From small businesses to multinational companies, the business industry no longer doubts how social networks and other social media platforms help in online marketing. The global prominence and connectivity provided by social media marketing has persuaded nearly all business owners that it is worthwhile.
To what extent should social media marketing campaign continue to roll? Although an average small business finds it easy to say it spends valuable time on Facebook, most analysts and marketers would agree that checking and posting content continuously is a waste of resources. The only way to gain a good grasp about the adequate amount of using the platform is to come up with some sort of measurement tool or, at least, to show examples of social media ROI.
Gauging social media ROI is not easy. Researchers for The Social Customer Engagement Index 2012 reported that the major stumbling blocks in customer engagement through social networks were management buy-in and measuring ROI. Obviously, management is more likely to buy in with clear payoffs.
The highway to make the most of social media ROI is not a smooth climb, and it relies on the business, the sector or current market, the customers, and the company’s ethos.
Here are five examples that social media ROI is worthwhile when done right:
1. In the Philippines, Kraft Foods, now Mondelēz International, campaigned and established October 20 as the National “Thank You” Day of the country, as part of its campaign to make Toblerone tantamount to gratitude. Its social media marketing led to half a million hits on multiple social networks and its official website.
Social Media ROI: 132 percent increase in Toblerone sales.
2. Consumers appealed to Cadbury to continue sales of “Wispa” chocolate bars through Facebook and Twitter. Only 18 weeks after it answered the petition using the same channels, Cadbury sold every last piece of the 40 million “Wispa” chocolate bars it sold in the market. That means the company sold 4 chocolate bars per second.
Social Media ROI: more than 30 percent increase in profits, with “Wispa” bar the best performer.
3. When Jimmy Choo used Twitter to promote and reveal the location of its upmarket stores, where their designer sneakers were sold, it gained a 40 percent increase in mentions and positive tweets about the brand.
Social Media ROI: more than 33 percent increase in sales of sneakers.
4. Foiled Cupcakes began as a company with only Facebook and Twitter pages. Through its commitment to build relationships and customer engagement on social networks, it now caters to 97 percent of customers using social media.
Social Media ROI: exceeded forecasts by 600 percent and had a large order of 40,000 cupcakes.