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Social media ROI
Managing and measuring Social Media efforts
in your organization

Olivier Blanchard

May 2011

"The importance of finding the right
words in the language of business"

Blanchard describes social media integration into an organization from the very basics through to the explicit determination of the ROI. He does not give many examples of companies having used this, but that only makes the book better. Good examples can be found in many other books, but the real search for the establishment of ROI in social media campaigns is usually not mentioned in them.

What Blanchard does very well, is integrate social media into the essence of business, showing that none of the general reasons for Social media counts within business: follows, likes, positive sentiment and the likes do not count at all in business, because they have no relation to sales. It is all about opportunity costs: if we cut costs from marketing campaign A to fund social media campaign B, will this campaign B bring in more sales than campaign A would have? As long as this question cannot be answered you cannot decide to go for social media or not.

His final chapters that then go deeper into connecting the ROI to social media are a bit thin, but the overall idea is very clear and he gives some good hints how and where to look for a connection to sales in your own campaign. The biggest problem however is that no two campaigns, businesses and especially goals are the same and thus you need to follow his principles and find your own link with sales.

He does add a great idea with his use of the FRY accronym to grow sales in general and in this case with social media: to grow by Frequency (increase number of interactions with existing customers), Reach (increase number of new customers) and Yield (increase how much each existing customer buys). If you look at it this way, it is a lot easier to determine how you will measure the ROI of your social media campaign.

A truly interesting book, which will help you get buy-in from the management team when you wish to start a social media campaign.

Social media





Some examples of social media and social media marketing campaigns that caught my attention:

United breaks guitars
Still an excellent example of how social media can damage a companies reputation and how this tends to stay for a long time.


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