What We're All Missing About the ROI of Social Media

retention reputation revenue 1 2 3

What we’re all missing about the

Roi of social media @ Digital Roots, we understand that there are 3 essential results a company wants from their

investment in social media

We’re breaking down the ROI of social media with concrete stats. This is why you should invest:

© 2007-2013 Digital Roots. All rights reserved.

r e t e n t i o n

We can all agree that brand loyalty is a key factor in customer retention. The best way to build it is to build a relationship with your customer, right? Wrong.

77% Of customers do not want a

relationship with a brand

Companies with clear core values

are often renowned as the

“best social media brands”

What is your core value?

So what wins a customer?

oreo value = pop

culture brand

leader

zappos value =

customer

service

Shared values

Sixty

-sev

en pe

rcen

t Of

cust

omer

s say

Is the factor makes them loyal to a brand’s product or service

r e p u t a t i o n

Percent of customers go to social media for info on a brand 70

60 Percent of customers spread information on social media

about a brand

Percent of customers make purchase decisions based on information they’ve seen on social media

49

45 Percent of customers who engage in a word of mouth

conversation after researching on social media

Percent of people aged 18-34 say that they would be upset if they posted on social media and didn’t receive a response when they were expecting one

56

4.3 Million $ Is the estimated global average

loss from social media crises

Reduced stock prices Costs of litigation

Direct financial loss Loss of customer trust

Lost revenue

5 Contributing factors

Do you monitor & respond to social media complaints?

r e v e n u e

yes, investments in social can profit

In 2011, the Frito-Lay company launched the “Do Us a Flavor” campaign on social media: letting fans create and eventually vote for a new Lay’s potato chip flavor.

pepsico Parent company of frito-lay

$66.5B Reported a 15% increase in revenue in 2011

That

’s

The campaign

itself helped

lays reverse a

6 year decline

in sales

watch your brand conversation

© 2007-2013 Digital Roots. All rights reserved.

Works Cited: Stampler; Business Insider, Facebook Says These are the 20 Best Brands on the Social Network, 4/29/13 Freeman, Spinner, Bird; Harvard Business Review, Three Myths about What Customers Want, 5/23/12 Symantec, Symantec Finds Enterprises That Are Not Preserving Social Networking Business Content Risk Increased Litigation Costs and Company Reputation, 7/21/11 Fisher; ROI in social media – A look at the arguments, 6/16/09 PepsiCo, PepsiCo Reports Fourth Quarter and Full Year 2011 Results