Conversation Agent - Valeria Maltoni - Measurement and ROI for Social Media

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Thank you, Marta. And welcome to the conversation with such a rich array of resources to add to the topic. The interesting thing is that some companies are scurrying to figure this social media thing out. As reported in the ST:

"American Express has sent groups of employees to "Cool School" seminars run by digital strategy agency Electric Artists. Employees spend the day visiting companies like IAC/Interactive Corp and discussing trends like social networking and virtual worlds. Cool School sessions cost between $30,000 and $75,000 a day, says Marc Schiller, founder of Electric Artists, of New York."

So those of us who have learned how to do this should (notice the conditional) get an audience ready to learn. The truth is that companies -- and many marketing managers -- are hard pressed to figure out where it fits and because of non advertised ROI many do not get buy in from management.

I'll look into the Net Promoter Score, good tip!

From a personal blogging standpoint these are interesting figures. What do you learn from these stats and what changes have you made because of them.

For instance, awhile back I moved my subscribe option to the top right of my blog and saw my susbscriptions double in just a month.

Thanks, Valeria, for the invitation to contribute to this discussion. There's such confusion—and in many cases, resistance—to implementing social media campaigns, that I feel the effort to demonstrate ROI is vital to successful adoption.

Take for instance a recent study by TWI Surveys, Inc. (on Behalf of Society for New Communications Research) which surfaces the following interesting data points:

- 70% of mar/comm professionals are currently spending 2.5% or less of their communications budgets on conversational marketing
- Two-thirds plan to increase their investment in conversation within the next twelve months
- 57% project that in five years they will be spending more on conversational marketing than traditional marketing

Clearly, the medium is still in its infancy.

But there are some who've been diligent about measuring its impact—like the pros referenced in this posting. Another great player in the space worth a look is BzzAgent ( Not only do they have case studies and a great white paper on measurability of their WOM marketing efforts, but they're walking their talk: Their "90 Days" blog project ( blows the roof off the idea of "transparency".

Finally, consider implementing the Net Promoter Score as a means of measuring social media campaign impact. Strictly defined, NPS is "% of Promoters - % of Detractors". It's not a pure ROI calculation, but it gets to the root of whether a customer/reader/community member would recommend you—or not—as a percentage of the total activity on your social media platform.

Keep the dialogue going! Let's blaze some new trails...

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  • Since 2006, Conversation Agent focuses on business, technology, digital culture, and human behavior. At Conversation Agent LLC, I help organizations and brands that want to build better experiences tell a new story.


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