Social Media ROI is a hot topic of discussion in well, Social Media. SM “gurus” have suggested many ways of defining and measuring Return on Social Media Investment (ROI). Maddie Grand has compiled a list of six must read posts on the subject (http://www.socialmediatoday.com/SMC/137495)
Engagementdb has published a study that shows strong evidence that Social Media Engagement correlates to Financial Performance (see the report on The world’s most valuable brands. Who’s most engaged? http://www.engagementdb.com/downloads/ENGAGEMENTdb_Report_2009.pdf )
According to this study “”Engagement via social media IS important — and we CAN quantify it. There is statistically significant correlation between social media engagement and the two most meaningful financial performance metrics – revenue and profit”. This study further states that:
- It pays to engage meaningfully in social media. Emphasize quality, not just quantity.
- Engagement is more than just setting up a blog or Facebook profile and letting viewers post comments, it’s keeping your content fresh and replying to comments; it’s building your friends network and updating your profile status.
- To scale engagement, make social media part of everyone’s job. You must do something, else risk falling far behind other brands, not only in your industry, but across your customers’ general online experience.
- Engagement can’t be skin-deep, nor is it a campaign that can be turned on and off. True engagement means full engagement in the channels where you choose to invest.
This clearly illustrates the importance of engaging customers via Social Media for building trust and loyalty towards the brand – the essence of Social CRM (http://hkotadia.wordpress.com/2009/10/17/what-is-social-crm/
What do you think? Are you convinced that brands have to engage customers via Social Media or SM is just a passing fad – will go away in the next couple of years. Pls share your comments: