ROI in Context of Business Value
October 28, 2011 1 Comment
The next time someone asks you, “what is the ROI of social media?“, I suggest the following reply:
“We can project the potential ROI of specific tactics using social media, but first let’s talk about BV (Business Value).” Specifically:
BVER – Business Value of Embracing Reality
BVIO – Business Value of Ignoring Opportunity
Networked communications – the use of point-to-point communications via social networks, and particularly through mobile – are simply the new normal. People don’t ask about the ROI of the Internet or of a computer anymore (though you can look at the ROI of a specific initiative) – these things are simply assumed. That’s what social networks – and mobile computing – are rapidly becoming. Assumed.
You don’t do ROI on assumed. You use the assumed to do something specific that will generate ROI.
So, what is the business value of being able to connect with your customers? What is the business value of being connected in a connected world? What is the business value – and the opportunity cost – to staying static in a world where digital networking in growing inexorably?
Put negatively – what is the business value of keeping one’s head buried in the sand? Can we start attaching minus dollar signs to that strategy??
There is no calculable ROI to “social media”, just as there is no ROI to common sense or breathing. Ubiquitous digital networks are just reality. Mobile communications are simply the new normal. Only a very small subset of the population calculates the value of using a horse-and-buggy vs. using a car. You do your calculations based on which car, and for what type of use. You’ve already decided the overall business value.
What is the calculated ROI of doing (this) using social media as (part of) the approach? Now, you’re starting to ask the right question.
Seek to direct ROI discussions to tangibles that can be measured, not something do broad as social media. The “ROI of social media” is a question that, as so framed, cannot be answered.
Hire Steve Woodruff if your identity and message need clarity (Business Identity Therapy)
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