10 Examples of Social Media ROI [INFOGRAPHIC]

PamDyer
Pam Dyer Marketing Director, SolutionsIQ

Posted on September 30th 2013

10 Examples of Social Media ROI [INFOGRAPHIC]

Does social media drive ROI? Many brands are still plagued by this question. 

10 examples roi social media 10 Examples of Social Media ROI [Infographic]The immediacy and visibility offered by social media marketing has convinced most business owners that it’s worth their time and effort, but calculating its effectiveness is another story. Best practices for measurement are still evolving, and even though brands are committing an increasing percentage of their budgets to social channels, many are still skeptical about its value and return on investment (ROI). What’s a marketer to do?

In the past, most marketing involved one-to-one communication. Traveling salespeople knew their audience well, and went door-to-door to deliver custom personal messages about their products to willing buyers. Think of Avon, which employed women dubbed “Avon Ladies” to sell cosmetics and skin care products beginning in 1886.

This evolved into attracting an audience via a one-to-many approach, with brands using tools like survey responses, subscription data, and Nielsen scores before delivering advertising via traditional media. In this scenario, marketers are fairly certain about who they are talking to and use trackable elements such as coupon codes and phone numbers to quantify results. Both of these paradigms make ROI fairly easy to compute: Just divide returns by the initial investment and calculate a percentage: $100,000 net profit ÷ $400,000 invested = 25% ROI.

Easy, right?

Enter social media. Brand marketers are using many approaches in an effort to be part of the conversation, and are leveraging multiple social channels to do so. These programs are far more complex than the one-to-one and one-to-many paradigms. It’s very easy to just start measuring your ROI by counting how many Twitter followers and Facebook friends you have. Or you could be a bit more advanced and measure retweets and likes. Although these are important components to track, a goal-based approach to ROI will help you better understand your results — your method of measurement must dovetail with the campaign goals you defined before embarking on a social media marketing program.

Social Media ROI: 10 Examples

The infographic below from Psoshul illustrates how 10 companies successfully used social media marketing initiatives and measured their effectiveness.

1. Coffee Groundz

  • Channel used: Twitter
  • Used it as a direct ordering channel
  • Sales and market share increased 25%

2. Vitabiotics

  • Channels used: Twitter, Facebook, and blog
  • Built a community of 13,000
  • Saves the company hundreds of thousands annually vs. traditional research and test marketing

3. Jimmy Choo

  • Channel used: Twitter
  • Geo-located and featured upscale stores that sell their sneakers
  • Sneaker sales increased 33%
  • 40% increase in positive tweets and messages

 4. Kraft/Toblerone

  • Channels used: Company website and multiple social networks used in the Philipines
  • Established October 20th as the country’s “National Thank You Day”
  • Drove 500,000 website visits
  • Sales of Toblerone increased 132%

5. Steaz

  • Channels used: Facebook and Twitter
  • Offered coupons and generated discussion around organic tea
  • 250,000 coupons were downloaded
  • 2,830 tweets were recorded in an hour
  • Sales doubled

6. AJ Bombers

  • Channels used: Foursquare, Twitter, and Facebook
  • Used Twitter as a social maître d’ to build releationships
  • Created “Foursquare Day” that increased hamburger sales 110%
  • A year later, weekly sales were up 60%

7. Joie de Vivre

  • Channels used: Twitter and Facebook
  • Offered $79 per night deals at its 33 luxury hotels
  • Booked 1,000 rooms that otherwise would have been vacant

8. Blendtec

  • Channels used: YouTube and Twitter
  • Blender maker produced videos blending a variety of items
  • Some were viewed more than 14 million times
  • Sales increased 700% within a year

9. Foiled Cupcakes

  • Channels used: Twitter and Facebook
  • Implemented a relationship-building program
  • Received an order for 40,000 cupcakes
  • 97% of customers now come from social media
  • Sales are still exceeding forecasts by 600%

10. Cadbury Wispa

  • Channels used: Twitter and Facebook
  • Petitioned by customers to bring back the Wispa bar
  • Sent 40 million bars to market
  • 18 weeks after responding to the petition, all of them were sold
  • Added 30% to annual profits

10 examples social media roi 10 Examples of Social Media ROI [Infographic]

10 Examples of Social Media ROI [Infographic] is a post by on Pamorama | Social Media Marketing Blog.

PamDyer

Pam Dyer

Marketing Director, SolutionsIQ

Pam Dyer is an integrated marketing executive dedicated to helping companies grow via innovative branding and audience engagement programs. She delivers results by leading teams to create forward-looking strategies and translate them into measurable tactics, iterating as needed to achieve corporate goals. She is a big-picture thinker and relationship-builder who thrives in environments where collaboration is embraced. Pam has a passion for achieving business results through supporting people, growing teams, and sharing success.

Pam authors an award-winning blog, Pamorama which helps businesses optimize their brands, create customer engagement, and drive sales by using social media channels and content marketing programs. She has educated thousands of people about how to create, manage, and measure outreach initiatives on Facebook, Twitter, LinkedIn, Pinterest, Google+, and other social networks. Pam has a global footprint and routinely receive questions and comments from her audience, the majority of whom are in the U.S., Canada, Europe, Australia, the Philippines, India, South Africa, and the United Arab Emirates.

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Comments

MarketingXLerator
Posted on October 3rd 2013 at 10:38PM

Pam:


thanks for sharing the results. Any B2B examples?

Best,

Natascha

halimhassan50
Posted on November 21st 2013 at 5:12AM

Truly dug the infographic...fantastic insights!