In the ever growing world of Social Media business is often scared to dabble in the industry. I ask the question about whether or not Social Media can deliver a ROI...

1. Social Media ROI... Presentation by Justin Hartman
CEO - Afrigator & Social Code
...does it exist?

2. Who thinks Social Media ROI is about...............
Sales

3. What about...............
Leads
Sales
Measurability
Brand Equity
Support Communication
Cost Savings
New Customers
One on One conversation
Engagement

4. Profit = R1,000,000
Cost = R200,000
ROI = 400%
effectwebagency.com http://tinyurl.com/WTF-SM-ROI

5. "ROI of Social Media is
that your business will still
exist in 5 years time...."
-- by, Very Smart Person

6. Media Types and their measurability
Media Type Measurement Track ROI?
Mobile text ads CTR Yes
Banner ads CTR Yes
Search ads CTR Yes
Opt-in email Reads / Opens Yes
TV ads Viewership No
Radio ads Listenership No
Magazine ads Readership No
Newspaper ads Readership No
Social Media ??? ???

7. Consumer Trust Levels by Media Type
Mobile text ads 18%
Banner ads 24%
Search ads 37%
Ads before movies 53%
Opt-in email 55%
TV & Radio ads 61%
Magazine ads 62%
Newspaper ads 66%
Brand sites 69%
Editorial Content 70%
Recommendations from people I know 92%
Nielsen Online global survey, April 2009

8. Consumers consider word-of-mouth
as 2X more trustworthy as traditional
media when choosing products yet
Social Media makes up less than
0.1% of total marketing spend.

9. Why is this? Does Social Media not work?

10. @DellOutlet
• Sell refurbished equipment
exclusively via Twitter using
coupon codes.
• With 2,500 followers they sold
$500k worth of equipment.
• In June 2009, with a little over
600k followers they passed the
$3 million mark in sales.
• Today they have 1.5 million
followers and their sales figures
for 2010 are unknown.

11. @Twelpforce
• Best Buy encouraged hundreds of
employees to engage with
customers who have questions
about the company and products.
• At the end of 2009 Twelpforce
answered 19,500 questions and over
2,300 employees are signed up.
• They've set themselves apart from
competitors by sharing knowledge
on demand to anyone.
• Through Twitter they have
humanised their organisation and
exposed their employees to Social
Media.

12. Best Buy Shop
• Setup a virtual storefront on
Facebook where you can
purchase products from within
the application.
• Customers can search for
products or ask friends to review
products before they buy them.
• Beyond @Twelpforce this drives
sales and revenue derived
straight from Social Media.
• Facebook virtual storefront has
over 1.2 million fans....

13. Better examples of Social Media ROI
• Cisco study found that 43% of visits to online support
forums are in lieu of opening a support case through
standard methods.
• Cost per interaction in customer support averages $12 via a
call center versus $0.25 via self service options.
• Forrester reports that customers report good experiences in
forums more than twice as often as they do via calls or mail.
• eBay found that participants in online communities spend
54% more than non-community members.

14. Better examples of Social Media ROI
These examples concern far greater sums of money than
say the $3 million @DellOutlet generated.
• Better customer experiences,
• Far lower support costs, and
• More buying activity in the long run.

15. How Cisco saved $100,000 off a Product Launch
Launched a new router
using social media
exclusively.
• Second Life
• A 3D game
• YouTube
• Video Conferencing
• Mobile
• Facebook
• Widgets
• Blogs
• Forums

16. Social Media Launch Highlights
• 9000 people attended the launch event - 90x more than in the
past.
• Saved 158k litres of fuel.
• 3x as many press releases to the normal traditional outlets.
• 1,000 blog posts & 40 million online impressions in exposure.
• One-sixth the cost of a traditional launch.
• Was classified as one of the top 5 launches in company history.

17. The Real-World Stuff...

18. Learning Channel
• Strategy was to engage target
market with LC offering.
• Want to sell items from their
eshop website lcdirect.co.za
• Students kept asking for free
learning tools, advice, etc.
• Use those students to find more
info about them and convert
them into a lead with the school
they attend.

19. Using Social Media to build a business
• Afrigator.com used social media exclusively to promote,
engage and grow our product.
• Got international coverage in CNN, nytimes.com and top
tech blogs in the US. Local press coverage followed.
• Ad networked spawned from this and has paid bloggers
over R520k this year.
• Startups are driving innovation using Social Media because
of realtime interaction, low cost marketing and support.

20. Analysing the case studies
SM effort Primary ROI Secondary Rev/Saving
Cost saving
@DellOutlet Sales $3 million+
& new cust
Brand equity
@Twelpforce Support $230k
& sales
Cost saving
Best Buy FB Shop Sales $?? million
& new cust
Cost Brand equity
Cisco $100,000+
savings & sales
Learning Channel Engagement Leads R???
Product dev, Sales, brand
Afrigator R2 million
engagement equity, bus

21. "10 years ago you could
not engage with users you
had not met yet...."
-- by, Another Smart Person

22. http://afrigator.biz http://socialcode.biz
Twitter: @justinhartman
http://facebook.com/justinhartman.co.za
justin@hartman.me
http://justinhartman.com