3 Components of Social ROI Your Brand Is Forgetting About

Most marketers view social as one of two things: an extension of existing customer care efforts or an advertising channel. Focus on three analytics that illustrate social’s impact beyond marketing–research and development, customer retention and referrals. While social is a scalable, cost-effective way to collect demographic data, that feedback is wasted unless brands learn to apply that insight to their business. Quantifying social’s impact on R&D isn’t as difficult as you might think. With management platforms like Sprout Social, you team can tag inbound social messages that are part of a larger campaign, contain product ideas or consumer feedback. Social is a front line to customer retention. But how can you translate that value into a measurable impact on your business? Your sales and marketing teams should work to collaborate and track increased retention among customers who engage with your brand on social. But in order to accurately measure ROI, the importance of social throughout the organization needs to be communicated from the top down. Because, regardless of what business you’re in, it’s the customer journey that will have the most positive impact on your bottom line.

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3 Components of Social ROI Your Brand Is Forgetting About
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Most marketers view social as one of two things: an extension of existing customer care efforts or an advertising channel. In order to truly see the bottom line impact of social, your organization’s viewpoint needs to shift. You need to think of social as a building block that has the power to support, inform and accelerate nearly every aspect of your business.

Focus on three analytics that illustrate social’s impact beyond marketing–research and development, customer retention and referrals.

Research & Development

Social democratizes and diversifies the feedback loop for brands. It widens your focus group from a small subset of people who have the time and willingness to give feedback to a large group of engaged customers who are invested in your brand.

While social is a scalable, cost-effective way to collect demographic data, that feedback is wasted unless brands learn to apply that insight to their business. A Kalypso study on “Social Media and Product Innovation” revealed that while 70% of brands surveyed intend to use social for research and development, only 33% have a plan in place that allows them to apply those learnings. Furthermore, if there isn’t a solidified feedback funnel, the social media team loses its opportunity for attribution. Which makes it even harder for them to prove social’s organizational value.

Quantifying social’s impact on R&D isn’t as difficult as you might think. With management platforms like Sprout Social, you team can tag inbound social messages that are part of a larger campaign, contain product ideas or consumer feedback. From there, you can run a report that aggregates your tagged messages and provides meaningful and actionable customer data to stakeholders and senior leadership.

Customer Retention

A recent study from Duke University corroborated that CMOs are more likely to focus their resources on customer acquisition vs. retention. Proving these efforts are misguided, Harvard Business Review has cited that it’s five to 25 times more costly to acquire new customers than to retain existing ones.

Social is a front line to customer retention. It provides a personality to a faceless brand. The two-way conversation…

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