Socialnomics author Erik Qualman, and Global Vice President of Online Marketing for my ex-employer EF, has produced a new video (to accompany the [brilliantly] bombastic social media revolution video (also archived at foot of the post)), called “Social Media ROI”.
Great video for people who like us who like their numbers served up with currency signs.
What’s interesting, is that 7 of the 9 cases with ROI numbers cited in the video are social commerce examples
So here’s a cocktail party definition of Social Commerce: “Social commerce is social media with ROI”
And here’s the video; below it an annotated list of references (taken from Erik’s post – but with a few corrected URL’s)
Example 1: Winelibrary.com (grew family business from $4 million to $50 million using social media; found first hand that $15,000 in Direct Mail = 200 new customers, $7,500 Billboard = 300 new customers, $0 Twitter = 1,800 new customers). Social Commerce
Example 2: Lenovo achieved a 20% reduction in call center activity as customers go to community website for answers. Social Media Marketing
Example 3: Burger King Whopper Sacrifice Facebook program incented users to give up ten of their Facebook friends in return for a free Whopper. The estimated investment $50,000 generated 32 million media impressions => $400,000 in press/media value. No ROI Data
http://www.emarketer.com/Article.aspx?R=1007053 (how calculated)
Example 4: BlendTec increased its sales 5x by running the often humorous “Will it Blend” Videos on YouTube blending everything from an iPhone to a sneaker. Social Commerce/Social Media Marketing
Example 5: Dell sold $3,000,000 worth of computers on Twitter. Social Commerce
Example 6: Ford (Fiesta), by giving away 100 Ford Fiestas to influential bloggers, 37% of Generation Y were aware of the Ford Fiesta before its launch in the United States. 25% of Ford’s marketing spend has been shifted to digital/social media initiatives? Ford is the only US auto company that didn’t take a government loan. “You can’t just say it. You have to get the people to say it to each other,” James Farley, CMO Ford. No ROI Data
Example 7: Naked Pizza (Kraft) New Orleans Pizzeria set a one day sales record using social media. In fact 68% of their sales came from people “calling in from Twitter.” [promotional deals]. On top of that 85% of their new customers were from Twitter. Social Media Marketing
Example 8: Volkswagen (goes 100% Mobile for launch of GTI) [multiplayer mobile game with twitter chat link]. No ROI Data
Example 9: Komen [http://ww5.komen.org breast cancer charity] with Tweets for a Cause sent out a donation request/promote awareness tweet – 11,000 visitors in 24 hours. No ROI data
Example 10: Intuit (TurboTax) introduced “Live Community” (Customer Q&A Forum) 2 years ago – unit sales have increase +30% each year (by word of mouth); now integrated “Live Community” into their other products like QuickBooks [70% of customer service questions are answered by other QuickBooks owners, marketshare up 4% to 94% (4% of its 8,000 employees are being fired)], Quicken, etc. Social Commerce/Social Media Marketing
Example 11: Genius (Marketing and Sales) Software reports that 24% of its social media leads convert to sales opportunities. No ROI data
Example 12: Barack Obama fundraising election campaign, 5.4 million clicked on an “I voted for Obama” Facebook button, 3 million online donations totaling $500. An astounding 92% of the donations were in increments of less than $100. Social Commerce
Example 13: The University of Texas MD Anderson Cancer Center witnessed a 9.5% increase in registrations by using social media. No ROI Data
Example 14: Moonfruit web host, more than recouped its $15,000 social media investment as their Website Traffic soared +300% while correspondingly sales increased +20%. They also saw a huge lift in their organic search engine rankings getting on the first page for the term “free website builder.” Social Commerce
Example 15: eBay found participants in online communities spend 54% more money. Social Commerce
And here, for posterity, is Erik’s social media revolution video (and an interesting response).