Return on investment (ROI) on social media of influence

This is ROI formula:

Many corporations use Return on investment (ROI) to evaluate business performance and efficiency of investment. When Enterprise 2.0 relate to incomes and costs, it is difficult evaluation and calculation directly. Many firms prefer to use money to evaluate value. However, some benefits cannot use money to replace it, such as productivity, employees’ loyalty and corporation’ reputation. Companies’ implement several policies need to pay extra costs. Hence, many corporations using social media because of low costs, and companies do not spend more time to training their staffs. It can greatly decrease policy of implementation costs and increase to anticipate benefits.

The gains from productivity

The corporation use social media which have a lot of communication and interaction can effectively collect and integrate idea and experience. Staffs may through these social media improve mistake even get new thinking. When employees introduce new idea in working, their productivity will become more powerful.

The gains from employees

Some firms manage staffs who will think employees using too many social media may affect regular working efficiency. However, staffs may through social media share their thinking and opinion, so employees will feel freer and sense of presence. Finally, it can increase staffs’ loyalty in corporation. Besides, employees’ feedback can assist manager to make a correct policy timely.

The gains from corporation

In corporation section, high quality productivity and loyal staffs will affect companies’ positive growth. Customers and employees have immediately feedback in social media which can provide fine exchange platform. Therefore, corporations progressively improve their mistake and achieve customers’ requirement. Ultimately, the company gains their reputation.

Some return on investment (ROI) examples


Vamplets is a small business. They are using Facebook advertising propagate their company. However, Vamplets needs to pay $250 cost of advertising per month, and then they gain extra $1000 income actually. This is their positive return on investment of 300%.


The Creme Brulee Man is a food truck in the America. They update their next location via Twitter. They allow have new customers following their new state at any time. Besides, using Twitter remind customers they will move to new location. In just over a year the Creme Brulee Man Twitter account has gathered over 12,000 followers which have a huge number.


Houlihan’s is a restaurant chain in the America. They have around 100 restaurants.  Their main competitor is Applebees. Houlihan manager runs a private social network which is called “HQ”. They are via social media and e-mail send exclusive discounts and promotions to customers. In 2008, they are quickly built up 10,000 members of the network. Hence, social media also can increase ROI for small company.


  1. The ROI of social media: 10 case studies
  2. 34 case studies that prove social media ROI
  3. Enterprise social software blog
  4. 50 social media case studies worth bookmarking
  5. What’s the ROI on social media? Metrics, equations, case studies & a conference
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13 Responses to Return on investment (ROI) on social media of influence

  1. EDIE CHENG says:

    Hey 🙂
    yeah I think the biggest benefit for organizations to invest on social media is that it indeed provides an effective channel for information and feedback to be shared and created efficiently. However, I just read some cases where the ROIs are not as expected for organizations and thus resulting in withdraw on social media investments. The instances offer another point of view for start-ups to evaluation the pros and cons about engaging in social media programs.
    For your reference: Will ASB ruling lead brands to withdraw from social media marketing?

    • WANG, Rick says:

      Yes. In my opinion, I think investment and income is difficult to stay in balance because corporations need to consider a lot of factors, especially unpredictable external factors. Anyway, thank you provide me this links.

  2. atang28 says:

    Hey, great to see 3 ways of ROI investment regarding social media include productivity, reputation and loyalty! Really good examples, like the Creme brulee man, using twitter it allows people to follow him giving his organization productivity, reputation and loyalty in the long run. All these contribute to ROI for the Creme brulee man, making sure he makes some sort of gain in his organization!

    • WANG, Rick says:

      Hey Andy,
      Corporations invest social media because they would like to have a fine return on investment. However, sometimes return result cannot achieve their anticipate goal. Hence, I think corporations need to do some survey in social media. Which one is useful social media in marketing, and then choose powerful social media in the company.

  3. Denni says:

    Hello rick again. I like the three example for the ROI, These three examples are good, the ROI advantages, disadvantages you stated, the benefits and the drawback is that the investment center may only consider their own interests and to accept him, rather reluctant to overall corporate interests is compromised. ROI is a ratio. You can not show the absolute value of the rate of return on investment in a project.

    • WANG, Rick says:

      Hi Denni, absolutely. I think invest absolute existence some risk. Hence, corporations should do some surveys in market, and then reduce unnecessary risk. Besides, companies not to invest more than their ability.

  4. sukhshans says:

    Nice examples. One reason that have made organizations join the social media is communication and brand recognition. This is especially true with advertisements and announcements shifting to social media. The investment is cheap and the return is great. In my opinion, It could be hard to calculate the gain from investment in social media because it is something either the organization hits the mark or they absolutely miss.

    -Sukshan S

    • WANG, Rick says:

      I am agree with your opinion. Social media gain is difficult to calculation because it depend on time of investment and changes in the market. Do some market surveys and grasp more definite information, as a result, corporations may have a correct investment policy.

  5. Karen E says:

    Hi Rick,
    The 3 examples you provide clearly show how an organisation can benefit from social media. All the 3 examples provided clear metrics on their ROI: x dollars saved, x dollars gained, x number of new followers, etc. In order to be successful, it is important to define a way to measure ROI.

    • WANG, Rick says:

      Hi Karen,
      I think if corporations can do some market surveys before investment, they may have more accurate policies. As a result, the company will have successful return on investment.

  6. chunweiin346 says:

    In my opinion, it is difficult to measure how acquire high ROI with social media but as you mentioned above in this post that three potential benefits there are engaged companies with employees their relationships and it also enhances working performance

    • WANG, Rick says:

      I agree with you. High return on investment also accompany high risks. Therefore, corporations should need to evaluate interest and risks, consequently, they may effectively reduce unnecessary risks.

  7. Amazing! This blog looks exactly like my old one!

    It’s on a completely different topic but it has pretty much the same page layout and design. Excellent choice of colors!

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