Archive for January, 2012

Posted November 8, 2020.

Above: Mission patch commemorating the establishment of the first American moon base in the final year of President Gingrich’s second term.

Though the moon base’s name was auctioned off to the highest bidder as soon as it became operational, it was originally named after Vice-President Herman Cain’s famous 9-9-9 tax plan, which made it possible for federally-backed private funding to finance 100% of the project.

Happy Florida primary, everyone. It only gets weirder and crazier from here.

Note: Credit where credit is due – The original template was this brilliant little design by The Heads of State.

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We’ll resume our Deathbed Confessions series next week with Part 3. In the meantime, here are a few insights from people far smarter than me that might come in handy:

On innovation, grabbing life by the horns, and not pissing your life away:

“Do things that are gaspworthy.”

That was one of the main messages delivered by Tom Peters, the influential business thinker and management [expert], in a speech at Epsilon’s Integrated Marketing Symposium 2006 at the Quail Lodge in Carmel, CA.

“Do cool stuff that make people gasp,” said Peters, who looked older and angrier than in his “In Search of Excellence Days” (the book he co-authored with Richard Waterman in 1982 that was hailed by NPR as one of the Top Business Books of the Century). “Don’t piss away your life.”

He changed his speech at the last moment after having learned that one of his best friends had a terminal illness.

Also noted:

“Innovation comes not from market research or focus groups, but from pissed off people.”

DM News

On remembering what creativity really is:

“Creativity is an act of open disobedience against the norms. Creativity is an act of courage.”

On passion and work:

“Whether you are Jack Welch or the Dalai Lama, it is dangerous not to do what you love. If you don’t have a level of passion that drives your thinking about what you’re doing day in and day out, there will be others out there who are passionate who will overtake and outrun you. People who care will take the initiative away from those who are half-hearted. So loving what you do is a competitive imperative, not simply a nice thing to have.”

Knowledge @ Wharton interviews Mark Thompson and Stewart Emery, co-authors along with Jerry Porras of Success Built to Last

On retaining talent:

“One of my favorite cliches is “there is no such thing as indentured servitude”. I use that line to talk about the fact that talent can’t be bought and sold. It must be retained with something more than money.”

If you want to share this with someone who needs the encouragement, I won’t turn you in to the SOPA police. ;)



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If you like this blog and others like it, don’t support SOPA or any of its variants.

If you hate this blog and others like it, support SOPA and all of its variants.

It’s that simple.

1. None of it effectively impacts piracy.

2. It throws the baby out the window but doesn’t do a whole lot to throw out the bathwater. It’s backwards.

As much as I’ve loved writing here for the last 7 years, if SOPA or any future incarnations of SOPA pass, I will have to shut down this blog. Here is why:


As for the reason why supporters of SOPA are wrong about it, there’s this:


SOPA doesn’t just completely miss the mark when it comes to making it harder for digital piracy to take place, it also basically puts the internet under Taliban rule.

Call or email your representatives (or post to their wall on FB) and tell them not to vote in favor of the bill or any other bill that addresses online piracy in this way. Thanks.

PS: This blog post is in violation of SOPA/PIPA. This blog has over a thousand posts just like it. Nobody wants to end up like this:

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Part 2: Fear, career potholes and the weight of social shame.

“I’m afraid to tell people that I am closing my business because I’m afraid of what they’ll think,” was one admission from a panelist.

“My identity was so tied to my job/title that now that I am on my own, I’m not sure how to handle that,” was another.

One acquaintance in the audience seemed a little hesitant when he told me that he had jumped back into the corporate world – as if I might think that was a bad thing because… I might see it as a failure on his part, somehow. (Why would I? People change jobs all the time. people open and close businesses too. It’s a natural cycle.)

Weird how all these different situations had one thing in common: Fear. There was far more angst in that room than I had anticipated. Lots of private thoughts along the lines of “what will people think?” and uneasiness about the stigma that comes from having perhaps failed at something. Lots of people not quite comfortable with lying about it but not quite comfortable admitting it either.

Why? The term social shame comes to mind. Almost everyone in the room seemed traumatized by having been fired, laid off or having failed at building a successful business.

More than a few people in that room worried about what admitting to having failed (or being fired or downsized) might do to their personal brand too. That’s a hell of a burden to carry around, and an unnecessary one at that.

And you know what? I get it. Most of us have been there or are there or will be there at some point. Case in point: In almost 20 years of being an adult, I’ve been fired twice. Not laid off: Fired. For a long time, I was ashamed to admit it. I thought people would hold it against me, that they would assume I sucked at my job or had done something horrible to lose my job. I assumed it would be a double black mark on my employment record. Then one day I realized that was ridiculous. The failures were not my own.

The first time I was fired was a simple case of a CEO being a bully. Dignity and self-respect won. The job lost. As much as I enjoyed the steady paycheck and the job itself, it was an easy choice to make. The loser in that short conflict was the company, not me. (I went on to better and greater things. They didn’t.)

The second time was because my boss wanted me to sign off on fraudulent invoices and bonus manipulation, among other things. I refused to take part in it. The choice was again simple for me: I didn’t need a paycheck that badly. (I’m not going to federal prison for any employer. Not my idea of a good career move.) I was fired within days of refusing to join the scheme. Again, guess who was the loser in that instance? For the second time in my career, I went on to better and greater thing. They didn’t.

As it turns out, getting fired was a great move for me: None of the jobs I had until I went off on my own involved flying to Sydney or Amsterdam or Dubai for business. None of them gave me the opportunity to speak in front of big crowds or meet so many interesting professionals from all over the world. None of those jobs ever gave me the flexibility to spend 2 months in France in the summer with my wife and kids (and dogs) and work from there if I wanted to. None of them would have allowed my life-long dream of publishing a book (and now there are more on the way). I don’t have to work with assholes or shady people if I don’t want to. I don’t have to kiss anyone’s ass to get a promotion. I don’t have to deal with back-stabbers or mean, jealous petty people anymore. Nobody micromanages me. I don’t have to lie to anyone. I have the freedom to succeed or fail on my own terms. There’s also the risk of failure. I have to live with that, but it’s worth it. I love what I do. I love my freedom, however short-lived it may be.

None of these things would have happened if I hadn’t been fired. Getting fired was the best thing that ever happened to my professional career. I was lucky that it’s happened to me not once but twice. The fact that I only get fired once per decade tells me I’m still playing it way too safe. Imagine if I had been fired more often: I would have gotten to this point in my career a lot sooner. What I wouldn’t give for that. (This might be a good place to point out that both of these jobs were in South Carolina – a “right to work state” – where anyone can be fired for pretty much anything at any time for any reason with complete impunity.)

The folks at IDEO are right: Fail early and often. The faster you fail, the faster you work out the bugs. It’s a process. If there’s anything I wish I knew how to do better, it’s this: Quitting. If I knew how to quit, how to walk away, I would save myself the trouble of getting fired at all. (I’m still working on that.)

