What’s The ROI Of Social Media? That’s What EVERYONE WANTS TO KNOW!


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So to help with that, and dispel the notion that social media is just a waste of time, I worked on creating a model around the enterprise value of social media. I looked at an area of a company and wanted to see, if I took the metrics used to measure, say Customer Service and I applied social media, how would the performance of that department change.

From all the posts, comments and tweets, we all know that customer service needs to shift. Is social media the way the shift will happen? That remains to be seen, although there are already hundreds of companies going in this direction.

If you are still wondering if there is an ROI, check out this presentation on slideshare.net:

ROI of Social Media

Learn. Share. Grow!
Thanks for tuning in!

Dr. Natalie

Follow me on twitter:  www.twitter.com/drnatalie

Republished with author's permission from original post.

Natalie Petouhoff, Ph.D.
Natalie L. Petouhoff, Ph.D., is VP in Service Cloud helping customers to understand the importance of Service Customer to the whole brand, including marketing, sales, engineering and guiding customers to disrupt what they have always done and transform the tools and processesagent's use to service customers and the overall customer experience. The author of four books, she often appears on TV to provide insight from more than 20 yrs of leadership experience. She helps companies to create their customer service strategies and calculate the ROI.


  1. Natalie: thanks for the post. You’ve framed the question in an interesting way. As marketers and salespeople, we’ve attempted to answer similar flavors of this question because prospects ask them so often:

    “What’s the ROI of the data warehouse?”
    “What’s the ROI of bar coding?”
    “What’s the ROI of IT security?”
    “What’s the ROI of outsourcing?”

    We reflexively answer, but should we? Is it more appropriate to answer the question with a question: “What outcome do you want to achieve using social media? (or, substitute any technology-de-jour.)”

    Regardless of which financial analysis tool a decision maker uses, it’s impossible to answer the question of how much value will be returned to the organization (assuming that’s what the decision maker is really trying to uncover) without embedding the technology they’re wondering about into a system that does something.

    As evangelists for social media, we’re all adept at describing its benefits in terms of reduced expenses and revenue increases. We’re less forthcoming about the risks. What scares the bleep out of many decision makers is the long genesis of CRM and social media-related projects. There’s slow start up. Significant organizational learning. Three years of time-to-benefit isn’t unusual. And the R&D expense can’t be capitalized. All of which represents risk–lots of it–to CFO’s. None of which, of course, obviates the need to frame social media in the context of what it’s supposed to provide.

    (A related blog I just posted on CustomerThink: ROI Hype: Finance for Fools?)


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