Social Media: Calculate your ROI
Whenever I talk about social media to small and medium company managers, they have always a common question – “What is the ROI”. Some time they ask for figures. I give different answers to different business owners. But, there are few common returns that you can account as universal and long term ROI.
Low Cost Advertisement
In June 2009, Dell made a surprising announcement that it earned $3 million from its Twitter Strategy! Dell joined Twitter in 2007. Company started posting coupons for their products. In the initial six months, Dell Outlet earned $1 million in sales from customers who came to the site from Twitter. Dell earned $3 in 18 months. Impressive data points –Aren’t they?
The Dell strategy was clear - post product updates on Twitter and offer coupons for the products. That means, they used Twitter as an advertisement channel. Isn’t it another advertisement channel? And ROI in terms of figure you can calculate J . How much investment one can do creating a Twitter page and posting tweets? Obviously it’s not in millions. The only thing you need a clear strategy. Increase your followers and fans and convert them in business.
Multi Level Marketing
Yeah, social media gives you an option of multi level marketing. You don’t have to hire executives for the same J. We just assume a simple scenario:
Your company has 1000 followers in Twitter or in Facebook, and you posted a message
“We are launching ABC product, buy this and get 20% discount for next 25 days”.
Then your fans or followers take the message further by different options as - Retweet, Like, Comments etc. This chain goes for a long. This is a viral way of message communication and this time your message carries a business object.
Now business analyst can do various researches to analyze this effect.