If you want to understand the return on investment of social media, look no farther than Andrew Krzmarzick and me.
We met online–initially on Twitter (thanks to his mother and her and my mutual connection to Chris Brogan)–about five months ago. Befriending each other, we extended our investment in each other with Facebook, LinkedIn, and Skype, along with routine email messages and many phone calls.
Social media introduced Andy and I to each other; and until Tuesday afternoon, we’d never met in person. This was important, though, because 48 hours later–or some 30 hours ago–we co-presented at the final workshop of the Advanced Learning Institute’s Social Media for Government conference in Washington, DC.
From the ForeSee and United Nations data in the above slide deck to a series of crowd-sourcing exercises asked in real-time at the workshop, everyone enjoyed our presentation.
I recognize that ROI of lead generation or constituent relations from Facebook or Twitter interaction is hard to quantify.
But here’s the kicker: If two guys from Massachusetts and North Carolina can build a virtual relationship from the bottom up over half a year and stand united, steps apart, in the nation’s capital speaking to a plethora of federal, state, and local government officials about the best ways to measure the impact of social media and determine next steps; and if the attendees can walk away with smiles and a head-full of questions and ideas to raise at the next staff meeting, then that can only be a successful ROI, no?
The “return” of Andy’s and my investment in each other has already shown satisfactory results and much more is in store. Next up, tentatively scheduled for early April, will be a to-be-announced release of our groundbreaking SurveyMonkey results, in conjunction with the Federal Web Managers Council.
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I agree, I am presenting on a panel with two other top Vancouver social media experts that I met through twitter and only met in person a few weeks ago. It’s powerful stuff for connecting. 140 is a great way to start some interesting things.
JP Holecka´s last blog post..The Brand race for followers. It’s not just numbers.
I agree with you completely on one level, but I do have some concern about your use of “ROI”. The way you address ROI is very personal. There’s nothing wrong with that, I guess, except the term ROI has a specific meaning in business, and it’s not based on friendship and feelings.
As Social Media practitioners, we’re being asked to justify Web 2.0 investments and measure our results. Blog posts like this that promise ROI insight and deliver a message about friendship tend to reinforce the perception Web 2.0 is not measurable (which is, of course, not correct).
I guess the difference is PERSONAL ROI (which can be measured qualitatively and individually) and BUSINESS ROI (which must include quantitative and objective measures).
When you consider the birth of ROI was during the 1920s about General Motors’ management and assets (alluded to during the above presentation with the Indianapolis car and subsequent slide), how can you say ROI has a business meaning without including the people who both manage and comprise the assembly line?
ROI is about finance, yes; but if there were no GM employees in the 1920s, either a different firm would have been the inspiration for the term or the term would be nonexistent the way we know it today.
The last clause of that sentence is the key, Augie: as we know it today is not applicable to ROI in 2009 for everything about organizational operations are different today. If ROI was coined to quantify manual labor, what does it say about machines?
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Social Media ROI is About the People — AriWriter: If you want to understand the return on investment of social m.. [link to post]
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Oh, the arguments between finance and marketing. I think your use of ROI here is very accurate – you invested time, you received value. Just because that value has not shown up on the ledger as of yet, doesn’t mean it is imaginary. I’ve been involved many discussions where the dollar payoff of a tactic is in doubt primarily because the tools for measuring the value return are not yet available but from a ‘logic’ perspective value obviously exists. The key thing to bring before management is both the measurable ROI equation as well as the difficult-to-measure ROI story. Lay out why ROI is difficult to measure. Value of the tactic is then measured against the strategic goals of the company. In terms of social media – if the company is wise enough to believe in relationship entanglement with their customers, then it will strategically value investments in the new tools to create those relationships – even if the financial payoff is difficult to predict or measure.
Fred H Schlegel´s last blog post..Should You Brand By What Prospects Look For… Or By What You Want To Stand For?
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Reading: “Social Media ROI is About the People” ( [link to post] )
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Ari! It was awesome to see you in person and to “stand united, steps apart, in the nation’s capital speaking” about the power of social media. You are absolutely correct: our story is itself a clear ROI…especially when we started using other “I” words like information, insight, influence, ideas, etc….of course, it has nothing to do with “I”…it’s all about “we.” Gov 2.0 Camp was great, too, and you were greatly missed…let’s keep the momentum going!
Andrew Krzmarzick´s last blog post..Web 2.0/Gov 2.0 and Generations Presentations from ASPA 2009 Annual Conference
Yes, it’s about we, but not so much you and me as everyone else included.
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@techvoid Let’s try that again See here for Social Media 101/ROI: http://bit.ly/n6Zuf and here for @ariherzog discussion: [link to post]
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Considering that all business deals begin with the relationship (you have to have one to deal with someone), then your use of ROI is spot on.
Maybe it should be changed to Relationships Open Investments?
Danny Brown´s last blog post..We Are The Supercool
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Social Media ROI is About the People; [link to post]
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Really it is an informative and good post. thanks for shareing information.
Well, I’m late to this conversation, but I’ll chime in anyway. I’m pleased to see this interpretation of Social Media ROI given credence. Certainly, social media can result in lead generation and sales and, thus, revenue over time. But because it is a relationship medium it takes longer perhaps than other marketing tools. But of course social media is not just about marketing B2C (business to customer), it’s also about connecting I2I (individual to individual), outside your organization but also within it. Is there really anyone who would argue that laboring in obscurity is more conducive to success than working in an environment where you and your expertise are known and acknowledged? Of course not. What social media does is move each of us out of obscurity and into each others’ awareness. Because it does that, its value is a matter of undeniable truth, even if you can’t measure it… The CFO is not going to like this comment, but so be it, that’s how I see it.
Ethan Yarbrough´s last blog post..Why Twitter Works and What Enterprise Can Learn From It
No such thing as being “late” to a blog conversation. Blog posts live forever!
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