Charlene Li, co-author of the breakthrough book analyzing and classifying users online—Groundswell—has released a study showing a strong correlation between ENGAGEMENT through social media and INCREASED REVENUE. She and her team have added a valuable set of data to the discussion addressing the CEO/CFO’s question: “Hey, are we going to make any money off this social media stuff.” (disclaimer: though this study does address that question, the question is still not the most important one and if it is the most important one for the CEO, he/she probably won’t be in that same job at the end of next year anyway.)
The full report (link is to a PDF) is a fascinating read. Bottom line: Yes, there is “correlation between brands’ social media efforts and financial performance,” and it’s a good thing.
One thing you will soon be hearing is a modification of an old theme: It seems it became popular somewhere along the way to say that “marketing is not a department; it’s everyone’s job.” Be on the lookout for a twist on the old saw; listen for “social media is not something to be outsources, not something to be relegated to a department, but social media is everyone’s job.”
The question is, will senior management jump from saying “will we make any money off this social media stuff,” directly to “social media is everyone’s job,” without taking the time to provide the training and tools everyone will need to make it “their job”?
Additional resources:
If you’re really interested in the return on investment for social media, you would gain much by following these folks on Twitter
- Olivier Blanchard: @thebrandbuilder
- Kris Colvin: @kriscolvin
- Beth Harte: @bethharte
In addition, reading Olivier’s blog posts on the topic will give you a non-nonsense understanding of ROI. His post on “timelines” is one of the many worth pondering and teaching to your staff.
