Yes Virginia there is ROI in Social Media

A common theme today revolved around getting management to buy-in to social media initiatives. Promoting what, Dawn Lacallade, Solarwinds, calls community health ‘ participation, feedback ‘ might be a nice measure of success for a community manager, but they aren’t going to convince a CEO to invest. To gain a CEO’s commitment you need to demonstrate business value. You need to think in terms of ROI.

  • Improved net promoter score driven by a closer with your customers
  • Reduced customer service costs due to the community answering the consumer questions
  • Increased sales by better knowing what the consumer wants

The good news is case studies are emerging regarding the positive impact of social media.

  • Solarwinds’ R&D budget allocation runs approximately 50% lower than industry average driven by their community involvement in product development
  • One of the 35 ideas by Turbo Tax’s Inner Circle members has generated $19MM in revenue over three years
  • Scholastic tapped into its community to redesign its flyer resulting in a 3% increase in sales versus its former design

How are you defining the return on your social media investment?