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:
- A brief synopsis of the campaign or program.
- The cost of that program.
- The financial outcome of that program.
- 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.