I thought I've already well known about social media, but through this week's sixdegrees reading, I realized that I missed some important point. That is, relationship between social media and ROI (Return On Investment).
Many companies use social media..then for what??
And how can companies measure ROI of social media??
The profit through using shared social media (blogs, video clips, twitter, YouTube etc..) is hard to measure by specific number and visible effects. To make these ROI be seen exact numbers, I think technology is the most important.
Many companies like google already invent some tools to measure their activities into graph or some images, but in some cases I think they just show visitors' number or total number of page views. I think these things are not connected to ROI directly.
Through this advanced technology, companies can show its effectiveness to their investors.
Social media's main purpose is to communicate with their customers. Using social media company can share their information with customer.
Also certain customer's feedback can be shared with other customers. So social media is the most important tool to promote company's products and company itself.
That is PR 2.0!!
But if company just use their social media to make a profit, then soon smart customer would recognize that. Therefore companies try to have a conversation with their customers sincerely.
This linked YouTube video explain the social media and its effectiveness by using very easy example.
6 comments:
All of these numbers and statistics are so tricky to even quantify sometimes. I used to write reports on demographics and psychographics of audience reactions and it was impossible to catch everything. plus, i know a ton of people who lied on their reports too. it seems so convulted because i doubt anyone checks these statistics...people just throw stuff together to show their boss that what they are doing is something productive.
I agree with you Eunbi. i wrote something similar in my blog. you can check it out. It's not really about making profits from what i learnt. it is engraving a brand in the hearts of their customers/consumers. I also like the term PR 2.0
It is interesting posting. I totally agree with you. I also thought that I understand all most of social networking but I don't know the ROI of social media. :) It's difficult to suggest the exact figures on social networking for inverstors so PR 2.0 for accumulating the figures is helpful to measure the number.
hey eunbi!
I think you point out the important point. Companies should not try to use soical media to make profit. They should use it as a way to communicate with customers.
I agree with your idea. For company, social media is one of the communication way to customer. It will help to build close relationship between company and customer. Company should consider their future business
I agree that social networking's main purpose is to communicate with the customers. It's a great way to form a relationship, but at the end of the day the purpose is to make money.
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