Friday, June 1, 2007
Return on Connections
Most businesses don't want to jump into social media and 'have a conversation' until they can figure out how to monetize that conversation.
You don't have to - The conversation monetizes itself.
Communication=understanding=more effective/efficient marketing=lower marketing costs.
It even goes further:
Communication=understanding=improved customer relationships=increased retention + increased referrals
Savings in marketing (and in customer service, ultimately) are only one part of the equation. We have to further discuss the ROC concept (Return on connections). If more companies looked at their customers and tried to maximize the ROC, we would get closer to directly impacting the bottom line. This is what will move the needle for most executives!
Lower marketing costs + increased retention/referrals=increased ROI/ROC