The thing is, I know this will fail too. What I am doing now won’t last forever. I’ll eventually fire myself or fail outright. Maybe I’ll take a job with an agency or with a company on the client side. Or maybe I’ll just decide to go open up an adventure-racing school in South Africa or a photo studio in Antibes. Why not? Life is an adventure. Don’t fight it. Roll with the punches. Go with the flow. See where the currents take you.

So here I was in this room, surrounded by people who felt pretty bad about having been fired or having (at least in their minds) failed in some way. Some were visibly ashamed. Others were mostly just confused about whether or not they should share what happened to them. Many were scared to some extent about what it meant, about what people might think, about how it would hurt their image or their chances of landing another good job in the future. I’ve been there too, and it’s not a great place to be in your life. No matter how clear your conscience may be, you still feel small, vulnerable and dejected.

For many of us, it goes far beyond fear and shame. There’s anger too: You feel betrayed by the people you served. You gave so much of yourself and made so many sacrifices for them – missing your kids’ soccer games, working late, often dealing with abuse or harassment, enduring ever-shrinking benefits and the annual insult commonly referred to as the annual “raise” because it was the right thing to do, because your believed it would eventually be worth it. You thought that if you could endure it long enough and jump through enough hoops, you would eventually see the light at the end of the tunnel, maybe even make a real difference. Well, that didn’t happen. Someone pulled out the rug from under you. All of the time, energy, love and hope you invested in that company, in your job, it all just evaporated. It’s an awful feeling. It’s traumatic. There’s no way to walk away from that unscathed. I guess the first thing to realize is that even though it’s happening to you, it isn’t just happening to you. It happens to pretty much everybody. It’s a lot easier to handle that kind of trauma and disappointment when you realize it happens to almost everyone. In fact, it happens to the best of us.

I wanted to make a point so I asked everyone in the room to raise their hands if they had ever been fired or laid off from a job. Almost everyone (including the panel) raised their hand. It was fascinating to see the looks of surprise on some people’s faces at the sight of all of those hands in the air. You could literally see the stress melt from a few of them just from knowing they weren’t alone. It helped, I think. At least I’d like to think so. You have to start somewhere.

Now… People in transition (moving back into the corporate world or moving out of it) could focus on personal branding and Klout score optimization. They could focus their energy on trying to become gurus and experts and ninjas, on raising their professional profiles by speaking at events and writing e-books… But none of that will really free them from the fear that will always hold them, their careers and their lives hostage. They’ll just be trading one prison for another, one dysfunctional professional path for another. And because that fear of social shame will be 1000x greater now that their career is “public” than when it was behind the corporate firewall, every potential failure along the way will carry with it a much greater burden. If you think that’s smart, go for it. If that sounds not so smart, you’re right. There’s more important inner work that needs to be done before launching into campaigns of self-promotion. Ask any political candidates whose campaign imploded about that. Ask any rock star or actor in rehab about it too. Ask any banker or accountant in federal prison the same question: How did you get here? Why did this happen? If they’ve given it any thought, they’ll all have the same answer. We’ll probably talk about that in Part 3.

What I want to focus on today though is fear: The fear of not only failing but admitting that you did. Now that I see how much damage and pain that kind of fear causes, I feel like sharing a few insights that our panel touched on with the rest of you. Some may apply to you. Others may not. You may disagree and that’s fine. I just hope that they will help somebody. Anybody.

So if you’re feeling bad about closing up shop or leaving a job, don’t. And if you know someone who’s having a really hard time with this right now, feel free to share this with them.

Here are a few takeaways from our panel on career transitions:

1. If you haven’t been fired at least once or twice in your career, you might not be doing it right. And if you haven’t failed once or twice at making a business successful, you probably aren’t thinking big enough. Go for failure #3 as soon as you can. Look, unless you’re insanely lucky, failure is part of the success equation. If you haven’t known any yet, chances are that you’re coloring inside the lines maybe a little too well. You might have even stopped moving forward and testing the limits of what you could do. If you’re 100% happy with that, great. If not, getting fired from a job that wasn’t right for you or not biting off more than you could chew with a big idea might not be the worst thing that’s ever happened to you. Sometimes, life has a weird and painful way of doing you favors. Try, fail, repeat. Try, succeed, repeat. Don’t ever stop. No matter what.

You might have heard it a thousand times already, but here’s the name I always think about when people wonder if they (or their spouse) can take one more failure: Thomas Edison. The guy tried and tried and tried to make his light bulb idea work until it did. Imagine if he had quit after 3 tries? 10 tries? 100? here’s what he had to say about when asked about his successive failures:

Young man, why would I feel like a failure? And why would I ever give up? I now know definitively over 9,000 ways that an electric light bulb will not work. Success is almost in my grasp.

Try again. It doesn’t matter how many attempts it takes. Don’t quit just because it’s hard or people look at you funny. What have they ever done? You’ll never regret having tried and failed. I guarantee though that you will regret having quit or given up on a dream. There’s no question about it. Failure is necessary. Failure is good. It teaches you everything you didn’t think to ask.

It’s okay.

2. If you’ve been fired or downsized, if your business has ever failed or run its course, you aren’t alone. It isn’t just happening to you. People get fired and laid off all the time. Companies fail or just get stuck. It happens. Every job ends. Companies close their doors. Departments lose their funding. Assholes who hate you get promoted and fire you just out of spite or fear or jealousy. Learn whatever you can from each experience and move on. As painful and embarrassing as failure of any kind it may be, it is never truly a failure if you’ve derived a valuable insight from it and try again. Dust yourself off and try again. Every pioneer went through the same thing. What put them in the history books is this: Where others would have given up, they didn’t.  If you’re going to fail (and you will), you’re just like everyone else. If you want to get better results than everyone else, make every failure count.

3. Failures in your career hurt as much as failures in love. But pain is just pain. It wears off. Get a head start on the healing. Getting fired is like getting dumped by your boyfriend or girlfriend. It stings. It makes you feel like an asshole. It puts your self-worth in question. We’re just wired that way. If you feel bad about getting canned or laid off, welcome to being human. It’s healthy. Mourn, take a week off. Then get going again. Don’t take any of it personally. See #2.

4. This one is important as it relates to social shame: Nobody holds it against you that you’ve “failed” at anything. Seriously. Nobody is going to talk about you behind your back and peg you a failure. (Okay… perhaps your enemies will, but who cares what they think? They’re assholes anyway.) People in your community will never hold it against you if you’ve lost your job or if your startup failed. No one will ever peg you a loser or damaged goods or a liability as long as you learn from the experience and move on.

Think about it: Do you sit around and make fun of people who’ve been laid off? When Apple fired Steve Jobs back in the day, did we all have secret parties to make fun of him? No. If we even cared, we wondered what he was going to build next. It was exciting. And you know what, if he hadn’t been fired from Apple when he was, Apple might not have become what it is today. Worst case scenario: People are indifferent to your successes or failures. They’re just too busy with their own lives to notice or care about yours as much as you think they do. The rest of us want the best for everyone around us. We want people to succeed and be happy. So… if you’re feeling bad about where you are, chin up: A lot of us are rooting for you.

