Everybody’s talking about ROI in social media: what’s the value added for one invested euro in a campaign?
At the end, the goal is to sell more, or better.
In marketing, we generally try to compare 2 products, in order to know which of the 2 investments was the more efficient.
Problem is that in social media, benchmark is about to be impossible. 2 examples: was there any banner support? Was there an existing community?
Nonetheless, social media create new criteria of success, new KPIs, based on a new relationship btw brands and consumers.
To be present in the interested persons’ conversations (we talk about interested persons instead of “targets”: you don’t go to war againts people who are your best potential ambassadors) can improve your reputation. Reputation is a kind of shared opinion among people. So when it comes to the purchasing decision, it makes the difference, moreover when it’s about choices that are not only crushes or opportunity effects (a coupon for example).
According to Marketing Sherpa report:
The social media campaign ROI would be the building of a trustful relationship, of a respect, of a conversation btw citizens-consumers and brands. The difference between store label/ white label products and branded ones is a bit like the difference btw the fast-food (where not any of your friend works!) and the cool nice little restaurant with the so-cool owner that is a bit more expensive. The recent Motrin bad buzz is the proof that citizens are now empowered and can control to a certain extent brands, out of the only legal frame. The difference is that thanks to search engines and Google, when you’re not happy, you can be visible. And this visibility can be the first path to information related to a brand.
So the marketing/finance ROI of any euro that is invested is linked to the citizens’ mind.
That’s why ROI in social media is a form of citizens-consumers control on brands