This document discusses justifying social media investment and measuring return on investment (ROI). It notes that only 35% of companies feel social media delivers good ROI and 40% have no way to measure it. However, social media can provide active brand advocates to reduce churn and increase retention and engagement. When done correctly, like in the success stories of KLM, GoPro and Foursquare, social media can significantly increase ticket/product sales and deliver measurable ROI through increased revenue and reduced customer acquisition costs.

1. SOCIALMEDIAROI.
JUSTIFYING SOCIAL MEDIA INVESTMENT.

2. THEPROBLEM.

3. ONLY 35%
OF COMPANIES FEEL
THAT SOCIAL MEDIA
DELIVERED A GOOD ROI.

4. 40% OF COMPANIES
CLAIM THEY HAVE
NO WAY OF
DETERMINING ROI.

5. 27% SAY THAT CUTTING
THEIR DIGITAL AGENCY
LOOSE WOULD BE THE
BEST WAY TO ELIMINATE
WASTE.

6. THEFACTS.

7. ALMOST 40%
OF THE WORLD’S POPULATION
IS ONLINE. (ITU)

8. EUROPEAN
INTERNET
PENETRATION RATE
OF
75%.

9. 9/10 MOBILE SEARCHES
LEAD TO ACTION.
OVER HALF LEAD TO
PURCHASE.
(HUBSPOT)

10. BUSINESSBENEFITS.

11. ACTIVE & ENGAGED
COMMUNITY OF
ADVOCATES REDUCED CHURN.

12. COSTS 80% LESS TO
RETAIN A CUSTOMER THAN
TO ACQUIRE A NEW ONE.

13. A 5% INCREASE IN
RETENTION CAN INCREASE
PROFITS BY UP TO 95% IN
THE LONG TERM.
(HBS)

14. INCREASED
COMMUNITY
ENGAGEMENT CAN
INCREASE
REVENUE BY 25%.
(MSI)

15. SUCCESSSTORIES.

16. KLM.
KLM USES SOCIAL SHARING TO PROMOTE ITS
TRAVEL DESTINATIONS.
THE MORE FANS SHARE A PROMOTED DESTINATION,
THE LOWER THE COST TO TRAVEL THERE.
TYPICALLY, TICKET SALES TO THESE DESTINATIONS
RISE BY 700%.

17. KLM.

18. GOPRO.
GOPRO USES ALWAYS ON FACEBOOK
ADVERTISING AND USER GENERATED CONTENT.
FACEBOOK IS THE NUMBER 2 SOURCE OF
MOBILE REFERRAL TRAFFIC TO GOPRO.COM.
FACEBOOK IS RESPONSIBLE FOR 9% OF
TRAFFIC TO GOPRO.COM - ONLINE SALES.

19. GOPRO.

20. FOURSQUARE.
THE PROPAGANDA CLUB HAS
EXPERIENCED 1900% ROI.
SKY ROOM HAS EXPERIENCED 1566%
ROI.
BARCADE HAS EXPERIENCED 1070%
ROI.

21. SUMMARY

22. SOCIAL MEDIA
OFFERS:
ACTIVE, ENGAGED BRAND ADVOCATES.
REDUCED CUSTOMER CHURN.
INCREASED PROFITABILITY VIA RETENTION.
INCREASED REVENUE VIA ENGAGEMENT.
MEASURABLE FINANCIAL ROI.

23. www.cksk.com
linkedin
@twitter
facebook

24. THANKYOU.
MAKE THE FUTURE POSSIBLE.