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What we’re all missing about the

Roi of social media
@ Digital Roots, we understand that there are 3 essential results a company wants from their
investment in social media

1 2 3
77%

retention reputation revenue

We’re breaking down the ROI of social media with concrete stats. This is why you should invest:

retention

We can all agree that brand loyalty
is a key factor in customer
retention. The best way to build it
is to build a relationship with your
customer, right?

Of customers do not want a
relationship with a brand

Wrong.

Shared values
Is the factor makes them loyal

Of customers say

Sixty-seven percent

So what wins a customer?

to a brand’s product or service

oreo
zappos

value = pop
culture brand
leader

Companies with
clear core values
are often
renowned as the
“best social
media brands”

value =
customer
service

What is your core value?
reputation

watch your brand conversation

70

Percent of customers go to
social media for info on a
brand

60

Percent of customers spread
information on social media
about a brand

49

Percent of customers make
purchase decisions based on
information they’ve seen on
social media

Percent of customers who
engage in a word of mouth
conversation after researching
on social media

56

45

Percent of people aged 18-34 say that
they would be upset if they posted on
social media and didn’t receive a
response when they were expecting one

$ Contributing
5factors
4.3 Million

Is the estimated global average
loss from social media crises

Reduced stock prices
Costs of litigation
Direct financial loss
Loss of customer trust
Lost revenue

Do you monitor & respond to social media complaints?
revenue

yes, investments in social can profit
In 2011, the Frito-Lay company launched the “Do
Us a Flavor” campaign on social media: letting fans
create and eventually vote for a new Lay’s potato
chip flavor.

pepsico

Parent company of frito-lay

Reported a 15% increase in revenue in 2011

That’s

$66.5B

The campaign
itself helped
lays reverse a
6 year decline
in sales

Works Cited:
Stampler; Business Insider, Facebook Says These are the 20 Best Brands on the Social Network, 4/29/13
Freeman, Spinner, Bird; Harvard Business Review, Three Myths about What Customers Want, 5/23/12
Symantec, Symantec Finds Enterprises That Are Not Preserving Social Networking Business Content Risk Increased Litigation Costs and Company Reputation, 7/21/11
Fisher; ROI in social media – A look at the arguments, 6/16/09
PepsiCo, PepsiCo Reports Fourth Quarter and Full Year 2011 Results
© 2007-2013 Digital Roots. All rights reserved.

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What We're All Missing About the ROI of Social Media

  • 1. What we’re all missing about the Roi of social media @ Digital Roots, we understand that there are 3 essential results a company wants from their investment in social media 1 2 3 77% retention reputation revenue We’re breaking down the ROI of social media with concrete stats. This is why you should invest: retention We can all agree that brand loyalty is a key factor in customer retention. The best way to build it is to build a relationship with your customer, right? Of customers do not want a relationship with a brand Wrong. Shared values Is the factor makes them loyal Of customers say Sixty-seven percent So what wins a customer? to a brand’s product or service oreo zappos value = pop culture brand leader Companies with clear core values are often renowned as the “best social media brands” value = customer service What is your core value? reputation watch your brand conversation 70 Percent of customers go to social media for info on a brand 60 Percent of customers spread information on social media about a brand 49 Percent of customers make purchase decisions based on information they’ve seen on social media Percent of customers who engage in a word of mouth conversation after researching on social media 56 45 Percent of people aged 18-34 say that they would be upset if they posted on social media and didn’t receive a response when they were expecting one $ Contributing 5factors 4.3 Million Is the estimated global average loss from social media crises Reduced stock prices Costs of litigation Direct financial loss Loss of customer trust Lost revenue Do you monitor & respond to social media complaints? revenue yes, investments in social can profit In 2011, the Frito-Lay company launched the “Do Us a Flavor” campaign on social media: letting fans create and eventually vote for a new Lay’s potato chip flavor. pepsico Parent company of frito-lay Reported a 15% increase in revenue in 2011 That’s $66.5B The campaign itself helped lays reverse a 6 year decline in sales Works Cited: Stampler; Business Insider, Facebook Says These are the 20 Best Brands on the Social Network, 4/29/13 Freeman, Spinner, Bird; Harvard Business Review, Three Myths about What Customers Want, 5/23/12 Symantec, Symantec Finds Enterprises That Are Not Preserving Social Networking Business Content Risk Increased Litigation Costs and Company Reputation, 7/21/11 Fisher; ROI in social media – A look at the arguments, 6/16/09 PepsiCo, PepsiCo Reports Fourth Quarter and Full Year 2011 Results © 2007-2013 Digital Roots. All rights reserved.