Calculating Your Social Media WOMM ROI
If you shifted your Engagement Paradigm then you see your Word of Mouth conversation growing, your stakeholders think you’re a rock star and you’re building momentum in your social media space. Congratulations!
Now it’s time to blow your CEO’s mind. You’re going to deliver the money. That’s right. We’re talking ROI, baby.
Word of Mouth Marketing (WOMM) drives 20 – 50% of consumer purchase decisions.* As you grow your WOMM on social media you drive sales for your company. To calculate our WOMM value we need to determine the value of a paid impression. Digital marketing campaign profits vary so we’ll take a six-month average.
In Shifting Our Engagement Paradigm we determined our WOMM value is 5 – 100 times greater than a paid impression.* Therefore, we can confidently apply a 10 times greater value for our WOMM impressions calculation. This way, we present a conservative ROI that can arguably be much greater.
Now that we have our value for WOMM impressions we will use our social media listening and analytics tool to determine the number of WOMM impressions we have for any given month. In NUVI we calculate impressions by adding our Reach and Spread.
Let’s take a look at this in action. Company A averages a $.02 return per paid digital campaign impression. In the previous month, their social media WOMM conversation garnered 300,000 impressions. Their WOMM social media ROI for that month equals $60,000.00.
In addition to our typical social media metrics, we can now deliver ROI for our WOMM conversation happening on social media. When CEOs and CMOs see ROI, not only does it substantiate the value of engagement with your on and off profile audience, it also supports greater spend for your social media vision and expansion of your social media team.
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