forget roi

45
Forget ROI A Theory on Social Media and How To Swing It Justin Whitaker Shogun, MicroNiche Consultin

Upload: justin-whitaker

Post on 14-Jan-2015

1.367 views

Category:

Business


0 download

DESCRIPTION

Presentation I gave at Podcamp Boston 4. Still needs some work, but the general idea is there. Please feel free to share, remix, distribute, contact, etc!

TRANSCRIPT

Page 1: Forget ROI

Forget ROIA Theory on Social Media and How To Swing It

Justin WhitakerShogun, MicroNiche Consulting

Page 2: Forget ROI

Social media is online content created by people using highly accessible and scalable publishing technologies.

Page 3: Forget ROI

Social media is a shift in how people discover, read and share news, information and content. -Wikipedia

Page 4: Forget ROI

The goal in getting involved In Social Media is to get people generating content and sharing information about you & your products!

Page 5: Forget ROI

How do you prove expending resources

on Social Media is worth it?

Page 6: Forget ROI

How do you swing it?

Page 7: Forget ROI

Engagement Measures?

Page 8: Forget ROI

Return on Investment?

Page 9: Forget ROI

Return on Assets?

Page 10: Forget ROI

Wait, Return on Assets?

Page 11: Forget ROI

Engagement Measures ! = $

Page 12: Forget ROI

ROI = (Gain on Investment – Cost of Investment)/Cost of Investment

Page 13: Forget ROI

ROI = How efficiently capital is used

Page 14: Forget ROI

ROI= Assumes discrete project/ milestone

Page 15: Forget ROI

ROI= Assumes attributable revenue

Page 16: Forget ROI

Social Media is not a campaign

Page 17: Forget ROI

Social Media may not generate attributable revenue.

Page 18: Forget ROI

(Engagement-Costs)/Costs != ROI

Page 19: Forget ROI

(At least not to corporate decision makers.)

Page 20: Forget ROI

ROI is the wrong tool.

Page 21: Forget ROI

ROA = Net Income / Total Assets

Page 22: Forget ROI

ROA = Efficiency of Asset Usage

Page 23: Forget ROI

But, isn’t Social Media an investment?

Page 24: Forget ROI

Social Media is a time investment.

Page 25: Forget ROI

Social Media is a cultural investment.

Page 26: Forget ROI

Social Media is an expense.

Page 27: Forget ROI

Social Media = - Net Income

Page 28: Forget ROI

Social Media = + Brand Value (Recognition/$)

Page 29: Forget ROI

Social Media can influence the perception and value of your brand.

Page 30: Forget ROI

Social Media = + Customer List (Community Engagement)

Page 31: Forget ROI

Social Media allows me to efficiently increase # of engaged customers.

Page 32: Forget ROI

More engaged = more value.

Page 33: Forget ROI

Via Social Media you can generate measurable deltas in two key intangible assets.

Page 34: Forget ROI

Intangible assets are balance sheet items.

Page 35: Forget ROI

(In Case You Were Wondering.)

Page 36: Forget ROI

Business 101: + Net Income/Total Assets

Page 37: Forget ROI

+ Differentiation = + Net Income

Page 38: Forget ROI

+ Engaged customers = + Net Income

Page 39: Forget ROI

Business 102: + Net Income/ + Total Assets

Page 40: Forget ROI

+ Differentiation = + value to Brand

Page 41: Forget ROI

+ Engaged customers = + Value of Customer List

Page 42: Forget ROI

Successful Companies Have High ROAs.

Page 43: Forget ROI

Social Media can help you swing it.

Page 44: Forget ROI

?

Page 45: Forget ROI

Contact: Justin WhitakerMicroNiche ConsultingTwitter: JustinmwhitakerEmail: [email protected]