It's no longer the question whether or not there is a financial ROI on social media, but how high it can be.
Social Media Academy is introducing some "High Impact Strategies" to get ROI above 100% within a year.
– Enterprise level social media engagement models
– Social Media in the support department with ROI of 142%
– Social Media in the product management group creating an ROI of 167%
– Social Media in the sales organization creating an ROI of 337%
– Social Media in the marketing department creating an ROI of 525%
– Methods, models and frameworks to create high impact strategies
– Organization models that allow high impact ROI in enterprises
– Where to start – who to hire.
Audience: Business managers / Business consultants Duration: 45 minutes plus Q+A Takeaway: Get the big picture for high impact ROI on social media
Groupon's Andrew Maison Facebook's Mark Zuckerberg
"Facebook Deals" was launched yesterday and is set to compete with Groupon, Both address the same target audience: Consumers who buy in groups to get a large discount on the buy side and businesses who are willing to give a large discount if there is enough buying power with the expectation that many will become repeat buyers. The discounts are on average 50% and businesses pay a large commission for the organizer (Groupon or Facebook) to do the marketing through their networks.
Groupon basically became a billion $ company within only three years.
Andrew Maison already beats Mark Zuckerberg at the race: The company that reached a Billion Dollar the fastest. Now the next race is the one for sustainability. This is a the more strategic race – and the winner takes it all.
UPDATE 10:30 PM:
Remember Microsoft putting Netscape out of business when they offered Internet Explorer for free? In accordance to our research FB Deals is currently for free! Groupon asks for a staggering 50% commission on sales.
The recent online discussion between Brett King (author of Bank 2.0) and myself (Financial controller background) kind of shows that the ROI battle in social media is far from over. We left the field with completely opposing opinion.
Like Brett also I was of the opinion that calculating an ROI of social media maybe a bad idea. That was little over three years ago. The thinking was that we don't discuss an ROI of bookkeeping or an ROI of having a CEO – these are basically necessities to run a business. But I have to admit: Part of it was that I was lacking of a sound model to actually calculate a financial ROI.
What changed my thinking?
I was involved in a very large engagement that was way beyond the tweeting and fan page building. It also was way past the point where a few people in the marketing department is doing "the social media thing". We were at a major intersection with the following strategic idea:
"We can't make a difference in our 6,000 people organization if 5 people do social media and 5.995 people continue doing business as usual."
In the early days, in 2003 when LinkedIn was founded and I was one of the first 8,000 users, or 2004, when Facebook was founded, all the way to 2008, there was no education on social media and we all learned by experimenting and trial and error. It took a year or so to get our arms around it, but back then that was OK.
Education was always the best shortcut to results.
Today – 2011 – we have over 600 Million in the social web and trial and error is a daunting and time consuming task. And more so the complexity of social media has exploded. The number of tools has grown to a staggering 10,000 with an additional 100,000 of little gadgets that float all over the social web. For business leaders the strategic options are overwhelming.
What a social media director needs – what a social media certification needs to include:
Exploring how the Social Media Academy can enhance your business & your career – Intro Webinar
Summer class 2011 – Certified Social Media Strategist, Business Managers – Training & Certification
Thanks to all participants in our webinar yesterday. In case you could not attend or want to share the presentation with colleagues or just want to refresh your memory, we've made the presentation available her: Continue reading “Webinar recap 04/19”
Business investments in social media are on its way to maturity.
The days where social media for business is a "cost of doing business" with no need for an ROI are over. It is no longer acceptable to hire somebody in marketing to "take care of the social media thing", while the rest of the business does business as usual. The fact that social media is not a marketing campaign but a cross functional engagement has also been well adopted. The idea that outsourcing your love to customers to an agency has also been well understood – at least in larger organizations.
Anatomy of a social media strategy
Creating a social media strategy for an organization with 2,000 employees, reporting to 200 managers and 20 executives and together hoping to engage with 800,000 customers is not an easy task.
There are currently about 14,000 open positions for Social Media in all levels from Manager, Director to Vice President. However, companies search on average for three to six month to find the best matching candidate. Simply hired alone posts about 9,000 "Director Social Media" positions. But "Give it a try – just apply" doesn't work. On the other side of the fence are approximately 50,000 social media "experts" who feel good about taking the job – but not getting it.
What Takes So Long To Get The Right Candidate?
We asked hiring mangers and recruiters. We found out that recruiters are rarely in the game. To sum it up, one opinion that speaks for most others: "All they have are traditional senior managers who have no clue about social media. Most recruiter don't even know themselves." The biggest problem hireing managers have is the quality. We heard the same story over and over from people who obviously requested to be not named: "We don't want to hire some mid age wonnabe social media guy just because he or she has a bunch of twitter followers and can create a fan page." and to the contrary we hear "I'd love to hire some smart youngsters who live and breath social media. The only problem is to have them come up with a social media strategy for a larger company, when they have never seen a company from the inside".
The entity by the name of Dilip Chawla is promoting this idea in several LinkedIn groups. Well, some of the top Silicon Valley VCs is having $500 Million under management, and Silicon Valley VCs account to about 30% of all venture investment in the US. But our Mr Chawla has apparently 10 BILLION for real estate alone. Now once you read this you think – don't waste my time. But the phenomenon of getting lots of money quickly no matter how ridiculous the offer is – is moving from little classifieds into the social web.
A recent post in CIO magazine is certainly an interesting shift in the consulting world. Whether this makes any difference to their work as strategy and business process consultant remains to be seen.
Capgemini Consulting, a specialist in strategy and transformation, is about to transform its own strategy for the second time in two years. To cope with the change, the company plans to recruit up to 1,000 staff this year, predominantly younger workers with social media and "digital transformation" skills, although it expects other staff to leave.