1,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts\/5497\/revisions"}],"predecessor-version":[{"id":5498,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts\/5497\/revisions\/5498"}],"wp:attachment":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/media?parent=5497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/categories?post=5497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/tags?post=5497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}