This whole notion of social shame in regards to failure is an illusion. Don’t fall for it. Your bakery or web design company failed after 14 months? That’s too bad. You’re still everyone’s hero for trying. People will miss that bakery or web design firm, sure, but they’ll only care about one thing: Now what? If you took a job at XYZ Manufacturing, people will be glad you did. If you’re launching a startup in the spring with a few investors, they’ll be thrilled too. Everyone wants you to do well. No one will ever hold it against you if you tried and fail as long as you keep trying. Chin up, kid. You don’t have to apologize. You don’t need to spin it or put on airs. Everybody runs into hurdles. Nothing to be ashamed of. Ever. Don’t do that to yourself. It’s a waste of energy anyway.

5. To quote Tyler Durden, “you are not your job.” You can say that you are your profession, sure, but you are not your job.

For starters, being a brand manager isn’t the same as being VP of Brand Communications at SCB Telecom*. If some douchebag at SCB Telecom gave you the pink slip because you didn’t support his horrible program three years ago and now he can get even with you, go be a brand manager somewhere else. (Hopefully somewhere that will value your contributions a little more than SCB Telecom did.) Being a designer is more important than just being the lead glove designer at Gucci or Chanel. You’re a designer no matter who you work for or what you design. If your company fails, if your label gets sold off, if your boss chases half your team away, it doesn’t change what or who you are.

Whenever a job ends, your profession doesn’t. Hop to another island. It may take six months to find one. It may take ten years of island-hopping to find the right one. You might not ever be happy until you discover your very own island. It doesn’t matter. What island you live on doesn’t change what you are. A job is just a job, no matter how cool it is.

* (Made-up company.)

More than that, you are more than just your profession. You’re also a lot of other things: A parent, a brother or sister, someone’s child, friend and neighbor, a sports fan, a foodie, an artist, a runner, a kite surfer, an equestrian… whatever your interests are. You aren’t just your job. You’re also your interests, your hobbies, your passions, your relationships, your life experiences and more still. Chances are that who you are is far more rooted in all of these things than to your job. So does your value as a human being.

Remember those 5 most common regrets people talk about on their deathbeds? That.

6. Don’t take failure so seriously. In fact, don’t take yourself so seriously either. Relax so you can learn. Learn so you can solve. Solve so you can adapt. Adapt so you can overcome.

Fear is the enemy of innovation. It’s the enemy of design, the enemy of progress. Fear of embarrassment, fear of failure, fear of rejection: They’re all working against you. Whenever fear tells you to back off from an idea or a goal, that’s when you know you’re onto something.

One way to kill fear of failure dead is to not worry so much about the shame and embarrassment that you’ve attached to that fear. Laugh more. Have more fun with what you’re doing. Don’t let stress get in the way. Whether you’re winning or losing, have fun. Ever listened to an 80-year old tell an embarrassing story from their youth? As mortified as they may have been then, they can look back on it now and laugh. That doesn’t suck.

If you’re going to crash and burn, do it with style. Don’t slink away. Crash, burn, get up, take a bow, then go laugh it off. If you can ever learn to laugh at failure and carry on, no one and nothing will ever be able to break your will. Ever.

Look around. Almost everyone around you has failed at something. They may hide it well, but they have.

7. Put it all in perspective: Nobody is shooting at you. You aren’t being targeted by enemy artillery. You didn’t just lose a leg or an arm in a roadside I.E.D. attack. You don’t have cancer. There’s no giant tidal wave about to crush and drown you, no nuclear power plant a mile away about to melt down. That shit is bad. Losing your job or closing down your company isn’t. Get over the fear and embarrassment. They’re a waste of energy. You’re going to be fine. Okay? This is small stuff.

8. Every job has a beginning and an end. Period. One way or another, the job you have today will end someday. Could be tomorrow. Could be next week. Could be in twenty years. How it ends or why might not even matter. What matters is that the inevitable is… well, inevitable.

If you’ve never seen The Kingdom, there’s a great scene in which FBI Director James Grace (played by the always brilliant Richard Jenkins) is being pressured to act against his conscience by the Attorney General (his boss). It’s clear in the scene that the AG won’t take no for an answer. James Grace knows if he doesn’t play nice, his career at the FBI is over. Instead of caving to pressure just to save his own ass, he shares with the AG what he learned long ago about the nature of jobs. After a brief pause, this is his answer to the threat:

You know, Westmoreland made all of us officers write our own obituaries during Tet, when we thought The Cong were gonna end it all right there. And, once we clued into the fact that life is finite, the thought of losing it didn’t scare us anymore. The end comes no matter what, the only thing that matters is how do you wanna go out: On your feet or on your knees.

I bring that lesson to this job. I act, knowing that someday this job will end, no matter what. You should do the same. 

There’s a lot of wisdom in that answer. A lot of courage too, but a lot of wisdom. Heed it.

Every company runs its course. Every job ends. When you remember that you are far more than your job, that life is about more than the title on a business card, the necessary failures you’ll encounter along the way won’t seem so big anymore.

Do the best you can. If you trip and fall or life punches you in the face, get back up. Lean on your family and friends. Banish embarrassment to the curb. Don’t bear the burden of fear, shame or sadness alone. Do whatever you have to do to get back on your feet as fast as possible and just start putting one foot in front of the other again.

Someday, when you’re on your deathbed too, you will regret every minute you wasted feeling sorry for yourself. You’ll wish you had a way to erase every day that you “waited” to try again and do them all over again.

I’ve rambled long enough. Stay tuned for Part 3. We’ll be talking about the danger and ultimate price of bullshit. In the meantime, put your own work aside and go help someone kick ass today. You’ll be amazed how rewarding that feels.



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The social business building textbook for executives. Now available everywhere:

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Three completely unrelated things came together this past week that individually weren’t all that fascinating but together formed a something  I think needs to be given form to.

1. Fear. I was a guest panelist at Greenville’s Switching: Leaving Freelance for the Corporate ladder and vice versa event. My fellow panelists and I shared insights about the pros and cons of working either inside the corporate machine or outside of it. (Really great topic, by the way.) Because many of the folks who attended were in the midst of a transition – some going back into the corporate world and some coming out of it – one of the themes during the event’s discussions was the role that jobs and job titles play in our self worth. Some of that can be pretty negative so we’ll talk about that in Part 2.

2. Bullshit. Discussions about my last 4 posts (The Last Year, R.I.P. Personal Branding, and the last two bits on how to avoid becoming a cog in the social media / marketing bullshit machine) started to sound very similar: There’s what’s real and there’s what’s made-up. We all increasingly feel pressure to keep up with our peers, to put on appearances and to appear more successful and happy and normal than we really are: Everyone’s a best-selling author now. Everyone’s an award-winning expert. Everyone has worked with Fortune 500 companies and major brands. Everyone is launching startups and raising millions of dollars in funding. Right. Except no. A lot of that is just smoke and mirrors. It’s spin. But because so many people are doing it and because it is amplified by the 24/7 onslaught of self promotion, link-bait SEM content and personal branding on Twitter, Facebook, Google+, Youtube, Quora, Foursquare, Klout, blogs and five dozen other overlapping platforms, every little bit of spin and bullshit gets amplified to the point where it becomes not only believable but overbearing.

