Comments on: ROI vs. ROE -I did not do a good enough job selling social media.

By: marc meyer

marc meyer — Wed, 25 Feb 2009 13:28:17 +0000

Hampus, those are some interesting data points, feel free to engage me anytime to discuss further. I think you bring some interesting points to the table.

By: Hampus Landelius

Hampus Landelius — Wed, 25 Feb 2009 11:14:16 +0000

Hello and thanks for an very open and interesting post!

I Came a cross some very interesting research from Avanade that showed some very interesting figures.

around 60 % of the employees think that social media isn’t incorporated within organizations due to apathetic senior decision makers close to 60 % of the CRM decision makers are of course seniors.

Close to 70 % think that SM will come in stealth to the companies, witch will make it a dual problem. this is an important factor to show when implementing social media because the loose control in the social media sphere.

If they are to lazy to adapt to new technologies and times why not ad some pressure!

I have just started to write my master thesis in the subject above at stockholm university Sweden and I would love to discuss it further.

Thanks and best regards Hampus Landelius

By: marc meyer

marc meyer — Thu, 08 Jan 2009 16:38:36 +0000

Mark thanks for the reply. Since that post I’ve had at least 10 more client meetings where I was able to sell the value of what my company does and how we do it. What it came down to is that some will get it and some will not. The more we understand the subtle nuances of what the customer really wants and to not necessarily lead with social media as the panacea for what cures your business, the better we can implement components to the clients pleasant surprise. Its just one piece.

By: Mark

Mark — Thu, 08 Jan 2009 16:15:13 +0000

Hi Marc–GREAT post! I wrote my first blog entry of the new year on this topic, with pretty much the same sentiment–and in the 2 days since posting, I’ve come across at least three other blogs discussing the very same topic.

Seems like its at the forefront of most of our minds.

I came across a brilliant blog (and can’t find the URL, dammit!) about the difference between ROI and Value. The summary is that ROI is measurable, Value isn’t. (yet) We’re selling value, the customer wants to buy ROI.

As a social media practicioner, I know the value we provide. As the advocate for the client tho, I’m also in alignment with their point of view.

It’s a very tough economy right now, and thousands of people are being laid off daily. Online community and social media is largely being funded by marketing dollars, so I get it.

If it’s a choice between spending time, money and effort on a ‘thing’ (social media), then what is the return? Because I (the company) just had to let a *person* go, and I KNOW what they did for me.

Or they can no longer fund that print or media campaign…and they KNOW what kind of results they could generate there.

We’re the low-budget, cost-effective solution…but the question still remains–what kind of results are they going to get for their investment?

There are many creative, brilliant people in our field. We MUST create metrics to demonstrate ROI. It’s the most pressing issue in our field, imo.

By: Feeds mobile edition

Feeds mobile edition — Wed, 26 Nov 2008 16:18:41 +0000

[...] line to recommend a costly investment that yielded no tangible return? In a recent post, blogger Marc Meyer recapped his experience grappling with these very issues. While his experience was no doubt [...]

By: marc meyer

marc meyer — Mon, 17 Nov 2008 22:00:07 +0000

@Paul. I agree, we have to get beyond the why it works blog post and get to the what works. As much for those of who are pitching as for those who are catching. Thanks a lot Paul.

By: marc meyer

marc meyer — Mon, 17 Nov 2008 21:58:09 +0000

@Ed the deal is that we have people who have bought in and won- and the problem is, as Paul mentions we just need some solid evidence to present when we sell the premise. Peter Kim has a few examples and so does Geoff Livingston

By: Paul Chaney

Paul Chaney — Mon, 17 Nov 2008 21:48:51 +0000

Sounds to me like I need to get busy and get the “What Works and What Doesn’t” wiki (or whatever we’re going to call it) up and running. We need a litany of social media success stories (failures too) from which we can discern replicable, implementable principles.

The days of touchy-feely, warm-and-fuzzy are over. We have a case to make that is irrefutable.

By: Ed

Ed — Mon, 17 Nov 2008 20:05:47 +0000

I do feel for you. Considering a while ago, I was just discussing with a fellow communicator from a statutory board on the challenges of measuring social media ROI. Beats me, how we’re ever going to measure conversations and rapports between customer-customer or customer-brand.

But then again, it did open up another can of opportunities in figuring what visions companies are lacking in and how they can be educated towards intangible assets of their brand. I see it as a complete re-education from “do-nothing-but-still-win” to “get-involved-or-lose” for conventional business model.

By: marc meyer

marc meyer — Mon, 17 Nov 2008 17:08:49 +0000

@Jason, thanks for the advice. It was clear to me after we had talked and tried like hell to sell the roi in the form of value for the work I was doing to raise the awareness of his intellectual capitol. Not a transaction in the purest sense, but still a type of transaction. A transaction on the conversation that we were going to help him create.