By Mike Stiles on Mar 28, 2014
Today’s post is from Jack Newton, Dir. of Outbound Product Management & Strategy for Oracle Social Cloud. He dispels some of the myths around social ROI, and demonstrates how to put ROI measurement on solid ground.
I have social ROI set up as a Google Alert, and it's rare that a day goes by when there's not something posted about it. There are good reasons for this.
One is that there are many myths about measuring ROI. And just like the definition of a myth – “a… legendary story… with or without a determinable basis of fact” -- myths tend to endure, get passed down and then repeated.
Every good story needs a hero. That hero can be you by following some steps to get your company on solid ground with measuring ROI. And at the same time, set the company on a course to make the entire customer experience better.
Myth 1 – There isn’t a way to correlate social indicators with broader business objectives and metrics.
You may be surprised at how social analytics being collected today can be used to show progress against business goals and objectives.
- Conversations: Number of customers or prospects
- Likes/followers: Customer retention or advocacy
- Customer service requests: Customer satisfaction; time to resolve
- Reach: Brand value or engagement
- Demographics and location: Market expansion
Intrepid Social Spotlight blogger Mike Stiles has covered this topic in more detail – “Social Media Metrics Explained.”
Myth 2 – Social media only applies to marketing.
The fact is, taking advantage of social business practices and sharing insights across the organization can benefit everyone while improving CX.
- Commerce & Sales: Stronger and more relevant messages and customer loyalty
- Customer Support: Call center cost savings and better service
- Human Resources: Talent pipeline strength and employee retention
- Internal Collaboration: Speed to market with new products and services and richer consumer insights
Getting started may take some reaching out to other groups within the organization, but it’s well worth the effort. Nearly two-thirds of Marketing and IT leaders who collaborate report that they’re more effective as professionals.
Myth 3 – Executive leadership isn’t interested in social ROI.
If senior leadership doesn’t show an interest in social ROI, it could be because the numbers aren’t presented in a form that’s relevant to the C-suite.
All organizations have metrics and objectives that are set by company leadership.
If you don't know the primary metrics your company and group use to measure success, you should start there.
If you’re still having trouble getting attention, share these stats to show how getting serious about digital and social can make a positive impact on revenue. According to CapGemini, companies that are more mature from a digital perspective see:
- 9% more revenues on average
- 26% more profit than their competitors
- 12% higher market valuation
Busting More Myths
John Lennon once said, “I believe in everything until it’s disproved.” Learn about 3 more myths and how to disprove them in a new whitepaper about social ROI, which can be downloaded right here.