Comments on: ROI 2.0, Part 3: We don’t need a Social Media ROI model

By: Amber Naslund

Amber Naslund — Tue, 12 May 2009 18:59:02 +0000

Aaron,

Fantastic insights. I’m so refreshed to have the ROI discussion focus not on a tight, rigid set of metrics but instead on a larger set of constructs that can be woven into the fabric of business. The other issue that you outline well is that ROI as a trailing analysis. So much is still being sorted in social media, and so many elements are unique to each company, it’s imperative that we are willing to prototype rapidly and see what works to determine what investments warrant depth.

Thanks for a great discussion.

Cheers,
Amber Naslund
Director of Community, Radian6

By: Hampus Landelius

Hampus Landelius — Mon, 11 May 2009 18:17:31 +0000

Great post and summary! I think that a too harsh craving for ROI in social media will be as effective as the everlasting metrics-quest in traditional marketing. The debate in traditional marketing is close to the one in social media. There is just too many metrics or marketing performance measures out there. However according to an literature review ”Key Marketing performance measures, Grønholdt, Martensen , The Marketing Review 2006, 6 , p 243-252″ There are some key measurements that are more commonly used and those are market orientation, customer satisfaction, customer loyalty and brand equity. When scanning different social media tools web analytics or Radian6 for an example, it is very clear how the web enables us with large amounts of qualitative or quantitative data regarding those key measurements. So it seems to be a good place to start right? Then of course there are more softer and new variables that have been brought with social media such as the importance of conversations openness transparency and more.
I’m currently writing my master dissertation (In Swedish though) in this subject and will gladly discuss in further. With kind regards Hampus Landelius (hampuslandelius@gmail.com)

By: Guest blogging | Corporate blogging news digest

Guest blogging | Corporate blogging news digest — Wed, 25 Feb 2009 13:30:32 +0000

[...] We don’t need a Social Media ROI model (The bamboo raft) Aaron Kim isn’t suggesting that we shouldn’t measure Web 2.0 activities, rather that there is no ‘one size fits all’ solution. One approach: “By setting aside an innovation bucket and establishing a portfolio of parallel innovation initiatives, you can hedge your bets and improve your overall success rate.” [...]

By: Ola Mattisson

Ola Mattisson — Mon, 23 Feb 2009 10:27:24 +0000

Very interesting and well written.
I am developing our company´s salespitch / model / process for why and how companys should add social media into their strategy (apply social media in the organization´s different departments such as HR / employer branding – product developement / research – marketing / pr and sales). This information was highly valuable. Thanks Aaron

By: Warming up to social media and Network Theory: 9 links.

Warming up to social media and Network Theory: 9 links. — Sat, 21 Feb 2009 10:32:08 +0000

[...] We don’t need a Social Media ROI model :Here you will get some very pertinent ROI models for the social media.Essential read ! [...]

By: Larry Hawes

Larry Hawes — Thu, 19 Feb 2009 16:24:36 +0000

Thanks for a fabulous post, Aaron! This is a really good catalog of potential business case elements related to social software/media. Obviously, the challenge in applying these approaches is to match them to the strategic business goals of the organization (in other words, why are we deploying Web 2.0 technologies?). Doing that will inform which approach(s) and specific metrics should be used to justify investment, either before or after it has been made.

I’ve been thinking quite a bit lately about the multiplier effect you mention. My take is that there should be a way to demonstrate how Web 2.0 software use accelerates mission critical processes. The challenge is to determine appropriate values for those multipliers. I’d love to hear any ideas you may have on the subject.