We’ll talk about that and the impact it is having on all of us, on the business world, on politics, right down to the state of the economy. Bullshit affects everything, and never in a good way. Look around. It’s like someone’s open the floodgates. How’s that been working out? If bullshit helped get us in this mess, do you really think more bullshit will help dig us out?

3. Truth.

This: The top 5 regrets people make on their death beds. Read it. (It’s short.)

When it all falls away and there’s no one left to impress, when you would give anything for another few hours of life or maybe a chance to do it all over again, all that will be left to contemplate is the truth. You want a glimpse into those last few hours of your life when you’ll look back and consider what you really spent your life doing? Here is a stripped down version:

1. I wish I’d had the courage to live a life true to myself, not the life others expected of me.

When people realize that their life is almost over and look back clearly on it, it is easy to see how many dreams have gone unfulfilled. Most people had not honoured even a half of their dreams and had to die knowing that it was due to choices they had made or not made.

2. I wish I didn’t work so hard.

This came from every male patient that I nursed. They missed their children’s youth and their partner’s companionship. [...] All of the men I nursed deeply regretted spending so much of their lives on the treadmill of a work existence. [...] By creating more space in your life, you become happier and more open to new opportunities.

3. I wish I’d had the courage to express my feelings.

Many people suppressed their feelings in order to keep peace with others. As a result, they settled for a mediocre existence and never became who they were truly capable of becoming. Many developed illnesses relating to the bitterness and resentment they carried as a result.

We cannot control the reactions of others. However, although people may initially react when you change the way you are by speaking honestly, in the end it raises the relationship to a whole new and healthier level. Either that or it releases the unhealthy relationship from your life. Either way, you win.

4. I wish I had stayed in touch with my friends.

When faced [with approaching death] [...] it is not money or status that holds the true importance for them. They want to get things in order more for the benefit of those they love. [...] It all comes down to love and relationships in the end. 

5. I wish that I had let myself be happier.

Many did not realise until the end that happiness is a choice. They had stayed stuck in old patterns and habits. The so-called ‘comfort’ of familiarity overflowed into their emotions, as well as their physical lives. Fear of change had them pretending to others, and to their selves, that they were content. When deep within, they longed to laugh properly and have silliness in their life again. When you are on your deathbed, what  others think of you is a long way from your mind. 

Hat tip to Zsofia Tallai for sharing that link. We’re going to talk about that article as well.

Those three pieces are connected, and this week we’re going to talk about all of that. No ROI discussions. No social business focus. Just this. Because the problems we are dealing with right now, the reasons why the value of social business is still not clear to so many executives and decision-makers (let alone ROI), the reason why world economies are in shambles, the reason why so many people are divided and out of work and stressed out of their minds is this: We’re addicted to both fear and bullshit. We’re stuck in cycles of fear and bullshit. Everywhere we go, it’s there and we can’t escape it, and it’s a serious problem.

Stay tuned for Part 2.

*          *          *

The social business building textbook for executives. Now available everywhere:

CEO-Read  –  Amazon.com  –  www.smroi.net  –  Barnes & Noble  –  Que

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As valuable as it may be to peel back the layers of a poorly put-together list of social business ROI examples, let’s now talk about how to do it right. Below is a quick 5-step guide in case you ever want to publish your own report or list of social business ROI examples:

1. Do your research.

This means talking directly with the company or agency involved with the campaign or program, not just bookmarking Mashable  articles and collecting a few white papers. Actually talk with the program or campaign lead. Have a discussion about what worked and what didn’t, what was done and why, etc. Obtain financial data, not just digital and marketing metrics. Without this data, you will not be able to add this campaign or program to your list.

2. Know the difference between writing a list of social business case studies and a list of social business ROI examples.

- Case studies may focus on a breadth of criteria for success or failure. Some may focus on the impact a campaign had on consumer perceptions while others may focus on customer acquisition or nipping a PR crisis or any number of things.

Case studies can focus on ROI but they don’t have to.

Case studies tend to be written in sections: Objective/problem to solve, theory, strategy/plan, tactics/execution, what happened, what we learned. The formula isn’t rigid but for a case study to be written properly, it has to actually study a case, hence the name. It has to have a beginning, a middle and an end. It has to show the connection between intent and outcomes.

Case studies can’t only be about what worked. They also have to be about what didn’t work. There’s value to that as well. Report on both.

- A list of social business ROI examples focuses on just one thing: Listing social business programs or activities with quantifiable ROI.

There are three parts to a social business ROI report: An explanation of the activity’s purpose and nature, the cost of that activity, and the ultimate financial benefit to the company.

The focus here is much more specific than that of a case study.

3. Format your reporting properly. 

Here is an example of how not to format an example of social business ROI:

Electronic Arts. EA was 2nd UK brand to use promoted tweets and trends to promote FIFA 12 video game. Trend engagement level was 11%, well above Twitter’s average ‘benchmark’ for trends, of 3% to 6%. Promoted tweet engagement averaged 8.3% over two-week campaign vs. Twitter benchmark of 1.5%. (Marketing Magazine, 2011) Source: Peter Kim.

Note that in spite of the short formatting the above example does not  include any ROI data whatsoever. It focuses instead on trend engagement levels and promoted tweet engagement. This not what you want your ROI reporting to look like.

Here is an example of how to properly format an example of social business ROI:

Joe’s Pie Factory. JPF wanted to increase QoQ sales of carrot cakes by 25% by the end of Q4-2011. Leveraging its Facebook page, Twitter account, Youtube channel and blog, JPF launched an awareness campaign for its carrot cakes at the start of Q4-2011. Total cost of campaign: $27,391 (for video production and content & community management). Outcome: A 23% boost in QoQ sales resulting in $59,782 in net new revenue. (Add link to case study in case readers want to learn more.)

Note that this example focuses on campaign objectives and includes both cost and net revenue data for the activity. These are the three ingredients needed to properly qualify an example for a social business ROI list or report. (See item 4.)

You could stop there or you could do the math for your readers:

Joe’s Pie Factory. JPF wanted to increase QoQ sales of carrot cakes by 25% by the end of Q4-2011. Leveraging its Facebook page, Twitter account, Youtube channel and blog, JPF launched an awareness campaign for its carrot cakes at the start of Q4-2011. Total cost of campaign: $27,391 (for video production and content & community management). Outcome: A 23% boost in QoQ sales resulting in $59,782 in net new revenue. ROI of campaign: 118%. (Add link to case study in case readers want to learn more.)

4. Make sure that all of your social business ROI examples always contain these four pieces of information:

  1. A brief synopsis of the campaign or program.
  2. The cost of that program.
  3. The financial outcome of that program.
  4. A link to the case study / your source for the ROI data.

