This document discusses the return on investment (ROI) that can be achieved through social media. It provides examples of companies that saw financial gains by addressing issues or improving engagement on social platforms. These include Gap addressing criticism of a new logo on Facebook, and Burger King generating $2 million in free media impressions from a Facebook promotion. The document also outlines how to identify business objectives for social media use, such as lead generation or reputation management, and how to define appropriate metrics to measure ROI against the objectives over time and in comparison to competitors. It argues that while the initial ROI from social media may be low, it can scale up as efforts become more evolved.

1. Social Media ROI HareeshTibrewala hareesh@socialwavelength.com

2. Agenda Risk Of Inaction Return On Investment My ROI

3. Risk Of Inaction

4. Gap Logo Change More than 1000 posts on FB page lamblasting the new logo @Gaplogo twitter handle set up by irritated fan “All roads were leading us back to the old logo” Social Media saves the day for Gap

5. Kryptonite Disaster Lock is compromised by a Bic pen Brand caught unaware Poor response, plummeting sales Finally forced to withdraw the product, offer 100% replacement Social Media became their Waterloo

6. Return On Investment

7. Viral Videos Cost of creation : $1000 Cost of promotion : $0 Revenue growth 5 times revenue growth in one year

8. Gary Vaynerchuck Wine selling $15,000 direct mail 200 new customers $7,500 on billboards 300 new customers $0 on twitter 1800 new customers Grew his business from $4mn to $50mn using social media

9. Gary Vaynerchuck Daily video blog Tv.winelibrary.com 800,000 Twitter followers 50,000 FB fans Created a community 1st time wine buyers Converted a “snooty” category into a “fun” category

10. New Orleans based Pizza outlet Found direct mailing option to be expensive Used Twitter to reach out to consumers Created its own “list” and community 60% sales via Twitter “I am calling from Twitter”

11. Burger King Whopper Sacrifice on Facebook Costs Application : $25K Gratification : $75K ROI 32 mn free media impressions :$2000K value New sales : $750 K Top of mind recall:$$$

12. Created peer-to-peer community support platform Studied consumer feedback Marketing. Sales, Product, Custserv Reduced laptop support cost by 20% Increased productivity for agents and NPS

13. Lead generation company Reports that 24% of social media leads convert into opportunities

14. Finance and accounts management software (Quickbooks) New product :Turbo Tax Used customers to create communities to test the product Got product feedback Increased sales by 30%

15. Barack Obama 5mn fans on social media 3 mn online donors gave $500 mn 92% donations were in increments less than $100

16. My ROI

18. Generating Sales

19. Customer Service

20. Reputation Management

21. Co creating products

23. Objective : Reputation Management Sourcing conversations Doing a sentiment analysis Generating a SIM score SIM Score : ((Positive+Neutral)-Negative)/Total Benchmark SIM Score sub-category wise Benchmark SIM Score over a period of time Benchmark SIM Score wrt competition

24. Key Takeaways Is there ROI in Social Media Yes there is (Risk of Inaction / Return on Investment) Key is to define your business objective For that objective, define metrics to benchmark Social Media involves investment of time and money. Social Media is evolutionary Initial ROI graph will be low, then it will scale up

25. Listen

26. Questions? If you need a copy of this presentation, please leave your business card. We will email it to you. Hareesh Tibrewala Jt. CEO, Social Wavelength. hareesh@socialwavelength.com Company blog: blog.socialwavelength.com LinkedIn: linkedin.com/in/hareeshtibrewala