Forget ROI A Theory on Social Media and How To Swing It Justin Whitaker Shogun, MicroNiche Consultin
Forget ROI
Jan 14, 2015
Presentation I gave at Podcamp Boston 4. Still needs some work, but the general idea is there. Please feel free to share, remix, distribute, contact, etc!
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Forget ROIA Theory on Social Media and How To Swing It
Justin WhitakerShogun, MicroNiche Consulting
Social media is online content created by people using highly accessible and scalable publishing technologies.
Social media is a shift in how people discover, read and share news, information and content. -Wikipedia
The goal in getting involved In Social Media is to get people generating content and sharing information about you & your products!
How do you prove expending resources
on Social Media is worth it?
How do you swing it?
Engagement Measures?
Return on Investment?
Return on Assets?
Wait, Return on Assets?
Engagement Measures ! = $
ROI = (Gain on Investment – Cost of Investment)/Cost of Investment
ROI = How efficiently capital is used
ROI= Assumes discrete project/ milestone
ROI= Assumes attributable revenue
Social Media is not a campaign
Social Media may not generate attributable revenue.
(Engagement-Costs)/Costs != ROI
(At least not to corporate decision makers.)
ROI is the wrong tool.
ROA = Net Income / Total Assets
ROA = Efficiency of Asset Usage
But, isn’t Social Media an investment?
Social Media is a time investment.
Social Media is a cultural investment.
Social Media is an expense.
Social Media = - Net Income
Social Media = + Brand Value (Recognition/$)
Social Media can influence the perception and value of your brand.
Social Media = + Customer List (Community Engagement)
Social Media allows me to efficiently increase # of engaged customers.
More engaged = more value.
Via Social Media you can generate measurable deltas in two key intangible assets.
Intangible assets are balance sheet items.
(In Case You Were Wondering.)
Business 101: + Net Income/Total Assets
+ Differentiation = + Net Income
+ Engaged customers = + Net Income
Business 102: + Net Income/ + Total Assets
+ Differentiation = + value to Brand
+ Engaged customers = + Value of Customer List
Successful Companies Have High ROAs.
Social Media can help you swing it.
?
Contact: Justin WhitakerMicroNiche ConsultingTwitter: JustinmwhitakerEmail: [email protected]
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