Anything other than those three pieces of information is unnecessary. Remember that you are writing a list of social business ROI examples and not a list of social business case studies.

Failure to include all four of these pieces of information will result in incomplete reporting.

5. Make sure that your documentation is in order.

Do not rely on anecdotal information to compile your list or report. Ever.

This means: do not assume that because a social business program was in place during a period of lift in sales revenue, the social media program was the cause of that lift. Don’t assume that if a digital marketing manager tells you that he knows customers responded positively to a campaign, they actually did. In fact, don’t assume anything. Back up every hypothesis and assertion with data. Disprove alternative cause-and-effect relationships where they may exist. Make sure you aren’t being sold a big fat lie.

If you cannot prove that a company’s social business program or campaign resulted in positive ROI, do not include that program or campaign in your list or report. Period.

Just to be sure, always document the source of your data so the rest of us can check it for potential errors or foul play.

Three more tips:

Don’t worry about gimmicks. If your list only gets to 23 examples, then that’s fine. Don’t try to stretch it to 25 or 75 or 101 just to have a catchy number that will score good SEO. Just stick to the facts. Everyone would much rather have 23 solid examples of social business ROI than 101 bad ones. Substance before flash. Always.

If you don’t understand how ROI and social business fit, you might not be the best person to compile and publish reports on the subject. If that’s the case, don’t feel bad. Life goes on. Publish stuff you actually understand for now. Someday, when the ROI thing isn’t such a mystery anymore, you can come back to it and give it another shot. Until then, just do yourself (and all of us a favor) and do your homework. Come prepared. Lead with what you know.

If you want to get better at this though, here is a primer on how to calculate ROI in 4 easy steps:

What you’ll need:

  • Campaign cost data and financial outcome data.
  • The ROI equation.

Here is the ROI equation in its most user-friendly format:

ROI = [(Financial outcome of program - Cost of program) ÷ Cost of program] x 100

Step 1: Calculate the financial outcome of the program – the cost of program.

Step 2: Divide that number by the cost of the program/campaign.

Step 3: Multiply that number by 100.

Step 4: Add a % at the end.

That’s it. So simple an 8-year-old at a lemonade stand can do it.

Now go forth and be a force for good and credible business reporting in the world.



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In case you haven’t yet, you might want to pick up a copy of #smROI. 300 pages worth of stuff like this in there. A full pound of knowledge.

And if your favorite social business “expert” doesn’t seem to get this stuff yet, don’t feel bad about sending them a copy. Knowledge is never a bad gift.

CEO-Read  –  Amazon.com  –  www.smroi.net  –  Barnes & Noble  –  Que

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How do I write this piece without making Peter Kim hate me? I guess I’m just going to have to give it a shot and hope for the best. It’s important to remember that this post isn’t about him. It’s about a piece of content.

None of this is personal. I even think I like the guy. (We’ve never met in the real world, so I don’t know for sure.) I have a lot of respect for him and for what I think he does. (We’ve never worked together so I don’t know for sure either.) But I have to be honest, the 101 Examples of Social Media ROI list he published this week is crap seriously flawed. Here’s why: Most of these 101 “examples” don’t show ROI at all, “social” or otherwise. Either the title is wrong or the list is wrong for that title. One or the other.

Before I get into specific examples and illustrations of where I think the list fails, let me give you four basic problems I have with it as it stands today:

1. Many of the examples on it could potentially show positive ROI but – as presented – only reference selective gains from social activity and not actual, factual, empirical ROI. If that made no sense, that’s okay. Let me explain:

For something to be ROI, you need two ingredients: The cost of the activity and the gain from that activity. (That cost is the investment. The gain is either revenue or cost savings.) It’s math. Really really really simple math. ROI is an equation and it generally looks like this:

($ Gain – $ Cost) ÷ $ Cost = ROI


($ Revenue – $ Investment) ÷ $ Investment = ROI

(You can also multiply the result by 100 to get yourself out of the decimals, but that’s a personal choice. You can do that in your head.)

Anything that isn’t the result of the ROI equation is not ROI.

Note that a gain is just a gain,like cost is just a cost. Neither gain nor cost is ROI on its own. Ever. Not in any known universe.

Put another way, bread and ham  may individually be part of the ham sandwich equation but ham alone is not a ham sandwich. Ham is just ham. The problem we face today: This list pretty much mistakes ham for a ham sandwich. Good thing it was free or we would all be asking for a refund (or a word with the chef).

Take this example:

61. Paramount Pictures. #Super8Secret Promoted Trend created a tremendous spike in conversations: Tweets of the hashtag reached nearly nine million impressions in less than 24 hours and mentions of the movie skyrocketed to more than 150 per minute. Receipts for the sneak preview exceeded $1 million, and Paramount said weekend box office surpassed expectations by 52%. (Twitter, 2011)

Cool story, bro. What was the cost of the campaign?

Yes, this is an example of a successful use of social media (through a “promoted trend” media buy). Awesome. But where’s the bit that compares the $gain and the $cost? That would be an ROI example. This isn’t.

What’s sad is that there is probably an ROI piece hiding in the background but instead of focusing on that, the example dishes out a healthy helping of random gain data: Impressions. Mentions. Tweets. Retweets. Sales too, which is nice but no cost data… so thanks for playing but no. Without the cost piece, you don’t have an ROI example.

Your example needs to include this information or it doesn’t belong on that list:

($ Gain – $ Cost) ÷ $ Cost = ROI

Tip: If you can’t measure ROI or adequately prove it in this instance, that’s okay. Just don’t add it to a list of ROI examples.

(Speaking of proving cause & effect, let’s not forget that Super8 was a well anticipated $50M summer fare from director J.J.Abrams and producer Steven Spielberg. Not exactly a grass-roots indie phenom that would have flopped without a promoted trend on Twitter. Let’s not go crazy over the role that social media really played in opening weekend ticket sales. A little perspective goes a long way.)

More examples of this disappointing absence of actual ROI metrics later. In fact… almost the entire list suffers from this single basic flaw. But hey, at least this type of example makes the effort of including at least a portion of the data that goes into an ROI discussion. Not all examples on the list do.

2. Many of the examples on the list don’t even reference financial gain at all, let alone ROI. I list more later in the post but these will get things started:

“68% of respondents said they were “much” or “somewhat” more likely to purchase post-project.” (Subaru. 80.)

“32,000 video views, 25% regular return visits to the site, and average of almost seven minutes spent on the site per visit.” (UPS. 96.)

Community drove a +20 NPS increase.” (Sage Software. 69.)

“58% higher engagement rate than people coming in from other channels.” (TurboTax. 91.)

These are very cool little successes, great things to celebrate and be happy about, but as valuable as they may be they are not ROI. Not one part of any of those numbers even fit in the ROI discussion. At least other examples on the list make an effort to list one element of ROI: Money saved or money earned. These don’t. Sorry but that’s a little perplexing.

