Usage of Social Media Value Chain to calculate the ROI

April 18, 2012 - PRLog -- By using each step in the value chain as a method to determine costs and benefits, marketers can understand
the components needed to achieve value, and enable the measurement and calculation of ROI.
Using the Social Media Value Chain, Alinean analyzed hundreds of different organizations to determine thepotential ROI. The research uncovered the following ROI trends:
1. Certain marketers are realizing better levels-of-engagement, and as a result, lower costs/higher
downstream benefits and a more positive ROI, particularly larger companies with popular brands, customer demographics that match social media users, and particular industries including: High
Technology, Consumer Products, Retail, Travel , Media and Entertainment, Hospitality, and Automotive;
2. The majority of organizations are currently achieving a marginal or negative ROI, especially companiesthat are having to spend more to engage effectively and reach critical mass on their efforts, especially smaller firms, those that do not have popular brands, and those in particular industries with lowengagement levels, particularly: Energy, Utilities, Wholesale & Distribution, Pharmaceuticals, Healthcare,Chemicals, and Professional Services/Service Providers;
3. Best practices matter in social media ROI success, in particular those companies that implement a
hierarchical approach to engagement, The Social Media Hierarchy of Needs;
4. Certain companies who are aggressively pursuing social media channels and implementing innovative
campaigns are achieving a significant ROI of 500% or more from these efforts.

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