This is a great little video by Ignite Social Media on the ROI of social media. While it’s quick in nature, it’s a good, high-level look at how social media effects the bottom line in various aspects of business.
Transcript (Courtesy of Ignite Social Media)
Social Media’s ROI is real and measureable at every stage of the sales funnel
- Awareness Quantified:
o Facebook impressions + Facebook posts + Tweets and retweets + Twitter clicks + Youtube views + Blog-page views + Online mentions = Awarness.
• Skittles, March 2012:
• Visitors: Website — 23,00
• Facebook page — 320,000 (14 times more)
- The most effective consideration drivers?
o Email: 2.36 million
o Display ads: 3.64 million
o SEO: 4.52 million
o Video Ads: 4.80 million
o Social Media: 5.32 million
- Of the 3.3 billion daily brand mentions, 66 percent of the mentions are positive. Only eight percent are negative!
Preference: (n) 1. Social proof that a product or brand is worth purchasing 2. A thing preferred.
- Lift in brand choice when prospect sees…
o User-generated video: 18.7 points
o Brand-generated video: 24.7 points
o Both: 35.3 points
• BlendTec’s “Will It Blend” video series led to a 650% increase in visitors to BlendTec.com and a 500% increase in blender sales. Initial video cost: $50.
- Establishing a relationship with a brand:
o Average order size:
• Paid search: $13.52
• Affiliate marketing: $88.76
• Natural search $95.56
• Email: $103.05
• Display ads: $206.66
• Social Media: $280.71
- An Ignite Social Media Client:
o An estimated $5.3 million in revenue attributable to new fans
- Increasing awareness + consideration + preference + intent = Purchase
• Starbucks fans who saw the company’s Facebook updates had a 38 percent lift in actual purchase
- Social media marketing opens channels to answer customer questions and drives ROI by reducing the cost of answering those questions.
• Infusionsoft reduced their customer service staff by two-thirds while increasing their customer satisfaction by 10 percent.
- 34 percent are more loyal to companies if they are a fan on Facebook.
- 46 percent are more loyal to companies that they follow on Twitter.
• AT&T’s customers who are engaged online convert two times higher than their other campaigns.
- Encouraging and equipping true fans to spread the message
• Disney, MTV, McDonalds, Starbucks all have more impressions from Friends of fans than from fans.