yes, social roi can be determined

Yes, social ROI can be determined

www.kathyherrmann.comwww.webershandwick.com

2

The rules of business remain in effect even when you transition your company to a

social business model.

Social media can and should be valued.

Expect high social margins

1 2$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Gains versus Costs (Undiscounted)

RevenuesCost SavingsPeople CostsSocial Monitoring Solution Costs

Year

Dollars

Gains

Costs

ROI = 488%

Show social media results in ways client

CXOs will best understand….

…and that’s dollars and sense, with a

defendable ROI.

Convert social benefits (like influence, loyalty, engagement, etc.) into

monetary terms….

…yes, it can be done.

Couple defendable

assumptions with

appropriate risk.

8

Social Gains versus Costs

10

Sales Revenues

Earn higher revenues from better messaging.

Expand revenues by extending Impact, Reach, and Yield.

Consumer Insight Savings

Social Monitoring – Gain cost savings by substituting ongoing and real-time social monitoring for traditional market research.

Brand Protection Savings

Gain savings from early warnings to brewing crises, conversations and events.

Fast action means revenue preservation and lowered agency costs for crisis mitigation.

Lead Generation Savings

Gain savings via

• Lowered cost of lead acquisition, and

• Shortened sales cycle.

1. Lower the number of incidents (or cases).- Identify brewing situations. Respond quickly

and effectively.

Call Center Savings

2. Decrease the time per incident or case.- Through better knowledge management or

triage.

People costs…

• Client employees who make up the social team.

• Third parties can include:– PR agency.– Marketing agency.– Consultants.

Tech costs for Social platform

Pretty doggone low compared to gains potential.

Summary

Social business initiatives can and should be valued.

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Know social value and risk, and then you’re ready for the big leap.

Contact information

Kathy Herrmann571-236-7929

sales@kathyherrmann.comwww.kathyherrmann.com

Natalie Petouhoff(310) 854-8270

npetouhoff@webershandwick.com http://www.webershandwick.com