What's so [Bleeping] Hard About Social ROI? #SMROI #SXSMROI
DARBY director of everything at make a wish (branding and digital)STRAUSS started a blog before they were awesome
SWAYNE -- moderator
RIDINGS founded sodera
DAITCH SM manager for Ford {Questions in all caps, my commentary in these here brackets}
IS IT ALL JUST ABOUT MONEY IN/MONEY OUT?
RIDINGS: It's about cash at the end of the day but how do you arrive at cash. There are a lot of intangibles out there but how long do you look across the horizon to derive value? ROI is tied to a specific point in time so it's a misnomer.
DARBY: what we do all year determines how we do in december -- biggest donations. People are waiting longer and longer to buy cars.
DAITCH: The quality of our vehicles, and the general industry, means the perfect storm. We can be as efficient as possible -- does ROI maybe mean return on efficiency. Find the purchasers based on behavioral statements and amplify that.
STRAUSS: ROI really is -- monetary or relationship. It's like asking if there's ROI on your telephone or your pencil. If engagement is your goal, or community is your goal, then you've got an ROI in that place. It depends on your goal.DAITCH: What's the ROI of NOT doing it? What happens if I remove the customer service people answering questions? It represents a dollar amount.
IS THERE AN ANSWER HERE THAT WILL MAKE A CFO HAPPY?RIDINGS: Yes, it's less to do with your approach than how you communicate the business value. It's about efficiencies. A decent value prop makes them happy enough. 'I can produce this result by this time with this cost'
DARBY: social can have value that might not have an easy-to-quanitify solution. Whatever we posted about at MAW, people responded with their own experiences. They went from producing stories to having people tell their own. Went to a testimonial model. I've gotten 1000 stories through the website and it would have taken this much time and money to harvest that. {plus, the idea to have those personal stories came from social}
SWAYNE: Assign a value.DARBY: We're not assigning values but we know that they benefit us. It's not worth the effort of all the tracking from point to point to point.
STRAUSS: The CFO question -- For CS or sales or interactions and engagement, if social is done well, it builds trust. Or true trust when it's done really well. Speed and Reach are two ways to measure trust. Speed: when you work with a customer who trusts you, it goes a long way to make things easier when you have to solve a problem. The vendors you trust versus the vendors that you don't -- the ones you trust make you more money and it's easier to work with them because you know they'll take care of it. Look at trust relationships and how it brings about true advantage to the bottom line and how they grow reach.
RIDINGS: overcomplicated. Social is doing a lot of functions. Sales doesn't ask what the ROI is of taking that guy golfing last week, they ask if you made your numbers. ***
All of those functions, market research, exist within companies today without a problem from the CFO. He already knows. {excel spreadsheet for ROI is bullshit}
DAITCH: Affinity is the moment you love your brand the most. Ford HQ is the glass house. He would love to put these photos of the customers getting their keys on the building. DARBY: what happens if FB or twitter disappears. Your engagement needs to spread further than that. DAITCH: we have badges based on affinity. show your affinity. what you like. {microsocialsegmentation}
STRAUSS: you don't fall in love incrementally. DARBY: So you said I do on the first date?
STRAUSS: We got married in 42 days.
DAITCH: What's the ROI on that?
STRAUSS: Sometimes the offer that's made is larger than the trust that's built. Big brands say 'trust me trust me trust me' and then when you say something bad, they go into fear mode and they don't trust back. Needs to be two-way trust.
It's easy for everybody to detract from a brand. Everybody does it. You have to work twice as hard to convert them back, and then the affinity is stronger.
TRUST, LOVE -- CAN I GET THAT IN A DATABASE?
RIDINGS: What is advertising? It's the same thing! {surely he means broadcast}
The best tool is to ask people at the point of sale and ask them why they bought. It's not rocket science.
You've got a lot of people coming up in this space that don't have that experience. A marketing person is asked to justify their activities but really it goes across a broad spectrum of functions. We get too granular and forget about the big picture.
DARBY: You can measure whether higher engagement on your website results in higher return.
STRAUSS: ROI is not measured by the tools, it's measured by whether your business is growing.
DAITCH: Until a tool can determine your business goals, then it's not going to work.
RIDINGS: You don't measure activity, you measure results. STRAUSS: $200,000 for X number of likes?
RIDINGS: if anyone thinks you don't experiment in the space and see what happens they're out of their mind. Use some business sense. You can look for generic tools. 5-7% should be spent on measurement every year.
ARE WE GOING TO GET TO THE POINT WHERE WE'RE NOT GOING TO HAVE THIS CONVERSATION? THERE WILL BE STANDARD WAYS TO GET IT DONE?
DAITCH: absolutely not. the moment we standardize, we fail. The way we engage, that's the most valuable thing.
STRAUSS: Didn't they say the same thing about trade shows? and internet advertising? DAITCH: If you're not always in beta, if you're not always innovating...Innovation is miles ahead of measurement.





