“Most businesses have accepted the marketing value of social media without any real proof points,” said Larry Freed, president and CEO of ForeSee Results.
“We haven’t had a way to calculate a tangible return on investment for social media efforts, not to mention other marketing initiatives. Now we can,” he said.
ForeSee Results uses a scientific methodology created at the University of Michigan to measure customer satisfaction and assess its impact on future behaviours.
Using this proprietary methodology, ForeSee Results has created a way to link influences on customer visits to a website, store or call center with what they actually spend.
The resulting “Social Media Value Calculation” helps businesses understand how much revenue is being influenced by social media versus traditional advertising, marketing emails, brand awareness and other factors.
“Countless organizations are working desperately to understand the effects of their social media activities, but most take a myopic view of their social efforts at the campaign or channel level,” said John Lovett, senior partner at Web Analytics Demystified, an international web analytics consulting and strategy firm.
“It gives companies a comparative view of performance that enables them to quantify the value of social media,” he said of the Social Media Value Calculation.
Using the voice of customer methodology already provided by ForeSee Results surveys, companies can find out what influenced a customer’s visit to their store, branch, website, or call center and link it to behavioural data tracking how much that customer did or didn’t spend.
While promotional emails have been neglected in favour of social media, emails are still influencing 32% of purchases for some companies, said ForeSee.
Other companies are seeing social media as a primary influencer of 5-6% of all revenue with a relatively modest investment.
“The Social Media Value Calculator tells our clients what is influencing their customers’ visits, how much those customers spend, and which marketing efforts are having the greatest return on investment,” added Freed.
Read more about the Social Media Value Calculation on the ForeSee Results page.
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