Social Media ROI and Strategy Alignment

I’m not sure that there are many answers — at least for our line of business — but these posts got me thinking about the value of some Enterprise 2.0 initiatives we’ll be kicking off shortly. 

Fluent Simplicity lays out the basic value/return problems here.  Social media initiatives often happen because everyone is doing them, and focusing on fads and fashion doesn’t make for long-term thinking (see my take on Tom Davenport’s pessimistic take on Web 2.0 here).  However, Enterprise 2.0 can’t be treated the same way.  Firms are reluctant to go “all-in” on social media because…

[f]or most organizations, this activity is not tied to strategic goals and is not adequately measured in a meaningful way. 

Frogloop has a ROI calculator (here) that got me thinking about how to build the business case for my initiatives.  I’m not sure how well I’ve thought through the intangible benefits (e.g., retention), which probably will have the biggest strategic impact.  I’ve been focused on the productivity and publicity gains only, which were simple.  A little more Excel modeling may be in order!

Hat tip: Mary Adams at IC Knowledge Center

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2 Responses

  1. […] and not enough people understand social media (yet). Crossderry blog also offers some thoughts on ROI and strategy alignment and includes links to other people thinking about these […]

  2. The Social Media Academy worked on a research to identify a method to calculate ROI that is mathematical correct (currency on both sides of the equation) and is relevant to a CFO.
    CM / IC = SM-ROI
    You find the details here: http://xeeurl.com/A0567
    And a discussion on Social Media Today here: http://xeeurl.com/A0568

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