There’s a new book on the shelves called Social Media ROI, Managing and Measuring Social Media Efforts in Your Organisation, by Olivier Blanchard (not the same Olivier Blanchard as the IMF’s chief economist, but the principle at the small US marketing outfit brandbuilder).
It sums up the conversations we’ve been having recently in the office about quantifying the previously unquantifiable.
It takes you through strategy, integration, management and measurement of social media for corporates.
We’d like to share the foreward, written by another social media author, Brian Solis:
ROI Doesn’t Stand for Return on Ignorance
I’m often asked, what’s the ROI of social media? To which I answer, you can’t measure what it is you do not value or know to value.
Sounds simple enough. But, the truth is, determining value is not an easy process. But then again, whoever said using social media effectively in business was easy…is wrong.
As in anything in business, the ability to tie activity to the business values is critical. If we are to commit time, resources, and budget to social networks our investments must be justified. Indeed, social media strategies must prove long-term value and contribution to the bottom line in order to evolve into a pillar of business success. But, how do you measure something when best practices, case studies, and answers in general are elusive? We are struggling to prove the merit of an important ingredient in the future success of business because precedents have yet to be written or tested.
While many companies are already investing in social media, the reality is that most are done without the ability to demonstrate any return on investment. The truth is that you succeed in anything if success is never defined. The good news is that success is definable and attainable. It just takes a little work…well, honestly, a lot of work to tie intended outcomes to the “R” (return) in ROI. And, even though social media, as a platform and series of channels, is inexpensive or free to host a presence, time and resources still carry fixed costs. To that end, if we enhance our presences or apply greater resources, the investment goes up exponentially. It comes down to the old adage, “time is money.”
Everything starts with the end in mind.
Success is not a prescription. There isn’t one way to excel or measure progress. But, that’s the point. We must first design outcomes into the equation. What do we want to accomplish? What’s the return we seek? Are we trying to sell, change, drive, cause, or inspire something specific? Are we reducing customer problems as measured by inbound volume, open tickets, public discourse? Are we trying to shift sentiment to a more positive state that increases referrals as a result?
Success requires definition based on intentions, goals, and mutual value…across the organization from the top down, bottom up, inside out and outside in. Success is defined departmentally and also at the brand level. And, success is tied to desirable actions and outcomes. And, as we’ve already established, it’s impossible to measure the ROI for something if we haven’t first established the R (Return) or the I (Investment). No amount of new acronyms will change this yet we see new terms introduced as if we’ve already given up on defining ROI; Return on Engagement (ROE), Return on Participation (ROP), Return on Listening (ROL), Return on Fluid Listening (ROFL – yes it’s a joke), Return on ignorance (The new ROI). In the end, everything carries cost and effect.
The debate over ROI is only going to gain in importance. But, that’s where we need to go in order to gain the support we need to expand our investment in social media. You’re in good hands though. Olivier Blanchard is indeed one of the few who can help. Here, he has written a comprehensive guide that will help you at every step from planning to program integration to management to measurement.
Thanks to Olivier, you’ll find the answers to your questions and also answers to the questions that you didn’t know to ask.
As they say, failing to plan is planning to fail. The success of all things social media is up to you to define, quite literally.