Here’s an example of my own to illustrate how far these examples are from ROI: I love carrot cake and when people compliment me on my impeccable taste in carrot cake, that isn’t ROI either, no matter how much of those interactions happen online.  I could call it ROI and score the number 102 spot on the list, thus:

102. Olivier Blanchard. Increased engagement with carrot cake enthusiast community by 37%. (The BrandBuilder Blog, 2012)

Except… no. It doesn’t work that way. Just because something is a success doesn’t mean it qualifies as ROI. Did my example mention that I even sold carrot cakes? Did I factor in the cost of making them or selling them online? Did I save money in any way by talking about carrot cakes with my twitter friends? Nope, I didn’t think so either.

Again, your example needs to include this information or it doesn’t belong on a list of ROI examples:

($ Gain – $ Cost) ÷ $ Cost = ROI

3. Some of the examples could have been bunched into one but legitimate examples were somehow omitted. Case in point: Cerner’s three examples (15, 16 and 17) are really one program / one example, but IKEA somehow didn’t make the list. (For more details on that particular program, click here.)  Maybe scratching Giffgaff (32.) and replacing it with IKEA would have made sense?  But okay, I’ll back off from this particular point. Lists tend to be incomplete. Someone always gets left out and sometimes you have to stretch yourself a little thin to get to the magic number. It’s no big deal.

4. Because of the source (Peter is well respected in this industry as far as I can tell), a lot of people will naturally accept this list as fact. It will become a template to be shared and passed around and referenced for the next couple of years. When marketing execs and digital agencies look for examples of ROI in social business, they will pull this thing from the Googlenets and use it as a resource for all sorts of things: Training of new social business recruits, client pitches, presentations at conferences, etc. They will do so without questioning the validity of the information they are not only ingesting but also sharing because they trust that Peter vetted the list before publishing it. That’s the unspoken contract of being a respected leader in the social business world.

Except… what if this one time, the information wasn’t properly vetted? What if much of it wasn’t even properly presented (using the right metrics, for instance)? Or what if the title is so wrong for the actual list that you end up confusing “value” with ROI for another 3 years as a result? Then what? No thanks. We can do better.

If you have 10 minutes to really get into it, read on. If not, you get the idea. (By the way, the list isn’t all bad.) Feel free to skip ahead to the end all the same. ;)

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Let’s look at a few of these examples a little more closely.

We’ll get to more obvious cases of “no, this isn’t ROI at all” a bit later. I want to start with some of the more subtle “maybe this could be ROI” examples first because a) they’re tricky and b) they illustrate pretty well some of the common traps people fall into when trying to establish ROI too quickly:

1. Aflac. Community drove online payments increase of 3% led to $95,000 in savings. (Lithium Technologies, 2011)

Q: What’s the problem with this one, Olivier? It looks legit to me. What’s your deal?

A: Yes it does look legit. And it might be. But do we know anything about other activity from Aflac that might have contributed to that 3% increase in online payments?

Could a concurrent email or advertising campaign have triggered a significant portion of that shift? Could the addition of a flyer in the mail to existing customers prompting them to make online payments have been the real cause of the shift? We can’t attribute the success of “the community” until we have ruled those out. If we know for a fact that this was 100% the result of community engagement, great. Roll on. If not, we need to find out before we high-five the community management team.

Lesson #1: Assumptions are dangerous and attribution is tricky. If you are going to present an ROI example, make sure it is rock solid. Don’t assume that social business was the biggest (or sole) cause of your success.

A better way of presenting this one would have been to maybe connect the 3% lift in online payments to the $95,000 in processing costs (context here would be nice so we know how the two might be connected). Tying these metrics to a specific campaign or activity on social channels wouldn’t be a bad thing too. Connect the dots a little bit: +3% in online payments isn’t ROI unless it results in $x savings. None of it is an outcome of social business unless you also show how “the community” helped you get there.

Not saying this isn’t a potential ROI win, but as presented, we can’t know for sure. Not yet. We’ll give that a cautious MAYBE. Just watch those assumptions though.

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2. Alberta Common Wealth Credit Union. Blog, YouTube, Facebook – 2 million impressions, 2,300 new accounts, and $4 million Canadian in new deposits. (Forrester, 2008)

First, scratch the 2 million impressions bit. It’s a distracting metric and not super reliable (or even relevant to this discussion).

$4 million in new deposits sounds like a great outcome for the program though. Here are the three problems with that:

- Assumptions again: How do we know that these 2,300 new accounts and resulting $4 million in new deposits were tied to the social media program (Blog, Youtube, Facebook) and not a combination of social and other factors (traditional marketing, advertising, PR, etc.). Can ACWCU realistically assign the 2,300 new accounts and $4M in net new deposits to the social media program?

If the answer is yes, great. They’re on the right track. Time to back that up. Show me how that happened.

If the answer is no, then we have a problem right off the bat. Remember that thing about assumptions.

What about costs? What was the cost of the program? This example (and many others) don’t mention cost at all. They only mention gains. The ROI equation also factors in costs.

Here’s why this is kind of important in an “ROI examples” discussion: if the program or campaign cost $4,000,001 and the net new deposits amounted to $4,000,000, then your ROI was actually negative. Just sharing the gain from the campaign or program doesn’t give us any idea of what the ROI actually was.

Lesson #2: Don’t confuse ROI with gain. ROI is the ham sandwich, not just the ham. (Google the ROI equation, print it and tape it to your office wall. Before you tag something as ROI, make sure it fits the definition of ROI.)

No benchmarking: What the example doesn’t tell us is what the time period for this gain was, and how the credit union normally trends for similar time periods. What if ACWCU usually sees the same amount of new accounts and deposits for the same time period even without social media? Say that ACWCU saw 2,300 new accounts for the exact same period preceding the start of their social media program? Wouldn’t that mean that the social media program might have had no impact at all? You have to factor in time frames and set up benchmarks before you can weigh gains before and after the launch of a program.

Result: As presented, we have no way of knowing if the program perpetuated a trend or brought in new business above and beyond normal performance trending.

Lesson #3: Without adequate benchmarking, your ROI “reporting” is incomplete and doesn’t stand up to scrutiny.

File that one under MAYBE. (As presented: An incomplete report of gain but not an example of ROI.)

Way too many of this kind of anecdotal “example” on this list to make me comfortable with it. Sorry.

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8. Blendtec. Viral videos increased company sales +700%. (Barnraisers, 2010)

That one actually does stand up to scrutiny. BlendTec’s hilarious videos (and live demos at trade shows) a) became such a hit and b) demonstrated the effectiveness of the blenders so well that orders for the blender increased almost overnight.

The reporting here is still pretty incomplete though: 700% over what time period? What else could have caused the increase? That’s a gain but not an ROI figure: What was the cost of the program vs. that 700% net gain in sales?

File that one under YES: ROI but with reservations. (As presented: another report of a successful gain but not an example of ROI.)

I really wish the legitimate ROI examples on this list actually focused on ROI instead of using disjointed metrics.

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10. Bonobos. Exclusive sale on Twitter generated 1,200% ROI in 24 hours on promoted tweet. (Twitter, 2011)

First, proceed with caution if the list is about Social Business and you are just talking about a one-time media buy on a social channel. Social business is a little more elaborate than buying the odd promoted tweet for a one-day promotion.

