Got proof?

Folks, I just received a great comment/question asking for some social media "proof" on ROI/success claims.

I'd like to answer the question--which I've copied below--but the campaigns I'm working on won't be unleashed until first quarter so I won't have ROI assessment until shortly thereafter.

And since many of us are shoutin' social media's virtues, I'm hoping you fine folks can point me to various case studies. I have a lot of data on WOM and Buzz...and I can point to personal success through the medium...but I want to locate some case studies be they in posts, articles, etc. And I'm thinking we could all benefit from this info.

They can be examples spanning BtoC, BtoB, For Profit, Not for Profit, etc. They can range blogging, microblogging, social networking, podcasting, etc.

Here's the question asked of me in regards to this post: "The part I struggle with is "proof". I have found little (so far) in the way of solid case studies or any real data on ROI for social media campaigns. If you can point me toward any solid case studies (with real numbers, not just abstracts), I'd love it."

Thanks for helpin' me out, the megaphone is all yours...(but please do give it back; I'm a mouthy marketer, after all).

Comments

[Valeria Maltoni]

I invite Geoff Livingston to this conversation. Side from his very smart book, Now is Gone, with timely advice on the use of social media by organization, if I recall correctly, he published a few case studies in his blog. Where are thou, Geoff? I'll point him here on Twitter.

[Geoff Livingston]

CK:

Check out the Now Is Gone blog Case Studies tab at www.nowisgone.com. A dozen are so case studies are there for you.

GL

[Geoff Livingston]

or so, that is. Doh!

[CK]

Val/Geoff: Thanks much - here's the link to many case studies from Geoff's place: http://nowisgone.com/category/case-studies/

All: I'm very interested in any others...whether an article, post, whatnot. THANK you!

[Paul]

I understand where that question (proof of ROI) comes from, but I think it's, well, not really relevant. Or maybe a better way to put it is that it will become less relevant over time. You see, your original post CK was about a changing tide, not a new marketing tactic. In fact, if you reduce 'social media' down to a tactic, it fails. A tactic you can plan, execute, evaluate and then decide to keep on doing it or not. Not so with much of what you talk about. You jump in, you're in - whether you like it or not and whether you want out or not.

This is becoming a 'way of doing business'. It has no easily understood or calculated ROI. imho.

[Lewis Green]

CK,

Geoff includes my case study on Now Is Gone. My blog has resulted in real-life clients.

[Ike]

Hey CK...

To be honest, I'm not sure very many companies have been using Social Media long enough to see the real benefits.

Yes, there are a few tangible successes we can point to, but we're at the very beginning of a long journey here. The key to understanding Social Media is the recognition that public expectations are changing.

- The more empowered they are by technology, the more they expect from it.
- The more empowered they are by communications options, the more they expect to control their message consumption and digestion.
- The more empowered they are by relationships, the more inclined they will be to do business with organizations that engage with them as people, and not as "targets."

We're about to see the rise of a new class of consumers, who will choose to do business based on the above criteria. ROI doesn't reflect them yet, because their impact is below the signal/noise ratio. Give it time.

I liken it to the impact of cell-only households on polling/survey firms. The attention will be sudden, and there will be a *lot* of adjustment as companies fight to create a Social Media Persona. (and they still won't get it, at first.)

You'll know when it strikes, because in-house Social Media gurus will see a 30% jump in salary offers, and headhunters for big firms will shell out the cash to catch up quickly. At that point, the ROI will be apparent, even if there is still much quibbling about the way it ought to be computed. You'll see a clear A/B comparison - those that have SM have results, those that don't, don't.

[CK]

@Paul: You know, I wonder why I 'struggle' with this question and while SM is new and needs more case studies...it's also because it is a market "shift" not a tactic. You really helped me, thank you.

@Ike: Yep, you've hit on a key factor...that expectations are changing. I'm already "there" in preferring to do biz with co's that meet your criteria--and I'm definitely more inclined to discuss purchasing decisions with colleagues (that I've now found) vs. messaging from the vendor/co. Many thanks.

[Lewis Green]

CK,

Ike makes a good case but I think his assumption regarding the new kind of consumer is overblown. The kind of consumer he talks about has been around forever. It's just that the technology was different.

I have to say that I also disagree with Paul. Market shifts have also been around forever, and technology (inventions) cause them. Social media remains a tool; one that is causing a response. And that is what tools (technological advances) do. They cause responses and change. Our job is to be flexible enough to change with these advances.

We need to get real and recognize that the next generation will be saying the same things some are saying today about a tactic (tool) or strategy. We need to stop falling in love with the newest advance and implement them for the greatest good, while at the same time always looking for something better to replace it.

[CK]

@Lew: Thanks so much. Yes, shifts and innovations have been around forever. It's when they happen simultaneously that there's a lot of implications.

