The ROI on Social Media: Why it Pays to Drive Word of Mouth Presentation of Findings From Aberdeen Group’s Data Aberdeen Group AberdeenGroup is the leading provider of fact-based research focused on the global technology-driven value chain. Founded in 1988, Aberdeen has established the market leading position as the “voice that matters” when it comes to understanding the measurable results being delivered by technology in business. Objectives of the Presentation Identify the Differences between Best-InClass (BiC), Average, and Laggard Companies’ Social Media Performance Pressures on BiC Companies Actions Taken by BiC Companies Steps for Success for All Companies The Study The report investigates how companies build market awareness, improve Return on Marketing Investment (ROMI), increase customer acquisition and benefit in multiple other ways by harnessing the power of word of mouth. In 2009, Aberdeen examined the use, the experiences, and the intentions of more than 275 enterprises using social media in a diverse set of industries. Benchmarking the Best-In-Class The Maturity Class Framework Structure Return on Marketing Investment (ROMI) Likelihood to Recommend Customer Acquisition Best-in-Class Status Maturity Class Mean Class Performance 95%improved the likelihood of customers recommending their products or services 87%improved their ROMI 95% improved their customer acquisition rate Best-in-Class Top 20% Industry Average Middle 50% Laggard Bottom 30% 36% improved the likelihood of customers recommending their products or services 49% improved their ROMI 58% improved their customer acquisition rate 2% improved the likelihood of customers recommending their products or services 0% improved their ROMI 6% improved their customer acquisition rate Top Pressures of the Best-in-Class Companies To Use Social Media Improve brand advocacy/”likelihood to recommend” 18% Increase customer retention 18% Increase return on marketing investment 26% Increase customer acquisition 29% Increase market awareness 34% Actions of Best-in-Class Companies Link results of social media activities to increased revenues and other financial outcomes 18% Establish a method for engaging consumers in online conversation 39% Establish a method for defining social media benchmarks and goals 24% Establish a method for driving advocacy/customer referrals 18% Instill an organization focus on social media 26% Create a team or committee dedicated to social media ROI 21% Social Media Monitoring Technical solutions are evolving Brand management Text mining “Human analysis” component in RSS and blogs, photos and video sharing Steps to Success Class Laggards Steps Define best practices for utilizing and deriving actionable insights for social media Train selected employees to engage in online conversations with consumers Establish a funding and approval process for social media marketing campaigns Use social media monitoring capabilities to identify and measure the value of key influencers Segment consumers engaged in online conversations about the company brand Average Best-inClass Integrate social media marketing activities with other marketing tactics/media buys Correlate customer advocacy to financial outcomes Last Step Get it done!
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