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What are the results?

April 2, 2009

Now that I have taken a few posts to discuss the companies and tools that corporations can use to measure the effects of social media. Now, I feel like it would be a good time to talk about what are some of the results that come out of these companies and tools. Both John Bell of Ogilvy and Charlene Li of Forrester Research discuss two different ways of understanding the results.

First, Charlene Li discusses analyzing ROI, which stands for “return on investment”. Basically she wants to know what is the monetary value of how effective the technology was. Her company has been able to determine exactly how much money down to a rough estimate of the dollar amount that a company has saved. She gives the example of they were able to measure GM’s blog called the “FastLane” and by measuring how much traffic it received and how many comments the blog got, they found out that GM saved roughly the equivalent of $180,000 a year in focus groups.

John Bell uses Li’s model of measurement as a starting point to his which focuses on “the measure of success”. His discussion does not focuses on money but rather the how are these social media technologies working and what parts of each are working. Basically, Bell would like to know how using social media technologies measure up to more traditional forms of marketing, not in a monetary sense but rather do they have the same results.

So it’s easy to see that both types of analysis are important in social media measurement. ROI can give raw facts and figures where as “the measure of success” can give analysis in to improving the use of programs. What are your thoughts  on what is more effective in terms of measurement?

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4 Comments leave one →
  1. Lauren Hensel permalink
    April 3, 2009 4:16 pm

    I think ROI is a very tricky way to measure the success of a new social media campaign. I would agree moreso with John Bell and not focus on the monetary gain. I think looking at how many people click through to your website, answer your surveys, leave comments, etc. are good determiners of a campaign. After that point, I think it should be divided into what types of things people are saying about your company. If there are 115 comments, how many of them are good? How many are suggestions for improvement? I think using those types of determiners are a better way to measure something that is already so difficult to calculate. Good work looking at the different views of how to measure results. Very interesting!

  2. Elaine Bussjaeger permalink
    April 5, 2009 6:27 pm

    It is so important to be able to tell a company, as specifically as possible, what their ROI will be. Companies care about the numbers and the facts, especially in today’s world. Companies want to know that their money is being put to good use. I also agree that “measure of success” is equally as important. Numbers can only tell you so much about how your social media project is working. It’s not enough to know the numbers, but to know what people are saying about it as well. I can see the difficulty in this though. It’s like doing a qualitative research study. The results are more interesting, but harder to analyze. I am interested to see where social media measurement goes from here. I’ve really enjoyed learning about it from your blog Kendall!

  3. Colleen McCarron permalink
    April 5, 2009 8:47 pm

    I have to admit that I never really understood how measuring the cost of a technology was calculated. I’m not all that great at math, but I knew just from readings and class discussions that social media can help save money on audience analysis and field research. Besides saving money, I think Bell’s focus is important to know what aspects of social media really are important and what needs to be improved upon. While the money aspect is important, I think the “measure of success” is more important in the long run because it shows what is working and what is not. It helps your company when it comes to feedback and what mediums are the most beneficial. Great job talking about the two; I found it very interesting and educational.

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  1. A little more on ROI « Kendall Wadsworth

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