For example, radio has been around for decades, so when "satellite radio" hit the scene it was a new technology and provided a new tool for marketers (and the innovation was digital music media). But with 'social media' we've got the trends on one hand and the tools on another.

So while these consumers have been around forever and have always had this need (WOM is old as the hills)...now they have the ability to reach each other, which makes for the shift of both access and power. And, we have also have tools, which makes for some opps for marketers. That's where we need to be careful. We can't tell all clients that "you have to blog!," but we do need to let them know that key areas, like purchasing decisions, are being affected by both the trends and the tools. And case studies help to show that.

But I do hear what you're saying and it's very sensible. There's just a confluence of trends + tools right now. Lucky for us, we get to sort it out together to better advise our clients. And we get to speak from the position of practitioner vs. mere "observer" since we're all in this community and, hence, witnessing its myriad points of value. Yippie ;-).

[Sean Howard]

Hey CK,

I'm scooping myself here.

But I think this will help you. I've set a post up to go live tomorrow morning about this story from Leigh.

http://leighhimel.blogspot.com/2007/11/digital-has-changed-everything-except.html

[Lewis Green]

CK,

I don't disagree. But we as consultants need to use the language of business when we discuss social media and stop gushing over if it is the panacea for all business woes. My gosh, it pales in comparison to the printing press, ink, pens, pencils, the telephone, the postage stamp, and even e-mail as relationship-building, consumer-sharing innovations, during their time. Most of us still use those other tools to build relationships and to do business much more than we do social media.

I can think of no business that should use social media as a whole package. Therefore, it comes down to which tools they should use within the social media platform, if any. We better be able to talk ROI and business usage and purposes and stop gushing over social media as the platform that "changes the way we do business." It isn't now and it may never become that in the future. Right now some 12-year-old is on the verge of creating something that will change or replace social media in ways we cannot even imagine.

For now, we need to talk the language of business when we are offering strategies and tactics (tools) for our clients to use. And that language falls into the categories of business development, business growth, ROI, customer WOM, customer service, meeting customers wants and needs by listening to them and customer experiences.

I respect you for responding to a request for case studies reflecting ROI. It proves (I did not need convincing) that you get it and understand what clients need. What they don't need is a bunch of unproven fluff about the next great innovation. I hear too much gushing over social media and not enough practic advice.

Our business clients need recommendations that work to grow their business, and some of the tools within social media are among the best available.

Wow! I get way too passionate, I suspect. But I worry about the trickle down effect that can negatively impact our consultancies if we speak of social media as the second coming and forget that we are business people,not preachers or prophets.

We can't speak about social media in the same ways that we talk about philosophy and religion; we must see their uses within the business mix and how the tools can be applied to contribute to achieving business goals. Otherwise we will be ignore by the business world.

[CK]

@Lew: "But we as consultants need to use the language of business when we discuss social media and stop gushing over if it is the panacea for all business woes."

Lewis, I use words like "critical success factors," "target segments," "profit centers" and "ROI" with my clients (to name a few). That's the language of business.

It's the entire reason I'm trying to get case studies (that speaks the biz language). Market shifts also speak biz language.

So I'm confused: Where have I ever said that social media is a panacea for all woes? Matter of fact, over at Daily Fix--my current post--is saying that NOT all biz's need to blog...but need to listen (so they can better serve their clients). Sorry I'm confused.

[Ike]

Lewis - we are not that far apart.

Unlike many in the Social Media sphere, I am not calling for a revolution and trashing of all relations before.

I'm merely stating that for the purposes of ROI, we're not going to have a metric we can explain until we have results that are undeniable. Results that are measurable above the signal/noise ratio.

I've said in many places that Social Media ROI as it stands today is little more than alchemy. But one day, we'll see a difference in growth within comparable comparable organizations, and Social Media will be the only factor accounting for that. We just haven't reached that tipping point yet.

I'm not advocating abolishing the horse-drawn cart - but rather touting the need for a good set of shocks as the road ahead gets more bumpy (and disintermediated.)

[CK]

...in fact, look at my comments above, I'm building the "shift in purchasing decisions" and "target market shifts from demos to psychographics (interests)" arguments to clients.

That is speaking the language of biz. (I promise ;-).

[Lewis Green]

CK,

I am not taling about you but others who speak about social media in reverential instead of business ways.

Read my comment again. I say this: "I respect you for responding to a request for case studies reflecting ROI. It proves (I did not need convincing) that you get it and understand what clients need. What they don't need is a bunch of unproven fluff about the next great innovation. I hear too much gushing over social media and not enough practical advice."

Ike,

The ROI we have today is as it always is with new strategies and tactics--immature and lacking historial and qualitative values. They are not, however, to be ignored. We need to share what we have and continue to study the numbers. I have been tracking my business development social media ROI for the past year, and it is significant to my business.

[CK]

@Lew: Thanks. I can't have the reverential discussion with clients...they'd tune me out. But, if I show both the trends and the tools--and then show how reward outweighs risk, I'm then solid enough to sing some of its virtues. But business case first.

