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1600% ROI On Social Marketing

Many organisations focus on enterprise 2.0 successfully implement social technologies such as wikis, blogs, social networks, web applications, IT products and services to enable external and internal collaboration, communication and connections between employees, organisations and customers. In order to measure the impact of enterprise 2.0 applications, these organisations have to measure their return on investment (ROI).

Social technologies ROI metrics

The social technologies ROI can be measured through tangible (quantitive) and intangible (qualitative) benefits. The tangible benefits can be measured with numeric data, whereas intangible benefits are more difficult to measure. However, the data can be obtained from observations and surveys in order to form hypnotises that could be tested using quantitative data. Perhaps intangible benefits can be also measured by finding out about staff and customer’s experience with social technologies through observation and interviews.

ROI Case Study

The case study of Ninja shows an impressive 1600% ROI on social marketing. Ninja is a Euro-Plan ’s brand that offers high quality kitchen appliances and products. During the 2011 Super bowl, the company launched a “Ninja Bowl” social sweepstakes for the chance to win the ultimate Ninja Kitchen’s blender in the market and a 40% off coupon for every participant who entered to the sweepstakes. Ninja’s campaign goals were to increase their social audience, entice post-purchase intention and engage their users through interactive social promotion, and provide customer service through social networks to enhance customer satisfaction.

Regarding to tangible benefits, Ninja increased 90% the number of followers on social media accounts during the campaign, especially Pinterest and Twitter’s users. Furthermore, the sweepstakes’ coupon produced a revenue of $53K and a ROI over 1600%. These ROI tangible benefits enabled to increase their community engagement on social networks as well as company’s gains. With the quantitive data Ninja could have measured the timing of their community activity. That is, time their customers were active using social networks that can be measured with different insights tools. A strength of their social campaign ROI was the click-through rate (CTR) which drove traffic to the website where the products on sale were displayed, generating a surprising revenue.

The Ninja case study doesn’t show intangible benefits. However, the ROI concerning intangible benefits could have been measured by observation and analysis of their communities’ influencers through tools like Klout, Followerwonk or Google rankings, and looking for influencers in forums with people talking about their products. Another intangible benefit Ninja could have measured is the tone and tenor of their audience during the social campaign. They could also have analysed the conversation drivers such as key topics that  could have arisen during the campaign in order to achieve their goal of providing customer satisfaction.

All in all, this ROI on social marketing case shows how organisations can successfully implement and obtain tangible and intangible benefits with social technologies.

What do you think about this social media strategy? Do you have any other suggestions to measure intangible benefits?

By Giannina Pacheco

6 Comments so far:

  1. Hi Giannina, A very informative post. The intangible benefits seem to be the hardest to turn into a quantifiable value. As you rightly point out being able to measure the tone and tenor of their audience would have given them some insight. It is still hard to determine sentiment of text based mediums, even with emoticons/ emojis. They ended up with a massive ROI though; 1600% is a great result.

    • Gia says:

      Thanks Wendy for your feedback! It’s very difficult to measure intangible benefits but with the tools I mentioned that could easy the use of quantitive data in order to have an approach for intangible benefits

  2. Justin Yung says:

    Short and sweet and you covered many of the key points. After reading your post, I just realized the brand you are talking about appears on Infomercials everyday! What attracted me to your post was the 1600% ROI. That is a staggering figure. Even if we give some leeway and say they estimated their ROI wrong, lets say they only have half 800%, it is still a big number which meant their investments really paid off.

  3. Hannah Usher says:

    I don’t think it’s important to be able to measure intangible benefits. These benefits often go unnoticed a lot of the time and it’s only when reflecting that businesses actually realise where they did it right. Great post!

    • says:

      Thanks Hannah for your feedback! I think once te company notice the intangible benefits, they would be able to enhance those benefits within different business areas.

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