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