Second, we have absolutely no idea how that 1,200% ROI figure comes from. What is it based on? Could the figure erroneously reference a 1,200% increase in sales rather than ROI? As presented, we don’t really know. Red flag.

Third (and perhaps most important) we have no idea what the cost of that promoted tweet was in relation to the gain in net sales.

Knowing nothing about this one, I want to give it the benefit of the doubt. Filing it under MAYBE. (I can’t believe I am being so nice. This would never pass muster during a legitimate business audit.)

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13. Burger King. Subservient Chicken video increased chicken sandwich sales 9% per week a month after launch. (Adweek, 2005)

Again: At a cost of…?

If the 9% increase in chicken sandwich sales amounted to less revenue than the cost of the campaign or program, then the ROI was negative. This example (like most on the list) mentions gain without factoring in cost. This is the list’s biggest problem.

Footnote: Subservient chicken wasn’t just a social media campaign. Subservient chicken was an advertising campaign with interactive digital components. This is very different from a business like Best Buy or Ford engaging with people via social channels to grow mindshare, improve the brand’s image and ultimately increase preference in the minds of x% of car buyers. When looking at this type of hybrid model of social and traditional media, you cannot legitimately talk about the ROI of “social”.

Lesson #4: When a campaign (note my choice of the term campaign and not program) is as much social marketing as it is traditional marketing, you cannot attribute its success to “social media” or even “social business.” An advertising campaign, even with social channel components is still an advertising campaign.

Effective, sure, but still just advertising.

File that one under a cautious and suspicious MAYBE. (As presented though: No ROI was actually demonstrated here. Value: yes. ROI: nope. Again.)

Let’s move further down the list.

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Let’s leave the gray area of “maybe” for a minute and look at a few examples that don’t fall anywhere near ROI (as presented):

15. Cerner. Community resulted in 13% fewer customer support issues logged. (Jive Software, 2011)

16. Cerner. Community resulted in 70% decrease in internal HR issues logged. (Jive Software, 2011)

17. Cerner. Community resulted in shorter approval cycles for writing technical documentation, from 2-6 weeks to hours or days. (Jive Software, 2011)

19. Charles Schwab. Online community drives 56% increase in Gen X customer base versus year ago. (Communispace, 2007)

20. Cisco. Community deflects 120,000 support cases each month. (Lithium Technologies, 2011)

24. Electronic Arts. EA was 2nd UK brand to use promoted tweets and trends to promote FIFA 12 video game. Trend engagement level was 11%, well above Twitter’s average ‘benchmark’ for trends, of 3% to 6%. Promoted tweet engagement averaged 8.3% over two-week campaign vs. Twitter benchmark of 1.5%. (Marketing Magazine, 2011)

25. Elsevier. Wiki drives 80% reduction in interdepartmental e-mail volume. (Socialtext, unkn)

28. FICO. Community: 850k customers served, resulting in 10% improvement in call deflections annually. (Lithium Technologies, 2011)

30. FONA International. Wiki eliminated almost 50,000 e-mails a year from one specific process. (Socialtext, unkn)

32. giffgaff. 100% of questions answered by community members in average time of 93 seconds. (Lithium Technologies, 2011)

34. Hershey’s. House party: 10,000 parties, reached 129,000 people, and say their campaign was seen by 7 million people. (Forrester, 2008)

35. Honda. Friending Honda campaign increased Facebook fans from 15k to 422k, generated over 3,500 dealer quote requests. (RPA, 2010)

36. HP. More than 4.6 people have told HP that the forum solved their support issues which HP says makes customer happier and saves the company millions in support costs. (Forrester, 2010)

42. Intuit Quickbooks. Business owners engaged with rated ProAdvisors 555% more often than unrated counterparts. (ratings and reviews). (Bazaarvoice, 2011)

No ROI in any of those examples whatsoever. There are more but I will let you find them all on your own.

Lesson #5: If it isn’t a $cost vs. $gain equation (or whatever currency you need it to be), it isn’t ROI. Customer base, leads, referrals, links, clicks, retweets, HR issues logged, email volume, estimates of future sales, deltas in NPS, quote requests, parties reached, impressions, engagement, etc. = not ROI.

Note: Too bad HP (36.) didn’t lead with the “saves company millions in support costs.” That looked like a legitimate ROI example. (Right company, wrong metrics to illustrate the ROI piece.) It matters that 4.6… wait. 4.6 people?

Maybe it was 4.6 million? Or 4 out of 6?

Anyway, whatever the number is, it matters but it is irrelevant to the ROI discussion. What would have been relevant would be how many millions in savings HP enjoyed as a result: The cost of implementing and managing the program vs. the $x million savings would have been a perfect way to illustrate ROI here. Missed opportunity #36 on the list so far.

Speaking of how to properly present ROI “examples,” here are a few quick tips on how to turn these examples into legitimate ROI stories:

It would have been great for the three Cerner examples to talk about actual cost reductions from the drop in customer service and HR issues, for instance, but they didn’t The metrics used had nothing to do with ROI. Financial gains (either via revenue or cost savings) were never mentioned. The cost of implementing and managing the program(s) was also never mentioned. Why? Those are far more relevant metrics than the ones presented.

Same with Elsevier: An 80% reduction in email is great but what is the impact on operational costs? That would be a potential ROI story.

Honda (35.) would have a great ROI story to tell if it could show the net number of sales from those 3,500 dealer quote requests and then scrubbed from that list every buyer who was going to buy a Honda anyway, regardless of the company’s social media activity. Presenting the example with “likes” and “dealer quotes” as the two principal KPIs (key performance indicators) instead of net sales (for example) puts the example squarely outside of a legitimate ROI discussion.

Intuit is another example of a company listed here with a legitimate ROI story to tell, but the description references a KPI that has nothing to do with ROI whatsoever. “555% more engagement resulting in net new $… versus a cost of $…” would have scored a bullseye. “555% more engagement” alone doesn’t.

Is it too much to ask for a list of ROI examples to actually use cost vs. gain numbers? As in… the actual ROI equation? Because that would be simple, clear and nice… and relevant. Instead of…

19. Charles Schwab. Online community drives 56% increase in Gen X customer base versus year ago.

… try this:

19. Charles Schwab. Online community cost: $X. 56% YoY increase in Gen X customer base attributable to online community resulted in net new revenue of $Y FY2011. ROI: $Z.

Simple. That’s how it’s done.

Perhaps there is an ROI story hiding somewhere in the background of every single example here. In fact, there probably is. But these examples, as presented, don’t talk about ROI at all. They reference non-financial gains without establishing any link whatsoever to ROI. So… Sorry, that’s a big zero on all of those.

Filing these under: NO ROI ANYWHERE (except for the vague afterthought in number 36).

My thinking: Far too many of these on this list as well.

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Okay… I’m starting to feel bad about this so let’s look at a legitimate example on the list. #22: Dell.

