This is a great little video by Ignite Social Media on the ROI of social media. While it’s quick in nature, it’s a good, high-level look at how social media effects the bottom line in various aspects of business.
Transcript (Courtesy of Ignite Social Media)
Transcript:
Social Media’s ROI is real and measureable at every stage of the sales funnel
Awareness
Consideration
Preference
Intent
Purchase
Support
Loyalty
Advocacy
Awareness
- Awareness Quantified:
o Facebook impressions + Facebook posts + Tweets and retweets + Twitter clicks + Youtube views + Blog-page views + Online mentions = Awarness.
• Example:
• Skittles, March 2012:
• Visitors: Website — 23,00
• Facebook page — 320,000 (14 times more)
Consideration
- The most effective consideration drivers?
o Email: 2.36 million
o Display ads: 3.64 million
o SEO: 4.52 million
o Video Ads: 4.80 million
o Social Media: 5.32 million
- Of the 3.3 billion daily brand mentions, 66 percent of the mentions are positive. Only eight percent are negative!
Preference: (n) 1. Social proof that a product or brand is worth purchasing 2. A thing preferred.
- Lift in brand choice when prospect sees…
o User-generated video: 18.7 points
o Brand-generated video: 24.7 points
o Both: 35.3 points
o Example:
• BlendTec’s “Will It Blend” video series led to a 650% increase in visitors to BlendTec.com and a 500% increase in blender sales. Initial video cost: $50.
Intent
- Establishing a relationship with a brand:
o Average order size:
• Paid search: $13.52
• Affiliate marketing: $88.76
• Natural search $95.56
• Email: $103.05
• Display ads: $206.66
• Social Media: $280.71
- An Ignite Social Media Client:
o An estimated $5.3 million in revenue attributable to new fans
Purchase
- Increasing awareness + consideration + preference + intent = Purchase
o Example:
• Starbucks fans who saw the company’s Facebook updates had a 38 percent lift in actual purchase
Support
- Social media marketing opens channels to answer customer questions and drives ROI by reducing the cost of answering those questions.
o Example:
• Infusionsoft reduced their customer service staff by two-thirds while increasing their customer satisfaction by 10 percent.
Loyalty
- 34 percent are more loyal to companies if they are a fan on Facebook.
- 46 percent are more loyal to companies that they follow on Twitter.
o Example:
• AT&T’s customers who are engaged online convert two times higher than their other campaigns.
Advocacy
- Encouraging and equipping true fans to spread the message
o Example:
• Disney, MTV, McDonalds, Starbucks all have more impressions from Friends of fans than from fans.