One big case, I have to say, is how irrelevant these biz's can become if they don't accept what's happening on the "movement" side. That has happened full-throttle yet, but I agree with Ike on that note.

I'm so glad your biz is prospering. It's been more than worth the time for me. And, seriously, while new biz is great and getting into events is stellar--my real ROI is because I have new colleagues. I wrote on it months ago, but I still value colleagues as much as I do clients, if not more (since colleagues keep me long-term smart vs. short-term paid).

Here's that post: http://www.ck-blog.com/cks_blog/2007/02/the_meaning_of_.html

[Lewis Green]

CK,

I agree about valuing colleagues and I would be a lesser consultant without colleagues such as you. Besides, who will keep me on the straight and narrow? Answer: Professionals such as CK, Cam, Drew, Karen, David, Geoff, et al. Have a great weekend.

[CK]

but...and this is a BIG but...I don't ever expect for clients to see the value of colleagues met online (people can understand offline colleagues but not online colleagues until they're in this space, it's too 'abstract' to them--and understandably so).

So I use the argument of "facilitating idea exchanges" vs. "funneling messages". There I'm showing how to promote your brand through helping others to network (much better than butting into convos and saying "our tech solution is great!"). And where I can't state ROI on that yet, I can state examples like AMEX's Open Forum or Bank of American's small biz network. Being it's all so new I have to use any data, case studies or company examples I can get my hands on. And just yesterday, Greg Verdino shared an excellent prez he made to Cisco and it saved my butt on a piece I'm writing as I couldn't find data but he shared it with the entire world, because that's just what these colleagues do.

Yet another example of a colleague saving my butt so I don't look bad in front of a client. Yippie ;-).

[Richard Becker]

Hey CK,

I'm one of those ROI nuts, but least we not forget that the R in ROI is not always cash. It can be an outcome that has equal measure.

Here are some results from BlogCatalog's Bloggers Unite initiatives:

1. Raised funds for 1,000 students through DonorsChoose.org. (May 07)
2. Increased Organ Donation awareness on blogs x10 and in the media x30 (July 07)
3. Brought 10,000 bloggers together to call for an end to abuse (Sept. 07) ... just one non-profit that posted gained 47 new friends that will go well beyond the campaign. In some cases, the campaign stopped abuse that was occurring in individual households. That's ROI.

Also, I have to agree with what some of your previous posters said. Colleagues and clients are equally important. I don't view my clients as short term transactions. Some people do, but I always work to become a trusted advisor. So, I listen to my clients because many become friends as tight if not tighter than a colleague.

Good post though. I'm glad to see we're working to move beyond pageviews and rank.

All my best,
Rich

[CK]

@Richard: A blogger after my own heart with causes...and gives me data, to boot. Big thanks. Absolutely agree that the return spans, market share, awareness, purchasing, participation and share of heart not just mind.

Hey, if you're doing cause-related work, you might enjoy the discussions we're holding in two weeks with our current book (I host a book club but make no money--just smarts and colleagues--from it). In the case you don't know, the info. is below. We'd love to have your input since we're squarely focused on cause marketing this segment. You could teach us a lot:
http://www.mpdailyfix.com/2007/10/book_club_returns_with_robin_h_1.html

[Kami Huyse]

I am working on a presentation for next Tuesday about social media measurement. Ike pointed me here I think because measurement is near and dear to my heart. I feel if you can't prove you are contributing to business goals with an approach, then it becomes a cost center and a target to be cut. I do think that relationships are important, but those too can be measured. In addition to real quantitative measures.

Katie Paine has a new book (free for download) called Measuring Public Relationships is a good start.
http://kdpaine.blogs.com/bookblog/files/PaineBookFirstPages.pdf

http://kdpaine.blogs.com/bookblog/2007/09/book-first-page.html

[Lewis Green]

CK,

Ike and Paul deserve credit for taking this conversation to the next level. CK, I think that's part of what you are talking about regarding colleague ROI. Great resources = Excellent Proposals = Good Execution = hitting or exceeding client goal expecations (ROI). I learned a lot in the past 24 hours. Yeah CK and all the commentors. (BTW Rich is a great blogger. Check out his site.)

[CK]

@Kami: Many thanks. Appreciate your pointing us to Paine's new read...I checked it out last night for an hour and she addresses a lot of ground.

@Lew: Good stuff. I suspect we'll be seeing more case studies over the next few months. Whenever I find any I'll be sure to post on them.

[Marta Kagan]

Wow, what a fabulous discussion! The only 2 cents I have to add is that measurement can and must continue to be part of what we're accountable for as marketers. No, it doesn't need to be about $$$, but we do need to be disciplined enough to make the value of our efforts easily quantifiable... lest we position ourselves to be the ones who never get the credit for our clients'/companies' successes but always get the blame for their failures.