ror = social media’s roi

8/2/2019 ROR = Social Medias ROI

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ROR = Social Medias ROI

How Return on Relationships makes

THE difference

www.returnonrelationships.net


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The Old Model

ROI = Return on Investment

In marketing terms, huge investment was

made in creating content for:

TV

Radio

Magazine/Newspaper adverts

Direct Mail

Billboards



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The New Model

Social Media Channels

Reach people where they are interacting

UGC User Generated Content

Get your consumers talking about your product

Create dialogue

Get into a conversation with consumers

Viral and Word of Mouth People trust people have a virtual (global) sales

force



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The Basics of Social Media ROI

Wheres the money.....?

http://www.slideshare.net/thebrandbuilder/oliv

ier-blanchard-basics-of-social-media-roi

More on Olivier Blanchard (worth a look!):

http://thebrandbuilder.wordpress.com/

http://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://thebrandbuilder.wordpress.com/http://thebrandbuilder.wordpress.com/http://thebrandbuilder.wordpress.com/http://thebrandbuilder.wordpress.com/http://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roihttp://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roi


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The Contexthttps://reader009.{domain}/reader009/html5/0505/5aed83468e945/5aed834b0afe1.

http://www.theequitykicker.com/wp-content/uploads/2009/07/image1.pnghttp://www.theequitykicker.com/wp-content/uploads/2009/07/image1.pnghttp://www.theequitykicker.com/wp-content/uploads/2009/07/image1.pnghttp://www.theequitykicker.com/wp-content/uploads/2009/07/image1.png


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Facebooks Stats

http://www.facebook.com/press/info.php?statistics (as at 31 Jan 2010)

>350 million active users (thats more than the population of the USA!)

50% of our active users log on to Facebook in any given day

>35 million users update their status each day with more than 55 millionupdates

>2.5 billion photos uploaded each month

>3.5 billion pieces of content (web links, news stories, blog posts, notes,photo albums, etc.) shared each week

>3.5 million events created each month

>1.6 million active Pages on Facebook

>700,000 local businesses have active Pages on Facebook Pages have created more than 5.3 billion fans

About 70% of Facebook users are outside the United States

>65 million active users access Facebook through their mobile devices.

Mobile device users are almost 50% more active than non-mobile users.

http://www.facebook.com/press/info.php?statisticshttp://www.facebook.com/press/info.php?statistics


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Facebooks Population



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Social Media Marketing by Definition

Organic

Transparent

Authentic Community

User generated Content

Word of Mouth

Viral

Social media marketing is

about building ways that

fans of a brand or

company can promote itthemselves in multiple

online social media

venues.

-Wikipedia



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Social Media ROI: Socialnomics

http://www.youtube.com/watch?v=ypmfs3z8esI

http://www.youtube.com/watch?v=ypmfs3z8esIhttp://www.youtube.com/watch?v=ypmfs3z8esIhttp://www.youtube.com/watch?v=ypmfs3z8esIhttp://www.youtube.com/watch?v=ypmfs3z8esIhttp://www.youtube.com/watch?v=ypmfs3z8esI


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Gary Vaynerchuck: On Social Media ROI



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Cost Comparison

Direct Mail - $15k = 200 new customers

Billboard - $7.5k = 300 new customers

Twitter - $0 = 1,800 new customers

To get the same from traditional channels:

Direct Mail = $135k for 1,800 new customers Billboard = $45k for 1,800 new customers



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The Trust Equation (contd)

Economist - A special report on social networkingProfiting from friendship

http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026http://www.economist.com/specialreports/displaystory.cfm?story_id=15351026


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Traditional Marketing

One mouth - Telling isnt Selling



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Social Media Marketing

Dialogue - Two ears, two eyes, one mouth



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Pay.....! Attention......?

You cant buy attention anymore. Having a

huge budget doesnt mean anything in Social

media ...

The old media paradigm was PAY to PLAY.

Now you get back what you authentically put in.

Youve got to be willing to PLAYto PLAY

Alex Bogusky, Co-Chairman, CP&B

http://www.twitter.com/boguskyhttp://www.cpbgroup.com/http://www.cpbgroup.com/http://www.twitter.com/bogusky


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ROI of TV.......?



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Old ROI versus New ROR

Traditional - ROI

High up-front investment

High on-going investment

High additional PR costs

Not easily measurable No active dialogue

Mainlyve feedback

High customer support cost ($12 via contact centre)

High market research costs High product development

costs

High customer acquisition cost

Social Media - ROR

Low up-front investment

Low on-going investment

Low additional PR costs

Totally measurable Active dialogue

Mainly +ve feedback

Lower support costs ($0.25 via self-service)

Low market research costs Low product development

costs

Low customer acquisition cost



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Direct ROR of Dialogue

Increased Trust

Increased Affinity

Increased Advocacy Increased Satisfaction

Reduced -ve sentiment

Reduced complaints Reduced resolution times



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Heaven or Hell?

http://darmano.typepad.com

http://darmano.typepad.com/http://darmano.typepad.com/http://darmano.typepad.com/


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Some Successes - Socialnomics

http://www.youtube.com/watch?v=ypmfs3z8esIhttp://www.youtube.com/watch?v=ypmfs3z8esI


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Tangible results



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Sean McDonald from Dell: Traditional

vs. Social Media investment

http://www.youtube.com/watch?v=iBAoAfIKORI

http://www.youtube.com/watch?v=iBAoAfIKORIhttp://www.youtube.com/watch?v=iBAoAfIKORI


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Customer conversations



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And finally.........

http://www.youtube.com/watch?v=sIFYPQjYhv8

http://www.youtube.com/watch?v=sIFYPQjYhv8http://www.youtube.com/watch?v=sIFYPQjYhv8


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Do you remember when a website was optional.....?

Do you remember what happened next....?

If youd like to discuss your Social Media Strategy:

Rory Murray

@rorymurray

Rory (at) returnonrelationships.net

+44 7813 939916

t l ti hi t
http://www.twitter.com/rorymurrayhttp://www.twitter.com/rorymurrayhttp://www.twitter.com/rorymurray

ror = social media’s roi

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