The following is an excerpt from “Disruption Revolution”, a great e-book that you can download for free here.
You were one of the first people to calculate an ROI model for social media. Can you explain how to go about quantifying the value of things that a lot of people think are intangible? How does what you do now with social media ROI models relate to the work that you did before the rise of social media?
Calculating the ROI for social media is not for the faint of heart. It requires three basic components:
- Your traditional business goals and how you measure them
- Your social media goals and how you are measuring them (Most people don’t have goals or if they do, they are measuring metrics– Likes, Impressions. Metrics are important, but KPIs are not ROI.)
- Knowing how social media affects your traditional business goals
Being able to give attribution to how social media is affecting in the business is not easy. You have to use software to measure and track attribution. But it’s not just about technology. It’s also about strategy
Being able to give attribution to how social media is affecting in the business is not easy. You have to use software to measure and track attribution. But it’s not just about technology. It’s also about strategy. And Chasm Crossers must have the ability to see both sides of the conversation. That’s why I created a 7-step framework and a methodology for executive business success for social media ROI— it gives a point of reference for both sides.
Most companies started in social media with a tactical approach. Creating a Twitter handle and a Facebook page, they said, “Happy Monday and buy our stuff.” And then were disappointed in the business results. Why? Most companies don’t have a point of reference to know if what they are doing will drive better business results in Customer Service, Marketing, PR, Innovation.
Dr. Natalie Petouhoff is a business strategist and a futurist. She has spent her careers looking at how businesses interact with their customers and their employees and she provides companies with social media ROI models, best practice assessments, a scorecard, a report and long and short-term with the best way to create environments that foster loyalty, motivation and innovation.
While at General Electric, General Motors and Hughes Electronics she spent time as a product engineer, manager and innovator of an integrated product development proc- ess created to guide technical engineers, as well as financial pros, sales and marketing to collaborate. Next she went on to be a management consultant and software systems integrator at Pricewaterhouse Coopers, where she matched strategic advice on reaching business goals by correctly choosing, implementing and using Customer Service and CRM technology to scale and improve businesses.
As a business analyst at Forrester Research, Dr. Natalie focused on Customer Experi- ence and social media, writing the first social media ROI model. Realizing that a long-term career in leading social media would mean understanding the role of PR, Marketing and Communications, she joined Weber Shandwick as the Chief Digital and Social Media Global Strategist. Today she helps executives cross the chasm and deliver ROI on social and traditional business objectives.
Click here to watch my videos on Social Media ROI:
Video 1: Building the Business Case for Social Media
Video 2: How to Measure the ROI of Social Media
Video 3: How Social Media Benefits the Whole Company
Dr. Natalie’s Executive Success Acceleration Firm™
Executive Business Strategy Advisor & Social Customer Experience Industry Authority & Consultant
The Doctor Knows Social Media ROI & Our Business Strategies Rx Get Results!
Our Motto? Be Awesome by: Learning, Sharing & Growing!
What we do: We work with companies to deliver increased revenue and decreased costs:
- Executive Leadership Guidance on Strategy and Business Use of Social Media
- Social Media / Business Benchmark Assessments – Tell you what you got/ what you might consider
- Social Media ROI – set-up measurement capabilities and dashboards
- Workshops on Business Strategy: Customer Experience, PR, Marketing, Customer Service & Internal Employee Advocacy
- Instructor MEMES Summer Institutes at UCLA Anderson & UCLA Extension
- Customer Experience / Social Customer Service Excellence Benchmarking Assessments & Advisory
- Software Company Visualized-ROI, Persona-based Solution Selling w/ Targeted USP & Messaging / ebooks, White Papers, Webinars…
- Social Media Training, Organizational Change, Motivation and Goal Setting