Social Media Marketing: Cutting Your Costs
Posted by Jeff Ramson on Fri, Jul 23, 2010 @ 10:06 AM
Interesting article about the ROI of Social Media...
"social media marketing should be an integral part of any company’s online efforts."
There are many ways to measure the ROI of social media marketing. One that Forrester recommends in its new report The ROI of Social Media Marketing is the “risk management perspective.”
Essentially, how does a social media marketing initiative help reduce the financial impact of a reputation management crisis?
The costs of a social PR crisis can be substantial. To generate a value for the risk management perspective, consider how your social media preparedness and assets can reduce these costs across several different social media crisis scenarios. For instance, a midsized company might consider the social implications of a batch of defective products caused by unforeseen manufacturing issues in an overseas plant — and find that involvement in social media helps insure them against an average annual possible risk of $25,000.
In other words, even a mid-size company can realize an annual ROI of $25k by simply looking at the benefits to reputation management.
Combine that with all of the other positive ROI possibilities–more sales, less customer service costs, etc–and it becomes clear why social media marketing should be an integral part of any company’s online efforts.