22. Dell. @DellOutlet on Twitter generated $2 million direct sales, influenced $1 million addt’l (2007 – 2009). (Direct2Dell Blog, 2009)

Yes. Tweets linked to offers were tracked and a direct path of tweet-to-purchase was clearly established. Empirically.

File that one under YES: ROI. (But it would have been nice to see it as an ROI example and not as just another example of gain.)

Cost of program vs. $ in net sales from the program. Simple. Another missed opportunity to demonstrate ROI properly.

Moving on…

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27. Epson. Reviews drove 98% higher revenue per visitor for Epson. (Bazaarvoice, 2011)

First, I have absolutely no idea how one leads to the other. How do we know that “reviews” drove higher revenue per visitor? Show me how you came up with that figure.

Second, what does that have to do with ROI? (Gain from reviews – Cost of reviews) ÷ Gain from reviews = … oh wait. What was the cost of those reviews again? #Fail. Value: Yes. Correlation between A and B: Maybe. ROI: Nope.

Sorry but I have to file this one under NO. Interesting but not ROI.

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Dancing back into ROI territory now. (I still feel guilty about pointing out the problems with this list.)

See? It isn’t all bad.

37. IBM. developerWorks community saves $100 million annually from people who use this resource instead of contacting IBM support. (Forrester, 2010)

38. IBM. Crowd-sourcing identified 10 best incubator businesses, funded for $100 million, generatiung $100 billion in total revenue for a 10-to-1 ROI with a 44.1% gross profit margin. (Barnraisers, 2010)

Now we’re talking. ROI can come from cost savings, not just net new revenue. Well done, IBM.

Filed under YES: ROI.

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45. Jewelry TV. Customer reviews boost mobile sales by 30% (ratings and reviews). (Bazaarvoice, 2011)

Aside from the obvious problems already encountered with previous examples, this one introduces us to a new one: The 30% boost in mobile sales. Is this 30% net new sales or simply a shift from non-mobile sales to mobile sales? Whether someone buys from a mobile device or their land line, is there really a difference? Does it have anything to do with ROI?

53. Mattel. Despite product recalls, online community helped support Q4 2007 sales increase of 6%. (Forrester, 2008)

How do we know that the online community helped support a Q4 2007  sales increase of 6%? isn’t it more likely that back in 2007, advertising, product placement and good PR might have been more responsible for that 6% increase than an online community?

Also, 6% versus what? Is this YoY or QoQ? Was it normal for Mattel to expect 6% growth in Q4 of 2007 with or without an online community?

Too many unanswered questions = too many assumptions.

Filing these and others like them under NOT SURE WHAT THAT WAS. MAYBE.

Another reason why benchmarking matters. Just throwing numbers around without establishing a context for them doesn’t really tell you anything. Data can be manipulated to tell wonderful stories when no one is there to ask hard questions like “prove it.”

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I want to end on a positive note, so here are several examples that either have potential or are clear examples of ROI (in no particular order):

11. Bupa. Community drove £190,000 savings through collaboration, online events. (Jive Software, 2011)

100. Vistaprint. Community tracked $30,000 in social revenue in 2009. (Lithium Technologies, 2011)

23. Domino’s Pizza. Foursquare drove 29% pre-tax profit through promotions. (Barnraisers, 2010)

71. SAP. Community drive 5% increase in partner sales. (Jive Software, 2011)

57. National Instruments. Community resulted in 46% of all support questions answered by peers instead of support. (Jive Software, 2011)

84. TomTom. In one month, community handled 20,000 cases resulting in $150k of savings. (Lithium Technologies, 2011)

65. Precyse Technologies. $250,000 savings in crowdsourcing new product design. (InnoCentive, 2010)

92. TVG. Community members spend 36% more than average. (Lithium Technologies, 2011)

67. Rhapsody. 50% decrease in support costs and 53% decrease in weekly support contacts via sCRM solution. (GetSatisfaction, unkn)

60. Orange. Listening: saved a few million euros in support costs and helped avoid several potential PR problems. (Forrester, 2010)

75. Secret. Among women viewing the video, 57% said their impression of the Secret brand improved and purchase intent among women who participated on Facebook went up by 11% (33% for teens). Clinical sales increased 8% despite a 70% decrease in TV support. (Forrester, 2010)

85. Toshiba. Saved $213,000 by adding online component to 5 events, doubling attendance. (Jive Software, 2011)

95. University of London. Internal social network allows students to collaborate remotely, expected to deliver future savings in the region of £300,000 per year in print, courier and administration costs alone. (IBM, 2008)

While examples like Secret (75.) and SAS (71.) require you to make leaps of faith (as presented) and don’t actually give us ROI data (not just gain but relative cost of the new activity vs. traditional spend), you can see an ROI story forming in the background. It’s still vague but you can tell it’s there.

Let’s file those in the “PROBABLY ROI (if we dig a little more)” folder.

Examples like Orange (60.), Precyse Technologies (65.) and TomTom (84.), on the other hand, are cut and dry: The cost savings are empirical. You can tie the cost of the activity to the financial gain to the company.

We’ll file those in the “YES: ROI” folder.

Special mention for actually listing both gain and cost:

88. TransUnion. Estimated $2.5 million in savings in less than five months while spending about $50,000 on a social networking platform. (Socialtext, 2009)

If only all 101 had done that.

*        *       *

(If you skipped ahead, pick up the post here. You’re almost done.)


If you look at the list from the perspective of “these are 101 examples of where social business has benefited or added value to a company” then it is solid. Kudos to Peter and his team. Great title, lots of value there, please share with the world. Just make sure you scratch out the title or petition Peter to change it.

If you look at the list as a collection of “101 examples of social business ROI,” then the list is almost entirely wrong. Back to the drawing board. Sorry. It doesn’t work.

I don’t want to just point out the flaws without offering Peter a way to fix it, so here are the only two options:

1. Change the title to something along the lines of “101 examples of successful Social Business campaigns”. (Remove the ROI bit from it if you aren’t actually going to focus on ROI.)

2. Include actual ROI numbers for each of the 101 examples. (Those can just be the cost and the gain from activity figures. Real simple.) Even if some of those ROI numbers turn out to be less than impressive, the list will still be factual and valuable.

Oh, and 3. Include IKEA. It deserves a nod.

*         *        *

I almost forgot…

Lesson #6: Ask the hard questions. Don’t assume that information (or insight) from anyone in any industry that touches marketing in any way is accurate. Not even mine. Put everything through your own stink test. Use your noggin’. Challenge everything that raises a red flag. Learn the definition of business terms too. They matter. Worth keeping in mind next time a list like this pops up (and there will be more like it).

Or your could just Google “R.O.I. calculation” for crying outloud. Every kid with a lemonade stand grasps that math. Why can’t social media gurus? It boggles the mind.



CEO-Read     –     Amazon.com    –     www.smroi.net    –     Barnes & Noble    –    Que

PS: Everything in this book could also be dead wrong. It could all be pure BS. Scrutinize it as well. I’m not immune to the occasional wrong conclusion either. You never know. ;)

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