Why we keep hearing in every meeting, every presentation and nearly every discussion about social media, the question arises: “Can You Create ROI?”
It’s a legitimate concern—we’re running a businesses here, not free NGO —and beyond anything else we do, we sell things to make $$$ . And while numerous other benefits of social media are positive for a brand (awareness, community,CRM, customer service, brand engagement, etc.), in the end, a return on investment for the resources deployed and the content created is necessary. In fact, ROI is merely the first target. Incremental Sales is up next, so let’s not delude ourselves with ROI only.So, the right question is two questions: “Can You Create ROI? And Can You Make  Sales Through Social Media?” And to that I answer a robust and enthusiastic: “Hey, I’m working on
it.” Retail CMOs are endeavoring to create a relevant business model around social media—I am no exception. We see the potential of viral distribution, of creating a platform for conversation with our customers. The opportunity of social networks and social media is appealing in its scale, particularly when offset by its low costs of entry and participation. But let’s be frank, most companies are intrigued because social media is comprised of lots of potential customers—at the very least, warm bodies—and because it is perceived to be cheap. And compared to traditional media (direct mail,broadcast, e-commerce, PR, etc.), it is. But it’s not free. It’s not an insignificant investment, if your social media program is done right. Yet, it is not expensive, comparatively. One of the more misunderstood costs to the retail companies I have worked for or consulted with is the immediate and continuous need for content creation. Despite the insistence that companies must devote appropriate resources (financial, as
well as talent-based) to content creation, many companies find themselves unable to generate the content bulk required to run a successful social media business. It takes bodies to develop promotions, announcements, conversation, questionnaires, and other elements of engagement. Additionally, the lack of creativity about and focus on the intent of content plagues many businesses interested in leveraging social media. Simply broadcasting “Deal of the Day” posts may generate an initial pop of activity and sales, but it has been sustainable for only a few companies, such as Dell.So, how is a retailer to dabble in social selling prior to investment? Like any other initiative, we test. The low-cost of entry and array of free or inexpensive tools and platforms is a big advantage over traditional media. Have you ever tried to test a concept for a television commercial before incurring the costs of production
and post? You can use storyboards. You can shoot in video. You can crank out a rip-o-matic using other source material to infer your idea. None are ideal for validation. With social media, however, you can set up a social
network on Ning, open a Twitter, Facebook, or MySpace page, manage and track your campaigns through HootSuite, and aggregate the whole shebang via Ping.fm, without spending anything more than time. No secrets here, which is why everybody wants to do it.


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